Turley v. Flag-Redfern Oil Co.

1989 OK 144, 782 P.2d 130, 105 Oil & Gas Rep. 553, 1989 Okla. LEXIS 174, 1989 WL 128606
CourtSupreme Court of Oklahoma
DecidedOctober 31, 1989
Docket72408
StatusPublished
Cited by24 cases

This text of 1989 OK 144 (Turley v. Flag-Redfern Oil Co.) 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
Turley v. Flag-Redfern Oil Co., 1989 OK 144, 782 P.2d 130, 105 Oil & Gas Rep. 553, 1989 Okla. LEXIS 174, 1989 WL 128606 (Okla. 1989).

Opinion

KAUGER, Justice.

The question presented by the appellee, Flag-Redfern Oil Company (Flag-Redfern), is whether surface owners have standing to appeal a Corporation Commission order. The issues presented by the appellant, Win-dle Turley (Turley/surface owner), are: 1) whether 52 O.S.Supp.1988 § 87.2 1 is unconstitutional because it does not provide surface owners with notice and the opportunity to be heard in hearings on drilling and spacing applications; and 2) whether 52 O.S.Supp.1988 § 87.2 violates the Fourteenth Amendment 2 to the United States Constitution by creating a legislative scheme which treats those parties holding mineral interests or the right to drill differently from surface owners.

*133 We find that: 1) surface owners do not have standing as “persons aggrieved” within the meaning of 52 O.S.1981 § 113 3 to appeal Corporation Commission orders; 2) because surface owners hold no interest which entitles them to protest applications to establish, reestablish, or reform drilling and spacing units, 52 O.S.Supp.1988 § 87.2 is not unconstitutional for failure to provide surface owners with notice and an opportunity to be heard at protest hearings; 3) the exclusion of surface owners from those parties entitled to protest drilling and spacing applications under 52 O.S. Supp.1988 § 87.2 does not violate equal protection; and 4) the surface owner’s remedy is under the Oklahoma Surface Damages Act, 52 O.S.Supp.1982 § 318.2 et seq. The determination that surface owners do not have standing to appeal applications to establish, reestablish, or reform drilling and spacing units, and that 52 O.S.Supp. 1988 § 87.2 does not violate either due process or equal protection, makes a determination on the evidence presented in support of the motion to advance unnecessary.

FACTS

Turley owns surface rights in Section 9, Township 15 North, Range 25 West (Section 9), Roger Mills County, Oklahoma. Turley does not own a mineral interest in any of the land involved in this action. Flag-Redfern is the owner of a right to drill a well to the Douglas Sands which underlies Section 9. Mewbourne Oil Company (Mewbourne) owns an oil and gas interest in Section 9.

On October 14, 1988, Flag-Redfern filed an application with the Corporation Commission in Cause CD No. 143770 requesting that the existing 640-acre gas well spacing for the Douglas Sands underlying Section 9 be vacated, and that 80-acre drilling and spacing units for the production of oil be established. The hearing was set for October 3, 1988. Flag-Redfern appeared and requested a continuance. Turley and Mewbourne appeared to protest the application. Turley opposed the continuance and the hearing officer denied the motion to continue. Flag-Redfern dismissed its application. Eleven days later, Flag-Red-fern refiled the application in Cause CD No. 146981. Turley was not given notice of the second spacing application.

On November 10, 1988, a prehearing conference was held before the hearing officer. Flag-Redfern appeared in support of its application and Mewbourne appeared to contest the application. The hearing on the spacing application was set on the Corporation Commission’s protest docket for January 17-18, 1989. On November 23, 1988, Mewbourne filed a motion to advance the hearing. Mewbourne filed an amended motion to advance on November 30, 1988, which stated that Mewbourne was withdrawing its protest of the spacing application. The motion was set for hearing on the Commission’s emergency docket.

On December 5, 1988, the hearing officer granted the motion to advance and heard the merits of the spacing application. The hearing officer recommended approval of Flag-Redfern’s application. On December H, 1988, the Corporation Commission entered Order No. 333344 which vacated the previous order establishing 640-acre spacing and established 80-acre drilling and spacing units in Section 9.

On December 9, 1988, Turley filed a motion to reopen Cause CD No. 146981. On December 14, 1988, he filed a motion to stay the effectiveness of Order No. 333344, establishing 80-acre drilling and spacing units. In both motions, Turley alleged that the proceedings on December 5, 1988, were treated as unprotested when both Flag-Redfern and Mewbourne knew that Turley *134 opposed the spacing application. Turley also argued that he was entitled to notice of the December 5th proceedings, and that failure to give the proper notice rendered the spacing order void.

The hearing officer heard Turley’s motion to reopen on December 14, 1988. The hearing was continued to allow Turley to present evidence of ownership of a mineral interest in Section 9 or to amend his motion to include an application to intervene. At the hearing on January 4, 1989, Turley’s attorney appeared both for Turley and for Carl Allen (Allen), the holder of a mineral interest in Section 9. No evidence was presented to establish that Turley owned a mineral interest in Section 9 or that Allen had not received notice of the spacing application. Even if Turley had filed a motion to intervene pursuant to 52 O.S.Supp.1988 § 87.2(B), he would have been required to show that he had an interest intended to be protected by § 87.2 to prevail. Flag-Red-fern filed a motion to dismiss on the ground that, as a surface owner, Turley was not entitled to notice of the drilling and spacing application under § 87.2 and Commission Rule of Practice 8-2. 4 The hearing officer recommended that the motion to reopen be dismissed because Turley had presented no evidence of ownership of a mineral interest in Section 9, and that he lacked standing to invoke the jurisdiction of the Corporation Commission.

On January 11, 1989, a hearing was held before the Corporation Commission en banc (Commission) to consider Turley’s motion to stay the effectiveness of the spacing order and his appeal of the hearing officer’s adverse ruling on the motion to reopen. Turley filed his appeal on January 13, 1989. On February 9, 1989, the Commission dismissed Turley’s motion before the hearing officer and denied his motion to stay effectiveness of Order No. 333344. The Commission found that Turley, as a surface owner, lacked standing to protest the drilling and spacing application.

I

SURFACE OWNERS ARE NOT “PERSONS AGGRIEVED”

WITHIN THE MEANING OF 52 O.S.1981 § 113

WITH STANDING TO APPEAL CORPORATION COMMISSION ORDERS.

Flag-Redfern contends Turley lacks standing because he does not own an interest in the minerals underlying Section 9. Turley asserts that as a land owner, he has a personal stake in the Corporation Commission’s actions making him a proper party to appeal the Commission’s order.

A person need not be a party to an action before the Corporation Commission in order to have standing to prosecute an appeal from a Commission order. 5 Section 113

Free access — add to your briefcase to read the full text and ask questions with AI

Related

WESTERN HEIGHTS INDEPENDENT SCHOOL DISTRICT v. STATE
2022 OK 79 (Supreme Court of Oklahoma, 2022)
REVOLUTION RESOURCES v. ANNECY
2020 OK 97 (Supreme Court of Oklahoma, 2020)
KENKEL v. PARKER
2015 OK 81 (Supreme Court of Oklahoma, 2015)
Mike v. PROFESSIONAL CLINICAL LABORATORY, INC.
781 F. Supp. 2d 1192 (N.D. Oklahoma, 2011)
O'Brien Oil, L.L.C. v. Norman
2010 OK CIV APP 23 (Court of Civil Appeals of Oklahoma, 2010)
Opinion No. (2009)
Oklahoma Attorney General Reports, 2009
Sanford v. Anadarko Petroleum Corp.
2001 OK CIV APP 90 (Court of Civil Appeals of Oklahoma, 2001)
Walls v. American Tobacco Co.
2000 OK 66 (Supreme Court of Oklahoma, 2000)
Presley v. Board of County Commissioners
1999 OK 45 (Supreme Court of Oklahoma, 1999)
Nelson v. Nelson
1998 OK 10 (Supreme Court of Oklahoma, 1998)
Del Rio Drilling Programs, Inc. v. United States
35 Fed. Cl. 186 (Federal Claims, 1996)
DuLaney v. Oklahoma State Department of Health
1993 OK 113 (Supreme Court of Oklahoma, 1993)
Special Indemnity Fund v. Bedford
1993 OK 60 (Supreme Court of Oklahoma, 1993)
Grand River Dam Authority v. Brogna
1991 OK CIV APP 104 (Court of Civil Appeals of Oklahoma, 1991)
Abrego v. Abrego
1991 OK 48 (Supreme Court of Oklahoma, 1991)
Sumrall v. Wright
1990 OK CIV APP 80 (Court of Civil Appeals of Oklahoma, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
1989 OK 144, 782 P.2d 130, 105 Oil & Gas Rep. 553, 1989 Okla. LEXIS 174, 1989 WL 128606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turley-v-flag-redfern-oil-co-okla-1989.