Harold D. Miller, Inc. v. Public Utilities Commission

438 N.E.2d 448, 1 Ohio St. 3d 162, 1 Ohio B. 194, 1982 Ohio LEXIS 724
CourtOhio Supreme Court
DecidedAugust 4, 1982
DocketNo. 81-1908
StatusPublished
Cited by5 cases

This text of 438 N.E.2d 448 (Harold D. Miller, Inc. v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harold D. Miller, Inc. v. Public Utilities Commission, 438 N.E.2d 448, 1 Ohio St. 3d 162, 1 Ohio B. 194, 1982 Ohio LEXIS 724 (Ohio 1982).

Opinion

Per Curiam.

The sole issue presented is whether the issuance of the subject certificate of public convenience and necessity was unreasonable or unlawful. R.C. 4921.10, which sets forth standards governing the commission’s determination of whether to grant an application for a certificate of public convenience and necessity, provides, in part:

[163]*163“The commission may, after notice and hearing, when the applicant requests a certificate to serve in a territory already served by a motor transportation company holding a certificate of public convenience and necessity from the commission, grant a certificate only when the existing motor transportation company or companies serving such territory do not provide the service required or the particular kind of equipment necessary to furnish such service to the satisfaction of the commission.* * *

“Before granting any certificate the commission shall take into consideration other existing transportation facilities in the territory for which a certificate is sought. If it appears from the evidence that the service furnished by existing transportation facilities is reasonably adequate, the commission shall not grant such certificate. ” (Emphasis added.)

It is well established that pursuant to R.C. 4921.10, “ * * * the applicant has the burden of adducing evidence to show that the general public has a definite need for the proposed transportation service and that no reasonably adequate service exists.” R.D.S. Mowery, Inc., v. Pub. Util. Comm. (1981), 66 Ohio St. 2d 22, 23 [20 O.O.3d 14]. See, also, D. G. & U. Truck Lines, Inc., v. Pub. Util. Comm. (1953), 158 Ohio St. 564 [49 O.O. 477]; Mohawk Motor, Inc., v. Pub. Util. Comm. (1967), 11 Ohio St. 2d 238 [40 O.O.2d 208].

Appellants contend the commission failed to adhere to the requirements of R.C. 4921.10, in that the record does not indicate any deficiency, inadequacy or failure in existing service. It is argued that the record demonstrates existing service is “reasonably adequate” and, consequently, the certificate should not have been issued.

The record in the instant cause is voluminous. Testimony adduced during the hearings by oil and gas drillers and equipment suppliers reveals that this industry operates 24 hours daily, 365 days a year. It is absolutely essential to drillers that common carriers operate 24 hours a day, since drillers can lose in excess of $4,000 per day while a rig is idle and waiting to be transported to another drilling site.

Additionally, the record discloses that oil and gas wells in this state are frequently drilled off-road by as much as two miles. Specialized heavy duty equipment is required to transport drilling rigs from one site to another. Depending upon the length of a move and the size of the drilling rig involved, as many as 13 pieces of equipment, some of which are valued in excess of $100,000 each, may be necessary to effectuate a single move. Coats has $2,000,000 of specialized equipment with which to make deliveries of large rotary drilling rigs. He has been operating in Ohio for 12 years, is regarded as one of the premier drilling rig movers in this state and, until four months preceding the hearings before the commission in this cause, he leased his equipment to appellant W. J. Plumly, Inc.

The essential facts concerning appellants’ ability to perform the activity for which Coats was issued a certificate can be summarized as follows. A Plumly executive testified that his firm owns no equipment with which to transport oil and gas drilling components. At the time of the hearings, Plumly [164]*164was leasing equipment from Mid-East Truck and Tractor Service, Inc. Since that time, however, Mid-East has acquired its own certificate of public convenience and necessity from the commission. Prior to Plumly’s cancellation of its leasing arrangement with Coats, insurance payments, customer solicitations and billings were provided by Coats using Plumly’s certificate. In return, Plumly received ten percent of Coats’ revenues.

Appellant Porter Brothers, Inc., owns and leases equipment with which to move drilling rigs, however, this service is unadvertised and its office is only open 12 hours daily. Porter, unlike Plumly, does solicit business and bill some customers although it actively leases services from another firm specializing in the transportation of large drilling rigs, which also solicits and directly bills Porter’s customers.

Appellant T. C. Spires, Inc., holds a certificate of authority to transport oil field supplies throughout Ohio. Spires’ entire oil and gas equipment transportation is accomplished through leases, whereby lessors owning the equipment solicit the business, provide the drivers and effectuate the move. Spires does directly bill the customers, but only after it has been informed of an accomplished move. Additionally, Spires has not moved a rotary drilling rig for several years.

Appellant O.H. & F., Inc., leased its rotary rig transportation equipment to Harold D. Miller, Inc., until 1979, when O.H. & F. obtained a certificate of authority from the commission. Since 1979, this appellant has not transported a single rotary rig. Moreover, when asked to specify the primary rotary drilling rig movers in this state, O.H. & F.’s executive officer named Coats. He failed, however, to mention either his company’s name or the name of any of the other five appellants.

Appellant McCandlish Brothers, Inc., owns substantial equipment with which to move drilling rigs, yet the record reveals that this appellant specializes in transporting smaller rigs. Mr. McCandlish testified that his firm last moved a large rotary rig more than ten years ago, and that he is unwilling to invest in the equipment necessary to transport large rotary type rigs. Furthermore, his office is open approximately 12 hours daily.

Finally, appellant Harold D. Miller, Inc., is authorized to transport oil and gas field drilling equipment and supplies from and to any point in Ohio. When questioned regarding the transportation of rotary rigs, Mr. Miller testified that his company has not engaged in this line of business for many years, and, further, he does not own the necessary equipment, nor is he willing to acquire it. This appellant is primarily engaged in the transportation of pipe.

Based upon the foregoing summary, appellants can be catergorized in two ways. The first category includes appellants O.H. & F., McCandlish and Miller. These three carriers have a combined total of 13 units in Ohio capable of transporting rotary rigs and associated equipment. Moreover, both Mc-Candlish and Miller testified they were unwilling to invest in the equipment to provide the type of service currently being provided by Coats. Although O.H. & F. apparently could have additional equipment in Ohio within three days of [165]*165a request for service, a company official expressed unwillingness to provide more than the one unit presently located in this state, in order to respond to drillers’ requests in a more timely fashion.

The law in Ohio is well established that “ * * * a finding and order of the commission should not be disturbed and will not be disturbed unless it appears from the record that such finding and order are manifestly against the weight of the evidence, and are so clearly unsupported by it as to show misapprehension, or mistake, or wilful disregard of duty.” Delphos v. Pub. Util. Comm.

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Bluebook (online)
438 N.E.2d 448, 1 Ohio St. 3d 162, 1 Ohio B. 194, 1982 Ohio LEXIS 724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harold-d-miller-inc-v-public-utilities-commission-ohio-1982.