CADDNAR


[CITE: M. S. Mahurin v. C. A. Robinson and DNR, 1 CADDNAR 64 (1983)]

 

[VOLUME 1, PAGE 64]

 

Cause #: 83-083G

Caption: M. S. Mahurin v. C. A. Robinson and DNR
Administrative Law Judge: Lucas
Attorneys: Bruner; Kinney; Miller, DAG
Date: December 9, 1983

Order:

 

The transfer of ownership filed by C. A. Robinson on April 11, 1983 with respect to Permit Number 37730 (granting authority to drill or deepen an oil or gas well, known as Montgomery Farms, Inc. Number 1 Well) is voided. No "transfer of ownership" shall be made to Permit Number 37730 unless by consent of M. S. Mahurin or by order of a court of competent jurisdiction directing the transfer ...Nothing...[here shall] constitute superior interest...by
Mahurin...

FINDINGS OF FACT

 

 

1. The petitioner, M. S. Mahurin, is a resident of Henderson, Kentucky.

 

2. The respondent, C. A. Robinson, is a resident of Evansville, Indiana, doing business as Robinson Engineering.

 

3. The respondent, Department of Natural Resources ("Department") is an agency of the State of Indiana, consisting in part of the Natural Resources Commission and personnel necessary for the performance of official functions of the Department.

 

4. The Department is empowered to conduct administrative hearings pursuant to IC 4-22-1 ("Administrative Adjudication Act") and has jurisdiction over the subject-matter and the parties to this administrative action.

 

5. With respect to IC 13-4-7, the Natural Resources Commission is the ultimate authority of the Department as described in the Administrative Adjudication Act. A final determination of the Department under IC 13-4-7 must be made by the Natural Resources unless the authority is assigned to designated in the Department. No evidence was offered to establish an assignment of the ultimate authority of the Natural Resources Commission to any person.

 

6. On May 23, 1978 Permit 37730 (formerly Permit No. 37398 O.W.D.D.) was issued by the Department to M. S. Mahurin, granting authority to drill or deepen an oil or gas well in the north half of the northeast quarter of the southwest quarter of section 32, township 7 south, range 7 west (Luce township, Spencer county), known as Montgomery Farms, Inc. Well Number 1.

 

7. On April 11, 1983 C. A. Robinson filed with the Department a "Transfer of Ownership" (State Form 1589) with respect to Permit 37730 showing C. A. Robinson, doing business as Robinson Engineering, to be the new owner of the well.

 

8. Homer Brown, Director of the Division of Oil and Gas, pursuant to a long-standing routine of the Department, effected "transfer"[FOOTNOTE i] of the well to Robinson Engineering in accordance with the April 11 "Transfer of Ownership", and the bond of M. S. Mahurin was released.

 

9. At no time did M. S. Mahurin agree or consent to the "Transfer of Ownership" nor was the transfer the result of an order by a court of competent jurisdiction directed to the Department.

 

10. The "Transfer of Ownership" was affected without notice to M. S. Mahurin.

 

11. A final order or determination has not previously been entered by the Natural Resources Commission on the Transfer of Ownership sought by C. A. Robinson for Permit 37730.

 

12. The August 8, 1983 petition by Mahurin to initiate this administrative proceeding was timely and states a cause of action upon which relief may be granted.

 

13. Ownership of Montgomery Farms, Inc. Well Number 1, and the party entitled to the benefits of Permit 37730, are the subject of dispute between M. S. Mahurin and C. A. Robinson, doing business as Robinson Engineering. Before the dispute arose, ownership of the well and the benefits of the permit were vested in M. S. Mahurin.

 

14. Until the dispute between M. S. Mahurin and C. A. Robinson is resolved, by agreement or by judicial decree, the benefits of Permit 37730 are posited in M. S. Mahurin.

 

15. Due process requires the voidance of the "Transfer of Ownership" (State form 1589) filed on April 11, 1983 by C. A. Robinson, doing business as Robinson Engineering.

FOOTNOTE


i. The parties agree the Department has no jurisdiction to

 

[VOLUME 1, PAGE 65]

 

transfer ownership of a well, nor, for that matter, to determine any disputed property rights between citizens attaching to an oil or gas well. Counsel for Robinson Engineering suggests the "Transfer of Ownership" might be better deemed a "Notice of Intent to Operate Under Existing Permit Issued to Another." Whatever nomenclature is applied, the determination of disputed property rights in Montgomery Farm, Inc. Well Number 1 must be resolved by Mahurin and Robinson through their agreement or by judicial intervention. The Department cannot properly adjudicate the property rights of M. S. Mahurin and Robinson Engineering, nor can the Department interpret a judicial decree to which it was not a party.