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Justia Daily Opinion Summaries

Oklahoma Supreme Court
January 27, 2021

Table of Contents

Claude C. Arnold Non-Operated Royalty Interest Properties v. Cabot Oil & Gas Corp.

Civil Procedure, Energy, Oil & Gas Law, Real Estate & Property Law

Ezzell v. Lack

Constitutional Law, Election Law, Government & Administrative Law, Health Law

Treat v. Stitt

Constitutional Law, Gaming Law, Government & Administrative Law, Native American Law

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Transitional Justice and Inauguration Poems

LESLEY WEXLER

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Illinois law professor Lesley M. Wexler describes how Amanda Gorman’s The Hill We Climb and Jericho Brown’s Inaugural,’ an Original Poem—as two inaugural poems—fit within the call of transitional justice. Professor Wexler explains how, read together, the two poems provide a roadmap of the transitional justice terrain the government may choose to tread.

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Oklahoma Supreme Court Opinions

Claude C. Arnold Non-Operated Royalty Interest Properties v. Cabot Oil & Gas Corp.

Citation: 2021 OK 4

Opinion Date: January 26, 2021

Judge: Noma Gurich

Areas of Law: Civil Procedure, Energy, Oil & Gas Law, Real Estate & Property Law

The dispute in this case centered on two oil-and-gas-producing formations known as the Chester and the Marmaton, located in Beaver County, Oklahoma. In 1973, Arnold Petroleum, Inc., the predecessor in interest to plaintiffs (collectively, "Arnold") obtained six oil-and-gas leases covering land in Beaver County. Over the course of 1973 and 1974, Arnold Petroleum assigned its leases to Dyco Petroleum Corporation, expressly reserving an overriding royalty interest in any oil and gas produced under the leases. Dyco assigned the leases to Harold Courson, the predecessor in interest of defendant Cabot Oil & Gas Corporation. This assignment, too, was expressly subject to Arnold's overriding royalty interest. Two wells drilled in the Chester formation produced "mostly gas with some oil" continuously since the mid-1970s, and at no point since then did Arnold ever stop receiving payments on its overriding royalty interest in those producing wells. In 1984, Courson obtained several new leases from the mineral owners who had granted the 1973 leases. The 1984 leases purported to cover the same rights as the original 1973 leases, but were silent as to any particular geologic formation or zone. Arnold did not become aware of the 1984 leases until 1999 when it and other royalty holders received a letter from Courson explaining he had recompleted a well in the Chester formation that had originally been drilled into the separate Lower Chester formation by Natural Gas Anadarko, Inc. (NGA). In the 1999 conversation, a Courson employee told the Arnold landman the 1984 leases covered only "deep rights" or "lower depths" that had expired under the 1973 leases. This assertion would exclude the Marmaton. For the next 13 years, the matter of the Marmaton formation would remain dormant. Courson assigned his leases to Cabot in August 2011, and Cabot drilled and completed several horizontal wells in the Marmaton. Cabot rejected Arnold's request for payment, and Arnold sued in October 2012, seeking damages for nonpayment of royalties. Cabot argued Arnold's claims were barred because the applicable statute of limitations began to run with the filing of the new leases in 1984, which event (in Cabot's view) should have put Arnold on notice of an adverse claim to the Marmaton. The issue presented for the Oklahoma Supreme Court's review was whether plaintiffs waited too long in asserting their right to payment of the overriding royalty interest. The Court of Civil Appeals reversed the trial court's judgment in favor of plaintiffs on those grounds. The Supreme Court disagreed: this litigation could not have arisen until defendant first developed the disputed formation in 2012, and then refused plaintiffs' request for payment of royalties from that production. "Nothing preceding that sequence of events could reasonably have foreclosed plaintiffs' ability to press their claim for the payments to which they were entitled under valid mineral leases."

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Ezzell v. Lack

Citation: 2021 OK 5

Opinion Date: January 26, 2021

Judge: Yvonne Kauger

Areas of Law: Constitutional Law, Election Law, Government & Administrative Law, Health Law

Voters in the City of Enid presented a recall petition to City of Enid officials. The petition sought to recall plaintiff-appellant, City Commissioner Ben Ezzell for his support of a city wide mask mandate to combat the COVID epidemic. Ezzell objected to the recall petition, alleging that because the recall petition did not comply with the requirements of 34 O.S. 2011 section 3 and 34 O.S. Supp. 2015 section 6, which related to signature collection, the recall petition was insufficient. After a hearing, the trial court denied Ezzell's protest and determined that the petition was sufficient under the City Charter of Enid recall process. Ezzell appealed. The Oklahoma Supreme Court held there was no conflict between the City Charter recall process, and the additional state requirements of 34 O.S. 2011 sec. 3 and 34 O.S. Supp. 2015 sec. 6, the state statutes governed, but were not properly followed. The recall petition was therefore insufficient on its face pursuant to Clapsaddle v. Blevins, 66 P.3d 352, and its predecessors.

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Treat v. Stitt

Citation: 2021 OK 3

Opinion Date: January 26, 2021

Judge: James R. Winchester

Areas of Law: Constitutional Law, Gaming Law, Government & Administrative Law, Native American Law

The Oklahoma Supreme Court previously declared that certain tribal gaming compacts the Oklahoma Executive branch entered into with the Comanche and Otoe-Missouria Tribes were invalid under Oklahoma law because the gaming compacts authorized certain forms of Class III gaming prohibited by state law. While "Treat I" was pending before the Supreme Court, the Executive branch entered into two additional compacts with the United Keetoowah Band of Cherokee Indians and the Kialegee Tribal Town. The parties to the compacts submitted the tribal gaming compacts to the United States Department of the Interior, and the Department of the Interior deemed them approved by inaction, only to the extent they are consistent with the Indian Gaming Regulatory Act (IGRA). The Oklahoma Supreme Court determined these new compacts were also not valid: for the new compacts to be valid under Oklahoma law, the Executive branch must have negotiated the new compacts within the statutory bounds of the Model Tribal Gaming Compact (Model Compact) or obtained the approval of the Joint Committee on State-Tribal Relations. Without proper approval by the Joint Committee, the new tribal gaming compacts were invalid under Oklahoma law.

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