Young v. Ethyl Corp.

444 F. Supp. 207, 1977 U.S. Dist. LEXIS 17211
CourtDistrict Court, W.D. Arkansas
DecidedFebruary 24, 1977
DocketED-72-C-6
StatusPublished

This text of 444 F. Supp. 207 (Young v. Ethyl Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young v. Ethyl Corp., 444 F. Supp. 207, 1977 U.S. Dist. LEXIS 17211 (W.D. Ark. 1977).

Opinion

MEMORANDUM OPINION

PAUL X WILLIAMS, Chief Judge.

The District Court’s opinion in the original trial of this case appears at 382 F.Supp. 769 (1974)-(Judge Harris)

On appeal the decision of the district of the district court was reversed and the case remanded. The opinion of the Court of Appeals (8th Circuit) appears at 521 F.2d 771 (1975). In the opinion of the Court of Appeals appears the following language:

“ . . .In our view, if the Supreme Court of Arkansas were faced with this record, it would hold that the rule of capture does not apply, and that the defendants’ actions in forcibly removing valuable minerals from beneath Young’s land constitute an actionable trespass.”

and at page 775:

“Accordingly, the appellant has a vested existing property right in the brominated salt water underlying his land, and the action of the defendants in forcibly removing that solution by means of injection and production wells on surrounding property constitutes an actionable trespass.”

The Court of Appeals concluded by stating: “The cause is remanded for further proceedings as to the relief to be granted.”

Pursuant to that mandate, trial was resumed and evidence taken to determine the relief to which J. M. Young is entitled.

The jurisdiction of this court was announced in the first trial in the following language:

“Jurisdiction having been established by diversity, the substantive law of the State of Arkansas, as expressed by the State’s highest court, is applicable. Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938); Midstates Oil Corp. v. Waller, 207 F.2d 127, 130, 131 (5 C.A.1953); 28 U.S.C.A. § 1652.”

*209 The statement of facts in the district court’s published opinion in 382 F.Supp. 769 is a fair statement of the true facts with a few changes which have come to light since that trial. In that regard we note it is now stipulated that Mr. Young owns 169.1 acres rather than 180 acres as was first assumed; and the Court in this trial now finds that the Kerlin-Brine field contains 15,040 acres, as distinguished from the 16,000 acre figure assumed in the original trial. The Court finds that Mr. Young’s 169.1 acres is a part of the 15,040 acre Kerlin field and constitutes 169.1/15,040ths thereof. The 15,040 acre Kerlin field is specifically described on a plat attached hereto as Appendix “A” and made a part of this opinion.

The defendant, Ethyl has caused both injection and production wells to be drilled. The injection wells form a rough circle on the periphery of the Kerlin field with the production wells operating within the circle.

The debrominated effluent is injected by means of the injection wells and the pressure forces the underground brine bearing bromine and other valuable minerals to the production wells.

The plaintiff’s lands are surrounded by the lands leased and purchased in fee by defendants within the Southwest area of the Kerlin Brine Field. An injection well, number 13, is located adjacent to and South of the plaintiff’s lands, which, as shown by a preponderance of the evidence, forces the product to production wells numbered 18 and 23. It is established, and undisputed, that the injection of debrominated waters from the defendants’ plant through well numbered 13, under high pressure, displaces the brine waters in the formation underlying the plaintiff’s lands, forcing it to move toward, and eventually produce through wells numbered 18 and 23. The salt water, by means of this artificially induced movement beneath the lands of Mr. Young, is carried to the processing plant where the valuable mineral bromine is removed and sold. This recycling process has continued since the inception of the production and processing in 1969. 382 F.Supp. 769, 772.

It is undisputed that Ethyl (by use of the injection and production wells) knowingly and forcibly removed valuable minerals from the lands of Mr. J. M. Young, and voluntarily commingled the brine bearing bromine and other valuable minerals from Mr. Young’s land with that which it recovered from other such brine in the Kerlin field and from it, as commingled, produced bromine, ethylene dibromide, vinyl bromide and sulphur.

It is also undisputed that Ethyl obtained permits from the Arkansas Oil and Gas Commission for the drilling, location and operation of all its injection and production wells.

The Court finds that Arkansas has no laws either requiring or prohibiting the pooling or unitizing of a common source of such materials as those of the Kerlin field; and this court specifically finds that the 15,040 acre Kerlin field was and is a common source of supply of brine bearing bromine and other valuable minerals as that term is used by the Court of Appeals of the 8th Circuit in its opinion, reported at 521 F.2d 771, which stated the law of this case.

Since the law of this case was determined and announced by the Court of Appeals to be that the defendant’s action in forcibly removing valuable minerals from beneath Mr. Young’s land constitutes an actionable trespass it becomes necessary to determine whether or not the trespass was “willful” or “in good faith” as those terms are used in the law.

The defendant Ethyl contends that the trespass was “in good faith” and damages should be awarded on that theory.

The plaintiff Young contends that the trespass was “willful” and damages should be awarded on that theory.

The burden of proof is on defendant, Ethyl, to show that its trespass was “in *210 good faith.” Ward v. Spadra Coal Co., 168 Ark. 853, 857, 272 S.W. 353 (1925).

The evidence shows that Ethyl’s salt water bromine recovery program in Columbia County, Arkansas, hereafter referred to as the Kerlin Field program, was very carefully planned and skillfully carried out by extremely capable and well financed people after obtaining top-flight legal advice from outstanding and able attorneys who sincerely believed it was the law of Arkansas that the Defendant could do just exactly what the defendant did, i. e. lease in a checkerboard fashion and put in operation both injection and production wells drilled to the Smackover formation in Kerlin field in Columbia County, Arkansas. In actual practice, Ethyl sought to obtain specially written leases from all the owners of those lands comprising the Kerlin field after obtaining the expert services of exceedingly able counsel in Arkansas to write a lease designed to cover a brine operation; and it sought both to buy the lands of J. M. Young and also to lease his lands. Ethyl offered to lease from him on the same terms as it leased from other land owners in the Kerlin field.

Mr.

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Call Carl, Inc. v. BP Oil Corporation
403 F. Supp. 568 (D. Maryland, 1975)
Burbridge v. Bradley Lumber Co.
239 S.W.2d 285 (Supreme Court of Arkansas, 1951)
Young v. Ethyl Corporation
382 F. Supp. 769 (W.D. Arkansas, 1974)
Ward v. Spadra Coal Company
272 S.W. 353 (Supreme Court of Arkansas, 1925)
Eaton v. Langley
42 L.R.A. 474 (Supreme Court of Arkansas, 1898)
Tremarco v. New York
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Bluebook (online)
444 F. Supp. 207, 1977 U.S. Dist. LEXIS 17211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-ethyl-corp-arwd-1977.