WBD Oil & Gas Co. and WBD Oil & Gas Company, Inc. v. Railroad Commission of Texas Greg Abbott, in His Official Capacity as Attorney General of the State of Texas Anadarko Petroleum Corporation MidCon Gas Services Corp. Natural Gas Pipeline Company of America Midgard Energy Company And Conoco Inc.

CourtCourt of Appeals of Texas
DecidedJanuary 19, 2001
Docket03-97-00002-CV
StatusPublished

This text of WBD Oil & Gas Co. and WBD Oil & Gas Company, Inc. v. Railroad Commission of Texas Greg Abbott, in His Official Capacity as Attorney General of the State of Texas Anadarko Petroleum Corporation MidCon Gas Services Corp. Natural Gas Pipeline Company of America Midgard Energy Company And Conoco Inc. (WBD Oil & Gas Co. and WBD Oil & Gas Company, Inc. v. Railroad Commission of Texas Greg Abbott, in His Official Capacity as Attorney General of the State of Texas Anadarko Petroleum Corporation MidCon Gas Services Corp. Natural Gas Pipeline Company of America Midgard Energy Company And Conoco Inc.) 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.

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WBD Oil & Gas Co. and WBD Oil & Gas Company, Inc. v. Railroad Commission of Texas Greg Abbott, in His Official Capacity as Attorney General of the State of Texas Anadarko Petroleum Corporation MidCon Gas Services Corp. Natural Gas Pipeline Company of America Midgard Energy Company And Conoco Inc., (Tex. Ct. App. 2001).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN


ON MOTION FOR REHEARING


NO. 03-97-00002-CV

WBD Oil & Gas Company and WBD Oil & Gas Company, Inc., Appellants


v.


Railroad Commission of Texas; Dan Morales in his Official Capacity as Attorney

General of the State of Texas; Anadarko Petroleum Corp.; MidCon Gas

Services Corp.; Natural Gas Pipeline Company of America; Midgard

Energy Company; and Conoco Inc.

, Appellees


FROM THE DISTRICT COURT OF TRAVIS COUNTY, 250TH JUDICIAL DISTRICT

NO. 95-07116, HONORABLE MARGARET A. COOPER, JUDGE PRESIDING

DISSENTING OPINION

I substitute the following for my previous dissenting opinion.

The majority opinion(1) finds trial-court jurisdiction in section 2001.038 of the Administrative Procedure Act (APA),(2) a statute that authorizes a cause of action for declaratory judgment to determine the validity or applicability of an administrative-agency rule. Essential to the majority's theory is a related conclusion that the Panhandle Field Rules constitute a rule within the meaning of section 2001.038. See Tex. Gov't Code Ann. § 2001.038 (West 2000). I disagree with this related conclusion.

Insofar as it is applicable here, section 2001.003(6) defines the word rule to mean "a state agency statement of general applicability that . . . implements, interprets, or prescribes law or policy." Tex. Gov't Code Ann. § 2001.003(6) (West 2000). It is easy to see that the Panhandle Field Rules fit nicely into this statutory definition. For the majority, that is enough. I disagree for reasons I will set out below.

The concurring opinion states that the holding in the majority opinion is a narrow one. The holding referred to, I should think, is the majority's basic conclusion that any agency statement is a rule if in ordinary usage the words of the statement fit the definition of a rule set forth in section 2001.003(6). That this construction is a narrow one is not suggested by the language of the majority opinion. And the construction the majority place upon section 2001.003(6) is necessarily a precedent for all other cases involving the same issue; within this court's geographical jurisdiction that construction is presumably binding. In fact, another panel of this Court has so treated the majority opinion. See Texas Alcoholic Beverage Comm'n v. Amusement & Music Operators, Inc., 997 S.W.2d 651, 660 (Tex. App.--Austin 1999, pet. dism'd). We surely will not be free to give section 2001.003(6) a different construction in any future appeal without reversing the majority holding herein.

The intended meaning of a declaration ordinarily depends upon the context in which it was made. For example, the statement that "Yesterday was a fine day" may be true when made at one time and false at another. Under the theory of the majority opinion, however, the context of any and all agency statements becomes irrelevant in deciding whether a particular agency statement amounts to a rule as that word is defined in section 2001.003(6). The sole issue for the majority is abstract and lexical: May it be said the statement in question is one of general applicability that implements, interprets, or prescribes anything includable in the broad concepts of "law" or "policy"? If so, the statement is a rule for purposes of sections 2001.003(6) and 2001.038. I do not believe the legislature intended that these sections be understood and applied in that manner.

I believe section 2001.003(6) must be understood and applied in the particular context in which the legislature established that definition of the word rule--the administrative processes required and expected of state administrative agencies. These agencies are constituted for the very purpose of formulating and issuing statements of general (or particular) applicability that implement, interpret, and in many cases prescribe law or policy. Administrative agencies do little else. If an agency possesses rulemaking power, such statements may take the form of rules as the agency decides in its discretion.(3) But agencies routinely make statements of this kind, of general applicability, in a myriad of other forms as well. These range from statements made in the course of adjudicating contested cases, to such things as the inclusion of minority set-asides in construction contracts let by the agency, and even to an agency's "raised eyebrow" that coerces conduct in a regulated field. See Alfred C. Aman, Jr., & William T. Mayton, Administrative Law § 4.1, at 80-82 (1993). For example, in the course of adjudicating a contested case conducted by an administrative-law judge assigned by the State Office of Administrative Hearings, an agency is required to provide that official "with a written statement of applicable rules or policies"; and, the agency may revise his or her determination "only if the agency determines [he or she] did not properly apply or interpret applicable law, agency rules, written policies [so provided], or prior administrative decisions." Tex. Gov't Code Ann. § 2001.058(c), (e)(1) (West 2000) (emphasis added). The legislature cannot have intended an absurdity--which the majority opinion requires--that the contested case must stop in mid-course to await the agency's promulgation and indexing of an actual rule that embodies the "written policy" furnished the administrative-law judge. The disjunctive "or" in these statutory passages, distinguishing between "rules" and "policies," is not the result of a slip of the legislative pen. And it demonstrates plainly that not all general statements of binding agency policy can or do take the form of rules. See Amarillo Indep. Sch. Dist. v. Meno, 854 S.W.2d 950, 957-58 (Tex. App.--Austin 1993, writ ref'd n.r.e.).

In short, the majority opinion condemns as categorically invalid all agency statements of general applicability, implementing, interpreting, or prescribing law or policy, unless such statements take the form of rules promulgated through APA rulemaking procedures. Recourse to declaratory relief from any such non-rule statements, under section 2001.038, is hereafter unnecessary--the statements are by definition invalid and unenforceable when issued. An injunction against enforcement of such statements will now suffice. They are dead letters ab initio by force of the majority's construction of section 2001.003(6) in this appeal. One might be forgiven for raising an eyebrow at that construction.

A RULE IS THE PRODUCT OF RULEMAKING PROCEDURES

MANDATED BY THE APA


In its adoption of section 2001.003(6), I believe the legislature had in mind the conventional understanding of what a rule is: the product of an agency rulemaking proceeding, the only kind of agency proceeding that can possibly produce an actual rule.

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WBD Oil & Gas Co. and WBD Oil & Gas Company, Inc. v. Railroad Commission of Texas Greg Abbott, in His Official Capacity as Attorney General of the State of Texas Anadarko Petroleum Corporation MidCon Gas Services Corp. Natural Gas Pipeline Company of America Midgard Energy Company And Conoco Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/wbd-oil-gas-co-and-wbd-oil-gas-company-inc-v-railroad-commission-of-texapp-2001.