Railroad Commission v. Debardeleben

297 S.W.2d 203, 7 Oil & Gas Rep. 360, 1956 Tex. App. LEXIS 2420
CourtCourt of Appeals of Texas
DecidedDecember 19, 1956
DocketNo. 10439
StatusPublished
Cited by4 cases

This text of 297 S.W.2d 203 (Railroad Commission v. Debardeleben) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Railroad Commission v. Debardeleben, 297 S.W.2d 203, 7 Oil & Gas Rep. 360, 1956 Tex. App. LEXIS 2420 (Tex. Ct. App. 1956).

Opinion

HUGHES, Justice.

This suit was by appellee C. F. DeBar-deleben, Jr., against the Railroad Commission of Texas and its members in their official capacities in which he attacked an order of the Commission denying him exceptions to the Bethany Field density order for four additional gas wells one each on four 640 acre unitized tracts in such field.

[204]*204The four wells had theretofore been drilled under permits issued by the Commission under circumstances to be stated.

On appeal from such order-the Trial Court held appellee to be entitled to such wells to prevent confiscation and enjoined the Commission from interfering with the otherwise lawful operation of and production from such wells.

The Commission’s first point is that appellee should have been denied injunctive relief because he was a law violator and did not come into court with clean hands.

We do not believe this point has substance for the reason that this is not a suit for purely injunctive relief, such relief being merely incidental to the principal relief sought. Furthermore, we doubt the necessity, not the propriety, of permanently enjoining the Commission from interference with a final judgment of a court of competent jurisdiction.1 The Court’s judgment decreeing appellee to be entitled to the wells in question would be just as effective without as with the restraining features of the judgment.

In 30 C.J.S., Equity, § 98, p. 490, it is said: “The clean hands doctrine has been held inapplicable to a suit at law, or a statutory proceeding, as distinguished from a suit in equity,” citing Birk v. Jackson, Tex.Civ.App. Eastland, 75 S.W.2d 918, writ dismissed.

Directly in point is the opinion of this Court in Board of Insurance Commissioners v. Texas Emp. Ins. Ass’n, Tex.Civ.App., 189 S.W.2d 47, 53, affirmed 144 Tex. 543, 192 S.W.2d 149, where the validity of an order of the Board was in question, the Court saying:

“The fact that the relief sought was by injunction does not in itself necessarily determine the character of the action. Primarily the purpose of this suit was to test the validity of the order attacked, and the right to an injunction was dependent upon, and ancillary to, that main purpose. Consequently the unclean hands doctrine applicable to strictly equitable proceedings, does not here apply.”

We will, however, for the sake of completeness as briefly as possible state the facts upon which the Commission sought to invoke the equitable doctrine discussed above.

Prior to December 1, 1955, there were, according to the designation of the Commission, the Bethany and Elysian Gas fields near the county line between Harrison and Panola counties, the Bethany field being in Harrison and the Elysian field being in Panola.

The Commission’s rules for the Bethany field provided for a 640 acre proration unit with a tolerance of 10% and an allocation formula based %rds on acreage and %rd for well.

The Commission’s rule for the Lower Pettit Zone of the Elysian field provided for a 320 acre proration unit with a 10% tolerance and an allocation formula based on 100% acreage times bottom hole pressure.

The Commission had also promulgated a Statewide Density Order which provided, in part, in substance, that: (1) That no well shall be drilled on less acreage than that required for a standard proration unit as established in the applicable rules for any oil or gas field in the State of Texas; (2) that a Form I (notice of intention to drill or deepen) shall be accompanied by a certified basic lease or unitized tract plat showing thereon the acreage dedicated to the proration unit for the proposed well and also showing thereon the acreage previously dedicated to all Commission-approved well locations on said basic lease or unitized tract, and further, that a permit to drill any well for oil or gas will not be granted until such plat has been attached [205]*205to and made a part of such Form I; and (3) that after a unitized tract, wherein two or more separate tracts are joined for oil and gas development purposes, has been accepted by the Commission, it may not thereafter be subdivided into its original separate tracts unless and until approval for such subdivision is granted by the Commission after notice and hearing.

In 1954 and 1955 appellee made four applications for permits to drill gas wells in the northern portion of the Bethany field near the Elysian field, at about where the county line of Harrison and Panola Counties join. Application was made to drill on the Roberts lease in the Bethany field on 232.50 acres on August 24, 1954, which lease was consolidated and unitized into the Roberts Unit of 649.84 acres, February 18, 1955. Application was made to drill on the Timmons No. 1 in the Bethany field on 370 acres on October 25, 1954, and this lease was subsequently consolidated and unitized into Timmons Unit No. 1 on 640.-55 acres on February 18, 1955. Application was made to drill on the Timmons No. 2 in the Bethany field on 648 acres on March 5, 1955, and this was subsequently consolidated and unitized into Timmons Unit No. 2 on 649.13 acres on April 20, 1955. Application was made to drill on the Timmons No. 3 in the Bethany field on 640 acres on March 28, 1955 and this was subsequently consolidated and unitized as a 598.66 acre tract known as Timmons Unit No. 3 on April 20, 1955.

The Commission granted appellee authority to drill these four wells, and they were drilled and completed and are not questioned here.

In July 1955 appellee applied to the Commission for permits to drill four additional wells, one each on the four tracts previously described and on each of which he then had one well. These applications stated the tracts to be in the Elysian field and failed to disclose that such tracts had already been dedicated to proration units set up under the Bethany field rules.

These permits were granted August 1, 1955, the wells were drilled and brought in as producers. When appellee applied to the Commission for allowables for these new wells the Commission refused to grant any allowables for them having by then been alerted to the facts above noted.

Subsequently the Commission refused to approve these wells as exceptions to the Density and Bethany field rules. This refusal was based on appellee’s “wrongful manner” in applying for the well permits and “because he showed neither waste nor confiscation.” It is from this order of refusal that appeal to the court was made.2

On December 1, 1955, the Commission having determined that the Bethany and Elysian fields were a common reservoir combined them under the name “Bethany Field” and adopted the Bethany- field rules, noted above, for the combined field.

It is clear that appellee violated the Commission’s rules in failing to advise it when applying for permits for the last four wells that the acreage upon which the wells were to be drilled had been allocated to his four other wells. We do not condone this infraction of the rules. On the other hand we know of no rule or statute which authorizes us to mete out the punishment of forfeiture of these wells for the violation.

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456 S.W.2d 445 (Court of Appeals of Texas, 1970)
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Railroad Commission of Texas v. DeBardeleben
305 S.W.2d 141 (Texas Supreme Court, 1957)

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Bluebook (online)
297 S.W.2d 203, 7 Oil & Gas Rep. 360, 1956 Tex. App. LEXIS 2420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railroad-commission-v-debardeleben-texapp-1956.