Matador Pipelines, Inc. v. Oklahoma Water Resources Board

1987 OK 65, 742 P.2d 15, 95 Oil & Gas Rep. 337, 1987 Okla. LEXIS 212
CourtSupreme Court of Oklahoma
DecidedJuly 14, 1987
Docket63960
StatusPublished
Cited by10 cases

This text of 1987 OK 65 (Matador Pipelines, Inc. v. Oklahoma Water Resources Board) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matador Pipelines, Inc. v. Oklahoma Water Resources Board, 1987 OK 65, 742 P.2d 15, 95 Oil & Gas Rep. 337, 1987 Okla. LEXIS 212 (Okla. 1987).

Opinions

HODGES, Justice.

Matador Pipelines, Inc. (appellant or Matador) owns and operates a crude oil pipeline approximately nine miles northwest of Fairview, Oklahoma. In May 1983, the pipeline sustained a leak causing crude oil to flow into an unnamed tributary of Barney Creek and into Barney Creek. The Oklahoma Water Resources Board (appel-lee or Board) was informed by a landowner on whose property the pipeline ran that oil was entering Barney Creek. The Board reported the matter to the Department of Pollution Control who then reported it to the Oklahoma Corporation Commission (Commission), Oklahoma Department of Wildlife Conservation and the United States Environmental Protection Agency [16]*16(EPA). The Board did not initiate an investigation as it concluded the Commission had primary jurisdiction since the spill involved crude oil.

After the Commission and the EPA investigated the incident, a cleanup operation was conducted by Matador. A joint followup investigation was made by the Commission and the Board. It was determined oil was still seeping from the ground around the spill site in the bottom sediments and on the surface of Barney Creek. During the investigation the Board investigator found numerous violations of the 1982 Oklahoma Water Quality Standards were present. The Commission representative told the Board investigator the spill had been adequately cleaned up according to Commission regulations. However, because Matador was purportedly still in violation of water quality standards the representative told the Board investigator the Board should enforce its standards. Consequently, the Board continued its investigation.

On August 10, 1983, a letter was sent to Matador from the Board notifying it that the crude oil was still present and needed to be cleaned up. The letter gave corrective actions which needed to be taken to prevent further pollution to Barney Creek and other water sources. The letter stated Matador could answer or object to the specified violations in an administrative hearing before the Board. Matador responded by letter to the Board objecting to the jurisdiction of the Board and asserting the spill was adequately cleaned up. Administrative violation hearings were held over Matador’s continued objection to the Board’s jurisdiction. Negotiations were had although no agreement was reached by the parties in determining the scope of the required cleanup.

Thereafter the Board’s violation hearings were reopened. After these proceedings, the hearing examiner proposed findings of fact, conclusions of law and a Board order to be presented for the Board’s consideration. On August 14, 1984, the Board adopted the examiner’s proposal and an order was entered concluding the Board had jurisdiction and the evidence presented showed Matador had violated 82 O.S.1981, § 926.4(A). This section makes it unlawful to cause pollution or cause to be placed any waste in a location where it is likely to cause pollution of any waters of the State. The order required Matador to continue cleanup measures.

Matador filed a petition for review of the Board’s order pursuant to the Oklahoma Administrative Procedures Act, 75 O.S. 1981, § 318. The District Court of Major County ruled the Board had properly exercised its jurisdiction under the facts presented. However, the court remanded the case to the Board for a hearing de novo finding appellant did not receive a fair administrative hearing. Matador appeals that part of the order which finds that although the Commission has “primary jurisdiction” for prevention of pollution resulting from oil production activity, the Board has “secondary or concurrent jurisdiction” where the Commission relinquishes its jurisdiction and cooperates with the Board.

The question presented is whether the Board has concurrent jurisdiction in circumstances involving pollution of state waters resulting from a crude oil pipeline break, or does the Commission have exclusive jurisdiction. The district court found the jurisdiction of the Commission is not exclusive and the Board has “secondary or concurrent jurisdiction” with the Commission to enforce compliance with its water quality standards. We disagree with the district court and reverse for the reasons stated below.

Administrative agencies may only exercise powers granted by the legislature in the statutes. Boydston v. State, 277 P.2d 138, 142 (Okl.1954). This includes an agency’s exercise of jurisdiction. Upon a review of the statutes applicable to the present controversy which confer the various powers and duties upon the Commission and the Board, we conclude the Board does not have jurisdiction and the Commission has exclusive jurisdiction under the particular facts in the present case.

Title 17 O.S.1981, § 52 (amended 1986) vests exclusive jurisdiction with the Com[17]*17mission over certain oil and gas activities including the “construction and regulation of oil and gas pipelines.”1 This statute does not refer to the prevention of pollution, but the Commission’s jurisdiction regarding the prevention of pollution of state waters is expressed in § 139 of the Oklahoma Oil and Gas Conservation Act.2 In addition, § 1-2005 of the Oklahoma Controlled Industrial Waste Disposal Act includes similar language as expressed in § 139 concerning the powers delegated to the Commission for regulating certain oil related matters and making rules for the prevention of pollution.3 Neither provision explicitly mentions the word “exclusive” in relation to the prevention of pollution. However, § 1-2005 states the Commission has exclusive jurisdiction in making and enforcing rules, regulations and orders governing the handling, hauling, storage and disposition of waste oil and other deleterious substances. The next paragraph states the Commission has the power to promulgate rules preventing pollution. We find the exclusivity of the Commission’s jurisdiction implicit based upon our interpretation of these statutes.

Title 52 O.S.1981, § 142 requires the Board to assist and cooperate with the Commission in the performance of its duties under § 139 by (1) making investigations, (2) gathering evidence, (3) filing reports and complaints with the Commission concerning the pollution of water by deleterious substances referred to in 52 O.S.1981, § 139 and (4) making recommendations to the Commission. The statute does not mention or imply the Board has concurrent or secondary jurisdiction with the Commission.4

The Board argues its jurisdiction is based on the purported violations by Matador of water quality standards set by the Board. In the Pollution Remedies Act, 82 O.S.1981, § 926.3(6), the Legislature confers upon the Board the power to set [18]*18and enforce water quality standards.5 Section 926.3(6) requires the Board to adopt, modify or repeal and promulgate standards of quality for the waters of the State. However, this statute expressly states the Board in performing its function of setting standards may not take into consideration impacts from activities related to acceptable petroleum operations and practices. Thus, the impacts resulting from the petroleum industry are exempt from water quality standards. The jurisdiction of the Board is limited by the plain language of Section 926.3(6).

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Matador Pipelines, Inc. v. Oklahoma Water Resources Board
1987 OK 65 (Supreme Court of Oklahoma, 1987)

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Bluebook (online)
1987 OK 65, 742 P.2d 15, 95 Oil & Gas Rep. 337, 1987 Okla. LEXIS 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matador-pipelines-inc-v-oklahoma-water-resources-board-okla-1987.