Schneberger v. Apache Corp.

890 P.2d 847 (1994)

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Nature of the Case

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Facts

Ps are the owners of a 154.95-acre tract. D commenced drilling an oil and gas well on Ps' property. Ps filed a Complaint alleging that D had polluted the property with various harmful and deleterious substances. By agreement dated March 4, 1986, they settled the action. D paid Ps a total of $ 80,000 for damages and expenses related to the 1984 action. The damages included but were not limited to 'loss of cattle, crop damages, land damages, water use, location damages and any other claims which Ps may have or had against D arising out of or related to any of the actions described in the recitals to [the] Agreement.' D additionally paid attorney’s fees of approximately $179,000.00. The Oklahoma Corporation Commission (Commission) exercised its exclusive jurisdiction on pollution matters and ordered a cleanup. The Commission has maintained jurisdiction and monitored D's progress. D continues to be subject to the cleanup plan approved by the Commission. D has spent significant sums implementing the cleanup plan ordered by the Commission. On October 25, 1989, plaintiffs filed their Complaint in this action claiming that D has failed to achieve the reduced level of water contaminants for which Ps contracted. Ps contend that the proper measure of damages is the cost of remediation. D contends that the proper measure of damages is the diminution in the value of the property. The Court certified the issue.