Coleman v. Railroad Commission

445 S.W.2d 790, 34 Oil & Gas Rep. 439, 1969 Tex. App. LEXIS 2538
CourtCourt of Appeals of Texas
DecidedAugust 26, 1969
Docket7944
StatusPublished
Cited by7 cases

This text of 445 S.W.2d 790 (Coleman v. Railroad Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coleman v. Railroad Commission, 445 S.W.2d 790, 34 Oil & Gas Rep. 439, 1969 Tex. App. LEXIS 2538 (Tex. Ct. App. 1969).

Opinion

CHADICK, Chief Justice.

This is a permanent injunction suit filed in a district court of Bowie County by Thomas M. Coleman as plaintiff. The Railroad Commission of Texas and its members, together with Hugh Ray Ashford, are named as defendants. The action is designed to test the validity of an order of the Railroad Commission pooling all un-pooled mineral interests underlying the 80-acre proration unit previously formed by the Commission in the one well Simms (4946’ Mooringsport) Field in Bowie County , Texas. The judgment of the trial court denying Coleman relief is reversed and the case remanded for new trial.

In March, 1955, Coleman leased his one-half undivided interest in the minerals of a 240 acre tract for oil, gas and mineral purposes to R. I. Boyd. Thereafter in July, 1962, Coleman divided the fee ownership of the land in the leased tract by deeding the Veterans’ Land Board of the State of Texas 182.66 acres thereof (together with enough other land to form a 200 acre block); in turn, the Veterans’ Land Board conveyed the 200 acres to Ashford. An as-signee of the lease drilled a productive oil well on the leased land. The well site was on that part of the 240 acre leased tract retained by and belonging to Coleman. An order of the Railroad Commission forming an 80-acre proration unit made up of 35.25 surface acres belonging to Coleman and 44.75 surface acres belonging to Ashford was secured by the well operator.

After purchase, Ashford received delay rentals accruing under the Coleman to Boyd oil, gas and mineral lease on the 182.66 acres as rentals fell due prior to production. After production neither rentals nor a portion of production or its value were paid to Ashford. In February of 1966, Ash-ford petitioned the Railroad Commission of Texas to exercise the power vested in it under the terms of the Mineral Interest Pooling Act, Tex.Rev.Civ.Stat. art. 6008c (1968), and make an order pooling his royalty acreage in the production unit with that of Coleman. The application was granted, and Order No. 6-56,271 was issued by the Commission approving Ashford’s offer to Coleman that the royalty derived from the 80-acre proration unit and theretofore paid to Coleman be apportioned 45% to Coleman and 55% to Ashford. The basis of the apportionment was the ratio of surface acreage each owed to total acreage in the proration unit, rounded off to the nearest percentage point.

The appellant has briefed the following points of error:

“Point of Error One. The trial court erred in holding that Article 6008c, V.A. C.S., is applicable and available to one in the position of defendant Ashford in a proceeding of the nature of that involved in this litigation.
“Point of Error Two. The trial court erred in failing to conclude that Article *792 6008c, V.A.C.S., does not authorize the granting of the relief afforded defendant Ashford by the Railroad Commission of Texas.
"Point of Error Three. The trial court erred in failing to hold that Article 6008c, as applied herein, violates Article I, Section 16 of the Constitution of the State of Texas.
“Point of Error Four. The trial court erred in failing to hold that Article 6008c, as applied herein violates Article I, Section 19 of the Constitution of the State of Texas.
“Point of Error Five. The trial court erred in failing to hold that Article 6008c, as applied herein, violates Section 10 of Article I and Section 1 of the 14th Amendment of the Constitution of the United States of America.
“Point of Error Six. The trial court erred in failing to hold that Article 6008c, as applied herein violates Article II, Section 1 and Article V, Section 1 of the Constitution of the State of Texas.
“Point of Error Seven. The trial court erred in failing and refusing to hold that the Railroad Commission of Texas never acquired jurisdiction of the subject matter of the administrative hearing involved herein because notice of such hearing was not given in the manner provided by Article 6008c, V.A.C.S.
“Point of Error Eight. The trial court erred in failing and refusing to hold that the order involved herein is void and of no force or effect because notice of the hearing involved herein was not given in the manner provided by Article 6008c, V.A.C.S.
“Point of Error Nine. The trial court erred in failing to find that notice of the administrative hearing involved herein was not given by the Railroad Commission of Texas to all owners of mineral interests in the unit involved in these proceedings.
“Point of Error Ten. The trial court erred in failing and refusing to hold that the statutory provisions pertaining to notice and the methods and procedures promulgated by the Railroad Commission of Texas, and allegedly followed by it, in giving notice of the administrative hearing involved herein, are unreasonable as a matter of law as to plaintiff (appellant) and denied him due process of law.
“Point of Error Eleven. The trial court erred in denying plaintiff’s demand for a jury and in holding that this case must be tried without a jury under the substantial evidence rule.
“Point of Error Twelve. The trial court erred in finding that plaintiff was given notice of the hearing involved herein by the Railroad Commission of Texas as required by Article 6008c, V.A.C.S.
“Point of Error Thirteen. The trial court erred in failing to find that plaintiff did not receive notice from the Railroad Commission of Texas of the hearing involved herein.
“Point of Error Fourteen. The trial court erred in failing to find that plaintiff had no actual notice of the hearing involved herein, prior to the date of said hearing.
“Point of Error Fifteen. The trial court erred in failing to find that the offer to pool made by defendant Ashford to plaintiff was not on such terms and conditions as were fair and reasonable and which would afford the owners of each interest in the unit to receive his fair share.
“Point of Error Sixteen. The trial court erred in holding that Railroad Commission Special Order No. 6-56,271, dated August 29, 1966, is a lawful and valid order and is supported by substantial evidence.
“Point of Error Seventeen. The trial court erred in failing and refusing to conclude that the finding of the Railroad *793 Commission of Texas that the offer to pool made by defendant Ashford to plaintiff was on such terms and conditions as were fair and reasonable and which would afford the owners of each interest in the unit the opportunity to receive his fair share is not reasonably supported by substantial evidence.
“Point of Error Eighteen.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Warterfield, Robert Tracy
Court of Appeals of Texas, 2015
Carson v. Railroad Com'n of Texas
669 S.W.2d 315 (Texas Supreme Court, 1984)
Board of Trustees of Crystal City Independent School District v. Briggs
486 S.W.2d 829 (Court of Appeals of Texas, 1972)
Trimble v. Texas State Board of Registration for Professional Engineers
483 S.W.2d 275 (Court of Appeals of Texas, 1972)
Northwest Oil Company v. Railroad Commission
462 S.W.2d 371 (Court of Appeals of Texas, 1971)
Railroad Commission of Texas v. Coleman
460 S.W.2d 404 (Texas Supreme Court, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
445 S.W.2d 790, 34 Oil & Gas Rep. 439, 1969 Tex. App. LEXIS 2538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coleman-v-railroad-commission-texapp-1969.