In Re Swepi L.P.

103 S.W.3d 578, 163 Oil & Gas Rep. 140, 2003 Tex. App. LEXIS 1045, 2003 WL 243285
CourtCourt of Appeals of Texas
DecidedFebruary 5, 2003
Docket04-02-00057-CV
StatusPublished
Cited by21 cases

This text of 103 S.W.3d 578 (In Re Swepi L.P.) 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
In Re Swepi L.P., 103 S.W.3d 578, 163 Oil & Gas Rep. 140, 2003 Tex. App. LEXIS 1045, 2003 WL 243285 (Tex. Ct. App. 2003).

Opinion

OPINION

Opinion by

PAUL W. GREEN, Justice.

In this original proceeding, SWEPI L.P. d/b/a Shell Western E & P (Shell) seeks to overturn the trial court’s orders denying Shell’s motion for entry onto land for testing and denying Shell’s motion to compel responses to interrogatories. Because we hold the trial court abused its discretion in denying the motions, we conditionally grant the writ of mandamus.

Background and Procedural History

The real parties in interest, Arnoldi Ca-sas, Carolina Casas fik/a Caroline C. Smith, Ferman Casas, Jr., Juanite P. Ca-sas, Irene Casas, Santas R. Casas, Servan-do Casas, et ux, Yolanda Casas, Johnny Lane, III a/k/a Juan C. Lane, III, Lydia Pena f/k/a Lydia Cantu, Ruben Pulido, et ux, and Clementina C. Pulido (the Casas plaintiffs), own property formerly leased by Shell for oil and gas production. Although Shell has gas wells on adjacent *582 property, Shell never drilled on the Casas property because Shell did not believe there was enough gas to justify the cost. After Shell’s lease expired, the Casas plaintiffs leased the same property to Camden Resources, Inc. Camden proceeded to drill a well that is currently producing from the lease. The Casas plaintiffs sued Shell for failing to drill a well on their property, claiming Shell effectively allowed its adjacent wells to drain the reserves of gas under the Casas property. The Casas plaintiffs claim production numbers from the Camden well substantiate their claim.

During the drilling of the Camden well, Camden was required to submit progress reports to the Texas Railroad Commission (RRC), including test results to show the well was being drilled in compliance with state regulations, that is, straight and within the Camden lease rather than into Shell’s adjoining lease. Based on those reports, the RRC questioned whether the Camden well was properly vertically drilled and ordered an investigation. In late July 2001, upon hearing about the investigation, Shell requested the RRC to order a directional survey of the Camden well to determine if the well is trespassing on Shell’s lease. Shell also requested that the RRC shut-in the Camden well. The RRC refused to shut down the well but gave it a zero production allowance. Although the RRC held a hearing, no decision had issued at the time this proceeding was filed. 1

As part of its defense, Shell contends the Camden well is likely producing from reserves located under Shell’s current lease rather than the Casas property. To support that defense, Shell filed a motion for entry onto Camden’s lease to perform two tests on the Camden well, a directional survey and a bottom pressure survey. The Casas plaintiffs and Camden, a non-party to the lawsuit, objected to the motion.

Although the parties disagree on the interpretation of tests conducted to date, all parties’ experts agree the only way to know precisely where the Camden well production originates is to perform an accurate directional survey. All the parties appear to agree this test would take about a day but the well would have to be shut-in for that period of time. For the bottom pressure survey, the well would have to be shut-in for several days with resultant loss of production. The parties’ experts disagree about the potential for permanent damage to the well from the directional survey and the bottom pressure survey, but it is clear the directional survey is the least invasive of the two tests. Shell offered to file a bond to cover any losses or potential damages.

The trial court denied Shell’s motion for entry onto the land for testing. The trial court also denied Shell’s motion to compel responses to interrogatories. Shell seeks relief from each of the trial court’s rulings in this proceeding. 2

Standard for Mandamus Review

Mandamus issues only to correct a clear abuse of discretion or a violation of a duty imposed by law, and when there is no other adequate remedy at law. Walker v. Packer, 827 S.W.2d 833, 839 (Tex.1992). The trial court abuses its discretion when it fails to properly apply the law to the undisputed facts, when it acts arbitrarily or unreasonably, or when its ruling is *583 based on factual assertions unsupported by the record. Microsoft Corp. v. Manning, 914 S.W.2d 602, 607 (Tex.App.-Texarkana 1995, writ dism’d). Mandamus is appropriate in the discovery context when the trial court denies discovery going to the heart of a party’s case. Able Supply Co. v. Moye, 898 S.W.2d 766, 772 (Tex.1995) (orig. proceeding) (citing Walker v. Packer, 827 S.W.2d at 843). Mandamus will also issue “where a party’s ability to present a viable claim or defense at trial is vitiated or severely compromised by the trial court’s discovery error.” Able Supply Co., 898 S.W.2d at 772; Walker, 827 S.W.2d at 843.

Discussion

A. Entry Onto Land For Testing

Texas Rule of Civil Procedure 196.7 governs discovery which must be made by entering onto the land of another to inspect, measure, survey, photograph, test or sample the property or any designated object or operation thereon. Tex.R. Crv. P. 196.7. To enter upon the land of a nonparty, the movant must, no later than 30 days before the end of the discovery period, serve a motion and notice of hearing on all parties and the nonparty owner. Tex.R. Civ. P. 196.7(a), (a)(2). An order for entry onto the property of a nonparty may only issue upon good cause shown and only if the discovery is relevant to the cause of action. Tex.R. Civ. P. 196.7(d).

1. Delay in Requesting Discovery

The Casas plaintiffs contend the trial court did not abuse its discretion in denying the testing because Shell waited too long to make its motion for entry and testing. Shell responds that because of the way the case developed, it pursued its discovery as expeditiously as possible.

Shell sent its first interrogatories to the plaintiffs on June 1, 2001. In early July 2001, Shell first learned of the RRC investigation of the Camden well. 3 In early August 2001, the parties agreed on a discovery schedule setting the deadline for discovery on December 21, 2001, and a trial date of January 22, 2002. The plaintiffs’ responses to Shell’s interrogatories were due August 13, 2001, but all other discovery was suspended until mid-September. The plaintiffs’ responses to discovery revealed they intended to rely on production numbers from the Camden well to support their claim of drainage. On October 30, 2001, plaintiffs produced their first expert reports, again relying on production information from the Camden well.

On November 20, 2001, Shell filed its motion for entry onto land and set it for hearing more than thirty days before the end of the discovery period.

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Cite This Page — Counsel Stack

Bluebook (online)
103 S.W.3d 578, 163 Oil & Gas Rep. 140, 2003 Tex. App. LEXIS 1045, 2003 WL 243285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-swepi-lp-texapp-2003.