Justia Energy, Oil & Gas Law Opinion Summaries

Appellant owned and operated the Sewell Creek Energy Facility, a "peaking" power plant that began operating in 2000. Appellees, neighbors of the power plant, filed suit in 2007 alleging that the power plant constituted a nuisance. At issue was whether appellants were entitled to summary judgment where the power plant was either a permanent nuisance or continuing nuisance that could be abated. The court found that the power plant's exhaust silencing system, which was an integral part of the gas turbines that generated power, was an enduring feature of the power plant's plan of construction and the noise emanating from the exhaust stacks resulted from the essential method of the plant's operation. Consequently, the exhaust stacks were a permanent nuisance. Thus, the court held that the Court of Appeals erred when it omitted any consideration of whether the nuisance resulted from an enduring feature of the power plant's plan of construction or an essential method of its operation and grappled only with whether the nuisance could be abated at "slight expense." The court held that appellees' action was barred under the statute of limitation for permanent nuisances because they did not file their lawsuit until almost seven years after the plant became operational, unless some new harm that was not previously observable occurred within the four years preceding the filing of their cause of action. The court also held that, to the extent the trial court found that a factual issue remained concerning whether there was an "adverse change in the nature" of the noises and vibrations coming from the plant after the start of the 2004 operating season, the denial of summary judgment was appropriate. By contrast, to the extent that the trial court found that a factual issue remained concerning whether there was an "adverse change in the... extent and amount" of the noises and vibrations after the 2004 operating season, the denial of summary judgment was inappropriate. Accordingly, the court affirmed in part and reversed in part.

In September 2007, Petitioner Mitchell Glasgow was severely burned from a fire at an oil well at which he worked. At the time, Therral Story Well Service (TSWS) directly employed Mr. Glasgow. The mineral owners contracted with another company, PAR Minerals, Inc., to produce oil and gas. In turn, PAR Minerals contracted with TSWS to drill a well. The well penetrated into formations that were pressurized with hydrocarbons. Mr. Glasgow was circulating water trough the well while waiting for heavier drilling mud to be pumped into the well to control the pressure. A TSWS employee told Mr. Glasgow to stand away from the well because the pressure was dangerous, but a PAR Minerals "on-site supervisor" ordered Mr. Glasgow to get on his station at the pump, and jump away only if gas escaped from the well. Gas escaped, ignited, and severely burned Mr. Glasgow. Mr. Glasgow filed suit against PAR Minerals and its insurer. PAR Minerals would receive service of process one year later. PAR Minerals moved for summary judgment, arguing that it was Mr. Glasgow's "statutory employer" and therefore immune to lawsuits like his. The district court granted PAR Minerals' motion, holding that because of the year delay in getting PAR Minerals notice of the lawsuit, Mr. Glasgow's suit was prescribed and untimely. A split appellate court affirmed the district court's dismissal, and Mr. Glasgow appealed. After a thorough review of the record, the Supreme Court found that the lower courts erred in dismissing Mr. Glasgow's claims as prescribed. The Court reversed the lower courts' holdings and remanded the case for further proceedings.