WBD Oil & Gas Co. v. Railroad Commission of Texas

35 S.W.3d 34, 1999 WL 46637
CourtCourt of Appeals of Texas
DecidedJanuary 19, 2001
Docket03-97-00002-CV
StatusPublished
Cited by22 cases

This text of 35 S.W.3d 34 (WBD Oil & Gas Co. v. Railroad Commission of Texas) 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.

Bluebook
WBD Oil & Gas Co. v. Railroad Commission of Texas, 35 S.W.3d 34, 1999 WL 46637 (Tex. Ct. App. 2001).

Opinions

[37]*37J. WOODFIN JONES, Justice.

WBD Oil & Gas Company and WBD Oil & Gas Company, Inc. (collectively “WBD”) filed a declaratory judgment action challenging the validity of field rules promulgated by the Railroad Commission of Texas (“Commission”) for oil and gas fields in the Texas panhandle.1 The trial court dismissed the suit for want of jurisdiction. In a single point of error, WBD asserts several bases for jurisdiction in a Travis County district court. We will reverse the trial court’s order of dismissal.

FACTUAL AND PROCEDURAL BACKGROUND

In an effort to settle confusion that existed in producing the enormous oil and gas fields of the Texas panhandle, the Commission issued notice in January 1986 of its intent to conduct hearings for the purpose of considering the consolidation of those 13 fields into a single “Panhandle Field” and, if consolidation was ordered, the adoption of rules for the consolidated field. The notice stated in pertinent part:

I
NOTICE IS HEREBY GIVEN to the public and all interested persons that ... the Railroad Commission of Texas will hold a hearing on a date and place to be determined.
II
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[T]he Commission will consider consolidating all the Panhandle Fields into one, the proposed “Texas Panhandle Field,” and prorating this consolidated new field as an associated reservoir.
Operators are urged to present data and opinions as to whether the Panhandle Lime, Granite Wash, and various other formations are a common reservoir. ...
If the Panhandle Fields are consolidated into one field, the Commission will also consider determining special field rules for regulating exploration, production, and development in a manner necessary to prevent waste, promote conservation, and protect correlative rights. Operators are urged to present data and opinions in support of the special field rules they would consider to be appropriate.
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V
The Commission will consider adopting the following rules to govern the development and production of all wells prorated in the proposed Texas Panhandle Field, but will adopt rules as the evidence shows is necessary to prevent waste and protect correlative rights:
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VI
Parties attending this hearing may propose other rules and/or alternative field rules and should submit evidence to support any proposed rule as it relates to waste prevention, oil and gas conservation, and the protection of correlative rights.
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XII
All persons who intend to participate in the hearing of this docket are directed to file with Docket Services by February [38]*384,1986, a written Pleading setting forth the following:
1. Their correct name and mailing address;
2. Their intent to appear;
3. Whether or not party status will be requested;
4. The basis for standing if party status is requested;
5. Their position on the issued [sic] raised in this Notice and specifically with regard to consolidation of fields and special field rules;
6. Whether or not they intend to present evidence at the hearing; and,
7. Any other matter that is appropriate.
The first matter to be considered at the prehearing conference will be the designation of parties. Parties will be named at the prehearing conference....
An official Service List will be compiled and maintained by the Examiners. The Service List will contain only named parties (or their representatives) to the hearing. A list of interested persons who do not request party status but who request to be included for Commission generated mailings regarding this docket will also be compiled and maintained by the Examiners. The Service List will be updated as necessary and representatives may be designated to receive service for more than one party. Only the parties and representative [sic] included in the latest Service List must be served as required by Commission Rules or the procedure directed for this docket.

WBD received this notice, but did not accept the Commission’s invitation to participate in the proceeding. At that time there were more than 15,000 producing oil or gas wells in the 13 fields located in the Texas panhandle. WBD owned or operated forty such wells.

Pursuant to the notice, the Commission conducted an evidentiary, trial-type hearing commencing on January 6, 1987. The result of this hearing was the issuance in 1989 of an order that contained findings of fact, conclusions of law, field rules for oil, field rules for gas, general rules, and guidelines for compliance (collectively, the “Panhandle Field2 rules”). The Commission’s order was styled “Amended Final Order Adopting and Clarifying Rules and Regulations for [13 named oil and gas fields], Hereinafter Referred to as the ‘Panhandle Fields’ ” and stated in pertinent part:

It has come to the Commission’s attention that confusion exists among some operators in the Panhandle Fields as to the applicability of the rules presently enforced by the Commission in the administration of oil and gas conservation matters in said fields, and more particularly in the methods of completion permitted for oil wells. So that the existing confusion may be eliminated, the Commission, after review and due consideration of a Proposal For Decision in Docket No. 10-87,017, and the exceptions and replies thereto, hereby adopts the following findings of fact and conclusions of law:
FINDINGS OF FACT
* * *
5.The Railroad Commission called this hearing to review existing rules and to consider adopting new or amended rules for [13 named oil and gas fields]. These fields collectively are referred to as the Panhandle Fields.
CONCLUSIONS OF LAW
* * *
10. Changes and clarifications of rules in the Panhandle Fields are appro[39]*39priate in light of “changed conditions”, Railroad Commission v. Aluminum Company of America, 380 S.W.2d 599 (Tex.1964).
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Therefore, IT IS ORDERED by the Railroad Commission of Texas that the historic classification and separation of Panhandle oil and Panhandle gas fields shall be retained ... and that the following rules, in addition to such of the Commission’s general rules and regulations as are not in conflict herewith, be and the same are hereby clarified and adopted to govern the drilling, completion and operation of wells in the Panhandle Fields:
Oil Field Rules
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Gas Field Rules

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Bluebook (online)
35 S.W.3d 34, 1999 WL 46637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wbd-oil-gas-co-v-railroad-commission-of-texas-texapp-2001.