Energy Transportation Systems, Inc. v. Kansas City Southern Railway Co.

1981 OK 159, 638 P.2d 459, 1981 Okla. LEXIS 321, 1981 WL 610456
CourtSupreme Court of Oklahoma
DecidedDecember 22, 1981
DocketNos. 52680, 52681
StatusPublished
Cited by1 cases

This text of 1981 OK 159 (Energy Transportation Systems, Inc. v. Kansas City Southern Railway Co.) 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
Energy Transportation Systems, Inc. v. Kansas City Southern Railway Co., 1981 OK 159, 638 P.2d 459, 1981 Okla. LEXIS 321, 1981 WL 610456 (Okla. 1981).

Opinion

LAVENDER, Justice:

This is an action for declaratory judgment determining the right of the owner of a right-of-way easement in lands lying beneath a railroad right-of-way to cross under the railroad right-of-way in constructing and maintaining a coal slurry pipeline within the confines of the right-of-way beneath the railroad right-of-way, and to quiet title in said coal slurry pipeline right-of-way as against the railroad.

Kansas City Southern Railway Company filed two appeals, being Nos. 52,680 and 52,-681 in which Fort Smith and Van Burén Railway Company was joined in case No. 52.680. Because of the similarity in the facts and because the issues in each case are identical, our holdings in cause 52,680 apply equally to and are determinative of cause 52.681.

Appellants, Kansas City Southern Railway Company and Fort Smith and Van Burén Railway Company, defendants below, will be referred to as Railroad, and Appel-lee, plaintiff below, will be referred to as ETSI.

ETSI contemplates the building of a 1,036 mile subsurfaced coal slurry pipeline from Wyoming into Oklahoma. Railroad’s predecessor acquired a railway right-of-way across specified portions of Oklahoma lands pursuant to Acts of Congress of February 27,1893 (27 Stat. 487) and April 26,1906 (34 Stat. 137). The land in question lies in LeFlore County, Oklahoma and was a part of the Choctaw Nation in Indian Territory prior to statehood.

ETSI’s slurry pipeline right-of-way laterally intersects Railroad’s right-of-way though the rights therein granted lie below the railroad right-of-way, and were acquired by ETSI through slurry pipeline right-of-way grants from the successors in interest of what was the fee at the time Railroad exercised its right to its railroad right-of-way from the Choctaw Nation by reason of the foregoing Acts of Congress.

Other than qualifying to do business in the State of Oklahoma and the acquisition of its rights-of-way, ETSI has taken no further steps required by law to enable it to go forward with its contemplated plans to construct the coal slurry pipeline.

The issue which ETSI seeks to have determined by declaratory judgment is confined to the single question of whether the "rights acquired by it under its slurry pipeline easements give it the right to construct a coal slurry pipeline across, but under, the easement held by the Railroad in the lands for railroad purposes.

The facts of the case are undisputed. The court below granted a motion for summary judgment in favor of ETSI confirming its right to construct and maintain a coal slurry pipeline within its easements to the extent that ETSI’s right, title and interest does not interfere with the construction, maintenance and operation of the railroad of Appellant. It is from this ruling that Railroad appeals.

[461]*461Railroad first contends that sole and exclusive jurisdiction is vested in the Oklahoma Corporation Commission, and therefore the district court was without jurisdiction to hear and determine the cause. In support, Railroad cites 27 O.S.1977, § 7.1, et seq.,1 and the Oklahoma Constitution, Art. 9, § 18,2 § 34.3

District courts are courts of unlimited original jurisdiction, clothed with power and jurisdiction to determine title to real property.4 On the other hand, the Oklahoma Corporation Commission is a tribunal of limited jurisdiction.5 It has executive, judicial, and legislative powers, but such powers are limited to those expressly or by necessary implication conferred upon it by the constitution and statutes.6

Having qualified to do business in this state as a foreign corporation, and having acquired its rights-of-way by purchase as a corporation, ETSI occupies the same status as any other qualified entity to try title to its rights-of-way as against any adverse claimant. The word “proposing” as used in 27 O.S.1977, § 7.1 contemplates something more than a subjective contemplation, and a mere inchoate intent to qualify under the laws of Oklahoma to operate a coal slurry pipeline without having done anything more in furtherance of its plans does not require it to obtain a license from the Oklahoma Corporation Commission to operate as a pipeline as a prerequisite to bringing an action to try title to its rights-of-way. And not having committed any act as a pipeline, or to qualify as a pipeline, or transportation company within the meaning of 27 O.S. 1977, § 7.8, or the Oklahoma Constitution, Art. 9, § 18, or § 34, it has not yet subjected itself to the jurisdictional control of the Oklahoma Corporation Commission.

By the clear language of 27 O.S.1977, § 7.3, only the acquisition of rights-of-way through eminent domain invoke the requirements therein set forth.

In short, since nothing in the Oklahoma Constitution or statutes confers exclusive jurisdiction upon the Oklahoma Corporation Commission to determine or control ETSI’s [462]*462action to try title to its rights-of-way, jurisdiction to do so lay within the district court.7

Railroad next asserts that the district court erred in granting ETSI’s motion for summary judgment under Rule 13 of the Rules for District Courts of Oklahoma because there are unresolved issues of fact which are necessary to the rendition of judgment, to-wit: the location of the exact route of the coal slurry pipeline, the diameter and size of the pipeline, the number of coal slurry pipelines, “and other relevant details of the construction of said pipeline.” We hold, however, such matters were wholly extraneous to the issues which were before the court below for determination. ETSI sought only to determine whether its rights-of-way acquired by purchase entitled it to construct and maintain a coal slurry pipeline thereon so long as it did not interfere with Railroad’s use of its right-of-way for railroad purposes and to quiet title in its rights-of-way as against any adverse claim thereto by Railroad. So long as ETSI’s pipeline will lie within its rights-of-way and so long as the pipeline does not interfere with Railroad’s use of its railroad right-of-way, the unresolved issues suggested by Railroad are irrelevant as is the matter of possible future damages which might be sustained by Railroad in the event that ETSI violates the order and judgment rendered by the district court. Summary judgment should be granted where the facts set forth in detail show no substantial contro-; versy as to any material fact.8

Next, Railroad asserts that the court below erred in holding that this action is maintainable under the Oklahoma Declaratory Judgments Act, 12 O.S.1971, § 1651, et seq., as amended by Laws 1974, c. 134, § 1, because the actual construction and operation by ETSI of its slurry pipeline under Railroad’s right-of-way might result in future damages to Railroad which cannot be determined in the present action, citing § 1651 of the Oklahoma Declaratory Judgments Act in support of its contention.9

A declaratory judgment action may be properly brought to determine the right to an easement, and to adjudicate title to the same.10

That portion of § 1651 of the Oklahoma Declaratory Judgments Act which states “a court may

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Bluebook (online)
1981 OK 159, 638 P.2d 459, 1981 Okla. LEXIS 321, 1981 WL 610456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/energy-transportation-systems-inc-v-kansas-city-southern-railway-co-okla-1981.