Source: https://casetext.com/case/transok-pipeline-co-v-darks
Timestamp: 2018-12-09 22:28:49
Document Index: 201973178

Matched Legal Cases: ['§ 36', '§ 357', '§ 802', '§ 81', '§ 36', '§ 311', '§ 357', '§ 36', '§ 357', '§ 1', '§ 357']

Transok Pipeline Co. v. Darks, 565 F.2d 1150 | Casetext
Transok Pipeline Co. v. Darks
565 F.2d 1150 (10th Cir. 1977)
Transok Pipeline Co.
United States Court of Appeals, Tenth CircuitNov 14, 1977
National Ins. Underwriters v. Piper Aircraft
…427 U.S., at 18, 96 S.Ct. at 2422. This Circuit in Transok Pipeline Co. v. Darks, 565 F.2d 1150 (10th Cir.),…
…See 550 F.2d at 1200. The Tenth Circuit, however, has expressed quite a different view in the case of Transok…
Argued and Submitted September 29, 1977.
Decided November 14, 1977. Rehearing Denied December 12, 1977.
The appellee Transok Pipeline Company brought this condemnation suit against Marvin Olivo, Maxwell Darks and Agnes Lucas now Wesley, and a number of others. The purpose of the action was to condemn an easement for the underground storage of natural gas, pursuant to an Oklahoma statute, 52 O.S. § 36.3[ 52-36.3] et seq. Federal jurisdiction is said to arise under 25 U.S.C. § 357, which authorizes the condemnation of lands allotted in severalty to Indians in the same manner as lands owned in fee. Jurisdiction as to appellants Darks and Olivo, who are not Indians, rests on the fact that a number of restricted Indians, including the appellant here, Lucas now Wesley, and the United States government, the fee holder in trust of Indian lands, are all named as defendants. Darks' cotenant in one tract and the mineral owners in his and Olivo's property are restricted Indians. This presents a somewhat tenuous problem with respect to pendent jurisdiction over state claims against persons other than the defendants on the federal claim, where a common nucleus of fact is present in both the federal claims and the state claim.
We first consider the argument that the district court did not have jurisdiction over the Indian defendants because the Secretary of the Interior was not served and was an indispensable party. For this proposition some language contained in United States v. Oklahoma Gas Elec. Co., 127 F.2d 349, 354-55 (10th Cir. 1942), aff'd, 318 U.S. 206, 63 S.Ct. 534, 87 L.Ed. 716 (1943), is relied on. The court in that case did say by way of dicta that the Secretary is an indispensable party. It cited Minnesota v. United States, 305 U.S. 382, 59 S.Ct. 292, 83 L.Ed. 235 (1939), which contains a statement that the United States is an indispensable party to such an action. The Supreme Court did not refer to this issue in affirming the Oklahoma Gas decision. In a later case, Town of Okemah v. United States, 140 F.2d 963 (10th Cir. 1944), this court referred to the United States as an indispensable party and did not mention the Secretary as being an indispensable party. In accord is Semple, Oklahoma Indian Land Titles Annot. § 802 at 546 (1952). It is to be concluded that that one statement in Oklahoma Gas is not authority for the proposition that the Secretary is indispensable.
Certification by the Corporation Commission under the "oil and gas conservation laws," 52 O.S. §§ 81-287.15[52-81-287.15], is designed to regulate the oil and gas industry. While a certificate is also required for condemnation of underground storage facilities under a different chapter, 52 O.S. § 36.4[ 52-36.4], formal condemnation proceedings in federal court are necessary before it can have any effect as to Indian land. Similarly, the consent of the Secretary is required in order for a state to acquire the rights of way across allotted lands under 25 U.S.C. § 311, 312, 319, 321, 323, but § 357 does not impose such a requirement. Nicodemus v. Washington Water Power Co., 264 F.2d 614 (9th Cir. 1959); United States v. Oklahoma Gas Elect. Co., supra. Undoubtedly Congress considered the safeguards available in federal judicial proceedings to be sufficient so that the permission of the Secretary was not required.
The other points such as the inadequacy of the Oklahoma Corporation Commission Order under 52 O.S. §§ 36.3[ 52-36.3](b) and 36.4(b) are unfounded. Nor is there merit in the contention that § 357 only authorizes condemnation of the interests of original allottees and not the interest of heirs of allottees. Oklahoma Gas, supra, 318 U.S. at 207, 63 S.Ct. 534, Town of Okemah v. United States, 140 F.2d 963, 965 (10th Cir. 1944). Nor is the fact that the language in § 1, Act of May 27, 1908, 35 Stat. 312 refers to the exercise of right of eminent domain over allotted lands, thereby precluding the taking of a subsurface facility. Such a reading of the statute would produce a ridiculous result.
In Gibbs there was no question of different defendants, but subsequent cases from the circuits have extended the Gibbs reasoning to pendent jurisdiction over state law claims against defendants over whom there is no independent basis of federal jurisdiction if the claims arose our of the same nucleus of operative fact as the federal claims applicable to another defendant. See Curtis v. Everette, 489 F.2d 516 (3rd Cir. 1973), cert. denied, 416 U.S. 996, 94 S.Ct. 2409, 40 L.Ed.2d 774; Almenares v. Wyman, 453 F.2d 1075 (2d Cir. 1971), cert. denied, 405 U.S. 944, 92 S.Ct. 962, 30 L.Ed.2d 815; Leather's Best, Inc. v. S.S. Mormaclynx, 451 F.2d 800 (2d Cir. 1971); F. C. Stiles Contracting Co. v. Home Insurance Co., 431 F.2d 917 (6th Cir. 1970). But see Hymer v. Chai, 407 F.2d 136 (9th Cir. 1969).
Cases decided since the Aldinger case have construed it somewhat narrowly. See Ayala v. United States, 550 F.2d 1196 (9th Cir. 1977); Long Prairie Packing Co. v. Midwest Emery Freight, 429 F. Supp. 201 (D.Mass. 1977). This attitude is not necessarily justified from a reading of Aldinger, which can be read to indicate that there is power to exercise pendent party jurisdiction unless Congress has expressly or impliedly negated such power in a particular jurisdictional context. See Comment, 77 Colum.L.Rev. 127 (1977).
The federal claims must, however, be substantial. In our case the claims quite clearly arise out of the same factual nucleus and normally a condemnor would seek to have all interests in the property adjudicated in one action. Furthermore, our case is similar to the test discussed in Aldinger; under § 357, there is exclusive jurisdiction in federal court to try the federal claim, whereby there can be a trial of all of the claims only in federal court.
We finally consider whether there was an abuse of discretion in exercising pendent jurisdiction in this case by trying the nonIndian cases after the settlement of the Indian ones.
While there was language in Gibbs that if the federal claims are dismissed before trial, even though not insubstantial in a jurisdictional sense, the state claims should be dismissed as well. Nevertheless, later cases seem to be contrary to this dictum. See Rosado v. Wyman, 397 U.S. 397, 404, 90 S.Ct. 1207, 1214, 25 L.Ed.2d 442 (1970), where the Court ruled that mootness as to the federal question did not deprive a federal court of power to hear pendent state claims. The court said: "Mootness, . . . may not occur until after substantial time and energy have been expended looking toward the resolution of a dispute that plaintiffs were entitled to bring in a federal court." Id. See Hagans v. Lavine, 415 U.S. 528, 545-550, 94 S.Ct. 1372, 39 L.Ed.2d 577 (1974). Therefore, the Gibbs dictum is not a restriction on the court's power but rather is a guide to the exercise of its discretion. It would seem that the state claim would not have to be dismissed as long as the federal claim is not dismissed for insubstantiality. Stated differently, unless insubstantiality is the situation, the federal court would have the power to decide the pendent claim. See State of Arizona v. Cook Paint Varnish Co., 541 F.2d 226 (9th Cir. 1976), cert. denied, 430 U.S. 915, 97 S.Ct. 1327, 51 L.Ed.2d 593 (1977); Klaus v. Hi-Shear Corp., 528 F.2d 225 (9th Cir. 1975); Kavit v. A. L. Stamm Co., 491 F.2d 1176 (2d Cir. 1974); Brunswick v. Regent, 463 F.2d 1205 (5th Cir. 1972); 3A Moore's Federal Practice, ¶ 18.07[1.-3] n. 41.
Exercise of power over the state claims has been approved despite dismissal of the federal claims where substantial amounts of time and energy have been spent in the case. See Galella v. Onassis, 487 F.2d 986 (2d Cir. 1973). In that case a number of motions had been heard and a special master in charge of discovery had been appointed. The motion to dismiss was made on the even of trial. Retention was upheld. See also Klaus, supra; kavit, supra.
To the same effect are Gleason v. Hall, 555 F.2d 514 (5th Cir. 1977); Ehret Co. v. Eaton, Yale Towne, Inc., 523 F.2d 280 (7th Cir. 1975); 6A Moore's Federal Practice ¶ 59.05[5].
Appellants offered evidence of the value of the entire formation of the gas storage reservoir. This was apparently on the theory that compensation should amount to a percentage of the total value of the reservoir equal to defendants' percentage of the surface area over the reservoir. Such a formula would constitute a measure based upon the value to Transok rather than the value of the property taken. That the latter is the law in Oklahoma is shown by McInturff v. Oklahoma Natural Gas Transmission Co., 475 P.2d 160 (Okl. 1970). Cases from other states are to the same effect. Home Gas Co. v. Miles, 79 Misc.2d 26, 358 N.Y.S.2d 846 (Sup.Ct. 1974); Midwestern Gas Transmission Co. v. Mason, 31 Ill.2d 340, 201 N.E.2d 379 (1964).