PCX Corp. v. Oklahoma Corp. Commission

1984 OK CIV APP 50, 699 P.2d 1103, 84 Oil & Gas Rep. 547, 1984 Okla. Civ. App. LEXIS 137, 1984 WL 914439
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 23, 1984
DocketNos. 60813, 60015
StatusPublished
Cited by1 cases

This text of 1984 OK CIV APP 50 (PCX Corp. v. Oklahoma Corp. Commission) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PCX Corp. v. Oklahoma Corp. Commission, 1984 OK CIV APP 50, 699 P.2d 1103, 84 Oil & Gas Rep. 547, 1984 Okla. Civ. App. LEXIS 137, 1984 WL 914439 (Okla. Ct. App. 1984).

Opinion

REIF, Judge.

PCX Corporation appeals two pooling orders 1 granted on its own application by the Oklahoma Corporation Commission, but over PCX’s request to dismiss. Having reviewed the record, we affirm the Commission.

On May 26, 1982, PCX filed its application to adjudicate the rights and equities of various owners of the right to drill in certain common sources of supply underlying Section 13, Township 6 North, Range 12 West, Caddo County, Oklahoma. A hearing was held on July 16, 1982. PCX presented the testimony of its land agent, Mr. Wirt Harris. He testified that PCX owned approximately 342 acres in this section and the right to drill. He further outlined PCX’s plan for drilling and development and stated that the well was in the process of being drilled.

Mr. Harris recounted how he had approached the other mineral holders by a letter offering dated May 1982, which presented three alternatives for participation and/or compensation for drilling and production. He also testified to an additional compensation recommendation of a bonus of $3,000 per acre and a one-fifth royalty. He explained the conversion options, if any, available under each alternative. He testified that these compensation plans were to his knowledge the latest prices and were calculated during the spring of 1982.2

[1105]*1105Mr. Harris recommended that in the event a particular compensation/participation election was not made within ten days of the order, such a party would be deemed to have accepted the $3,000 per acre bonus with one-fifth royalty. He also recommended in detail other time requirements and alternative methods of perfecting participation rights. He concluded his testimony on direct examination by affirmatively stating PCX could pay the cash bonus, if it was elected, within thirty days from the date of the order.

Just prior to the close of the hearing, the trial examiner asked Mr. Harris if granting the application would prevent waste and protect correlative rights. Mr. Harris responded affirmatively and the trial examiner ruled “cause is recommended.”

The attorney for PCX did not prepare or submit a report and order from that hearing for the Commission to act. Instead, PCX did nothing for two and one half months until the motion to dismiss the application was filed on October 1, 1982.

At the hearing on the motion to dismiss, attorney for PCX acknowledged responsibility to write the order and that a report had not been written. Counsel claims he operated under a misapprehension of whether the status was of a contested or uncontested nature and whether a report would be written by the trial examiner. The Commission denied PCX’s motion to dismiss and issued a pooling order in conformance with the application and evidence. Upon rehearing, the Commission again denied dismissal. It issued a second pooling order that was likewise responsive to the application and evidence, addressed matters PCX offered in support of dismissal, and vacated the first order.

PCX attacks the Commission’s denial of its motion to dismiss and the granting of the pooling order with compensation elections on various grounds.

I

First, PCX contends 12 O.S.1981 § 683, applies to Corporation Commission proceedings. PCX asserts that under this statute an absolute right of voluntary dismissal is given to the party who initiates a proceeding “before the final submission of the case to the jury, or to the court.” In summary, it argues a hearing before a trial examiner is not such a final submission inasmuch as the Commission is singularly empowered to grant pooling orders.

We find this argument without merit. We note that the supreme court has had occasion to narrowly construe and confine the application of section 683 to civil actions. In Epperson v. Johnson, 190 Okl. 1, 119 P.2d 818 (1941), the court declined to apply this statute to a condemnation proceeding due to the fact it was a special proceeding and not a civil action. This was notwithstanding the fact both types of causes are tried in the district court, involve the right of jury trial, and a specific direction that condemnation trials are conducted in the same manner as civil actions in the district court.

An adjudication before the Corporation Commission is a similarly distinct proceeding from a civil action. We find the question of dismissal before it is governed by its rules of practice. Specifically, Okla. Corp.Comm’n Rules of Practice, Rule 14(g) (1981), provides:

The party commencing a proceeding may dismiss the application with or without prejudice at any time prior to commencement of a hearing. Such dismissal shall not dismiss the proceeding as to affirmative relief sought by any other party of record. At any time after hearing has commenced, a proceeding may be dismissed only by Order of the Commission, which may be granted or denied, and may be with or without prejudice. (Emphasis added.)

While PCX acknowledges this rule, it contends the Commission abused its discre[1106]*1106tion in denying dismissal. It asserts such abuse is evident by the failure of the Commission to require the filing of a report of the trial examiner’s hearing “at the earliest practicable date.” Okla.Corp.Comm’n Rules of Practice, Rule 23(a) (1981).

On this issue, we first observe that the practice before the Commission is that the attorney for the prevailing party often prepares the report and order in an uncontested case. It was the responsibility of the attorney for PCX to submit the order. Moreover, he acknowledged this responsibility and stated he had not submitted a report at the hearing on PCX’s motion to dismiss.

He attempts to explain this away alluding to a confusing notation appearing on his file and claiming he thought the examiner would prepare a report. However, the record of the hearing before the trial examiner bespeaks counsel’s clear understanding and readiness to prepare an order at that time:

MR. ROBERTSON: I’d like to introduce by reference the Order which will issue out of Cause 92668 ... by which Order the Commission established Section 13 of 6 North, 12 West as a 640-acre unit for the production of gas and gas condensate from the ... common sources of supply.
I will, in the final Order, of course, recite that Order number. (Emphasis added.)

Moreover, in the examination of his witness, counsel asked direct questions concerning his recommendations as to the content of the order. The record is clear that Mr. Robertson intended to draft the order.

The delay in the submission of a report of the hearing before the trial examiner to the Commission for the recommended uncontested order to be acted upon was entirely caused by counsel for PCX. In St. Louis-San Francisco Ry. v. King, 278 P.2d 845, 851 (Okla.1954), the supreme court stated a party cannot complain of errors he helped to create. Therefore, the urging of an abuse of discretion in this regard is unfounded.

PCX further alleges abuse of discretion by asserting that denying dismissal and granting the pooling orders in question does not promote the purposes of the pooling statute, 52 O.S.Supp.1982 § 87.1. It argues by the time the Commission came to review the application and evidence and issue the orders in question, a dry well was drilled and plugged.

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1984 OK CIV APP 50, 699 P.2d 1103, 84 Oil & Gas Rep. 547, 1984 Okla. Civ. App. LEXIS 137, 1984 WL 914439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pcx-corp-v-oklahoma-corp-commission-oklacivapp-1984.