Hall v. Galmor

This appeal centered on the trial court's judgment after a bench trial that denied the Appellant's petition to cancel Appellee's oil and gas leases, to quiet title in favor of the Appellant's "top leases," and to hold Appellee liable for slander of title. The Oklahoma Supreme Court retained the appeal to address several issues of first impression. Through this opinion, the Court declined to adopt the definition of "capability" propounded by the Appellant and affirmed the district court's finding that Appellee's wells were capable of production in paying quantities. The Court affirmed the district court's judgment insofar as it quieted title in Appellee's favor as to leasehold interests located inside those wells' spacing units. The Court reversed the district court's judgment insofar as it quieted title in Appellee's favor as to leasehold interests in lands falling outside those wells' spacing units, because the statutory Pugh clause found in 52 O.S. 87.1(b) required it. Furthermore, the Court found that the title of the bill enacting the statutory Pugh clause did not violate Article V, Section 57 of the Oklahoma Constitution and that the effect of the statutory Pugh clause upon Appellee's leasehold interests did not result in an unconstitutional taking in violation of Article II, Section 23 of the Oklahoma Constitution. Lastly, the Court reversed the district court's judgment insofar as it quieted title in Appellee's favor as to leases upon which no well had ever been drilled. View "Hall v. Galmor" on Justia Law