FPL Farming Ltd. v. Environmental Processing Systems, L.C.

383 S.W.3d 274, 178 Oil & Gas Rep. 510, 2012 WL 4017388, 2012 Tex. App. LEXIS 7769
CourtCourt of Appeals of Texas
DecidedSeptember 13, 2012
DocketNo. 09-08-00083-CV
StatusPublished
Cited by4 cases

This text of 383 S.W.3d 274 (FPL Farming Ltd. v. Environmental Processing Systems, L.C.) 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
FPL Farming Ltd. v. Environmental Processing Systems, L.C., 383 S.W.3d 274, 178 Oil & Gas Rep. 510, 2012 WL 4017388, 2012 Tex. App. LEXIS 7769 (Tex. Ct. App. 2012).

Opinion

OPINION

HOLLIS HORTON, Justice.

Following the jury trial of a trespass case, the trial court rendered judgment on the jury’s verdict for the defendant, Environmental Processing Systems, L.C., (EPS). The plaintiff, FPL Farming Ltd. (FPL) claimed that EPS trespassed onto its property by causing subsurface waste-water to migrate into the subterranean level of FPL’s tracts, which are located next to a tract on which EPS operates a non-hazardous waste injection well. The jury failed to find that a trespass had occurred. Because we conclude the [278]*278charge given to the jury improperly placed the burden of proving EPS’s affirmative defense of consent on FPL, we reverse the trial court’s judgment and remand the case for a new trial on the trespass claim.

I. Background

A. Permit History before the Texas Natural Resource Conservation Commission

EPS operates a non-hazardous wastewa-ter disposal facility in Liberty County, Texas, pursuant to permit number WDE-316. EPS’s operations are subject to permits that it received from the Texas Natural Resource Conservation Commission (TNRCC).1 Prior to the date that EPS received its initial permit, the State scheduled a hearing to address EPS’s request for a permit for its well. J.M. Frost III, FPL’s predecessor in title to the tracts at issue when the initial permit hearing occurred, objected to EPS’s application. Before the hearing occurred, Frost withdrew his objections; in return, EPS paid him $185,000.

Approximately four and one-half years after EPS received its initial operating permit, the State altered certain restrictions governing EPS’s operations, significantly increasing both the rate and volumes allowed by the initial permit. Although FPL contested EPS’s proposal to change its permit, the requested changes were approved. Although FPL appealed that decision, the Austin Court of Appeals determined that the amendments would not impair FPL’s existing rights, reasoning that “[t]he amended permits do not impair FPL Farming’s existing or intended use of the deep subsurface.” FPL Farming Ltd. v. Tex. Natural Res. Conservation Comm’n, No. 03-02-00477-CV, 2003 WL 247183, at *4 (Tex.App.-Austin Feb. 6, 2003, pet. denied) (mem. op.). Nevertheless, the Austin Court of Appeals expressly left open the question of whether FPL could recover damages in the event the well’s waste plume entered below the surface of FPL’s property, noting: “[Sjhould the waste plume migrate to the subsurface of FPL Farming’s property and cause harm, FPL Farming may seek damages from EPS.” Id. at *5 (citing Tex. Water Code Ann. § 27.104 (West 2000)).2

Approximately five years later, FPL sued EPS, alleging that the waste plume had migrated beneath its property, and claiming that the waste plume polluted the briny water found there.

B. Trial and Appeal

After a four day trial, the jury rejected the three claims the trial court submitted, declining to find that EPS was negligent, that EPS had trespassed, or that EPS was unjustly enriched. Based on the jury’s findings, the trial court rendered a judgment in EPS’s favor.

On original submission, we affirmed the trial court’s judgment. FPL Farming Ltd. v. Envtl. Processing Sys., L.C., 305 S.W.3d 739, 744-46 (Tex.App.-Beaumont 2009), rev’d, 351 S.W.3d 306 (Tex.2011). Regarding FPL’s trespass claim, we held [279]*279that “under the common law, when a state agency has authorized deep subsurface injections, no trespass occurs when fluids that were injected at deep levels are then alleged to have later migrated at those deep levels into the deep subsurface of nearby tracts.” Id. at 744-45. We held that FPL failed to preserve error on its complaint that the jury’s finding on unjust enrichment was against the great weight and preponderance of the evidence. Id. at 745. With respect to FPL’s negligence claim, we held that the trial court’s implied finding that FPL had not suffered an injury was not against the greater weight and preponderance of the evidence. Id. at 746.

FPL appealed our decision, and its petition for review was granted. The Supreme Court held a person holding a permit issued by the TCEQ was not shielded “from civil tort liability that may result from actions governed by the permit.” FPL Farming Ltd. v. Envtl. Processing Sys., L.C., 351 S.W.3d 306, 308, 314 (Tex.2011). Because we erred in analyzing FPL’s trespass claim, the Court remanded the case to us, instructing that we consider further the parties’ arguments on FPL’s claim of trespass. Id. at 308, 314. On remand, the Supreme Court directed that we consider all issues raised by the parties relating to FPL’s trespass claim. Id. at 308, 315.3

Trespass Claim

A. Standing to Sue

On remand, and for the first time in these proceedings, EPS argues that FPL neither proved its ownership of the subsurface rights to its property nor proved its ownership from the sovereignty of the soil. To the extent EPS asserts that FPL lacks standing, EPS may raise the issue now, despite its failure to have presented these arguments either in the Texas Supreme Court or in the prior appeal to this court. See Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 445-46 (Tex.1993) (noting that standing cannot be waived and may be raised for the first time on appeal).

To have standing, an individual must demonstrate a particularized interest distinct from the public at large, must allege a personal injury fairly traceable to the defendant’s allegedly unlawful conduct, and the injury must be likely to be addressed by the requested relief. Brown v. Todd, 53 S.W.3d 297, 305 (Tex.2001). EPS advances two arguments that it contends affect FPL’s standing to sue.

First, EPS argues that FPL failed to prove a chain of title that extended to the sovereignty of the soil; without a proven chain of title, EPS concludes that FPL does not have standing to be heard. The case on which EPS relies, Prince v. Sanders, 298 S.W.2d 650, 651 (Tex.Civ.App.-Beaumont 1957, writ dism’d), concerned a claim to resolve who owned the property, and is inapposite. Unlike Prince, which involved a claim to recover title, a claim of trespass demands that a plaintiff prove that the defendant interfered with the plaintiffs right of possession; it does not require proof that the plaintiff has superi- or title. See Russell v. Am. Real Estate Corp., 89 S.W.3d 204, 208 (Tex.App.-Corpus Christi 2002, no pet.); Pentagon Enter. v. Sw. Bell Tel. Co., 540 S.W.2d 477, 478 (Tex.Civ.App.-Houston [14th Dist.] 1976, writ ref'd n.r.e.).

In this case, FPL placed the deeds to the tracts at issue into evidence; they show that FPL has a legal right of possession to the surface. The owner of the [280]

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383 S.W.3d 274, 178 Oil & Gas Rep. 510, 2012 WL 4017388, 2012 Tex. App. LEXIS 7769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fpl-farming-ltd-v-environmental-processing-systems-lc-texapp-2012.