Opinion ID: 6536714
Heading Depth: 3
Heading Rank: 2

Heading: The dump lien statute's plain language excludes unextracted gas remaining in its natural reservoir.

Text: All American argues that the dump lien statute applies to unextracted gas remaining in its natural reservoir and that it gained a dump lien by drilling natural gas wells for Cook Inlet. All American's interpretation primarily relies on implied legislative history and policy arguments. We conclude that the history and policy arguments are not sufficient to overcome the statute's contrary plain language. The statutory framework makes clear that for a claimant to obtain a dump lien, there must be a dump to which the lien can attach. 16 The existence of a dump is a condition precedent to obtaining a dump lien, and we therefore strictly construe the statutory definition. 17 Under the statute's plain meaning, unextracted gas cannot constitute a dump because it was never extracted,  hoisted, and raised as the statutory definition requires. 18 All American's contract contemplated that it would assist Cook Inlet with natural gas extraction, but All American's work apparently was limited to establishing natural gas wells. All American states that it performed drilling, exploration, engineering, and other work to access the natural gas contained in the reservoir. All American explains that it explored, drilled, managed, and ultimately provided valuable labor in both finding the gas and creating a mechanism (the well) by which [Cook Inlet] was able to extract the gas. But the gas over which All American claims it has a dump lien was not extracted, hoisted, and raised. 19 Although the certified question asks whether the dump lien applies to natural gas stored in its native reservoir, All American instead discusses whether unproduced gas that has never left its natural reservoir can be subject to a dump lien. As the State notes, although unextracted gas may remain in its reservoir until it is produced, this is not gas storage. Gas storage specifically requires prior production and a separate agreement with the State. 20 In other words, produced gas reinjected and stored in a natural reservoir has been extracted, hoisted, and raised and might qualify as a dump. All American contends that the words extracted, hoisted, and raised effectively must be ignored to satisfy the dump lien statute's purpose. But based on this plain language, because the gas for which All American drilled wells never was extracted, hoisted, and raised from the mine, it cannot qualify for a dump lien under AS 34.35.140. Although unextracted gas cannot constitute a dump, All American still may obtain a non-preferred mine lien under AS 34.35.125, as the definition of mine or mining claim broadly includes all valuable mineral deposits, including coal, oil, gas , or other fluid, and all loads, veins, or rock in place containing minerals . 21