Columbia Gas Transmission Corp. v. Ogle

51 F. Supp. 2d 866, 1997 U.S. Dist. LEXIS 23455, 1997 WL 1110523
District Court, S.D. Ohio·Decided July 9, 1997·No. C2-96-839·Published·Cited by 14 cases

Opinion

MEMORANDUM OPINION AND ORDER

GRAHAM, District Judge.

Plaintiff Columbia Gas Transmission Corporation (“Columbia Gas”) commenced this action on August 23, 1996 seeking damages for breach of contract and declaration of its rights under an oil, gas and storage lease executed by the parties on June 24, 1976. Plaintiff contends that the lease grants it the right to enter defendants’ property to conduct feasibility studies in preparation for the drilling of gas storage wells and then, if desirable, to drill such wells. Defendants Donna and Charles Ogle deny that plaintiff possesses the right to drill more than one gas storage well on their property. Although defendants admit that the original lease did give plaintiff the right to test for and drill additional wells, they claim that the terms of that lease were modified in 1978 by a right-of-way agreement. Defendants also assert a counterclaim against plaintiff for fraud in the inducement of the right-of-way agreement, claiming that plaintiffs agent misrepresented to them that only one well would be installed on defendants’ property.

The matter is now before the court on plaintiffs motion for summary judgment *869 on all claims and counterclaims pursuant to Federal Rule of Civil Procedure 56.

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Under Fed.R.Civ.P. 56(c), summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” See LaPointe v. United Autoworkers Local 600, 8 F.3d 376, 378 (6th Cir.1993); Osborn v. Ashland County Bd. of Alcohol, Drug Addiction and Mental Health Servs., 979 F.2d 1131, 1133 (6th Cir.1992) (per curiam). The party that moves for summary judgment has the burden of showing that there are no genuine issues of material fact in the case at issue, LaPointe, 8 F.3d at 378, which may be accomplished by pointing out to the court that the nonmoving party lacks evidence to support an essential element of its case. Barnhart v. Pickrel, Schaeffer & Ebeling Co., 12 F.3d 1382, 1389 (6th Cir.1993). In response, the nonmoving party must present “significant probative evidence” to demonstrate that “there is [more than] some metaphysical doubt as to the material facts.” Moore v. Philip Morris Cos., 8 F.3d 335, 339-40 (6th Cir.1993). “[T]he mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). See generally Booker v. Brown & Williamson Tobacco Co., 879 F.2d 1304, 1310 (6th Cir.1989).

In reviewing a motion for summary judgment, “this Court must determine whether ‘the evidence presents a sufficient disagreement to require submission to' a jury or whether it is so one-sided that one-party must prevail as a matter of law.’ ” Patton v. Bearden, 8 F.3d 343, 346 (6th Cir.1993) (quoting Anderson, 477 U.S. at 251-53, 106 S.Ct. 2505). The evidence, all facts, and any inferences that may permissibly be drawn from the facts must be viewed in the light -most favorable to the nonmoving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); see Eastman Kodak Co. v. Image Technical Servs., Inc., 504 U.S. 451, 112 S.Ct. 2072, 119 L.Ed.2d 265 (1992). However, “[t]he mere existence of a scintilla of evidence in support of the plaintiffs position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff.” Anderson, 477 U.S. at 252, 106 S.Ct. 2505; see Gregory v. Hunt, 24 F.3d 781, 784 (6th Cir.1994). Finally, a district court considering a motion for summary judgment may not weigh evidence or make credibility determinations. Adams v. Metiva, 31 F.3d 375, 378 (6th Cir.1994).

II.

Charles and‘Donna Ogle own approximately eighty-two acres of land in Hocking County, Ohio. The land is used primarily as pasture to raise 'cattle. On June 24, 1976, the Ogles executed a lease agreement granting Columbia Gas the exclusive right to enter the property and drill for, store, produce and market oil and gas. (See Oil, Gas & Storage Lease, attachment to Motion for Summary Judgment). Under the lease, Columbia Gas is entitled to conduct geophysical tests on the Ogles’ land for the purpose of ascertaining the desirability of drilling additional wells. Id. Further, it is uncontroverted that under the lease, Columbia is not limited in the number of wells it may drill and maintain on defendants’ property:

Lessee ... shall pay for each gas well or storage well upon the premises from the time and while gas is being marketed, injected, stored or removed therefrom an annual rental of Two Hundred Dol- • lars[.]

Id. (emphasis added). Columbia Gas provides free gas to service the defendants’ *870 home and, in addition, has paid them $200 each year since 1976 for the rights granted by the lease. In further compensation, one provision of the lease states that the “Lessee shall deliver to the Lessor in tanks or pipe lines one-eighth ... of the oil produced and saved from the premises[.]” Id.

Columbia Gas attempted to drill its first well under the terms of the lease in the spring of 1978. At that time, Mr. Ogle refused to allow plaintiff to enter his property for that purpose, in spite of the terms of the lease. Mr. Ogle informed plaintiff that it could not drill a well unless it also installed a pipeline across his property.

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Columbia Gas Transmission Corp. v. Ogle, 51 F. Supp. 2d 866, 1997 U.S. Dist. LEXIS 23455, 1997 WL 1110523 (S.D. Ohio 1997).

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