Champlin Exploration, Inc. v. Western Bridge And Steel Co., Inc.

597 P.2d 1215 (1979)

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Nature of the Case

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Facts

D, a refiner, discovered losses and leakage was occurring from its refinery, and took immediate steps to recover what turned out to be refined hydrocarbons. D caused trenches to be dug on its premises to recover and trap the escaped substances. D pumped out the trenches and returned the hydrocarbons to its possession. Peckham, President of Western Bridge & Steel Company, Inc., as an individual and acting on his own, had for some time been collecting refined hydrocarbons in trenches or holes upon Western's premises which were adjacent to D's premises. Western owned only the surface to these and adjoining premises. Peckham sold the hydrocarbons to Dosan Refining Company. P brought suit seeking: (1) a declaratory judgment as to ownership of the escaped substances, and (2) an accounting against all defendants. Both Peckham and P took refined hydrocarbons from shallow holes or trenches from 6 feet deep to 18 or 20 feet deep. Gravity and water pressure caused the escaped hydrocarbons to collect in such areas where they were pumped into trucks or tanks. The substances had migrated a few hundred feet from the leaking pipes or conduits installed by D. The Trial court entered judgment for D and ordered the case dismissed as to other defendants, holding D was the owner of the escaped substances. P appealed.