United Fuel Gas Co. v. Allen

75 S.E.2d 88, 137 W. Va. 897, 2 Oil & Gas Rep. 632, 1953 W. Va. LEXIS 87
CourtWest Virginia Supreme Court
DecidedMarch 17, 1953
Docket10497
StatusPublished
Cited by10 cases

This text of 75 S.E.2d 88 (United Fuel Gas Co. v. Allen) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Fuel Gas Co. v. Allen, 75 S.E.2d 88, 137 W. Va. 897, 2 Oil & Gas Rep. 632, 1953 W. Va. LEXIS 87 (W. Va. 1953).

Opinion

Riley, Judge:

This is a proceeding in eminent domain, instituted in the Circuit Court of Putnam County by United Fuel Gas Company, a corporation, against Roy A. Allen and Clara Allen, for the purpose of obtaining an underground gas storage pool for public use, under and pursuant to Code, 54-2-15, as amended. The gas company prosecutes this writ of error to a judgment based upon a jury verdict in favor of the Allens in the amount of $6,000.00.

The property sought to be taken is that part of the subterranean natural gas stratum in the Big Lime formation, underlying the Allens’ 175 acres of land situate on the waters of Buff Branch of Big Hurricane Creek, Curry District, Putnam County, located within the perimeter of petitioner’s gas storage pool, containing approximately twenty-nine hundred acres, referred to in this record as “Pool X-4”.

The commissioners, appointed by the court to ascertain the value of the property sought to be taken, found $7,875.00 to be a just compensation therefor. The petitioner, United Fuel Gas Company, excepted to the report and demanded a jury trial. The case was tried in the circuit court upon the exceptions of the petitioner to the commissioners’ report. No pleadings were filed by the defendants in the circuit court.

The petitioner, United Fuel Gas Company, is a gas public utility company, having the right under Code, *900 54-2-15, to condemn property for public use. It has established in this record that it has no intention to and will not drill any well on the Allen 175-acre tract of land, and will not interfere with, enter upon, or in any manner use the surface of the land, except the Big Lime formation, which will be used by petitioner only by the migration of gas injected into the formation through wells on adjoining or adjacent properties.

The defendant, Roy A. Allen, is the owner in fee of the tract of 175 acres, described in the petition, lying one and a half miles from any hard surfaced road, subject to the inchoate right of dower of the defendant, Clara Allen.

R. H. Adkins and others, doing business as Buff Creek Gas Company, independent oil and gas operators, are lessees under an oil and gas lease on the 175 acres, and are producing gas from the Berea sand thereunder. Adkins and his associates operate the Berea sand by a single well, which the record discloses will produce gas in marketable quantities for fifteen or twenty years. Only the Berea well was drilled through the Big Lime formation, and only a slight showing of gas in that formation was found. The operation of this Berea well will not be affected by the proposed storage operations of the petitioner in the Big Lime formation.

The petitioner has acquired from Adkins and his associates the Big Lime leasehold operating rights. The Big Lime formation lies approximately sixteen hundred feet below the surface of the Allen land, and is some distance above the Berea sand. There is evidence in this record that the Big Lime formation, involved in this proceeding, is not commonly bought and sold, and has common characteristics with other subterranean formations used in other localities for gas storage purposes.

This 175-acre tract, including the improvements situated thereon, for the last five years has been assessed for taxation in Curry District, Putnam County, at $12.00 an acre, or a total of $2,380.00. The latter evidence was admitted into the record without objection. In this regard *901 see Riddle v. The Baltimore and Ohio Railroad Co., handed down by this Court on December 22, 1952, 137 W. Va. 733, 73 S. E. 2d 793.

The final order of the Circuit Court of Putnam County, entered on March 29, 1952, provided, among other things: (1) That the entire subterranean natural gas stratum, known as the Big Lime stratum, in and under the Adíen tract of 175 acres, “shall be and is vested in the petitioner, United Fuel Gas Company”; (2) that pursuant to a voluntary offer made by United Fuel Gas Company during the course of, the trial, when the Big Lime formation underlying the Allen tract shall no longer be used for storage purposes, the gas company will transfer title to the formation to the then owner or owners of the residue of the property; and (3) the United Fuel Gas Company is given leave to withdraw from the papers in this proceeding the plat and description of the land, together with the copy of the order for the purpose of having the same recorded in the office of the Clerk of the County Court of Putnam County.

Before proceeding to take evidence in the circuit court, the parties stipulated that United Fuel Gas Company is a gas public utility company, having the right, under the laws of the State of West Virginia, to condemn the “underground storage stratum for use as a gas storage reservoir”; and that in taking the Big Lime stratum, underlying the Allen tract of 175 acres, the gas company will not interfere with, enter upon, or otherwise use the surface of the land m and about its storage operation or any other portion of that land, other than the Big Lime formation.

Immediately following this stipulation, E. C. Stump, superintendent of gas procurement for United Fuel Gas Company, called as a witness for petitioner, testified concerning (1) the entire acreage of the pool in that area; and (2) the property sought to be acquired and the use thereof. The right of the utility company to condemn the property sought to be acquired having thus been established by stipulation, and the extent of the property *902 having been described in the petition, as well as in the testimony of petitioner’s witness Stump, the defendants proceeded to carry the burden of proving the value of the property, together with the damages to the residue. This defendants were required to do under the holding of this Court in Strouds Creek & Muddlety Railroad Co. v. Herold, 131 W. Va. 45, 45 S. E. 2d 513. See generally 18 Am. Jur., Eminent Domain, 342, and 6 M. J., Eminent Domain, Section 87.

The question whether the defendants have introduced sufficient evidence of just compensation for the property taken and damages to the residue thereof falls into two distinct categories: (1) The market value of the property sought to be taken; and (2) the damages to the residue thereof. In that order the overall question will be considered.

The defendants introduced no evidence bearing on the value of the Big Lime stratum sought to be acquired. The defendant, Roy A. Allen, recalled, on direct examination, and in answer to the inquiry, “Bearing * * * in mind that they are taking the big lime strata, what is, in your opinion, the market value of that big lime strata? You as a property owner?”, answered, “Well, I can’t do that.” Counsel for the defendants in his closing argument to the jury admitted that no evidence had been introduced on behalf of the defendants bearing directly on the market value of the property taken.

The witnesses called by petitioner testified in detail, and in support of the petitioner’s theory of the case concerning the market value of the Big Lime stratum sought to be acquired.

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Bluebook (online)
75 S.E.2d 88, 137 W. Va. 897, 2 Oil & Gas Rep. 632, 1953 W. Va. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-fuel-gas-co-v-allen-wva-1953.