Anderson v. Corporation Commission

327 P.2d 699 (1957)

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Anderson v. Corporation Commission

Supreme Court of Oklahoma
327 P.2d 699 (1957)

SC

Facts

W. E. Anderson (plaintiff) owned a portion of a 40-acre tract of land. Kenneth Ellison (defendant) owned a portion of a leasehold estate in an adjacent 40-acre tract. The Oklahoma Corporation Commission (Commission) (defendant) issued an order designating the two tracts of land as a single drilling unit. Subsequently, Ellison petitioned the Commission to drill a well on his 40 acres. The Commission issued an order granting Ellison a permit to drill a well on his 40 acres. The order granted Anderson permission to fully participate in that well’s production, provided that he paid his proportionate share of the drilling and completion costs. Alternatively, the order stated that Anderson could choose not to pay the drilling costs, and rather than fully participate, accept a per-acre bonus payment from Ellison in the form of a lease of Anderson’s interest. Anderson appealed the Commission order, arguing that the prior Commission order had made him and Ellison tenants in common, meaning that Ellison could only recover Anderson’s proportion of the drilling costs by taking it out of production revenues.

Rule of Law

Issue

Holding and Reasoning (Davison, J.)

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