Kentland-Elkhorn Coal Company v. Charles

514 S.W.2d 659, 49 Oil & Gas Rep. 415, 1974 Ky. LEXIS 319
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedJune 14, 1974
StatusPublished
Cited by13 cases

This text of 514 S.W.2d 659 (Kentland-Elkhorn Coal Company v. Charles) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentland-Elkhorn Coal Company v. Charles, 514 S.W.2d 659, 49 Oil & Gas Rep. 415, 1974 Ky. LEXIS 319 (Ky. 1974).

Opinions

CULLEN, Commissioner.

Alonzo Charles and his wife, owners of the surface of a tract of land, recovered judgment in the amount of $10,000 against Kentland-Elkhorn Coal Corporation, owner of the mineral rights under that tract and under a substantial adjoining acreage, as damages resulting from the operation of a [661]*661coal preparation plant, in connection with a mine, on land adjoining the Charles tract. Although the instructions were imprecise and confusing as to the basis of liability, the nature of the damages recoverable, and the measure of damages, it is apparent that the damages of $10,000 were for depreciation of the market value of the Charleses' property and were awarded on the theory of a permanent nuisance.

Appealing from the judgment, Kentland-Elkhorn voices a number of claims of error, the first of which is that its operations were within the authority of the “broad form” deed by which the company acquired the mineral rights (through the same common grantor through whom the Charleses acquired their surface ownership), and therefore the company was absolved of any liability. Kentland-Elkhorn maintains that it could be held liable only on proof that its acts were oppressive, arbitrary, wanton or malicious, and that there was no such proof in the instant case.

The decisions of this court have limited the liability of the owner of the mineral rights under the standard “broad form” deed, for surface damages, to those damages caused by oppressive, arbitrary, wanton or malicious action. See Buchanan v. Watson, Ky., 290 S.W.2d 40, and Martin v. Kentucky Oak Mining Company, Ky., 429 S.W.2d 395. And in at least two cases the court has said that the fact alone that an operation constituted a nuisance would not impose liability on the mineral owner. See Tolliver v. Pittsburgh-Consolidation Coal Co., Ky., 290 S.W.2d 471, and Consolidation Coal Co. v. Mann, 298 Ky. 28, 181 S.W.2d 394.

The words “arbitrary”, “wanton” and “malicious” have well established meanings in the law, and they denote conduct that is in contemptuous disregard of the rights of others or in some instances a deliberate intent to cause harm. “Oppressive,” on the other hand, is not so well defined as the other three words, and it differs in emphasis in that it bears on the effect of the conduct as well as on the attitude of the actor. One dictionary definition of “oppressive” is “unreasonably burdensome;” another is “harsh, rigorous or severe.” In some places in some of the opinions of this court, cf. Blue Diamond Coal Company v. Neace, Ky., 337 S.W.2d 725, and Martin v. Kentucky Oak Mining Company, Ky., 429 S.W.2d 395, the basis of liability of the mineral owner was said to be “arbitrary, wanton, or malicious” action, omitting “oppressive,” but it is clear that the omission was not a deliberate holding that “oppressive” action was no longer to be a basis for liability.

The property right of the mineral owner as to the surface of the land, under a standard “broad form” deed, is to use the surface in any manner deemed by the mineral owner to be “necessary or convenient” for the exercise of the right to produce the minerals. The decisions of this court fixing “oppressive, arbitrary, wanton or malicious” conduct as the basis for liability of the mineral owner obviously have reference to acts done, or the manner of doing them, under the claim of convenience, because if the acts done and the manner of doing them are necessary in the sense that there is no other way the right to remove the mineral can be accomplished, the mineral owner’s right to perform those acts in that manner is unqualified. Cf. Blue Diamond Coal Company v. Neace, Ky., 337 S.W.2d 725. Acts necessary to be done in a particular manner to recover the mineral could not be “arbitrary, wanton or malicious,” and even though they might turn out to be “oppressive” they would not furnish a basis for liability because the surface owner by his deed has subordinated his surface rights to those of the mineral owner at least to the extent that the mineral owner is entitled to recover the mineral by some method. Cf. Martin v. Kentucky Oak Mining Company, Ky., 429 S.W.2d 395.

In regard to liability for acts done under the claim of convenience, it would [662]*662appear that no problem of application of the measure of liability ordinarily will arise where the conduct is claimed to be “arbitrary, wanton or malicious.” The question simply is whether the mineral owner has chosen a harmful procedure when one less harmful was equally available. And it makes no real difference whether the complaint is of the method selected or of the manner in which the method is employed. The same is not true; however, when the conduct is claimed to be “oppressive.” Then the concept of reasonableness enters in, and it is necessary to invoke a set of standards or employ a group of factors to measure the reasonableness of the particular conduct involved. And it may be that the standards or factors to be used in measuring reasonableness as to methods selected should be different from those used in measuring reasonableness of the manner in which the method is employed. To be specific, the determination of whether in a particular case it is reasonable (not oppressive) to remove coal by the methods of strip mining or auger mining may depend on one set of standards or factors, while the determination of whether a particular method, such as strip mining, was so used as to be oppressive will depend on a different set of standards or factors.

In the instant case there is no contention that Kentland-Elkhorn does not have the right to maintain a coal preparation plant on the land covered by its mineral deed— there is no complaint of the selection of a coal preparation plant as a facility for recovering the coal. The claim is that the coal preparation plant is being operated or maintained in such a manner as to be oppressive. That being the narrow issue, we shall confine our consideration to the question of the standards or factors to be used in measuring oppressiveness in this limited situation, leaving for another time the question of whether a set of standards or factors should be formulated for measuring reasonableness in the selection of a method of recovering minerals.

Since, as hereinbefore indicated, oppressiveness involves considerations of reasonableness, which in turn invoke a balancing of interests, and since this court has developed in the law of nuisances and the law of water rights a concept of unreasonable harm which we think would well be adapted to supply a measure of “oppressiveness” in the law of mineral rights, we have concluded that the foregoing concept should and will be applied in the type of mineral-right situation here involved, where there is complaint of damage from unreasonableness in the manner of use of a method of mineral recovery.

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Kentland-Elkhorn Coal Company v. Charles
514 S.W.2d 659 (Court of Appeals of Kentucky (pre-1976), 1974)

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Bluebook (online)
514 S.W.2d 659, 49 Oil & Gas Rep. 415, 1974 Ky. LEXIS 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentland-elkhorn-coal-company-v-charles-kyctapphigh-1974.