State Ex Rel. Fisher v. Nacelle Land & Management Corp.

628 N.E.2d 67, 90 Ohio App. 3d 93, 126 Oil & Gas Rep. 520, 1993 Ohio App. LEXIS 4060
CourtOhio Court of Appeals
DecidedAugust 23, 1993
DocketNo. 92-L-114.
StatusPublished
Cited by4 cases

This text of 628 N.E.2d 67 (State Ex Rel. Fisher v. Nacelle Land & Management Corp.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Fisher v. Nacelle Land & Management Corp., 628 N.E.2d 67, 90 Ohio App. 3d 93, 126 Oil & Gas Rep. 520, 1993 Ohio App. LEXIS 4060 (Ohio Ct. App. 1993).

Opinion

Nader, Judge.

This is an appeal from an order granting summary judgment in the Lake County Court of Common Pleas.

Appellants, Nacelle Land and Management Corporation (“Nacelle”) and its president, Joseph G. Berick, sought a permit on October 9, 1986 from the Ohio Department of Natural Resources, Division of Oil and Gas (“ODNR”), to allow the underground injection of brine. Brine is a waste product generated in oil drilling, which contains a high saline content and is potentially hazardous to animal and plant life. The permit in question sought permission to inject brine through Underground Injection Well No. 306, located in Painesville, Ohio. The impoundment in which appellants proposed to store the brine prior to underground injection has the capacity to hold twelve million gallons. This is the largest impoundment ever permitted by the Division of Oil and Gas. The largest impoundment prior to this had a maximum capacity of 840,000 gallons.

*96 Because the proposed impoundment was so large, the ODNR granted the permit, but imposed conditions on the operation of the well. These conditions provided structural, operational and monitoring criteria and were set forth in the permit. The monitoring criteria consisted of conditions set forth in the Minimum Monitoring System Design Criteria (“MMSDC”) and required seven leak detection wells and bimonthly sampling of these wells. Appellants never appealed the permit conditions.

On April 2, 1990, appellee filed a complaint against appellants, Nacelle, its president, Joseph Berick, and its manager, Ellsworth Dean Stutzman. This complaint alleged violations of the permit and requested that injunctions and civil fines be imposed against each appellant.

On July 15, 1992, the trial court entered an order in which it granted partial summary judgment to appellee and denied appellants’ motion for summary judgment. Appellants timely appealed, assigning the following as error:

“1. The trial court erred to the prejudice of Nacelle by granting ODNR’s motion for summary judgment.

“2. The trial court erred to the prejudice of Nacelle by denying its motion for summary judgment.

“3. The trial court erred to the prejudice of appellant [sic] by enjoining defendant from any operation of its injection well.”

Because appellants’ first two assignments of error concern the same issues, they will be addressed together in this opinion.

Appellee contends that appellants’ appeal is barred by the language of R.C. 1509.36, which provides:

“Any person claiming to be aggrieved or adversely affected by an order by the chief of the division of oil and gas may appeal to the oil and gas board of review for an order vacating or modifying such order. * * * Such appeal shall be filed with the board within thirty days after the date upon which appellant received notice by registered mail of the making of the order complained of. * * * ”

Appellee contends that this language mandates an appeal of any order from the ODNR within thirty days and bars any other collateral attack. However, R.C. 1509.36 further provides:

“ * * * Sections 1509.01 to 1509.37, inclusive, of the Revised Code, providing for appeals relating to orders by the chief or by the board, or relating to regulations adopted and promulgated by the chief, do not constitute the exclusive procedure which any person who deems his rights to be unlawfully affected by such sections or any official action taken thereunder must pursue in order to protect and preserve such rights, nor do such sections constitute procedure which *97 such person must pursue before he may lawfully appeal to the courts to protect and preserve such rights.”

The plain meaning of the language in this statute does not require the procedure set forth to be pursued before appealing to the courts. Thus, the trial court correctly determined that the R.C. 1509.36 appeal is neither mandatory nor exclusive and appellants’ collateral attack on the order of the ODNR is not barred by failure, to pursue an R.C. 1509.36 appeal.

Appellants contend that the permit conditions imposed upon them by the ODNR are unenforceable because they were not set forth in legislation or in a duly adopted regulation. However, appellants have failed to distinguish a rule from an adjudication. Because rules and adjudications employ different procedures, different safeguards are needed in each case to ensure due process.

The conditions imposed on appellants’ permit in this case resulted in an adjudication order. A “rule” is defined in R.C. 119.01(C) as:

“ * * * any rule, regulation, or standard, having a general and uniform operation, adopted, promulgated, and enforced by any agency under the authority of the laws governing such agency, and includes any appendix to a rule.”

R.C. 119.01(D) defines an “adjudication” as:

“ * * * the determination by the highest or ultimate authority of an agency of the rights, duties, privileges, benefits, or legal relationships of a specified person, but does not include the issuance of a license in response to an application with respect to which no question is raised, nor other acts of a ministerial nature.” See, also, Condee v. Lindley (1984), 12 Ohio St.3d 90, 12 OBR 79, 465 N.E.2d 450.

The conditions to appellants’ permit clearly do not have a general application, but are directed only at appellants. Furthermore, R.C. 1509.03 specifically provides:

“ * * * Every order issuing, denying, or modifying a permit under Chapter 1509. of the Revised Code and described as such shall be considered an adjudication order for purposes of sections 119.01 to 119.13 of the Revised Code.”

Thus, the order issuing appellants’ permit was an adjudication order.

R.C. 119.06 provides the process required to be followed for an adjudicatory order to be valid. It provides:

“No adjudication order of an agency shall be valid unless the agency is specifically authorized by law to make such order.

“No adjudication order shall be valid unless an opportunity for a hearing is afforded in accordance with sections 119.01 to 119.13 of the Revised Code. Such *98 opportunity for a hearing shall be given before making the adjudication order except in those situations where this section provides otherwise.

“The following adjudication orders shall be effective without a hearing:

U * * %

“(C) Orders or decisions of an authority within an agency if the rules of the agency or the statutes pertaining to such agency specifically give a right of appeal to a higher authority within such agency, to another agency, or to the board of tax appeals, and also give the appellant a right to a hearing on such appeal.”

R.C. 1509.05 confers power on the Chief of the Division of Oil and Gas to issue permits to drill, stating in pertinent part:

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Cite This Page — Counsel Stack

Bluebook (online)
628 N.E.2d 67, 90 Ohio App. 3d 93, 126 Oil & Gas Rep. 520, 1993 Ohio App. LEXIS 4060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-fisher-v-nacelle-land-management-corp-ohioctapp-1993.