Enron Oil & Gas Company v. Worth

947 P.2d 610 (1997)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

D and his mother, Frieda M. Webb (D), own the surface of six quarter sections used as farmland. The land owned by Ps is part of a multi-section in which P wanted to conduct seismic operations to test for oil and gas formations. P approached D and offered to pay $5 per surface acre, plus any incidental damage to crops, for permission to enter the land. D did not accept the offer and denied P access to his land. P filed a petition alleging Ds 'have interfered and prevented P, its agents, and employees, from entering . . . to conduct seismic operations. P sought declaratory and injunctive relief. The trial court issued a temporary restraining order. Ds counter-claimed alleging seismic testing would cause 'substantial damage' to their land. After a hearing, the trial court dissolved the temporary restraining order and granted P a temporary injunction covering the three quarter sections of the Ds' land for which P had obtained mineral leases or farmout agreements. With respect to the remaining three quarter sections, P argued it had 'obtained its seismic permits from unleased mineral owners who clearly had the right to sever exploration rights (i.e. the right to conduct seismic testing) from the right to drill . . .' The court held that, although the mineral owners have the right to conduct geophysical exploration, they cannot sever that right from the right to drill and produce by granting permits to P. The court held that mineral owners 'have an absolute right to go upon the property of the surface owner to the extent necessary to explore for or develop minerals located beneath the surface.' But the 'permits' did not grant P the right to drill and remove hydrocarbons, or require it to share the results of the seismic testing with the mineral owners, the court held that P did not have the right to go upon the land to conduct seismic testing, and that 'Oklahoma law allows owners of surface interest only to allow geophysical exploration of minerals [which] would in no way damage or interfere with the right of the mineral owner.' P appealed.