BP America Production Co. v. Madsen, 01-238.

• Court: United States State Supreme Court of Wyoming
• Writing for the Court: VOIGT, Justice.
• Citation: 2002 WY 135,53 P.3d 1088
• Parties: BP AMERICA PRODUCTION COMPANY, a foreign corporation; and Marathon Oil Company, a foreign corporation, Appellants (Defendants), v. Larry MADSEN as Special Trustee of the H.M. Klaenhammer Revocable Trust Dated May 9, 1996, Successor to H.M. Klaenhammer; and Robert W. Scott, Individually and as Managing Member of R.W. Scott Investments, LLC, Suing on Behalf of Themselves and All Other Similarly Situated Royalty Owners, Appellees (Plaintiffs).
• Docket Number: No. 01-238.,01-238.
• Decision Date: 19 September 2002

53 P.3d 1088
2002 WY 135

BP AMERICA PRODUCTION COMPANY, a foreign corporation; and Marathon Oil Company, a foreign corporation, Appellants (Defendants),
v.
Larry MADSEN as Special Trustee of the H.M. Klaenhammer Revocable Trust Dated May 9, 1996, Successor to H.M. Klaenhammer; and Robert W. Scott, Individually and as Managing Member of R.W. Scott Investments, LLC, Suing on Behalf of Themselves and All Other Similarly Situated Royalty Owners, Appellees (Plaintiffs)

No. 01-238.

Supreme Court of Wyoming.

September 19, 2002.

53 P.3d 1089

Frank D. Neville, Richard E. Day and Scott W. Skavdahl of Williams, Porter, Day & Neville, P.C., Casper, Wyoming; Kirby J. Iler of Marathon Oil Company, Cody, Wyoming; Michael Homeyer of BP Amoco Corporation, Houston Texas; Harrell Feldt and Richard H. Page of Vinson & Elkins, LLP, Houston, Texas; and Sheryl L. Hopkins of Vinson & Elkins, LLP, Dallas, Texas, Representing Appellants

J. Nicholas Murdock, Cody L. Balzer, Mark L. Carman and Scott J. Olheiser of Balzer Carman Murdock, P.C., Casper, Wyoming; Robert P. Schuster and Gary L. Shockey of Spence, Moriarity & Schuster, LLC, Jackson, Wyoming; Charles Carpenter, Denver, Colorado; and Samuel Issacharoff, New York, New York, Representing Appellees.

Before HILL, C.J., and GOLDEN, LEHMAN,¹ and VOIGT, JJ., and KALOKATHIS, D.J.

VOIGT, Justice.

[¶ 1] The Third Judicial District Court has presented two certified questions concerning the jurisdictional provision contained

53 P.3d 1090

in the Wyoming Royalty Payment Act (the WRPA), which is found at Wyo. Stat. Ann. § 30-5-303(b) (LexisNexis 2001). We conclude that the WRPA does not confer exclusive jurisdiction over claims brought under it in the district court for the county in which a particular well is located; rather, the intent of the WRPA is to allow such claims to be brought in the district court of any county in which a well is located

FACTS

[¶ 2] The appellees are the Plaintiffs and the appellants are the Defendants in a civil action in the district court in Lincoln County.² The Plaintiffs, as holders of overriding royalty interests, seek additional royalties under the WRPA from the Defendants, who are the oil and gas producers. The lawsuit covers claims for wells located in Lincoln County and in other Wyoming counties. An issue has been raised whether the district court for Lincoln County has jurisdiction over the claims arising from wells not located in that county. In that regard, Wyo. Stat. Ann. § 30-5-303(b) provides:

The district court for the county in which a well producing oil, gas or related hydrocarbons is located has jurisdiction over all proceedings brought pursuant to this article and the prevailing party in any proceedings brought pursuant to this article shall be entitled to recover all court costs and reasonable attorney's fees.

(Emphasis added.)

CERTIFIED QUESTIONS

[¶ 3] In a Notice of Agreement to Answer Certified Questions dated December 4, 2001, we informed the district court and the parties that we would answer the following certified questions:

1. Does Wyo.Stat. § 30-5-303(b) confer exclusive jurisdiction over claims under the Wyoming Royalty Payment Act in the district court for the county in which a well producing oil, gas, or related hydrocarbons is located?

2. If so, may the provisions of Wyo. R.Civ.P. 23 override the grant of exclusive jurisdiction such that a district court may, in the context of a class action, adjudicate WRPA claims relating to wells not located in the county in which the class action is pending?

STANDARD OF REVIEW

[¶ 4] In a W.R.A.P. 11 certification of questions of law, we rely entirely upon the factual determinations made in the trial court. Wexpro Co. v. Brimhall, 7 P.3d 42, 43 (Wyo.2000) (citing Allhusen v. State By and Through Wyoming Mental Health Professions Licensing Bd., 898 P.2d 878, 881 (Wyo. 1995)). The following rules apply when the question is one of statutory intent:

"[W]e look first to the plain and ordinary meaning of the words to determine if the statute is ambiguous. Olheiser v. State ex rel. Worker's Compensation Div., 866 P.2d 768, 770 (Wyo.1994), citing Parker Land & Cattle Co. v. Game & Fish Comm'n, 845 P.2d 1040, 1042-43 (Wyo.1993). A statute is clear and unambiguous if its wording is such that reasonable persons are able to agree on its meaning with consistency and predictability. Parker Land & Cattle, at 1043. Conversely, a statute is ambiguous if it is found to be vague or uncertain and subject to varying interpretations. Id. ... Ultimately, whether a statute is ambiguous is a

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