Texas Co. v. Montgomery

73 F. Supp. 527
CourtDistrict Court, E.D. Louisiana
DecidedNovember 24, 1947
DocketCivil Action 457
StatusPublished
Cited by8 cases

This text of 73 F. Supp. 527 (Texas Co. v. Montgomery) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Co. v. Montgomery, 73 F. Supp. 527 (E.D. La. 1947).

Opinion

LEE, Circuit Judge.

This is a bill in equity brought by the Texas Company to have Act No.367 of 1940, *529 as amended by Act No.199 of 1942, creating the Louisiana Stream Control Commission, with control of waste disposal into lakes, streams, rivers, and coastal waters of the State of Louisiana, declared null and void as violative of the Fourteenth Amendment of the federal Constitution and of certain articles of the State Constitution, or, in the alternative, to have an alleged order of the Commission, dated June 30, 1947, issued pursuant to the act, declared null and void for similar reasons. The matter is before us on an application for a preliminary injunction. The defendants, the personnel of the Commission, moved to dismiss the bill on the ground that plaintiff must avail itself of the administrative machinery set up under the act before resorting to the courts; then, reserving all rights under the motion, they answered denying the material allegations of the complaint. By agreement the motion and the application for injunction were submitted together upon the pleadings and a stipulation of facts.

The facts pertinent to the issues briefly are as follows: The Texas Company is now, and for a number of years has been, engaged in drilling for, producing, handling, and marketing petroleum and petroleum products in the State of Louisiana. The magnitude of its operations in the State is indicated by the fact that in 1946 it paid to the State of Louisiana $2,800,000 in severance taxes, and spent in the State $940,000 in acquiring leases, $14,000,000 in drilling operations, and $6,700,000 in rentals and royalties. Its operations are carried on in forty-three fields in Louisiana, six fields located in the northern parishes of the State and thirty-seven fields in the southern or coastal area of the State.

In the coastal area, oil and gas are usually found in the earth in intimate contact with salt water, and the salt water is produced along with oil and gas. At the surface, the salt water is separated from the oil by mechanical devices. From wells in the coastal area located in or near elevated dry lands, it is impounded in disposal wells or run into evaporation pits; from wells located in low marsh lands it is run into canals and bayous; and from wells located in water areas it is loosed into the open waters. All, or practically all, of the operating companies in the coastal area follow this procedure. On April 30, 1941, the Commission adopted certain general rules governing disposal of oil well wastes; on May 27, 1941, the rules were published in one issue of a daily newspaper, the official journal of the State and of the Parish of East Baton Rouge. Paragraph 5 of the rules was amended on April 19, 1943, and the amendment was published in one issue of said journal on May 15, 1943. 1 Plaintiff had no prior notice of the Commission’s meetings or of the fact *530 that rules governing disposal of oil field waste would be considered at the meetings. On September 23, 1946, the Commission considered a complaint “regarding pollution, said to cause oyster mortality in the Grand Bay Field.” At that meeting the Commission by formal resolution instructed that a copy of the rules governing disposal of oil field waste be mailed to each of the companies operating in the coastal area. Thereupon a copy of the rules was mailed to each of the companies on the Commission’s mailing list, including the plaintiff, and the request was made that the rules be complied with by each of them. Plaintiff, in due course, acknowledged receipt. On November 20 and 26, the Commission met to consider a petition to prohibit the discharge of oil well brine into coastal waters, and by formal resolution ordered the oil companies operating in sixteen parishes in the coastal area to cease the discharge of oil well brine and other waste into the inland waters of those parishes and into their coastal waters within the three-mile limit. A copy of this resolution was mailed to plaintiff and to the other operating companies on the Commission’s mailing list. Thereafter, in December 1946 and during the first six months of 1947, the Commission at various meetings considered the deleterious effects of oil and oil well brine, or bleed waters, 2 on oysters, shrimp, and other fish life. These meetings culminated in notices of determination, under section 9 of the act, being served on or about June 30, 1947, on plaintiff and on several, but not all, of the companies discharging oil well waste into the coastal and nearby waters. In the notices, attention was directed to several apparent infractions of the Commission’s rules and regulations, including the discharge of salt or bleed waters into the open waters of certain bays, 3 and all companies so notified were requested to file with the Commission, within ten days, a report of the preventive measures, if any, being taken to control the resulting pollution. 4 No opportunity was afforded the plaintiff or the other companies to attend these various meetings, nor were the proceedings of the meetings published. Prior to the issuance and service of these notices of determination, oyster growers, in coastal waters into which *531 oil well brine or bleed waters were discharged, filed numerous suits, in State and federal courts, against the plaintiff and other operating oil companies for damages to oyster life allegedly due to the discharge into the open waters in the coastal area of oil field waste and brine. The damages al-

leged in these suits, now pending, aggregate several million dollars.

After receipt of the notice of determination dated June 30, 1947, plaintiff filed this action seeking injunctive relief.

The pertinent sections of the act, as-amended, are set forth in a footnote. 5 No. *532 State appellate court has interpreted the of necessity be passed on by us as of first act, and each of the questions raised must impression.

*533 In approaching the questions before us it is well to bear in mind (1) that the federal courts are loath to interfere with the enforcement of a rule, regulation, or order of a State board or commission where the State statute under which the State authorities act affords administrative relief ; 6 and (2) that while federal courts will act under certain circumstances to prevent an invasion of the constitutional rights by State authorities, although no prior attempt has been made to exhaust administrative remedies, as a general rule they will do so only where the State statute is void upon its face. 7 All parties to the litigation admit these governing principles, but they are far apart in their construction of the act and in their application of these principles thereto.

Plaintiff contends that the act, on its face, is unconstitutional, that it is violative of the Fourteenth Amendment and of the State Constitution:

Of the Fourteenth Amendment for the reasons that

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Bluebook (online)
73 F. Supp. 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-co-v-montgomery-laed-1947.