Williams v. Amoco Production Co.

734 P.2d 1113, 241 Kan. 102, 93 Oil & Gas Rep. 60, 1987 Kan. LEXIS 303
CourtSupreme Court of Kansas
DecidedMarch 27, 1987
Docket59,277, 59,278
StatusPublished
Cited by49 cases

This text of 734 P.2d 1113 (Williams v. Amoco Production Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Amoco Production Co., 734 P.2d 1113, 241 Kan. 102, 93 Oil & Gas Rep. 60, 1987 Kan. LEXIS 303 (kan 1987).

Opinion

The opinion of the court was delivered by

Herd, J.:

This is an action for damages to real property resulting from the presence of natural gas in plaintiffs’ irrigation water. The plaintiff landowners (hereafter plaintiffs or appellees) claim the natural gas escaped from two of the. defendant’s Hugoton gas wells. A jury returned a verdict in favor of the plaintiffs for $656,006.40, and the defendant, Amoco Production Company, appeals.

Irrigation water in southwest Kansas is derived primarily from water-bearing aquifers known as: (1) The Pleistocene deposits, located at a depth of approximately 275 feet; (2) the Ogalalla formation, found at a depth of between 275 and 350 feet; and (3) the Dakota and Cheyenne formations, located below the Ogalalla. The Pleistocene is the best aquifer, while the Ogalalla is better than the Dakota or Cheyenne formations. This is because the Dakota and Cheyenne formations are composed of fine-grained sandstone, while the Ogalalla is made up of coarse sand and gravel and thus has more porosity and permeability.

The appellees, Earl and Loretta Williams and their son Don Williams, own and farm approximately 2,500 acres of land located northwest of Ulysses. They operate five irrigation wells on this acreage: (1) A well completed in the Ogalalla on Section 29; (2) a well completed in the Ogalalla on Section 30; (3) a deep well drilled in 1968 through the Ogalalla and into the upper Dakota on Section 31; (4) a deep well drilled to 620 feet, through the Ogalalla, to the Dakota and Cheyenne on Section 32; and (5) a similar deep well drilled in 1971 to 576 feet on Section 34.

In the spring of 1968, appellees’ irrigation well on Section 32 occasionally quit running. An irrigation supply company (Weber *105 Supply) examined the well several times but was unable to pinpoint the problem until an employee lit a cigarette, threw his match down, and natural gas ignited near the wellhead.

Nearby gas well operators were notified of the problem and in July of 1968, Amoco discovered problems with two of its Hugo-ton gas wells: the E. B. Williams No. 1, located on Section 29, immediately north of Section 32; and the Redinger Gas Unit B No. 1 on Section 33, immediately east of Section 32.

Amoco’s tests on the E. B. Williams well revealed 260 pounds of pressure between the 10 and %-inch surface casing and the seven-inch production casing, indicating a leak in the production casing. The well was repaired on July 31, 1968. The repair consisted of the installation of a 4 and %-inch production liner inside the production casing with a packer set at 2,329 feet. A packer is a device used to seal the space between the production casing and the repair liner. Amoco also installed a pressure gauge to monitor leaks in the space between the surface casing and production casing and between the production casing and the liner.

A leak was also discovered in the Redinger well on July 17, 1968. Unlike the E. B. Williams well, a pressure check on the Redinger well showed no pressure between the surface casing and production casing. Amoco concluded that corrosive fluids in the Glorietta formation at 1,300 feet had eaten through the production casing, permitting water and sand to fall inside the production casing to the bottom of the production liner, extinguishing the flow of gas. Thus, Amoco contends, no natural gas leaks ever occurred in this well. The same repair procedure was used on the Redinger well as was used on the E. B. Williams well and pressure gauges were installed to detect leakage.

In addition to repairing its own gas wells, Amoco attempted to restore production to plaintiffs’ irrigation well on Section 32. By mid-1969, after a series of modifications to plaintiffs’ equipment, steady production was restored at the rate of 1,300 to 1,400 gallons per minute. Prior to the natural gas leak, plaintiffs claim, the well could pump as much as 2,200 gallons per minute. Approximately one year after Amoco completed modification of appellees’ well, Weber Supply tested the well at 1,420 gallons per minute.

*106 In February 1970, appellees filed an action in the United States District Court for the District of Kansas, seeking the recovery of temporary damages for crop loss on Section 32, and incidental equipment expense. Prior to trial, appellees amended their claim to include temporary damages for crop loss in the years 1968 through 1973. Appellees declined to follow the trial court’s suggestion that they amend their claims to seek permanent damages. A jury returned a verdict in favor of the appellees and against Amoco for $100,000 plus interest.

In 1971, appellees drilled a new deep irrigation well on Section 34 to replace a shallow well. The new well was drilled to a depth of 576 feet and was completed through the Ogalalla, Dakota, and Cheyenne formations. The designers of the well told appellees the well was capable of producing 1,500 gallons per minute. A well test conducted by Weber Supply on July 19, 1971, showed the well would produce 990 gallons per minute without drawing any air.

The well produced without problems for approximately two years. Sometime in July of 1973, appellees discovered natural gas in the well. The presence of natural gas in the well caused no substantial damage because appellees by this time knew how to produce water by throttling the engine back a little, thereby controlling the “surging” problem caused by the presence of gas in the water. Appellees never calculated the reduction in water production from the well due to throttling back the engine to control the surging. However, the well pumped an average of 1,000 gallons per minute in 1975.

During the mid-1970’s, a prohibition was placed upon the drilling of additional irrigation wells in southwest Kansas. This restriction was due to the significant decline in the water table caused by existing wells. As the water table has dropped over the years, a resulting decline in productivity in the area’s irrigation wells has also occurred. Appellees’ wells are no exception.

Appellees eventually filed two lawsuits which were consolidated for trial. The first lawsuit was filed in the district court of Grant County on July 30, 1975, seeking temporary damages for crop loss on the NW/4 of Section 34. The second lawsuit was filed on February 11, 1976, seeking temporary damages for crop loss on Section 32 occurring since February 22,1974 (the date of the judgment received in the federal court case).

*107 The nature of the cases remained the same until the district court ruled on June 4, 1982, that appellees’ damages, if any, are permanent in nature and not temporary. Thereafter, in May of 1985, appellees were allowed to amend their lawsuit over Amoco’s objection, to add permanent damage claims with respect to land owned by the appellees in Sections 18, 19, 20, 29, 30 and 31. Thus, the case was tried on the theory that all of appellees’ 2,500 acres of land had been permanently damaged in 1974 by the presence of natural gas in the aquifer.

A jury trial was had and on September 27,1985, the jury found for the appellees and awarded damages in the amount of $656,006.40. Amoco appeals.

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Cite This Page — Counsel Stack

Bluebook (online)
734 P.2d 1113, 241 Kan. 102, 93 Oil & Gas Rep. 60, 1987 Kan. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-amoco-production-co-kan-1987.