Jarvis Drilling, Inc. v. Midwest Oil Producing Co.

626 N.E.2d 821, 1993 WL 535008
CourtIndiana Court of Appeals
DecidedDecember 29, 1993
Docket82A04-9302-CV-49
StatusPublished
Cited by19 cases

This text of 626 N.E.2d 821 (Jarvis Drilling, Inc. v. Midwest Oil Producing Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jarvis Drilling, Inc. v. Midwest Oil Producing Co., 626 N.E.2d 821, 1993 WL 535008 (Ind. Ct. App. 1993).

Opinions

CONOVER, Judge.

Plaintiffs-Appellants Jarvis Drilling, Inc.,’ James D. Kitchin, III, Ann Walton, and George Busier (Jarvis Drilling) appeal the Vanderburgh Superior Court’s entry of summary judgment in favor of Defendants-Appellees Midwest Oil Producing Co., Pedro Enterprises, Inc., Perdue Enterprises, Inc., David A. Perdue, Doran E. Perdue, Jr., Ellmar Oil Co., Dale E. Perdue, Raylene L. Bordfeld, as Trustee of the J & M Trust, John T. Walsh and Mary G. Walsh, Debra Ruth Zisla, Mary Beth Per-due, Hugh E. Ralph, (Midwest Oil) and Crystal Oil Company (Crystal Oil) on the motions for summary judgment they filed in Jarvis Drilling’s action seeking monetary damages for costs incurred in’plugging a non-producing well.

We affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.

This appeal presents the following restated issues:

1. whether material issues of fact remain which require a trial on the merits;
2. whether some fractional share owners were represented by Midwest Oil as their agent; and
3. whether Crystal Oil, a former operator of the well, is liable for plugging costs.

Crystal Oil originally owned and operated several oil wells in Kentucky and Indiana, including the Egli # 1 well in Po-sey County, Indiana. When it quit producing, Crystal Oil abandoned that well without obtaining a temporary abandonment permit from the Indiana DNR. There was no pumping unit on the well, there was merely a pipe sticking out of the ground. (R. 158). Midwest Oil, an interim purchaser, hired a contractor who welded a cover on Egli # l’s casing and then buried it. [824]*824Midwest Oil later sold the group of leases of which Egli # 1 was part to Perdue Enterprises. Midwest Oil then became the group’s operator. Along the way, other appellees have purchased participating interests.

Later, Jarvis Drilling expressed an interest in purchasing a large number of wells in Kentucky and Indiana,1 including the group of which Egli # 1 was part, and negotiations for that proposed purchase commenced in March, 1987. Jarvis Drilling was and is a sophisticated oil and gas operator. (R. 554, 569). It had its own experts and paid professionals investigate the properties it sought to purchase from Midwest Oil. (R. 297, 569-570).

During negotiations, Midwest Oil furnished Jarvis Drilling's personnel with a property data document and an oil lease inventory, neither of which mentioned Egli # 1 or its condition. However, Jarvis Drilling was furnished a map showing it as having been plugged. (R. 377). During these negotiations, Jarvis Drilling had access to Midwest Oil’s records (R. 392, 396), and they contained a separate file for Egli # 1. (R. 299). Also, other maps in those records showed Egli # 1 was not plugged. (R. 569, 336-337).

The contract for that sale was signed on May 20, 1987, and the permits required by the DNR for transfer of the wells and bonds required by law for unplugged wells were executed by Jarvis Drilling on June 1, 1987, as required by the contract. (R. 392). The transfer permit for Egli # 1 was included, and signed for by Jarvis Drilling’s representative. The existence of a transfer permit and cost bond to guarantee the plugging of abandoned wells tells an expert an unplugged well exists. (R. 562).

Two years later in 1989, the DNR determined a well adjacent to Egli # 1 was contaminating the neighborhood’s well water and ordered it plugged. At that time, DNR also ordered Jarvis Drilling to plug Egli # 1. It complied.

Regarding plugging responsibilities, the May 20, 1987, contract provided, in part

... the parties will also execute and deliver such transfer forms pertaining to the well bonds ... so that the SELLERS shall be reliéved in all respects of liability incident to plugging of the various wells on the leases described in Exhibit “C”.2

It also provided, in part

[Jarvis Drilling] specifically agrees that as of the Effective Date they will pay any and all costs and expenses of operation ..., and further that they will assume all claims, demands, actions, or causes of actions (sic) ... resulting from, connected with, or arising out of the use and operation of the PURCHASED INTERESTS in the oil and gas leases described in Exhibit “B” for the production of oil or gas.3

From the entry of summary judgment for appellees, Jarvis Drilling appeals.

Summary judgment is appropriate only where there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Any doubt as to the existence of a genuine issue of fact must be resolved in favor of the nonmovant. Lawlis v. Kightlinger & Gray (1990), Ind.App., 562 N.E.2d 435, 438-439, reh. denied, trans. denied. When acting upon a motion for summary judgment, the trial court may consider only those parts of the pleadings, depositions, answers to interrogatories, admissions, matters of judicial notice, and any other matters on which the movant relies specifically designated by’ the movant to the trial court at the time the motion is filed. Likewise, the opposing party must specifically designate to the trial court each material issue of fact and related evidence which that party asserts precludes entry of summary judgment at the time its response is filed. Failure to make the required eviden-[825]*825tiary designations precludes the trial court from considering the failing party’s position when making the required determinations prior to ruling on such motion. Rosi v. Business Furniture Corp. (1993), Ind., 615 N.E.2d 431, 434. The trial court can enter summary judgment only if the designated evidentiary matter shows there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Id.

In determining whether there is a genuine issue of material fact precluding summary judgment, all doubts must be resolved against the moving party and the facts properly designated by the party opposing the motion must be accepted as true. Lawlis, Id. Even if the facts are undisputed, summary judgment is inappropriate when properly designated evidence before the trial court reveals a good faith dispute as to the inferences to be drawn from such facts. However, factual disputes that are irrelevant or unnecessary will not be considered. A factual issue is “genuine” only when it cannot be foreclosed by reference to undisputed facts and requires a trier of fact to resolve the opposing parties’ differing versions. Lawlis, Id.

When reviewing the grant of summary judgment, we stand in the shoes of the trial court and apply an identical standard. Ayres v. Indian Heights Volunteer Fire Department (1986), Ind., 493 N.E.2d 1229, 1234; Lawlis, Id. The court on appeal, however, may not search the record to affirm the trial court.

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Jarvis Drilling, Inc. v. Midwest Oil Producing Co.
626 N.E.2d 821 (Indiana Court of Appeals, 1993)

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Bluebook (online)
626 N.E.2d 821, 1993 WL 535008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jarvis-drilling-inc-v-midwest-oil-producing-co-indctapp-1993.