Commission Ex Rel. Public Service Commission v. Southern West Virginia Oil & Gas Corp.

91 S.E.2d 737, 141 W. Va. 551, 1956 W. Va. LEXIS 11
CourtWest Virginia Supreme Court
DecidedMarch 6, 1956
Docket10788
StatusPublished
Cited by5 cases

This text of 91 S.E.2d 737 (Commission Ex Rel. Public Service Commission v. Southern West Virginia Oil & Gas Corp.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commission Ex Rel. Public Service Commission v. Southern West Virginia Oil & Gas Corp., 91 S.E.2d 737, 141 W. Va. 551, 1956 W. Va. LEXIS 11 (W. Va. 1956).

Opinions

[552]*552Browning, President:

Relator, the Public Service Commission of West Virginia, seeks a writ of mandamus directing the defendants, Southern West Virginia Oil & Gas Corporation, hereinafter referred to as Southern, and the Star Gas Company, hereinafter referred to as Star, to comply with an order of the Commission, dated October 6, 1955, which order, after requiring the Wayne Gas Company to construct a 4" gas line from its distribution system to a point near Wells Nos. 23 & 24 of Southern, stated: “It is further ordered that the Southern West Virginia Oil & Gas Corporation be, and it hereby is, required to connect its production system and said gas line at the above described point or points near Wells Nos. 23 and/or 24, and set meters at said connection in order to deliver gas to meet the requirements of the Wayne Gas Company, and further to furnish said Wayne Gas Company with its gas requirements, all to be done within ten days after the aforesaid notice of completion of construction is received from the Wayne Gas Company.”

The allegations of the petition are substantially as follows: Southern, until 1939, was the sole owner of partially developed leaseholds aggregating some 8,000 acres, and produced natural gas therefrom, some of which was sold to the United Fuel Gas Company, and some of which it supplied to customers in and about the Town of Wayne, West Virginia, through its own distribution system.

In 1939, the Wayne Gas Company was formed, and Wayne and Southern jointly applied to the Commission for its approval of a transfer of Southern’s distribution system to Wayne. The Commission, by order of June 30, 1939, refused to approve such transfer. A rehearing was sought and granted, and, upon representations by the parties that a contract would be consummated whereby the rights of Wayne to receive gas from Southern would be made superior to all other demands on Southern, the Commission, by order of July 27, 1939, [553]*553gave its consent and approval to the transfer, the order reading in part: “* * * The Commission in giving its consent and approval to said sale and purchase does not pass upon nor approve the terms and conditions thereof, except in so far as the agreement proposed to be entered into between the petitioners, filed herewith as Exhibit No. 3, obligates the Southern West Virginia Oil and Gas Corporation to deliver to The Wayne Gas Company a sufficient supply of natural gas to meet the requirements of the Wayne Gas Company; * * *; [Southern], in accordance with Exhibit No. 3 herein, agrees that its obligation to furnish gas to said The Wayne Gas Company shall be superior to all other obligations * *

After the .rehearing, but prior to the formal order of July 27, 1939, Southern conveyed its distribution system to Wayne by deed dated July 18, 1939, and by deed, dated July 24, 1939, conveyed an undivided two-thirds of its holdings to the Mullins Gas Company, and also by an instrument, dated July 24, 1939, constituted the Mullins Gas Company as agent of Southern with full power of management over Southern’s remaining one-third interest. By mesne transactions, the respondent Star, in 1947, succeeded to the proprietary rights of Mullins and its authority as agent of Southern.

In November, 1953, Wayne filed a complaint with the Commission against Southern and Star, and the Commission found on October 25, 1954, that the supply of gas to Wayne had been insufficient to meet its requirements, but that Wayne’s facilities were also inadequate, and ordered all parties to formulate plans to correct the situation. Star sought an appeal from this order which was refused by this Court on February 14, 1955. Subsequently, the Commission’s order of October 6, 1955, was entered. The petition then alleges the failure of respondents to comply with its order, after proper notice, and prays for a peremptory writ of mandamus.

This Court granted a rule to show cause why the writ should not issue as prayed for on December 2, 1955, re[554]*554turnable December 9, 1955. The respondent, Southern, answered stating that the petition affirmatively shows that since 1947 Star has owned a 2/3 undivided interest in the leasehold, and, under the law of mining partnerships, exercises full control, therefore, to award the writ as to Southern would be to order Southern to do and perform acts which are wholly beyond its power and authority.

The respondent Star demurred on the grounds that: The order of October 6, 1955, was directed to Southern and not to Star, or its successor the Lynn Gas Company, and is, therefore, void as to Star, or its successor; the Commission is without jurisdiction to make or enforce an order against Star which is not a public utility or in anywise engaged in a public service; and, the petition fails to show a clear legal right to relief against Star. Star then, though relying upon its demurrer, answered, averring that: The transfer from Southern to Mullins was proper and legal, was a matter over which the Commission could have no jurisdiction, and that jurisdiction could not be acquired by consent, acquiesence or agreement; the conditions in the order of July 29, 1939, can in no event be binding upon Star as such conditions were in excess of the jurisdiction of the Commission, and particularly in view of the fact that Star was a bona fide purchaser for value without notice of such conditions; Star, on November 1, 1954, sold its interests in the leasehold to Lynn Gas Company, who, in turn, is a bona fide purchaser for value without notice; sufficient gas is produced from the leasehold to supply the requirements of Wayne, and such gas has been supplied even though Wayne has been in default in paying for such gas and continues to be in default; and, subsequent to Lynn’s serving notice upon Wayne that service would be discontinued by reason of such default, Wayne obtained a temporary restraining order against Southern, Star and Lynn, which suit is now pending, and, therefore, any action by this Court in the instant proceeding would be premature.

[555]*555Relator demurred to the separate answers of Star and Southern. The parties, considering that there was no material question of fact in dispute, presented the matter upon the pleadings, with the exception of a stipulation by which the evidence taken before the Public Service Commission in Cases Nos. 2684 and 4013 was made a part of the record in this proceeding.

The relator relies upon the provisions of Chapter 24, Article 2, Section 12 of the Code, as amended, for authority to approve or disapprove the transfer by Southern of its public utility franchise and properties to Wayne and Lynn, and to impose the condition contained therein. That section provides for such consent and states that: “* * * if the public will be convenienced thereby, enter such order as it may deem proper and as the circumstances may require, attaching thereto such conditions as it may deem proper, consent to the entering into or doing of the things herein provided, without approving the terms and conditions thereof, and thereupon it shall be lawful to do the things provided for in such order.”

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

Related

State Ex Rel. Raese v. Battle
143 S.E.2d 328 (West Virginia Supreme Court, 1965)
Wayne Gas Co. v. Southern W. Va. Oil & Gas Corp.
137 S.E.2d 219 (West Virginia Supreme Court, 1964)
BOARD OF TRUSTEES, ETC. v. City of Huntington
96 S.E.2d 225 (West Virginia Supreme Court, 1957)
Board of Trustees of Policemen's Pension v. City of Huntington
96 S.E.2d 225 (West Virginia Supreme Court, 1956)

Cite This Page — Counsel Stack

Bluebook (online)
91 S.E.2d 737, 141 W. Va. 551, 1956 W. Va. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commission-ex-rel-public-service-commission-v-southern-west-virginia-oil-wva-1956.