Opinion ID: 2437936
Heading Depth: 1
Heading Rank: 2

Heading: jurisdiction

Text: Energy-Agri claims that the trial court had no jurisdiction over the cause because it involves the classification of oil and gas wells, a matter within the exclusive jurisdiction of the Railroad Commission. Because classification of a well is a matter to be determined by the Commission, Energy-Agri argues that this suit is a collateral attack upon the Commission's classification. Energy-Agri, therefore, concludes that under the doctrine of primary jurisdiction, the district court lacked jurisdiction as Amarillo Oil did not first seek relief from the Commission. See generally Gregg v. Delhi-Taylor Oil Corp., 162 Tex. 26, 29-31 & n. 5, 344 S.W.2d 411, 413-14 & n. 5 (1961); Kavanaugh v. Underwriters Life Ins. Co., 231 S.W.2d 753, 755-56 (Tex.Civ.App.-Waco 1950, writ ref'd). From the inception of its suit, Amarillo Oil has sought judgment quieting title to the gas from the brown dolomite formation. Energy-Agri advanced the position that either gas produced from a well classified as an oil well by the Railroad Commission was casinghead gas within the meaning of the conveyance as a matter of law, or the term was ambiguous and the evidence established such was the intended meaning. Amarillo Oil took the position that the Kimberlin wells could not possibly be classified as oil wells as to the brown dolomite formation. The trial court submitted Amarillo Oil's proposed charge, which consisted of six questions relating to such potential or hypothetical well classification. Because the issues submitted to the jury addressed whether the wells, if limited to the brown dolomite formation, met the statutory definition for oil wells, Energy-Agri argued, and the court of appeals agreed, that the whole suit amounted to an impermissible collateral attack on the Railroad Commission's classification. Such a limited view of the case cannot be reconciled with what this court has held concerning the Railroad Commission's primary jurisdiction. This dispute has always been over the ownership of the gas being produced from the brown dolomite formation. The cause is properly within the jurisdiction of the courts because the Railroad Commission has no authority to determine title to land or property rights. Railroad Comm'n v. City of Austin, 524 S.W.2d 262, 267-68 (Tex.1975); Jones v. Killingsworth, 403 S.W.2d 325, 328 (Tex.1965); Nale v. Carroll, 155 Tex. 555, 559, 289 S.W.2d 743, 745 (1956); Ryan Consol. Petroleum Corp. v. Pickens, 155 Tex. 221, 230, 285 S.W.2d 201, 207 (1955), cert. denied, 351 U.S. 933, 76 S.Ct. 790, 100 L.Ed. 1462 (1956); Magnolia Petroleum Co. v. Railroad Comm'n, 141 Tex. 96, 99-100, 170 S.W.2d 189, 191 (1943). Furthermore, even if the Railroad Commission had applied the statutory definition of casinghead gas which we hold to be determinative of Amarillo Oil's claims, it could not grant the injunctive and quiet title relief Amarillo Oil seeks. We have addressed the issue of the Railroad Commission's primary jurisdiction on several occasions, and found it not to be so broad-sweeping as to oust the courts of jurisdiction just because the Commission might have jurisdiction to determine some facts related to the controversy. In Gregg v. Delhi-Taylor Oil Corp., 162 Tex. 26, 344 S.W.2d 411 (1961), we stated the rule that when an action is inherently judicial in nature, the courts retain jurisdiction to determine the controversy unless the legislature by valid statute has expressly granted exclusive jurisdiction to the administrative body. We therefore concluded that the Railroad Commission's primary jurisdiction did not prevent the courts from entertaining the suit to enjoin a trespass by the sand fracking technique, when it was alleged the cracks produced would extend into an adjacent owner's property, although the Commission would obviously have jurisdiction over the use of techniques to enhance production and protect correlative rights. In Foree v. Crown Petroleum Corp., 431 S.W.2d 312, 316 (Tex.1968), we announced the further rule that the courts have jurisdiction when the Railroad Commission is powerless to grant the relief sought and to make incidental findings necessary to justify the relief. Thus we concluded the courts could entertain a suit for damages for violations of certain Commission rules and regulations, although the rules to protect correlative rights were within the jurisdiction of the Commission. We have further held that the courts have jurisdiction over a suit for damages from oil drainage alleged to be from overproduction by an adjacent mineral interest landowner who allegedly used false test data and information to get the Railroad Commission to set his allowable too high. Zimmerman v. Texaco, Inc., 413 S.W.2d 387 (Tex.1967). We have further expressly approved an opinion and holding that the construction of an oil and gas lease is a matter for the courts, notwithstanding the involvement of the Railroad Commission's jurisdiction as to facts relating to production. Biskamp v. General Crude Oil Co., 452 S.W.2d 515 (Tex.App.-San Antonio 1970, writ ref'd). The present case involves title and property rights, the legal construction of a lease, and a claim of entitlement to an injunction. Consequently, the courts have jurisdiction over this suit notwithstanding the primary jurisdiction doctrine. We reverse the court of appeals' judgment which incorrectly dismissed this cause for want of jurisdiction.