Case Title: Kansas-Nebraska Natural Gas Co. v. STATE CORP. COMM.

Citation: 176 Kan. 561, 271 P.2d 1091

Docket Number: 39,433, 39,434

State: kansas

Court: Kansas Supreme Court

Date: 1954-06-12T00:00:00Z

Document:
176 Kan. 561 (1954)
271 P.2d 1091
KANSAS-NEBRASKA NATURAL GAS COMPANY, INCORPORATED, Appellant,
v.
STATE CORPORATION COMMISSION OF THE STATE OF KANSAS; JEFF A. ROBERTSON, Chairman, DeWITT M. STILES and CHARLES H. WARREN, members of said commission, and their respective successors in office, Appellees. CITIES SERVICE GAS COMPANY, a corporation, Appellant,
v.
STATE CORPORATION COMMISSION OF THE STATE OF KANSAS; JEFF A. ROBERTSON, Chairman, DeWITT M. STILES and CHARLES H. WARREN, members of said commission, and their respective successors in office, Appellees.
Nos. 39,433, 39,434

Supreme Court of Kansas.
Opinion filed June 12, 1954.
Joe Rolston, of Oklahoma City, Okla., and Clayton E. Kline, of Topeka, argued the cause, and O.R. Stites, of Oklahoma City, Okla., Mark H. Adams, and William I. Robinson, both of Wichita, James D. Conway, of Hastings, Neb., and M.F. Cosgrove, of Topeka, were with them on the briefs for the appellants.
Jay Kyle, of Topeka, and R.C. Woodward, of El Dorado, argued the cause and were on the briefs for the appellees.
The opinion of the court was delivered by
WEDELL, J.:
Two separate appeals, No. 39,433 and No. 39,434, both actions against the state corporation commission, have been consolidated for review in this court. The first numbered action *563 was instituted by Kansas-Nebraska Natural Gas Company and the second by Cities Service Gas Company. Both actions were filed in the district court of Shawnee county. The parties agree the decision in case No. 39,434 will control both appeals. We, therefore, shall consider only the appeal in that case.
The appeal is by plaintiff from an order sustaining defendant's motion to quash the service of summons on the ground the court was without jurisdiction of the parties or subject matter. The reasons alleged in that motion are in many respects similar to the grounds of defendant's motion to dismiss the appeal to this court. In the main the motion to dismiss the appeal is based on the ground the district court lacked jurisdiction of the parties and subject matter and therefore the appeal did not confer jurisdiction on this court.
We think these questions require an examination of the petition. The order of the commission (appellee) which occasioned the action was promulgated May 20, 1953. That order fixed the formula or standard for the measurement of a cubic foot of gas. Appellee's former order on that subject reads:
The subsequent order of May 20, 1953, here involved, together with its purpose reads:
*564 The commission accordingly made the last order effective as of 12:01 a.m. of July 1, 1953, and made it applicable to the withdrawal of gas from each and every field in the state.
The petition, insofar as now material, in substance, alleged:
Defendant's principal office and place of business is in Topeka (Shawnee county) where its orders are made and issued; plaintiff is engaged generally in the business of producing, purchasing, transporting and selling natural gas for resale in interstate commerce; in the performance of such business and operations it produces, purchases, transports and sells natural gas produced in and from several gas fields in this state; plaintiff's contract prices for gas differed depending on various stated factors; its contract prices were based on the former standard of measurement; the new standard operates to increase such prices and impairs plaintiff's rights and obligations under subsisting leases and contracts.
The petition, in substance, further alleged:
Plaintiff filed a petition for rehearing before the commission in which it set forth the foregoing facts; it directed the commission's attention to the indefiniteness and uncertainties of the new order as applied to plaintiff's varied forms of business operations; the order was subject to conflicting interpretations; it requested the order be clarified; that the order be set aside as invalid for the following reasons:
The instant petition filed in the district court further, in substance, alleged that in plaintiff's petition for rehearing before the commission it directed attention to the fact the commission's findings and order were not supported by the evidence adduced at the hearing; appellant had a right to assume the order would conform to the testimony adduced and was, therefore, under no duty to *565 cross-examine the expert witnesses called by the commission or to offer evidence in opposition thereto; plaintiff's petition for rehearing was denied; plaintiff would be subject to severe penalties under the statutes if it be determined plaintiff violated the order; an actual controversy existed between it and the commission relative to the interpretation of the order; under the provisions of G.S. 1949, 60-3127 and 60-3132 it was entitled to a declaratory judgment interpreting the order and to consequential injunctive relief against the commission if the order were declared invalid.
The instant petition further alleged:
Appellant contends appellee's motion to quash the service of summons was not based on the theory there was any defect in the service of the summons but was predicated on various legal contentions involving appellant's right to maintain the instant action in the district court of Shawnee county. We think appellant's contention *566 in that respect is sound. Appellee's motion to dismiss the appeal in this court raises most, if not all, of the same legal questions presented in its motion to quash the service.
Both of appellee's motions raise the question, among others, whether appellant may maintain an independent action for a declaratory judgment and for injunctive relief against the commission in the district court of Shawnee county which court, it is conceded, is not a court of review in this case. We think, under the circumstances, appellee's motion to dismiss the appeal should be denied.
We shall, therefore, examine the petition in order to determine whether it states facts which permit appellant to maintain the instant independent action, in view of the relief sought, instead of seeking the desired relief in a court of review provided by the oil and gas conservation act. It is appellant's contention the act authorizes the instant independent action and does not limit it to an action in a court of review. The question requires careful analysis of the act in order to ascertain the legislative intent.
Appellant properly contends the legislative intent must be determined from a consideration of not merely one but of all the pertinent provisions of the act. It is well to note at the outset the legislature has granted authority to the commission to interpret its own rules, orders and regulations and to determine any right thereunder in the manner provided in G.S. 1949, 55-605. (See G.S. 1949, 55-706.) It is not our understanding that the interpretation or validity of any order of the commission is beyond the reach of a reviewing court under the oil and gas conservation act. G.S. 1949, 55-707 reads:
If, as appellant contends, the instant standard of measurement is so indefinite and uncertain that it cannot proceed with safety in its operations we see no reason for concluding it could not bring an action for judicial review of that question. G.S. 1949, 55-606, in part, provides:
Appellant admits the instant action is not one for judicial review of the commission's order and that it was not filed in the district court of a county in which property affected by the order is located.
The last mentioned statute also provides that an action for a review of the commission's rule, regulation or order may be brought by any person aggrieved thereby. The same statute further provides: Such actions on review are to be tried and determined as other civil actions; the reviewing court is not bound by any finding of fact made by the commission; it may supersede any rule, regulation, order or decision of the commission as it may deem proper; a complete abstract of the record of all evidence and proceedings before the commission must be filed in the reviewing court by the complaining party; if such court deems it necessary and in the interest of justice it may remand the action to the commission with directions that it take additional evidence; after such further investigation the commission may change, modify or set aside its rule, regulation, order or decision; the dissatisfied party may thereafter have another hearing before the court of review upon the complete record and the reviewing court may render judgment, affirming, setting aside, in whole or in part, the rule, regulation, order or decision of the commission and an appeal lies to this court from the decision of the reviewing court.
In view of the broad powers granted to the reviewing court it would appear the legislature intended an aggrieved party should have a full and complete remedy in that court relative to any grievance he may have resulting from any rule, order or regulation of the commission. In the light of the fact a complete record of the commission's proceedings must be filed in the reviewing court it is logical to conclude the remedy in that court is fuller, more adequate and complete than it could be in an independent action before a court which does not have the benefit of the record on which the commission's order is based.
One of the allegations in appellant's petition for rehearing before the commission was that the commission's order was not supported by the evidence adduced at the hearings before the commission and that the evidence, in fact, required an entirely different order. If that be true it could be established only by a reviewing court which had such record before it. In support of appellant's contention *568 it had no adequate remedy before a reviewing court the petition also alleged:
If appellant believed additional evidence was necessary it should have presented it to the commission pursuant to the provisions of G.S. 1949, 55-605. Moreover, this court cannot assume a court of review would not exercise reasonable discretion relative to remanding the action to the commission "when it deems it necessary and in the interest of justice."
In treating the motion to quash the service of summons as a demurrer to the petition, as appellant contends it should be, it must be remembered a demurrer admits only facts well pleaded and does not admit naked conclusions. In consideration of the extensive powers granted to a court of review we are obliged to conclude the allegation appellant is without an adequate remedy in a court of review constitutes a conclusion which is not admitted on demurrer.
Appellant argues the power of a reviewing court is limited and cannot grant full relief. It directs attention to the provisions in G.S. 1949, 55-606 which provides, "The authority of the court shall be limited to a judgment either affirming or setting aside in whole or in part the rule, regulation, order or decision of the commission." Assuming that provision constitutes as drastic a limitation of power as appellant contends it is clear a reviewing court would have had ample power and authority to set aside the order here complained of in its entirety. In that event no separate order enjoining the commission from enforcing the order would have been necessary. It expressly has been held the quoted provision does not indicate a legislative intent to authorize the filing of an original, independent action in a district court. (Wakefield v. State Corporation Comm., 151 Kan. 1003, 1007, 101 P.2d 880.)
Appellant relies on the concluding sentence in the same statute which reads:
*569 It argues that provision preserved the right to bring an independent action for a declaratory judgment and injunctive relief. The contention has received our studious consideration. It frankly should be conceded the provision at first blush might appear to preserve independent equitable remedies. If such a conclusion were tenable it would nullify the broad jurisdiction and powers of a reviewing court to do justice on the basis of the full record made before the commission.
It is too clear to be doubted the review provisions were enacted to enable a reviewing court to correct errors which might be committed by the commission in order that justice would be insured to an aggrieved party on the basis of the complete record. It should be noted the review statute in nowise denies the reviewing court the right to apply equitable principles. It provides actions in the reviewing court shall be tried and determined as other civil actions. That includes a trial and determination of actions on equitable considerations. In fact the entire authority to prevent waste under the conservation act is predicated fundamentally on equitable principles.
Various statutes in pari materia and all parts of a single statute must always be construed together with a view of reconciling and bringing them into workable harmony if reasonably possible to do so. (Talbott v. Nibert, 167 Kan. 138, 206 P.2d 131; State v. Sumner, 169 Kan. 516, 219 P.2d 438; Kimminau v. Common School District, 170 Kan. 124, 223 P.2d 689.)
When so read and construed we think the provision in question was intended to mean suitable equitable remedies should not be denied to an aggrieved party in the review action. It would do violence to the legislative intent to conclude it was intended equitable remedies should be available in an independent action when complete and adequate equitable relief may be obtained in the reviewing court. Any other interpretation would throw the entire procedure for the determination of rights under the conservation act into utter chaos. The primary intent and purpose of the review statute was to eliminate the uncertainty and confusion which resulted from independent actions involving the interpretation, validity and enforcement of rules, regulations, orders or decisions of the commission.
It is true, as appellant contends, the provisions of the conservation act are not in all respects the same as those contained in the public utilities act. We need not borrow provisions of the latter act to *570 support the instant decision. The previously indicated purpose and intent of a review statute, however, is the same under both acts. It was early stated in Wichita Gas Co. v. Public Service Com., 132 Kan. 459, 461, 295 Pac. 668, and need not be repeated here. It is inconceivable to believe the legislature intended an independent action for declaratory judgment and injunctive relief against the commission could be maintained in one district court, without the benefit of the record made before the commission, while another action for the same purpose could be maintained on such record in the reviewing court by another party affected by the same order. Such proceedings readily might result in wholly contrary judgments and endless confusion.
In Borchard on Declaratory Judgments, 1934 ed., the rule is stated as follows:
See, also, 1941 edition by same author, p. 321-322, and Arkansas Power & Light Co. v. Federal Power Com., 60 F. Supp. 907.
In Columbian Fuel Corporation v. Panhandle Eastern Pipe Line Co., 176 Kan. 433, 271 P.2d 773, this day decided, we said:
In Wakefield v. State Corporation Comm., 151 Kan. 1003, 101 P.2d 880, plaintiff filed an independent action in the district court of Cowley county to enjoin the commission from enforcing a proration order. The property affected by the order was located in that county. The commission filed a motion to quash the service of summons, which was overruled. It then filed a demurrer to the petition which also was overruled. This court reversed the decision of the district court. The questions decided were whether an independent action to enjoin the commission from enforcing its proration order could be maintained and whether such action was properly brought in that county. We held it was not properly brought in Cowley county for the reason that, unless otherwise provided *571 by statute, an independent action against the commission must be filed in Shawnee county. We further held:
In the instant case the independent action against the commission, insofar as venue is concerned, was properly filed in the district court of Shawnee county, if such an independent action may be maintained. We have concluded an independent action, such as the instant one, may not be maintained in any court and that such legal or equitable remedies as a party aggrieved by the commission's order may have must be asserted in an action filed in the court of review designated in the conservation act. It follows the district court of Shawnee county lacked jurisdiction to entertain the instant independent action. The result of all this is to place heavy duties and responsibilities on a reviewing court to make certain the rights of a party feeling aggrieved by a rule, order or regulation of the commission are adequately protected.
We have not overlooked the numerous helpful decisions supplied by the industry of counsel relative to the question decided or the authorities touching various other questions argued in the briefs. In view of the conclusion reached we do not deem it necessary to extend the opinion with a treatment of additional matters.
The order of the district court is affirmed.