Grace v. Oil Conservation Commission of New Mexico

531 P.2d 939, 87 N.M. 205
CourtNew Mexico Supreme Court
DecidedJanuary 31, 1975
Docket9821
StatusPublished
Cited by28 cases

This text of 531 P.2d 939 (Grace v. Oil Conservation Commission of New Mexico) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grace v. Oil Conservation Commission of New Mexico, 531 P.2d 939, 87 N.M. 205 (N.M. 1975).

Opinion

OPINION

STEPHENSON, Justice.

Appellants (the Graces) petitioned the district court for review of Oil Conservation Commission (the Commission) Order No. R-1670-L (the Order) which was entered on June 30, 1972, pursuant to § 65-3-22(b), N.M.S.A.1953. The district court affirmed the Commission. We affirm the district court.

The Order dealt with the South-Carlsbad Morrow Gas Pool (the Pool) in Eddy County. The Commission made eighty-six findings of fact from which it appears the pool is a relatively new one with little production history. The Commission’s findings deal with all of the foundationary matters required to be found as prerequisite to a valid proration order under our leading case on this subject, Continental Oil Co. v. Oil Conservation Com’n, 70 N. M. 310, 373 P.2d 809 (1962). Complete and detailed findings were made on the subject of marketing facilities, production capacities, market demand, drainage and counter-drainage, correlative rights and waste. No assertion is made that the findings do not support the conclusions. Based upon the findings, the Commission ordered the pool to be prorated effective September 1, 1972. Certain rules and regulations of the Commission were made applicable to the pool. The allowable production was provided to be allocated on a monthly basis by first deducting the total allowable assigned to marginal wells and allocating the remaining allowable among the non-marginal wells in the proportion that each well’s acreage factor bore to the total of the acreage factors for all non-marginal wells in the pool.

The Graces filed an application for rehearing as provided by § 65-3-22(a), N. M.S.A.1953 asserting that, based upon the record, the Commission did not have jurisdiction to institute gas prorationing in the pool, and that the Commission improperly included acreage within the horizontal limits of the pool which has wells thereon not in communication with, or in the same common source of supply as the other wells in the area.

The motion for rehearing was denied by the Commission’s failure to act thereon within ten days. § 65-3-22(a).

The Graces then petitioned the district court for review of the order. The grounds stated in the application for rehearing defined and limited the issues which could be reviewed on appeal to the district court. § 65-3-22(b), N.M.S.A. 1953. In its amended form, the petition asserted that there was no substantial evidence to support the Commission’s jurisdictional findings that waste, as defined by § 65-3-3, N.M.S.A.1953, is occurring or will occur in the pool unless production therefrom is restricted pursuant to § 65 — 3— 13(c), N.M.S.A.1953. It further claimed that the order contained no basic conclusions of fact required to support an order designed to protect the Graces’ correlative rights and that it deprived them of their property without due process of law.

During the proceedings in district court, Cities Service Oil Company was granted leave to intervene as a respondent and the City of Carlsbad was granted leave to intervene as a petitioner. Ultimately, the district court, after recounting the proceedings before the Commission and summarizing the Commission’s findings and actions, found, inter alia, that the Commission did not act fraudulently, arbitrarily or capriciously in issuing the order; that the transcript of the proceedings before the Commission contained substantial evidence to support its findings; that the Commission did not exceed its authority in issuing the order, and that the order was not erroneous, invalid, improper or discriminatory. Judgment was entered and the Graces appeal.

The district court reviewed the record of the administrative hearing and concluded as a matter of law that the Commission’s order was substantially supported by the evidence and by applicable law. We make the same review of the Commission’s action as did the district court. El Paso Natural Gas Co. v. Oil Conservation Com’n, 76 N.M. 268, 414 P.2d 496 (1966).

Most of the arguments advanced by the Graces center upon the adequacy of the record to support the Commission’s action. That resolves itself into a question of whether or not the findings of fact are supported by substantial evidence, there being no claim that the findings do not support the conclusions of law or that the conclusions of law do not support the order. “Substantial evidence” means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. Rinker v. State Corporation Commission, 84 N.M. 622, 506 P.2d 783 (1973). In resolving those arguments of the appellant, we will not weigh the evidence. By definition, the inquiry is whether, on the record, the administrative body could reasonably make the findings. See 4 Davis, Administrative Law Treatise, § 29.01 (1958).

Moreover, in considering these issues, we will give special weight and credence to the experience, technical competence and specialized knowledge of the Commission. Cf., McDaniel v. New Mexico Board of Medical Examiners, 86 N.M. 447, 525 P.2d 374 (1974); § 4-32-22, subd. A., N.M.S.A.1953.

The Graces assert that the Commission did not have “jurisdiction” to institute gas prorationing in the pool based upon the record before it. There are frequent references to “jurisdiction” in the Graces’ briefs and some of their argument is addressed to the jurisdictional issue.

There is not a shred of a jurisdictional question here. A lack of jurisdiction means an entire lack of power to hear or determine the case and the absence of authority over the subject matter or the parties. 20 Am.Jur.2d, “Courts” § 87 (1965).

As we said in Elwess v. Elwess, 73 N.M. 400, 404, 389 P.2d 7, 9 (1964):

“The word ‘jurisdiction’ is a term of large and comprehensive import. It includes jurisdiction over the subject matter, over the parties, and power or authority to decide the particular matters presented, * * *

Certainly the Commission had jurisdiction of the subject matter- — conservation of oil and gas — and it had authority to decide the matters presented. See § 65-3-5, N.M.S.A.1953. No question is raised concerning lack of jurisdiction over the parties.

“The authority to decide a cause at all, and not the decision rendered therein, is what makes up jurisdiction; * * * State v. Patten, 41 N.M. 395, 399, 69 P. 2d 931, 933 (1937).

See Houston Fire and Casualty Insurance Co. v. Falls, 67 N.M. 189, 354 P.2d 127 (1960).

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

Related

In the Matter of Salazar
2013 NMSC 7 (New Mexico Supreme Court, 2013)
Bass Enterprises Production Co. v. Mosaic Potash Carlsbad Inc.
2010 NMCA 065 (New Mexico Court of Appeals, 2010)
New Mexico Department of Health v. Compton
10 P.3d 153 (New Mexico Court of Appeals, 2000)
Anschutz Corp. v. Wyoming Oil & Gas Conservation Commission
923 P.2d 751 (Wyoming Supreme Court, 1996)
Trujillo v. Serrano
871 P.2d 369 (New Mexico Supreme Court, 1994)
Hystad v. Industrial Commission
389 N.W.2d 590 (North Dakota Supreme Court, 1986)
Benally v. Hundred Arrows Press, Inc.
614 F. Supp. 969 (D. New Mexico, 1985)
Mutz v. Municipal Boundary Commission
688 P.2d 12 (New Mexico Supreme Court, 1984)
Viking Petroleum, Inc. v. Oil Conservation Commission
672 P.2d 280 (New Mexico Supreme Court, 1983)
Jones v. New Mexico State Racing Commission
671 P.2d 1145 (New Mexico Supreme Court, 1983)
Wolfley v. Real Estate Commission
668 P.2d 303 (New Mexico Supreme Court, 1983)
State ex rel. Huning v. Los Chavez Zoning Commission
641 P.2d 503 (New Mexico Supreme Court, 1982)
Conwell v. City of Albuquerque
637 P.2d 567 (New Mexico Supreme Court, 1981)
Lasley v. Baca
626 P.2d 1288 (New Mexico Supreme Court, 1981)
Cranston Teachers Ass'n v. Cranston School Committee
386 A.2d 176 (Supreme Court of Rhode Island, 1978)
Mata v. Montoya
569 P.2d 946 (New Mexico Supreme Court, 1977)
Reserve Mining Co. v. Herbst
256 N.W.2d 808 (Supreme Court of Minnesota, 1977)
Coca v. New Mexico Health & Social Services Department
555 P.2d 381 (New Mexico Court of Appeals, 1976)
Sierra v. Torres
553 P.2d 700 (New Mexico Supreme Court, 1976)
State Ex Rel. Anaya v. McBride
539 P.2d 1006 (New Mexico Supreme Court, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
531 P.2d 939, 87 N.M. 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grace-v-oil-conservation-commission-of-new-mexico-nm-1975.