Administrative Law: Public Law/Private Law Distinction; Oklahoma Compulsory Pooling and Unitization: Non-Consenting Working Interest Owner

摘要

The subject weli is productive from the Sycamore and Hunton formations as of May 28, 2008. On that date, Crawley (the operator of the well) proposes to GrayHorse and the other working interest owners in the well that the well be recompleted in the Third Deese (Gibson Sand) formation. GrayHorse declines to participate. Crawley then applies to the Oklahoma Corporation Commission for an order pooling the interests of the owners in the Third Deese (Gibson Sand) common source of supply. The Commission issues its pooling order, and Crawley proceeds to recomplete the well after GrayHorse declines to participate in those efforts as a working interest owner. GrayHorse thereafter files a lawsuit against Crawley alleging that Crawley converted the casing, pipe and wellbore to its own use in recompleting the well, and that Crawley caused damage to GrayHorse. The trial court rules that because the Corporation Commission has sole authority to adjust the rights and equities and protect correlative rights of all interested parties in proceedings for the issuance of a pooling order, GrayHorse's sole recourse was a timely appeal of the forced pooling order. The trial court grants Crawley's motion to dismiss the suit for lack of subject matter jurisdiction. GrayHorse appeals. Held: reversed and remanded.