Mid-Continent Pipeline Co. v. Crauthers

1954 OK 61, 267 P.2d 568, 1954 Okla. LEXIS 440
CourtSupreme Court of Oklahoma
DecidedFebruary 23, 1954
Docket35319
StatusPublished
Cited by40 cases

This text of 1954 OK 61 (Mid-Continent Pipeline Co. v. Crauthers) 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
Mid-Continent Pipeline Co. v. Crauthers, 1954 OK 61, 267 P.2d 568, 1954 Okla. LEXIS 440 (Okla. 1954).

Opinion

WILLIAMS, Justice.

Parties will be designatéd ás in the trial court.

Plaintiff sued defendant for damages allegedly resulting from the pollution of a natural watercourse' running through plaintiff’s land.

Most of the facts were stipulated, substantially as follows: plaintiff owned á certain designated quarter section of land. 'C. R. Colpitt and T. S. Colpitt owned and operated an oil lease in a section adjoining the section wherein plaintiff’s land was located. Defendant Mid-Continent Pipeline Company owned and operated ⅛ Certain pipe line which' was used to transport oil from the lease of the Colpitts; Said Colpitts' -furnished power which operated the defendant company’s pump uséd to pump the oil produced from said lease and stored in a tank thereon into said pipe line, the pump being located on their lease, and ¡being owned by the defendant company. The pump was operated by an employee-of the Colpitts. By virtue of an agreement which had existed-between the Colpitts and the company for some time, the gauger of the defendant company customarily gauged the tanks on the" Colpitt lease, and when 'one was -ready for delivery, the gauger ■notified the pumper employed by the Col-pitts, who thereupon connected the power to the pipe line pump, and pumped the oil into the pipe line- of the defendant. On or. about May 18, 1950, the regular pumper was injured, and a substitute pumper was hired by the Colpitts to take his place. He was instructed by. the regular pumper in his duties. On that same day, he was advised by the gauger that a tank was ready for delivery; he thereupon .connected the power to the. punap for the purpose of transferring oil into defendant’s pipe line; in so doing, he failed to set the valves prop.-erly on the pump, and as a result, oil escaped from the pump into a stream from which it flowed onto plaintiff’s land in an .amount sufficient to cause damage or death to cattle pasturing on said land, ‘if they drank sufficient quantities of said oill

.It was further stipulated that the Colpitts •were the agents and servants of' the defendant company in the pumping of said oil into the pipe line; also, that a cow of Aberdeen Angus blood eligible for registration died within 13 days, after the oil ran over plaintiff’s land; and that she was due to drop a 'calf within 30 days of her death, and that if the defendant company were liable for the death of the cow, it was also liable for the" reasonable value of the unborn calf at the time of its birth, had it been born.

Defendant introduced in evidence as an exhibit attached to its answer, copy -of a “Release and Covenant Not to Sue” executed by plaintiff in favor of the Colpitts. Said instrument recited the payment of $300 to plaintiff by the Colpitts as full settlement' of, the claim against the Colpitts in connection with the facts héréin delated; it also, "by its terms, expressly reserved a right of action against any other persons who might have 'caused or assisted in causing any such damage. Execution of said instrument was not denied by plaintiff, and may be taken as,.having occurred. -, ,

■ At the trial, plaintiff introduced-testimony to the effect that the cow above referred *570 to died as á result of drinking water polluted by oil from- defendant’s pipe line, and to the effect that 17 other cattle in the pasture were injured as a result of drinking polluted water from the same source. In view of our holdings below no further statement of the' evidence is necessary.

The jury returned á verdict for the plaintiff in the amount of $650, and the Court rendered judgment thereon. Defendant thereafter perfected its appeal to this court from such judgment and order overruling motion for new trial.

The gist of defendant’s argument is as follows:' That the liability of defendant company, if any, exists solely because of the master-servant relationship existing between it and the Colpitts, and that when the servant who is the sole tort-feasor, 'is released (as was done in this case), the liability of the master is extinguished.

Plaintiff contends that the liability of defendant company rests not in the master-servant relationship, but because of a primary (not derivative), non-delegable duty .imposed upon defendant company by, 52 O.S. 1951 § 296, which reads as follows:

“Refuse from wells — Disposition.— No inflammable product from any oil or gas well shall be permitted to run into any tank, pool or stream used for watering stock; and all waste of oil and refuse from tanks or wells shall be drained into proper receptacles at a safe distance from the tanks, wells or buildings, and be immediately burned or transported from the premises, and in no' case shall be it permitted to flow over the land. Salt water shall not be allowed to flow over the surface of the land.”

Defendant contends that said statute has no application in this case, since the undisputed evidence is that the oil escaped from a pipe line, not from an oil or gas well.

For reasons set out below, we hold that 52 O.S.1951 § 296 is not applicable in the case at hand.

This section of the statute is highly penal in nature. Franklin Drilling Co. v. Jackson, 202 Okl. 687, 217 P.2d 816, 19 A.L.R.2d 1015; Texas Co. v. Mosshamer, 175 Okl. 202, 51 P.2d 757, and penal statutes are to be strictly construed. 59 C.J. Statutes, § 660; 82 C.J.S., Statutes, § 316.

Defendant argues, and, we think,, correctly, that this statute was aimed at drillers and producers of oil, not at transporters, pipe line companies, refiners, etc.

In Johnson Oil Refining Co. v. Carnes, 174 Okl. 599, 51 P.2d 811, 812, this sections of the statute was held not to apply to a refinery, and the statement there made by the court is applicable here:

“The statute contemplated in the instruction, and copied verbatim therein, is section 11580, O.S.1931 (52 O.S.1951 § 296). It relates purely to oil and gas wells, and has no more reference to a refinery than it has to any other industrial establishment.”

In Shell Petroleum Corp. v. Wilson, 178 Okl. 355, 65 P.2d 173, 176, this section of the statute was held inapplicable to a tank farm. In his dissenting opinion in that case, Chief Justice McNeill argued that “There is nothing in this title which limits the application of article 2 to oil and gas wells”; but the court refused to adopt his interpretation.

No case is cited in the briefs, and we have found none, in which the provisions of this section of the statute were held to apply to a pipe line company. On the contrary, this court by inference held in Franklin Drilling Co. v. Jackson, supra [202 Okl. 687, 217 P.2d 817], that such statute applies only to the owner and operator of the well:

“52 O.S.1941 § 296, which provides that no inflammable product or salt water from any oil or gas well shall be permitted to flow over the land, places a duty upon the owner and the operator of such well of preventing such substances to escape from the well to the premises of others. * * * ”

It is true that the above excerpt from, the court’s syllabus number one does not by its terms limit the application of the statute to owners and operators of wells *571 -only,

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Bluebook (online)
1954 OK 61, 267 P.2d 568, 1954 Okla. LEXIS 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-continent-pipeline-co-v-crauthers-okla-1954.