Poafpybitty v. Skelly Oil Company

1973 OK 110, 517 P.2d 432, 47 Oil & Gas Rep. 168, 1973 Okla. LEXIS 407
CourtSupreme Court of Oklahoma
DecidedSeptember 25, 1973
Docket44668
StatusPublished
Cited by23 cases

This text of 1973 OK 110 (Poafpybitty v. Skelly Oil Company) 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
Poafpybitty v. Skelly Oil Company, 1973 OK 110, 517 P.2d 432, 47 Oil & Gas Rep. 168, 1973 Okla. LEXIS 407 (Okla. 1973).

Opinion

LAVENDER, Justice:

This is an appeal from a judgment for defendant by the District Court of Oklahoma County and its Order sustaining a motion for summary judgment by defendant Skelly Oil Company, oil and gas mining lessee of allotted lands held in trust for plaintiff Indians by the United States. Plaintiffs’ petition alleged that, notwithstanding demand by plaintiffs upon defendant to market gas being produced and flared from wells on plaintiffs’ land, defendant failed and, refused to do so, although there was a gas line operated by Lone Star Gas Company within one-half mile of the land on which the wells were situated. It was also alleged that defendant failed and refused to exercise reasonable diligence in the prevention of waste of the gas and to preserve the oil and gas producing properties as required by the lease. Plaintiffs claim breach of contract by defendant and damages in the loss of royalty resulting from waste occasioned by wrongful and illegal operations of the lease by defendant. The gas concerned was cas-inghead gas produced with the oil and vented during the period of April 1956 to February 1961.

In its answer defendant made a general denial and further claimed that it operated in accordance with the terms of the lease, and with full approval of the United States and its wards, the plaintiffs, whose claims were thereby estopped. In so saying defendant listed twelve matters that it says were determined by the Government, one being that the Government’s supervision and management of the mineral lease was so directly involved that the decisions upon these matters [of operation] were that of the Government.

In sustaining defendant’s motion for summary judgment the trial court found that there was no issue of material fact to be tried in the cause, and that defendant was entitled to judgment against plaintiffs as a matter of law. We agree.

The matter of when it is proper for a trial court to render a summary judgment was discussed in Occidental Fire & Casualty Company of North Carolina v. Box (1971) Okl., 497 P.2d 1076 in this manner:

“ . . . In French v. Sotheby & Company, Okl., 470 P.2d 318 (1970) we held that:
‘Rules for the District Courts, rule 13, 12 O.S.Ann.C. 2 Appendix, permit rendition of a summary judgment if it appears that there is no substantial controversy as to any material fact and that any party is entitled to judgment as a matter of law, but there can be no trial of fact issues since the function of a motion for summary judgment is to determine whether there are any genuine issues as to material facts.’
In Flick v. Crouch Welding Service, Okl., 434 P.2d 256 (1967), we said that the summary judgment rule (Rule 13, supra) was:
* * patterned after Rule 56 of the Fed.Rules Civ.Proc., 28 U.S.C.A. The object of that rule is to avoid a *435 useless trial, and a trial is not only-useful but absolutely necessary where there is a genuine issue as to any material fact. On motion for summary judgment there can be no trial of fact issues since its function is to determine whether there are any genuine issues as to material facts. Such motion should therefore be denied if under the evidence reasonable men might reach different conclusions from undisputed facts. Michel v. Meier, D.C., 8 F.R.D. 464; Neff v. World Pub. Co., 8 Cir., 349 F.2d 235.’
In Perry v. Green, Okl., 468 P.2d 483 (1970), we said that a motion for summary judgment should be denied if the facts concerning any issue raised by the pleadings, as set forth in the depositions, admissions, answers to interrogations and affidavits on file in the case, are conflicting, or if reasonable men, in the exercise of a fair and impartial judgment, might reach different conclusions from undisputed facts concerning any issue as set forth in such instruments.”

However, the court shall render judgment if it appears that there is no substantial controversy as to any material fact and that any party is entitled to judgment as a matter of law. Pettit v. Vogt (1972), Okl., 495 P.2d 395; Rule No. 13, Rules for District Courts, 12 O.S., Ch. 2, Appendix.

We shall test the matters presented against the foregoing requirements.

History of the court action in this matter is reflected in Poafpybitty v. Skelly Oil Co., 390 U.S. 365, 88 S.Ct. 982, 19 L.Ed.2d 1238 wherein the U.S. Supreme Court held on the question then at hand that the Indian lessors had the capacity to maintain an action seeking damages for the alleged breach of the oil and gas lease. It was also there observed, with citations to the Code of Federal Regulations, that the Secretary of the Interior is authorized to promulgate regulations controlling the operation and development of the lease and to issue necessary written instructions to the lessee; that the lessee will furnish a surety bond; that the Secretary has the power to inspect the leased premises and the books and records of the lessee; that the Secretary has the power to impose restrictions as to the time for the drilling of wells or the production from any well “as in his judgment may be necessary or proper for the protection of the natural resources of the leased land and in the interest of the Indian lessor;” that the lessee must furnish the Secretary with a monthly report disclosing all operations conducted on the lease, and must pay the royalties to the Secretary who deposits them to the credit of the Indian lessor; that the lessee agrees to drill wells which the Secretary determines are necessary to protect the leased land from drainage by another well on adjoining property; and the lessee is obligated to prevent the waste of oil and gas and agrees to pay the Indian lessor the full value of all gas wasted, unless the Secretary determines at the request of the lessee that the waste was sanctioned by state and federal law. The court further observed that if there were a determination of waste, the Government would file court action, but that this power of the United States to sue did not diminish the right of the plaintiff Indian to maintain an action to protect the lease. We parenthetically note here that the record reflects no determination of waste sanctioned by state or federal law.

The decision by the U.S. Supreme Court in Poafpybitty that plaintiffs have a capacity to maintain this action, and our own interpretation of the Government’s responsibilities as reflected in provisions of the Code of Federal Regulations related by the Court, effectively answer the estoppel argument of defendant. Responsibility for the lease operation is that of the lessee. We therefore eliminate any inference of governmental approval of defendant’s actions in our determination of whether the trial court properly found that there was no genuine issue of material fact to be tried in the cause.

*436 Regarding protection of the lease, the lease provides in part:

“3. In consideration of the foregoing, the lessee hereby agrees:
‡ ‡ ‡ ‡ $ $

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Bluebook (online)
1973 OK 110, 517 P.2d 432, 47 Oil & Gas Rep. 168, 1973 Okla. LEXIS 407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/poafpybitty-v-skelly-oil-company-okla-1973.