Spartan Drilling Co. v. Bull

• Decision Date: 10 November 1952
• Docket Number: No. 4-9892,4-9892
• Parties: SPARTAN DRILLING CO. et al. v. BULL et al.
• Court: Arkansas Supreme Court

Page 408

252 S.W.2d 408

221 Ark. 168

SPARTAN DRILLING CO. et al. v. BULL et al.

No. 4-9892.

Supreme Court of Arkansas.

Nov. 10, 1952.

Jabe Hoggard and Crumpler & O'Connor, El Dorado, for appellants.

Stein & Stein, El Dorado, for appellees.

MILLWEE, Justice.

Appellees are thirteeen homeowners residing along U. S. Highway 82 a few miles southeast of El Dorado, Arkansas, in the vicinity of White and Caney creeks. Appellants, Spartan Drilling Company and C. A. Lee, own and operate several oil wells in the vicinity which also produce large quantities of salt water. This suit was brought by appellees to restrain appellants from polluting the creeks by allowing salt water to escape into White Creek which flows into Caney Creek and thereby causing the breeding of such large quantities of salt water mosquitoes as to render it impossible for appellees to enjoy their properties.

In their demurrer and answer appellants alleged that the Arkansas Oil and Gas Commission had jurisdiction of the subject matter of the suit and that chancery court was without jurisdiction since appellees had failed to exhaust their administrative remedies. Appellants also asserted they had constructed a complete and adequate salt water disposal system and denied that they were allowing any salt water to escape into the streams. They further alleged that there were low and marshy spots in the area in which mosquitoes might breed and that other producers also allowed salt water to flow into one of the streams.

The demurrer was overruled and upon trial of the issues the chancellor found that, by their operations, appellants were polluting the creeks and should be permanently enjoined from permitting the salt water to escape from their wells and disposal pits into White Creek. Appellees' prayer for a mandatory injunction requiring appellants to clean up the polluted area was denied.

The chancellor correctly overruled the demurrer to the complaint. The Oil and Gas Commission is granted broad supervisory powers relating to oil and gas production under Act 105 of 1939, Ark.Stats. § 53-101 et seq. Under § 11 of the Act, Ark.Stats. § 53-111, the Commission is authorized to make reasonable rules regulations and orders to prevent the pollution of fresh water supplies by salt water. The demurrer of appellants does not allege, nor is there anything in the record to indicate, that the Commission ever adopted any rules or regulations governing the disposal of salt water in connection with the operations involved here. In other words, there is no showing that appellees have been afforded an administrative remedy under the Act relied upon. Even if the Commission had exercised the authority given it under the Act, there is nothing in the statute indicating an intention by the Legislature to declare that such jurisdiction should be exclusive or to deprive courts of equity of their inherent power to abate or enjoin a nuisance. It is not infrequent that a dual remedy, one in the judicial and another in the administrative forum, may be available to the same party for the enforcement of the same right. 42 Am.Jur., Public Administrative Law, § 252. We hold that the jurisdiction granted the Oil and Gas Commission in its supervisory capacity over oil and gas production is not exclusive, and that appellees had the right to maintain the instant suit.

It is also argued that the proof is insufficient to sustain the chancellor's finding that appellants were polluting White Creek. The testimony reveals that in conducting their operations appellants produced salt water which was at first allowed to flow into White Creek nearby. Early in 1951 earthen pits were dug on two of the leases which proved inadequate to handle an increased production of salt water. Appellants then leased five acres around a dry hole which was used as a salt water disposal well. This arrangement also proved inadequate in the summer of 1951 when the pits were deepened and another pump and disposal well were installed. This installation was completed in October, 1951. While witnesses for appellants testified that the disposal...