Hartman v. State Corporation Commission

529 P.2d 134, 215 Kan. 758, 52 Oil & Gas Rep. 469, 1974 Kan. LEXIS 568
CourtSupreme Court of Kansas
DecidedDecember 7, 1974
Docket47,420
StatusPublished
Cited by5 cases

This text of 529 P.2d 134 (Hartman v. State Corporation Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartman v. State Corporation Commission, 529 P.2d 134, 215 Kan. 758, 52 Oil & Gas Rep. 469, 1974 Kan. LEXIS 568 (kan 1974).

Opinions

The opinion of the court was delivered by

Harman, C.:

The state corporation commission promulgated a regulation requiring certain information and samples obtained in drilling oil and gas wells to be filed with the state geological sur[759]*759vey. Certain exceptions were provided. Applicant W. L. Hartman’s request for exception from the provisions of the regulation was denied by the commission. Upon review the district court of Finney county upheld the commission’s denial order and the matter is now here on applicant’s appeal.

Following publication of notice and after holding hearings in which several oil producers, drillers and royalty owners or their representatives appeared, the corporation commission on August 19, 1971, promulgated a new regulation designated as rule 82-2-125, which became effective January 1, 1972. Applicant Hartman was present at the hearing and protested adoption of the regulation. KAR 82-2-125 provides:

“Preservation of well samples and logs. Every person, firm, association, or corporation drilling or responsible for drilling holes for the purpose of discovery or production of oil or gas (excluding seismic ‘shofholes’ and ‘coreholes’) shall preserve and have delivered at his expense (prepaid), the following samples and information to the Kansas geological survey, 4150 Monroe street, Wichita, Kansas, 67209.
“(A) Formation samples (drill cuttings) normally saved in drilling operations shall be retained by the operator; and upon request of the Kansas geological survey, such samples shall be washed, cut into splits (sets) and one set placed in sample envelopes ready for repository when delivered to the above address. Notification to the operator that samples are required shall be made either by notice appended to or on a copy of the notice of intention to drill returned to the operator by the conservation division of the Kansas corporation commission. Delivery of the processed samples shall be made within 90 days of the completion of drilling operations. The survey may, on some bore holes, request shallow samples from portions of the hole that may not normally be saved in drilling operations. In this event, the saving, processing and delivery of such additionally requested samples shall be a voluntary act on the part of the operator. The repository (sample library) shall accept all washed and cut samples whether or not requested.
“(B) A copy of electric logs, radioactivity logs, and similar wireline logs or surveys run by the operator on all boreholes (excluding seismic, ‘coreholes,’ and logs run for the purpose of obtaining geo-physical data) shall be delivered to the above address within 90 days following the running of such logs or surveys.
“(C) Copies of driller’s logs prepared on a form prescribed by the Kansas corporation commission shall be completed and filed with the Kansas geological survey within 90 days after completion of the well.
“(D) Upon receipt of a written request at the address listed herein, said request to be submitted either prior to or simultaneously with, any or all samples or information filed as required in items (A), (B) and (C) hereof shall be held in confidential custody by the survey for an initial period of one year from the date of receipt thereof, unless release of said samples or information is approved in writing prior to the expiration of the one year period: Provided, [760]*760however, The period of confidential custody may be extended for one additional year by written notice to the survey, such notice to be received at least 30 days prior to the expiration of the initial one year period.
“(E) In a like manner, samples, logs or surveys of wells completed prior to the effective date of this order may be submitted to the survey and will be maintained in confidential custody if requested in writing to do so.
“(F) It shall be the duty of each company performing logging services within the state of Kansas to furnish each month, to the state geological survey at the address listed herein, a list of all holes logged.
“Exceptions to the provisions of this rule may be granted whenever the commission shall find that the granting of such exception is justified because of one of the following:
“(1) Compliance with this order will create an economic hardship.
“(2) Submitting the requested samples, logs and information is not necessary for a local or prescribed area.
“(3) The length of the period of confidential custody is not sufficient to satisfy the needs of the developing operator.
“Exceptions may be requested by affidavit setting forth supporting facts. In the event the requested exception is not fully supported, the commission may set the matter for hearing after giving notice thereof.”

Applicant Hartman is an independent oil and gas operator with extensive lease holdings in the Damme field in Finney county, Kansas. In 1951 he discovered the Damme pool and has since drilled approximately fifty oil and gas wells in or near that area. Geological information is collected in connection with each well drilled. Electric logs are kept and seismographs are also utilized on the wells. The information acquired is helpful in determining what land to lease and where to drill. Upon occasion applicant had in the past entered into dry hole support agreements whereby in exchange for formation samples, electric log, drilling times and other information supplied by him to other operators holding leases in the field, the latter contribute money toward the drilling of a well (or acreage), to the mutual benefit of the parties.

On January 19, 1972, Hartman filed an application seeking exception from the provisions of rule 82-2-125. He alleged he was the owner of leases covering twenty-one tracts aggregating about 4,600 acres in the Damme pool and he sought exemption from the rule of all of his acreage “and/or the Damme Pool generally”. The application alleged the information required to be filed had substantial economic value and public disclosure would create an economic burden in that no dry hole support contributions would be available; further that the two year maximum period of confidentiality was insufficient in that the pool was still being developed and in any event the arrangements of the state geological survey [761]*761for safeguarding the filed information were inadequate. Applicant also alleged compliance with the rule would result in confiscation of his property.

Hearing on Hartman’s application was had before the corporation commission March 23,1972. Four major oil producers also appeared at the hearing in opposition to the application. Applicant’s evidence consisted of exhibits and the testimony of Robert L. Schmidlapp, his geologist, engineer and production manager.

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18 F. App'x 706 (Tenth Circuit, 2001)
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Marcotte Realty & Auction, Inc. v. Schumacher
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Hartman v. State Corporation Commission
529 P.2d 134 (Supreme Court of Kansas, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
529 P.2d 134, 215 Kan. 758, 52 Oil & Gas Rep. 469, 1974 Kan. LEXIS 568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartman-v-state-corporation-commission-kan-1974.