North American Coal Corp. v. Huber, 9486

• Decision Date: 26 July 1978
• Docket Number: No. 9486,9486
• Citation: 268 N.W.2d 593
• Parties: The NORTH AMERICAN COAL CORPORATION, Plaintiff and Appellant, v. Mark HUBER, a minor over the age of fourteen years, and Donald T. Huber, natural father and guardian ad litem of Mark Huber, Defendants and Appellees. Civ.
• Court: North Dakota Supreme Court

Page 593

268 N.W.2d 593

The NORTH AMERICAN COAL CORPORATION, Plaintiff and Appellant, v. Mark HUBER, a minor over the age of fourteen years, and Donald T. Huber, natural father and guardian ad litem of Mark Huber, Defendants and Appellees.

Civ. No. 9486.

Supreme Court of North Dakota.

July 26, 1978.

Rehearing Denied Aug. 16, 1978.

Fleck, Mather, Strutz & Mayer, Bismarck, for plaintiff and appellant; argued by Gary R. Wolberg, Bismarck.

Lundberg, Conmy, Nodland, Rosenberg, Lucas & Schulz, Bismarck, for defendants and appellees; argued by Irvin B. Nodland, Bismarck.

PEDERSON, Justice.

This appeal by North American Coal Corporation requires this Court, for the first time, to interpret the "Surface Owner Protection Act," Chapter 38-18, NDCC (Chapter 321, S.L.1975). The trial court concluded, as a matter of law, that the Act only applied where the mineral developer "has all right, title and interest either by leasehold or outright ownership to all of the * * * minerals." (Emphasis added.) We agree. The question of constitutionality of the Act was not reached below and we do not directly reach it here.

There are no disputes as to pertinent facts. The parties stipulated the facts, and there is no challenge of any finding of fact (Rule 52(a), NDRCivP). There was no stipulation that there was any expectation of strip mining when the life estate and remainder interests were created. The lands involved (E-1/2 35 144 89) abut the Indian Head Mine now operated in Mercer County by North American. We agreed to expedite the calendaring of this appeal in order to accommodate some critical planning required for the continuation of the mining operation.

The ownership of the land (surface) and the underlying minerals (coal) have been both fragmentized and, in part, severed. A life estate in the surface is owned by Anna Fuchs and the remainder interest in the surface is fragmented among twelve persons, including Mark Huber, a minor, who owns a 1/64th remainderman interest. Twenty-five percent of the coal is owned by Kurt Krauth and Helen C. Weyrens. Anna Fuchs owns a life estate in 75% of the coal and the remainder interest in 75% of the coal is fragmented among the same twelve persons who have remaindermen interests in the surface. Mark Huber has a vested remainderman interest in 1/64th of 75% of the coal.

Kurt Krauth, Helen C. Weyrens and Anna Fuchs leased their interests in coal to North American Coal Corporation. All remaindermen, except Mark Huber, ratified the leases as to both the surface and the coal. Contending that the Public Service Commission can issue a permit to use the surface for mining operations without the consent of surface owners and without the developer having acquired all of the mineral interests, North American sought an order of the district court, pursuant to § 38-18-06(5), NDCC. In declining to grant the relief demanded by North American, the trial court likened these efforts to those of private condemnation and noted that partition (Chapter 32-16, NDCC) would be a more appropriate proceeding.

In interpreting statutes, we are guided by a number of rules:

"Words used in any statute are to be understood in their ordinary sense, unless a contrary intention plainly appears, but any words explained in this code are to be understood as thus explained." Section 1-02-02, NDCC.

"Words and phrases shall be construed according to the context and the rules of grammar and the approved usage of the language. Technical words and phrases and such others as have acquired a peculiar and appropriate meaning in law, or as are defined by statute, shall be construed according to such peculiar and appropriate meaning or definition." Section 1-02-03, NDCC.

"When the wording of a statute is clear and free of all ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit." Section 1-02-05, NDCC.

"In enacting a statute, it is presumed that:

1. Compliance with the constitutions of the state and of the United States is intended.

2. The entire statute is intended to be effective.

3. A just and reasonable result is intended.

4. A result feasible of execution is intended.

5. Public interest is favored over any private interest."

Section 1-02-38, NDCC.

"If a statute is ambiguous, the court, in determining the intention of the legislation, may consider among other matters:

1. The object sought to be attained.

2. The circumstances under which the statute was enacted.

3. The legislative history.

4. The common law or former statutory provisions, including laws upon the same or similar subjects.

5. The consequences of a particular construction.

6. The administrative construction of the statute.

7. The preamble."

Section 1-02-39, NDCC.

The "Surface Owner Protection Act" resulted from an interim study by the Legislative Council Committee on Resources Development prior to the Forty-Fourth Legislative Assembly, 1975. Participating in that study was the Executive Branch Advisory Committee Task Force on Coal Gasification. The Act was introduced as House Bill No. 1062 and, after passage, became Chapter 321, Session Laws 1975, and thereafter was codified as Chapter 38-18, NDCC.

The title of the Act provided that it was "to require written notice and approval before a permit to surface mine land is issued by the public service commission, to provide for surface damage and disruption payments, and to provide for a financial obligation to reclaim land disturbed by a mining operation."

We note that Section 61 of the Constitution of the State of North Dakota provides: "No bill shall embrace more than one subject, which shall be expressed in its title, but a bill which violates this provision shall be invalidated thereby only as to so much thereof as shall not be so expressed." Thus, we are limited in our interpretation of the Act to those subjects expressed in the title. If it is possible to do so, we avoid interpretations of statutes which place the statute in disharmony with our Constitution. See Hjelle v. Sornsin Construction Company, 173 N.W.2d 431, 438 (N.D.1970), and cases cited therein.

The purpose of the "Surface Owner Protection Act" is expressed specifically in "Legislative Findings" (§ 38-18-02), in terms such as "it is necessary to . . . protect . . . agriculture . . . ," and " . . . mining development may temporarily interfere with portions of the agricultural economy." Further purposes and guides for interpretation are stated in § 38-18-03, NDCC, which provides:

"It is the purpose of this chapter to provide the maximum amount of constitutionally permissible protection to surface owners from the undesirable effects of development, without their consent, of minerals underlying their surface. This chapter is to be interpreted in light of the legislative intent expressed herein. The provisions of this chapter shall be interpreted to benefit surface owners, regardless of how the mineral estate was separated from the surface estate and regardless of who executed the document which gave the mineral developer the right to conduct mining operations on the land." (Emphasis added.)

Section 38-14-03, NDCC, first enacted in 1969 (§ 3, Ch. 332, S.L.1969), prohibits surface mining of coal without a permit from the Public Service Commission (PSC). Most of the terms, conditions and limitations involved in the issuance of a surface mining permit are described in Chapter 38-14, NDCC, relating to the reclamation of strip-mined lands. Section 38-18-06, NDCC, imposes additional conditions and requirements, primarily for the benefit of agriculture and for a surface owner who does not own the underlying minerals.

The power of a district court to issue an order authorizing the PSC to issue a permit without the consent of the surface owner is described in § 38-18-06(5), NDCC, as follows:

"If the mineral owner or the mineral developer is unable to obtain the surface owner's consent, the mineral owner or mineral developer may bring an action in...