DuLaney v. Oklahoma State Department of Health

1993 OK 113, 868 P.2d 676, 64 O.B.A.J. 2845, 127 Oil & Gas Rep. 86, 1993 Okla. LEXIS 134
CourtSupreme Court of Oklahoma
DecidedSeptember 21, 1993
Docket70498, 70524
StatusPublished
Cited by73 cases

This text of 1993 OK 113 (DuLaney v. Oklahoma State Department of Health) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DuLaney v. Oklahoma State Department of Health, 1993 OK 113, 868 P.2d 676, 64 O.B.A.J. 2845, 127 Oil & Gas Rep. 86, 1993 Okla. LEXIS 134 (Okla. 1993).

Opinions

KAUGER, Justice.

The single issue presented is whether, when a party applies for a permit-to [678]*678operate a solid waste disposal site pursuant to 63 O.S.Supp.1983 § 2258.2,1 adjacent landowners and mineral interest owners are entitled to notice and an opportunity to be heard.2 We find that adjacent landowners and mineral interest owners are entitled to notice and an opportunity to be heard in an individual proceeding conducted pursuant to 75 O.S.1981 § 3093 before a landfill permit issues. The Legislature effectively obliterated Stewart v. Rood, 796 P.2d 321, 333-335 (Okla.1990) and Sharp v. 251st St. Landfill, 810 P.2d 1270, 1273 (Okla.1991) with the enactment of 63 O.S.1991 § 1-2415. However, because the instant cause arose before the effective date of the amendment, Stewart and Sharp are hereby overruled to the extent that they hold that adjacent landowners have [679]*679no constitutionally protected interest sufficient to require notice and an opportunity to be heard before a landfill permit will issue.

RELEVANT FACTS

This action arises from the issuance of a landfill permit by the appellants, Oklahoma State Department of Health (Department of Health) and the Oklahoma State Board of Health (Board of Health) to the appellant, Six-Hart Services and Resources, Inc. (Six-Hart). The Department of Health issued a permit to Six-Hart after turning down the appellees’, collectively referred to as the adjacent landowners’ (C. Sue DuLaney, Elizabeth A. Harris, Citizens Against Land Misuse, Inc., and Rodger Most) and the mineral interest owners’ (Alta MeSpadden, trustee of the M.R. MeSpadden Trust), request for an evidentiary hearing.

In June, 1987, the adjacent landowners and the mineral interest owners filed an action in district court against the Department of Health, the Board of Health, and Six-Hart. The action was brought pursuant to the declaratory judgment provision of the Oklahoma Administrative Procedures Act (Administrative Procedures Act), 75 O.S.Supp.1987 § 306.4 The adjacent landowners and mineral interest owners sought a judgment declaring rules promulgated by the Board of Health and administered by the Department of Health invalid. The challenged rules were promulgated and passed under the authority of the Oklahoma Solid Waste Management Act (Solid Waste Management Act), 63 O.S.1981 § 2251 et seq. The rules were challenged for their failure to include a trial-type hearing — individual proceeding — pursuant to 75 O.S.1981 § 309 prior to the issuance of a landfill permit.

All parties moved for summary judgment. In ruling for the adjacent landowners and for the mineral interest owners on their motion for summary judgment, the trial court found that the permit process was invalid. The finding was based on the failure of the Board of Health rules to identify the proper parties to contest the granting of a landfill permit in an individual proceeding conducted under the Administrative Procedures Act. The appeals of Six-Hart and the Department of Health have been consolidated for joint resolution. We note that the statute in effect at the time the challenge was lodged, 63 O.S.Supp.1983 § 2258.2,5 did not provide for an individual proceeding to challenge the permit’s issuance. The Legislature effectively obliterated Stewart v. Rood, 796 P.2d 321, 333-335 (Okla.1990) and Sharp v. 251st St. Landfill, 810 P.2d 1270, 1273 (Okla.1991) with the enactment of 63 O.S.1991 § 1-2415. The current statutory scheme specifically provides for a proceeding to be conducted pursuant to the Administrative Procedures Act in all proceedings begun after September 1, 1990.6

ADJACENT LANDOWNERS AND MINERAL INTEREST OWNERS ARE ENTITLED TO NOTICE AND AN OPPORTUNITY TO BE HEARD IN AN INDIVIDUAL PROCEEDING CONDUCTED PURSUANT TO 75 O.S. 1981 § 309 BEFORE A LANDFILL PERMIT ISSUES.

The adjacent landowners and the mineral interest owners assert that their property [680]*680interests will be adversely affected by the issuance of a landfill permit to Six-Hart. The landowners present arguments based upon potential air pollution, odor, traffic and safety problems, groundwater pollution — including groundwater used by them and underlying their property — , and property devaluations. Their claims are also premised on a concern for the decline of the area’s general aesthetics and environment. The royalty interest owners argue that issuance of the permit will interfere with the oil and gas rights owned directly under the proposed site and in the nearby property. Based upon the potential for interference with these property-oriented rights, the adjacent landowners and the royalty interest owners insist that they are entitled to notice and an opportunity to be heard through an individual proceeding conducted pursuant to 75 O.S.1981 § 3097 before a landfill permit issues.

The Department of Health and Six-Hart argue that neither a statutory nor a constitutional basis exists to support the holding of a due process individual proceeding. They rely upon Stewart v. Rood, 796 P.2d 321, 333-335 (Okla.1990) in which a sharply divided Court held that adjacent landowners have no constitutionally protected interest sufficient to require notice and an opportunity to be heard before a landfill permit will issue. We disagree and hereby overrule Stewart v. Rood, 796 P.2d 321, 333-335 (Okla.1990) and Sharp v. 251st St. Landfill, 810 P.2d 1270, 1273 (Okla.1991) to the extent that they hold that adjacent landowners have no constitutionally protected interest sufficient to require notice and an opportunity to be heard before a landfill permit will issue.

A.

MINERAL INTEREST OWNERS’ RIGHT TO NOTICE AND AN OPPORTUNITY TO BE HEARD.

The permit granted by the Department of Health to Six-Hart pursuant to the Solid Waste Management Act authorized the use of 125 acres of land for a solid waste landfill. The mineral interest owners hold the oil and gas rights underlying the proposed landfill site.

The right to enter land to prospect for and to take oil and gas is an ownership right.8 Mineral interest owners and lessees are entitled to conduct exploration. The authority to explore for oil and gas extends to the mineral interest owner’s lessee. The right includes surface ingress and egress and the authority to occupy the surface to the extent reasonably necessary for exploring and marketing the oil and gas.9 The interest is in the nature of a property right,10 and the surface estate is servient to the dominant mineral estate for the purpose of oil and gas development.11

Minimum standards of due process require that administrative proceedings, which may directly and adversely affect legally protected interests, be preceded by notice calculated to provide knowledge of the exercise of adjudicative power and an opportunity to be heard.12 A petroleum engineer testified that use of the surface as a landfill would create numerous problems for oil and gas exploration, development and recovery. The engineer enumerated a number of factors as potential problems.

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Cite This Page — Counsel Stack

Bluebook (online)
1993 OK 113, 868 P.2d 676, 64 O.B.A.J. 2845, 127 Oil & Gas Rep. 86, 1993 Okla. LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dulaney-v-oklahoma-state-department-of-health-okla-1993.