Ohio Oil Co. v. Porter & Skelton

82 So. 2d 636, 82 So. 2d 639, 225 Miss. 55, 4 Oil & Gas Rep. 1898, 1955 Miss. LEXIS 687
CourtMississippi Supreme Court
DecidedOctober 10, 1955
Docket39927, 39928
StatusPublished
Cited by14 cases

This text of 82 So. 2d 636 (Ohio Oil Co. v. Porter & Skelton) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Oil Co. v. Porter & Skelton, 82 So. 2d 636, 82 So. 2d 639, 225 Miss. 55, 4 Oil & Gas Rep. 1898, 1955 Miss. LEXIS 687 (Mich. 1955).

Opinion

Holmes, J.

This case and the case of Ohio Oil Company v. L. B. Porter and D. W. Skelton, numbered 39,927 on the docket of this Court, originated before the State Oil and Gas Board, where they were consolidated and considered together. The issues in the two cases being the same, the evidence and the exhibits introduced on the hearing formed the basis of the Board’s decision in both cases. On appeal to the circuit court from the orders of the Board, the cases were likewise consolidated, and by stipulation of the parties, the cases are consolidated here, and the decision of the one case will control the other.

The cases involve the question of the validity of orders entered by the State Oil and Gas Board on applications filed by the Southern Natural Gas Company and joined in by the appellees, and on an application filed by The Ohio Oil Company.

*58 The applications of the Southern Natural Gas Company, which were joined in by the appellees, sought the establishment of two drilling units in the Maxie Gas Field in Forrest County, Mississippi, containing 320 acres each, and with the long dimensions of the units running north and south, and the integration therein of all separately owned interests.

The application of The Ohio Oil Company sought an amendment of a previous general order of the State Oil and Gas Board establishing special field rules for the Maxie Gas Field, so- as to provide for an extended and enlarged spacing pattern and the establishment of additional drilling units. The Ohio Oil Company opposed the applications of the Southern Natural Gas Company for the establishment of the units with the long dimensions running north and south, and contended that the units should be established with the long dimensions running east and west.

Due notice was given on the applications in accordance with the provisions of Section 6132-12 of the Mississippi Code of 1942, providing that no rule, regulation or order, and no change, renewal or extension thereof shall, in the absence of an emergency, be made by the Board under the provisions of this Act except after a public hearing upon at least ten days’ notice, which notice may be given by publication in some newspaper of general circulation in the state and also in a newspaper of general circulation in the county or counties in which pools are located, in the manner and form as may be prescribed by the Board, or by such other method as may be prescribed by the Board by general rule.

After a full hearing and the introduction of testimony and exhibits which were considered on the hearing of both the applications of the Southern Natural Gas Company and the application of The Ohio Oil Company, the Board determined that the denial of the applications of *59 the Southern Natural Gas Company and the granting of the application of The Ohio Oil Company would best contribute to an orderly and progressive development of the Eutaw Gas Producing Pool and the Tuscaloosa Gas Producing Pool in the Maxie Field, and that waste would thereby be prevented and the co-equal and correlative rights of all of the owners would be best protected and the ultimate amount of gas from the said pools thereby recovered. The State Oil and Gas Board entered its orders accordingly. There was no appeal therefrom by the Southern Natural Gas Company. The appellees, Porter and Skelton, however, prosecuted and appeal to the Circuit Court of Forrest County from the orders entered by the Board.

The circuit court reversed the orders of the State Oil and Gas Board, holding that the same were against the overwhelming weight of the evidence and were not supported by substantial evidence, and further, that Section 6132-12 of the Mississippi Code of 1942, in accordance with which notice on the applications was given, was unconstitutional in that the same was in direct violation of Article III, Section 14 of the Mississippi Constitution, and the Fourteenth Amendment to the Constitution of the United States, providing that no person shall be deprived of life, liberty or property except by due process of law. From this judgment of the circuit court, the appellant, The Ohio Oil Company, prosecutes this appeal to this Court.

It is the contention of the appellant that the circuit court erred in holding, first, that the orders of the State Oil and Gas Board are against the overwhelming weight of the evidence and are not supported by substantial evidence, and in holding, second, that Section 6132-12 of the Mississippi Code of 1942 is unconstitutional, and that, therefore, the notice attempted to be given thereunder was insufficient. We think both of these contentions of the appellant are well founded.

*60 In order to maintain the issues in its behalf, the Southern Natural Gas Company introduced as witnesses two geologists and one reservoir engineer. One of the geologists and the reservoir engineer were employed by the Southern Natural Gas Company. The other geologist was engaged in the practice of his profession as a consulting geologist. . These three witnesses in their testimony approved the granting of the applications of the Southern Natural Gas Company for the establishment of the units with the long dimensions extending north and south, expressing it as their opinion that this would best contribute to the interests of all owners in the unit, and would best drain the drilling units and result in greater recovery, and would best protect the co-equal and correlative rights of the owners.

On the other hand, The Ohio Oil Company introduced as a witness in support of its application and the denial of the applications of the Southern Natural Gas Company a geologist of recognized qualifications. He was employed by The Ohio Oil Company and had been so employed since January, 1947. His qualifications appear not to have been questioned. He gave it as his opinion that the units should be established with the long dimensions extending east and west and that this would best contribute to the development of the field and to the protection of the co-equal and correlative rights of all parties interested in the units.

All of the testimony hereinbefore referred to was opinion evidence by experts. The State Oil and Gas Board accepted the testimony and opinion of the geologist introduced as a witness by the appellant. We are unable to say that the Board was manifestly wrong in so doing or that the testimony of this witness did not afford substantial evidence to support the orders of the Board. It is not for this Court to substitute its opinion for the opinion of the Board where the Board has reached its decision on conflicting evidence and where its conclusions are supported by substantial evidence.

*61 In the case of California Company v. State Oil and Gas Board, 200 Miss. 824, 27 So.

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Bluebook (online)
82 So. 2d 636, 82 So. 2d 639, 225 Miss. 55, 4 Oil & Gas Rep. 1898, 1955 Miss. LEXIS 687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-oil-co-v-porter-skelton-miss-1955.