# Petition — Currey v. Corporation Commission of Oklahoma

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1981
- **Citation:** 451 U.S. 935

## Text

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= ie DEC 19 18aQ
IN THE ' | MICHAEL RODAK, JR cy cme

;
SUPREME COURT OF THE UNITED STATES
: OCTOBER TERM, 1980

NO.

¥
P.W.CURREY AND MRS. JAMES D. CURREY
d/b/a CURREY & CURREY
a/k/a CURREY, SHIELDS & CURREY,
Petitioners,

VERSUS
CORPORATION COMMISSION OF THE

STATE OF OKLAHOMA, et al.,
Respondents

PETITION FOR WRIT OF CERTIORARI
TO THE SUPREME COURT OF THE
STATE OF OKLAHOMA

© Space ae LARRY R. BOYD
ile
Bank Bldg. i. Floor, Heritage Square
Dallas, Texas :
75201 5001 L.B.J. Freeway

Dallas, Texas 75233!

(214) 742-2551 (214)661-5402

Counsel For Petitioners

December, 1980

QUESTION PRESENTED

May the State of Oklahoma regulate oil and gas
exploration operations conducted on restricted

Indian lands within its borders?

Page 1

IN THE
SUPREME COURT OF THE UNITED STATES
OCTOBER TERM, 1980

NO.

P.W.CURREY AND MRS. JAMES D. CURREY
d/b/a CURREY & CURREY
a/k/a CURREY, SHIELDS & CURREY,
Petitioners,

VERSUS

CORPORATION COMMISSION OF THE
STATE OF OKLAHOMA, et al.,
Respondents

PETITION FOR WRIT OF CERTIORARI
TO THE SUPREME COURT OF THE
STATE OF OKLAHOMA

PARTIES TO PROCEEDINGS BELOW

Petitioners are P. W. Currey and Mrs. James D.
Currey who, at all material times, were members of or
successors to a partnership doing business as Currey &

Currey and also known as Currey, Shields & Currey.

Page 2

—f%

Respondents are the Corporation Commission of
the State of Oklahoma and its Director of Conservation,

Dan R. Dunnett.

TABLE OF CONTENTS

Question Presented 1

Parties to Proceeding Below 2

Table of Contents

Table of Authorities 4

Official Report of Opinion Below 7

Jurisdiction g
9

Pertinent Constitutional, Statutory
and Regulatory Provisions

Statement of the Case 10

Reason for Allowance of the Writ 14

Appendix A: Findings and Order App.
of the Corporation Commission

Appendix B: Petiton in Error App.

Appendix C: Opinion of Supreme Court App.
of Oklahoma

Appendix D: Petition for Rehearing App.

Appendix E: Correction Order of App.

Supreme Court of Oklahoma

Appendix F: Order Denying Petition App.

Page 3

for Rehearing

Appendix G: Mandate of the Oklahoma App.
Supreme Court

Appendix H: Applicable Provision of App.
the United States Constitution

Appendix I: Applicable Provisions App.
of Federal Statute

Appendix J: Applicable Provisions of App.
Federal Regulation

Appendix K: Applicable Provisions of App.
the Constitution of the State of
Oklahoma

. Appendix L: Applicable Provisions of App.

Oklahoma Statutes

TABLE OF AUTHORITIES

a Cases:
Bryan v. Itasca County, 1976, 16,32
a 96 S.Ct. 2102, 426 U.S. 373,
48 L.Ed. 2d 710
Carpenter v. Shaw, 280 U.S. 363, 20
, 367 74 L. Ed. 478,
50S. Ct. 121 (1930)
E Cockran v. Teehee, 40 Okl. 388, 19
138 P. 563 (1914)
: F.B. Collins Inv. Co. v. Beard, 18
46 Okl. 310, 148 P.346, 850 (1915)
DeCoteau v. District Court, 1975, 24

95 S.Ct. 1082, 410 U.S. 425,
43 L. Ed. 2d 300,

reh den. 95 S. Ct. 1667,

421 U.S. 939, 44 L.Ed. 2d 95.

Page 4

Fisher v. District Court, 1976,
96 S.Ct.424 U.S. 382, 943,
47 L. Ed. 2d 106, reh. den.,
96S. Ct. 1524, 425 5 U.S. 926,
47 L. Ed. 2d 772.

Franz v. Autry, 18 Okl. 56l,
91 P. 193 i907)
Kennerly v. District Court, 1971,

27 L. Ed. 2d 507

McClanahan v. Arizona Tax Commission

1973, 93 S.Ct. 1257,
4ll U. S. 164 at 168,
36 L.Ed. 2d 129 at 133

Mashunkashey v. Mashunkashey,
191 Okl. 501, 134
P.2d 976 (1943)

Mattz v. Arnett, 1973,
93 S.Ct. 2245, 412 U.S. 481,
37 L. Ed. 2d 92.

Mescalero Apache Tribe v. Jones,
1973, 93 S.Ct. 1267, 411 U.S. 145,
36 L.Ed 2d 114 at 4 U.S. 149
(New Mexico)

Moe v. Salish & Kootenai Tribes,
1976, 95 yee 1634, 424 U.S. 463,
4&8L. Ed. 2d 96

Northern Natural Gas Co. v.
~ §tate Corporation Commission
of Kansas, 1962, 835. Ct. 646,
373 U.S. 84, 9 3 Ed 2d 601,

reh. den. 83 S.Ct. 10ll,
371 U.S. 960, 10 L.Ed 2d 14

Organized Village of Kake v. Egan,
369 U.S. 60, 82 S.Ct. 562,

7 L.Ed.2d 573 (1962)

Page 5

24

18

26,27,
28,29

14,16,
20
18

23

16,18,23

24

32

12,15,17,

19,20,22,
23,24

. Santa Rosa Band of Indians v. Kings County | 16
CA9) 532 F. 2d 655 (1975)

Scioto Oil Co. v. O'Hern, 67 Oki. 106, 19
169 P. 483 (1917)

Squire v. Capoeman, 351 U.S. 1, 6, 100 21
L. Ed. 883, 76 S. Ct. 611 (1956)

State v. Huser, 76 Okl. 130, “18
184 P, 113 (1919)

Tiger v. Western Investment Co., 17
ISM, 31 S.Ct. 578, 221 U.S. 286,
55 L.Ed. 738

Warren Trading Post v. Arizona Tax 16,21,23
Commission, 1965, 85 S.Ct. 1242,
380 U.S.685, 14 L.Ed 2d 165

Williams v. Lee, 358 U.S. 217, 17,18,21,22
79 S.Ct. 269, 3 L.Ed.2d 251 (1959)

Worchester v. Georgia, 6 Pet. 515, 16,17,22
8 L.Ed 483 (1832)

U. S. Constitution (APPENDIX H)

Art. I, Section 8, clause 3 9

- Art. IV, clause 2 9

Federal Statutes (APPENDIX I)

Act of June 16, 1906, 34 Stat. 267-278, 9,17
"Oklahoma Enabling Act"

Act of August 14, 1947, 61 Stat. 731, 9,13,
Pub.L. 80-336, Cc. 459, 29,30,34
Section 11

Page 6

Act of August 15, 1953, 9,13,25,26,

Pub.L. 83-280, 67 Stat. 590 27 ,28,33
Act of April 11, 1968, Pub.L. 90-284, 25,26,
Title IV, Sections 402, 404 27,28,
72 Stat. 79, "Civil Rights Act 33

of 1968". 25 U.S.C.Sect. 1321 et.seq.

Oklahoma Constitution (APPENDIX K) ~

Art. 1, Section 3, Oklahoma 9,13,18,29
Constitution ;

Oklahoma Statutes (APPENDIX L)

Title 17, Okla. Statutes 1971, 10
Sections 51-53, inc.

Title 52, Okla. Statues 1971, 10
Section 243

Title 52, Okla. Statutes 1971, 10
Section 273

Title 75, Okla. Statutes 1971, 10,19
Section 184

25 C.F.R. Part 1, Section 1.4 14

OFFICIAL REPORT OF OPINIONS BELOW

This Opinion of the Supreme Court of the State
of Oklahoma is officially reported as P. W. Currey et

al. v. Corporation Commission of Oklahoma et al.,
Okl., 617 P. 2d 177 (1980). :

Page 7

JURISDICTION

On January 10, 1978, the Corporation Commission of
the State of Oklahoma issued its Findings of Fact and
Conclusions of Law, together with an Order, the contents
of which are attached as "Appendix A". An appeal from
the Order was filed in the Supreme Court of Oklahoma
(Appendix B). The initial Opinion of the Supreme Court of
the State of Oklahoma (Appendix C) was issued June 12,
1979. A Petition for Rehearing was filed in a timely
manner (Appendix D). A "Correction Order" of the
Supreme Court of the State of Oklahoma (Appendix E)
was issued September 22, 1980, simultaneously with its
Order Denying Petition for Rehearing attached as
"Appendix P*.

Jurisdiction is invoked under the provisions of 28
U.S.C. Sec. 1257 (3), by reason that (1) the statutes of the
State of Oklahoma, to the extent that the Corporation
Commission is vested with jurisdiction to regulate oil and
gas exploration on restricted Indian lands, are repugnant
to the constitution, laws and regulations of the United

States and (2) Petitioner claims an immunity from State

Page 8

action under the Constitution, laws and regulations of the

United States.

PERTINENT CONSTITUTIONAL, STATUTORY
AND REGULATORY PROVISIONS

These proceedings involve the application of
Article 1, Section 8, clause 3, the "Commerce Clause",
and Article 6, clause 2, the "Supremacy Clause" of the
United States Constitution, quoted in pertinent part in
"Appendix H". The federal statutory provisions involved
are Pub.L. 83-280, c.505, Act of August 15, 1953, 67
Stat.590, Sections 6,7; Civil Rights Act of 1968, 82 Stat.
78 25 U. S. C. Sections 1321-1326; Pub.L. 80-336,
Section ll, Act of August 14, 1947, c.459, 61 Stat. 731; and
the "Oklahoma Enabling Act," Act of June 16, 1906, c.
3335, Section 1, 34 Stat. 267. The pertinent federal
Statutory provisions are cited in "Appendix I." Code of
Federal Regulation provisions involved are found
generally as 25 CFR, Part |; 25 CFR, Part 183 (1954 Ed.)
and 30 CFR Part 221 (1949 Ed.), pertinent sections of
which are attached as "Appendix J." .

Applicable Oklahoma constitutional and statutory
provisions are as follows: the "disclaimer" provisions of

Article 1, Section 3, Oklahoma Constitution, attached as

Page 9

“Appendix K;" statutes of authority of the Corporaiton
Commission as found in Title 17, Oklahoma Statutes 1971,
Sections 51-53; Title 52, Oklahoma Statutes 1971, Sections
243 and 273; and the Oklahoma 1971 "Codification" statute
found at Title 75, Oklahoma Statutes 1971, Section 184;
pertinent portions of the statutes are attached as

"Appendix L."

STATEMENT OF THE CASE

Petitioners, a Texas partnership, obtained leased
rights to certain restricted Choctaw lands located in
Stephens County, Oklahoma in the early 1950's. The lease
was obtained through the Bureau of Indian Affairs ("BIA")
a bureau of the Department of Interior, and granted
Petitioners the right to explore for oil and gas. Upon
execution of the lease and the posting of required surety,
BIA turned the supervision of the exploration activities to
the United States Geological Survey ("USGS"), also a
subdivision of the Department of Interior. »

Petitioners entered the lands pursuant to the lease
and drilled three (3) wells, at all times complying with the

regulations and under the supervision of USGS.

Page 10

In the mid 1950's, each of the wells were the subject
of a "Notice of Intent to Abandon", which notice
contained a description of the method by which
Petitioners intended to "plug" the wells. The plugging
methods were approved by USGS. The wells were plugged
and the fact and method of the abandonment were duly
reported to and approved by USGS.

The plugging of each of the three (3) wells complied
in all respects with the applicable USGS regulations.
Following the abandonment of the wells, USGS inspected
the well sites, approved the plugging and surface

restoration and recommended to BIA that Petitioners
bond be released. Petitioners were thereafter released by,
BIA.

In 1974, one of the wells experienced a “surface
break out". Attempts by third parties (not parties here or
’ below) to replug the well were unsuccessful and, in 1976,a —
representative of the Corporation Commission inennbted |
the site and filed his complaint with the Commission. A
second well was made the subject of a complaint later in
1977.

Notice of the complaints was given to Petitioners

and a hearing was conducted by a Corporation

Page 11

.

Commission trial examiner. Neither the Indian landowner
nor the Department of Interior appeared as or were made
parties to the hearing.

Petitioners answered the Complaint. inter alia
denying the jurisdiction of the Corporation Commission to
impose requirements upon Petitioners because Petitioners
were subject to federal not state regulation. The trial
examiner and, subsequently, the Corporation Commission
noted the objection to jurisdiction of Petitioners, but
found jurisdiction (Appendix A, paragraph 2,3). The
Corporation Commission entered its Order directing
Petitioners to enter the lease and replug the wells.

Appeal from the Order was taken to the Supreme
Court of Oklahoma by Petition in Error asserting inter
alia the failure of Commission jurisdiction over oil and
gas exploratio. on restricted Indian land. (Appendix B,
paragraph 5.a.l).

The Supreme Court of the State of Oklahoma
affirmed the Commission's finding of jurisdiction.
(Appendix C). The Court, in summary, held (1) that
Oklahoma's constitutional "disclaimer (Art. 1, Section 3,
Appendix K) affected "proprietary" rather than
governmental interests, relying on Organized Village of

Page 12

|

Kake v. E an, 1962, 82 S.Ct. 562, 369 U.S. 60, 7 L.Ed 2d
573, and (z) that the language of permissive assumption of
jurisdiction in Pub. L. 83-280, Section 6, Act of August 15,
1953, 67 Stat. 590, together with the provisions of Pub. L.
80-336, Act of August 14, 1947, c. 459, 61 Stat. 7331,
permitted the Corporation Commission to exercise its
regulatory authority to Indian lands. Concluding, the
Court said:

* eee

We hold that the power of the Corporation
Commission to regulate oil and gas conservation
measures under the laws of the state on restricted
Indian lands and order appellant to replug purging
wells, is not precluded by the federal jurisdiction.
Our Constitutional mandate contained in O.S. 1971
Art. | Sec. 3 stating that Indian lands "shall be
remain subject to the jurisdiction, disposal, and
control of the United States", envisions
undiminished and not exclusive jurisdiction. We so
hold.

*eex-t-**
From that holding and affirmance of juisdiction,

Petitioners seek this Court's relief.

Page 13

. |

REASON FOR ALLOWANCE OF THE WRIT

THE OKLAHOMA SUPREME COURT HAS UNCONSTITU-
TIONALLY AND UNILATERALLY IMPOSED ITS
REGULATORY LAWS UPON INDIAN LANDS WITHIN ITS
BORDERS IN DEROGATION OF ASSIGNED STATE
JURISDICTIONAL LIMITS AND IN CONFLICT WITH
FEDERAL PLENARY AND PREEMPTIVE AUTHORITY.

Petitioners seek this Court's relief in vacating the
holding of the Oklahoma Supreme Court affirming the
Corporation Commission's unilateral assumption of
jurisdiction over oil and gas operations on Indian lands
within its borders.

Relying upon the same authority as did the Arizona

Supreme Court in McClanahan v. Arizona Tax

Commission, infra, the Oklahoma Court excised itself

from the historical position taken by this Court in
deciding state-federal jurisdictional litigation regarding

Indian land. The narrow issue in McClanahan, 1973, 93

S.Ct. 1257, 4ll U. S. 164 at 168, 36 L.Ed. 2d 129 at 133, was
whether a State may tax a reservation Indian for income
earned exclusively on the reservation. The narrow issue

presented here is whether a State may impose its

Page 14

conservation measures upon Indian lands in face of
pervasive federal regulation on the same subject.

Petitioners do not claim that they are subject to no
regulation. They do not claim that neither the Indian
landowner nor his trustee, the United States government,
is without remedy to correct any perceived conditions
which allegedly exist. What Petitioners do claim is that,
given the abundant expressions of this Court of federal
exclusivity and preemptive regulatory supremacy of
Indian land use and control, Petitioners are not required
to respond to both State and federal regulation with
respect to their lease obligations. Particularly is this so
where, as found below, the regulations of both federal and
State agencies are identical. In this connection, it is
helpful to recall that, while federal regulatory agencies
were aware of the proceedings below, no appearance by
the federal agency or the Indian landowner precipitated or
gave vicarious support to the position of the State of
Oklahoma.

Petitioners respectfully suggest that this Court put
at final rest the propensity of the several States to rely

upon the expressions of this court in Organized Village of

Kake v. Egan, 1962, 82 S.Ct. 562, 369 U.S. 60, 7 L.Ed. 2d

Page 15

573, expressions which admittedly this Court has
attempted to limit or place in perspective in subsequent

opinions. Eg., McClanahan, supra, 411 U.S. 176, n. 15;

Warren Trading Post v. Arizona Tax Commission, 1965, 85

S.Ct. 1242, 380 U.S.685, 14 L.Ed 2d 165; Mascalero Apache

Tribe v. Jones, 1973, 93 S.Ct. 1267, 4ll U.S. 145, 36 L.Ed

2d 114.

It is abundantly clear that when courts speak of
"Indian land," no real distinction is made between tribal
lands, trust lands or alloted lands. Indian lands are,
simply, Indian lands. Historically and in present practice,
Congress has _ constitutionally exercised plenary
jurisdiction over Indian lands, U. S. Const., Art. I, Sec.8, |
Clause 3, whether under a concept of exclusivity

Worchester v. Georgia, 6 Pet. 515, 8 L.Ed 483 (1832), or,

more recently, under a notion of preemptive regulation.

Bryan v. Itasca County, 1976, 96 S.Ct. 2102, 426 U.S.

373, 48 L.Ed. 2d 710. Indeed, in Santa Rosa Band of

Indians v. Kings County (CA9) 532 F. 2d 655 (1975), the

Ninth Circuit said at 658:

e*eeet

At the outset, we emphasize that this suit
involves an attempt to regulate Indian use of Indian
trust lands. We are clear, regardless of the
modification worked in the exclusive Federal

Page 16

e\

ie

jurisdiction and tribal sovereignty doctrines of
Worchester v. Georgia, 3] U.S. (6 Pet. 515) 350, 8
L.Ed. 483 (1832), by subsequent Court decisions such
as Organized Village of Kake v. Egan, 369 U.S. 60,
82 S.Ct. 562, 7 L.Ed.2d 573 (a) and Williams v.
Lee, 358 U.S. 217, 79 S.Ct. 269, 3 L.Ed.2d 251 (1959),
that in any event any concurrent jurisdiction the
states might inherently have possessed to regulate
Indian use of reservation lands has long ago been
preempted ‘by extensive Federal police and
legislation. (Citations omitted).
That the federal government has exclusive authority
"to deal with, control and protect the property of the
Indian, where not expressly abandoned, is no longer open

to controversy." Tiger v. Western Investment Co., I9ll, 31

S.Ct. 578, 221 U.S. 286, 55 L.Ed. 738

I
THE OKLAHOMA ENABLING ACT AND SUBSEQUENT
LAWS PRECLUDE # ASSUMPTION OF STATE
JURISDICTION.

in the Oklahoma Enabling Act, Act of June 16, 1906,
34 Stat. 267-278, Congress conditioned § Dklahoma's
statehood upon a disclaimer of jurisdiction over Indian
lands, requiring that the new State include the following
language in its Constitution:

* * * Provided, that nothing contained in said
constitution shall be construed to . . . limit or affect
the authority of the Government of the United States to
make any law or regulation respecting such Indians, their
lands, property or other rights * * * (34 Stat. 267).

Oklahoma complied with that condition precedent to

Page 17

statehood in Art.1l, Sec.3 of its constitution.
Parenthetically, the Enabling Act affecting Oklahoma
also enabled the new states of Arizona and New Mexico to
join the Union, subject to the same disclaimer conditions.

Act of June 16, 1906, supra; Sec. 25, Second; Williams v.

Lee, 1959, 79 S.Ct. 269, 358 U.S. 217, 3 L.Ed 2d 251, n. 10

at 358 U.S. 222 (Arizona Mescalero Apache Tribe v.
Jones, 1973, 93 S.Ct. 1267, 4ll U.S. 145, 36 L.Ed 2d l4 at
411 U.S. 149 (New Mexico).

The Supreme Court of the State of Oklahoma has
acknowledged and given its own meaning to the effect of
their State's Constitutional limitations with respect to
Indian lands. It has held, variously, that Oklahoma must
look solely to the. acts of Congress with respect to

restrictions on Indian lands, F.B. Collins Inv. Co. v. Beard,

46 Okl. 310,148 P.846, 850 (1915); that the plenary
authority of Congress to legislate for Indian lands cannot -

be impaired by Oklahoma, State v. Huser, 76 Okl. 130, 184

P. 113 (1919); that the cession of jurisdiction to the federal
government was not restricted, but absolute, Franz v.
Autry, 18 Okl. 561, 91 P. 193 (1907); that where a conflict
exists between state and federal authority, state law is

superceded, Mashunkashey v. Mashunkashey, 191 Okl.

Page 18

501, 134 P.2d 976 (1943). See also Cockran v. Teehee, 40

Okl. 388, 138 P. 563 (1914); Scioto Oil Co. v. O'Hern, 67

Okl. 106, 169 P. 483 (1917). Moreover, the Oklahoma
Legislature, in making its decennial codification of
statutes, maintains the disclaimers. 750.S. 1971 Sec. 184.
Perhaps, the historical attitude of the State of Oklahoma

can be summed in the language of Mashunkashey v.

Mashunkashey, supra, 191 Okl. 505:

We have referred to state and federal authorities
outlining the policy and purpose of the law with
respect to the lands and property of the Indians.
None of these authorities discloses an inclination to
limit in any degree the broad and comprehensive
powers reserved to the federal government by the
all-inclusive language of section | of the Enablin
Act. Specifically, the power reserved was the
power to make any law or regulation which it would
have been competent to make "if this act had never
been passed." Prior to statehood, the power of
Congress to legislate with respect to the Indians,
their lands and property, was plenary. This plenary
power was fully preserved to the Congress by the
Provisions of the Enabling Act and the acceptance
of said provisions by the people of this state.
(Emphasis added).

In face of the historical expressions of the
Oklahoma judiciary, the Oklahoma Supreme Court now

States, relying on Organized Village, supra,

*nenre tt

Oklahoma's disclaimer of right and title to Indian
lands is a disclaimer of proprietary rather than
governmental interests.

*eet &

Page 19

#%

The Oklahoma Court ignored, however, what this

Court was required to restate in McClanahan, supra, 4ll

U.S. 176, note 15:

x* keer

* * *In (Organized Village of Kake v. Egan), we
held that "absolute™ federal jurisdiction is not
invariable exclusive jurisdiction," and that this
language in federal legislation did not preclude the
exercise of residual state authority. See (369 U.S.
68, 7 L.Ed. 2d 573). But that holding came in
context of a decision concerning the fishing rights
of nonreservation Indians. See (369 U.S. 62, 7 L.
Ed. 2d 573). It did not purport to provide guidelines
for the exercise of state authority in areas set aside
by treaty for the exclusive use and control of
Indians. (Emphasis by the Court).

ett &

Nor did the Oklahoma Court look to the impact of

McClanahan upon the disclaimer language of the Arizona

Enabling Act, identical to that of Oklahoma (McClanahan,

supra, commencing at 4ll U.S. 174):

* etek

It is circumstances such as these which have led this
Court in interpreting Indian treaties, to adopt the
general rule that "(d)oubtful expressions are to be
resolved in favor of the weak and defenseless people
who are the wards of the nation, dependent upon its
protection and good faith." Carpenter v. Shaw, 280
U.S. 363, 367 74 L. Ed. 478, 50 S. Ct. 121 (1930).
When this canon of construction is taken together
with the tradition of Indian independence described
above, it cannot be doubted that the reservation of
certain lands for the exclusive use and occupancy of
the Navajos and the exclusion of non-Navajos from
the prescribed area was meant to establish the lands
as within the exclusive sovereignty of the Navajos

Page 20

under general federal supervision. It is thus
unsurprising that this Court has interpreted the
Navajo treaty to preclude extension of state
law -- including state tax law -- to Indians on the
Navajo Reservation. See Warren Trading Post Co.
v. Arizona Tax Comm'n 380 U.S. at 687, 690, 14 L.
Ed. 2d 165; Williams v. Lee, supra, at 221-222, 3 L.
Ed. 2d 251.

Moreover, since the signing of the Navajo treaty,
Congress has consistently acted upon the assumption
that the State lacked jurisdiction over the Navajos
living on the reservation. (Footnote 13 by Court).
Thus, when Arizona entered the Union, its entry was
expressly conditioned on the promise that the State
would "forever disclaim all right and title to which
shall have been acquired through or from the United
States or any prior sovereignty, and that until the
title of such Indian or Indian tribes shall be and
remain subject to the disposition and under the
absolute jurisdiction and control of the Congress of
the United States. Arizona Enabling Act, 36
Stat.557, 569. (Footnote omitted)

Nor is the Arizona Enabling Act silent on the
specific question of tax immunity. The Act
expressly provides that "nothing herein, or in the
ordinance herein provided for, shall preclude the
said State from taxing as other lands and other
property are taxed any lands and other property
outside of an Indian reservation owned or held by an
Indian." Id. at 570 (emphasis added). It is true of
course, that exemptions from tax laws should, as a
general rule, be clearly expressed. But we have in
the past construed language far more ambiguous
than this as providing a tax exemption for Indians.
See, e.g., Squire v. Capoeman, 351 U.S. 1, 6, 100 L.
Ed. 883, 76 S. Ct. 611 (1956), and we see no reason to
give this language an especially crabbed or
restrictive meaning. (footnote 15 by Court, quoted
supra).

*eete

Footnote 13 is quoted for convenience as follows:

Page 21

ee

eee t

13. “Congress has... acted consistently upon the
assumption that the States have no power to
regulate the affairs of Indians on a
reservation. ... Significantly, when Congress has
wished the States to exercise this power it has
expressly granted them the jurisdiction which
Worcester v. Georgia had denied." Williams v. Lee,
358 U.S., at 220-221, 3 L. Ed. 251 (footnote omitted).

xe

If Organized Village can be said to stand for any

proposition relevant here -- since the case did not involve
state regulatory jurisdiction over Indian lands -- it can
only be used as a summary of all criteria, the absence of
which must exist before a state may assert such

jurisdiction. By way of summary, state jurisdiction over

. Indian lands under the guise of regulatory authority

cannot exist:

1. If state action infringes upon the right of
Indians to make their own laws;

2. If there exists a treaty obligation excluding
state authority;

3. If there is an impairment of federal law or
regulation;

4, If Congress has reserved regulatory authority
to itself; or

5. If there exists any legal impediment to the
state law prohibiting it.

Illustrative of the fact that the U.S. Supreme Court

Page 22

has not tended to relax restrictions against state

regulatory power since Organized Village ‘are the

following expressions of what state may not do in a
regulatory capacity as against Indian lands (reminding this

Court that Organized Village concerned itself with

non-Indian lands):

1. The State of Arizona could not impose a tax
on gross proceeds of sales to Indians on an_ Indian

reservation. Warren Trading Post Co. v Arizona Tax

Commission, supra. Again, note that Arizona has the

same disclaimer requirement as does Oklahoma.

2. The State of New Mexico could not impose a
use tax on personality installed in the construction of ski
lifts by Indians even. though the lift was on

off-reservation land. Mescalero Apache Tribe v. Jones,

supra. The State of New Mexico has the same disclaimer
requirement as does Oklahoma and Arizona. Additionally, .
Mescalero Apache Tribe limits the effect of Organized

Village to "off-reservation activities." 411 U.S. 153, 36 L.
Ed. 2d 122.

3. The mere fact that land is allotted does not
terminate federal supervision of Indian Country. Mattz v.
Arnett, 1973, 93 S.Ct. 2245, 412 U.S. 481, 37 L. Ed. 2d 92.

Page 23

4, Only where Congress clearly terminates its
supervisory status does a state assume jurisdiction.

‘DeCoteau v. District Court, 1975, 95 S.Ct. 1082, 410 U.S.

425, 43 L. Ed. 2d 300, reh den. 95 S. Ct. 1667, 421 U.S.
939, 44 L. Ed. 2d 95.

5. Where Congress has vested jyrisdiction over
adoption preceedings of reservation Indians in a tribal
court, a state may not assert jurisdiction since the
overriding federal policy defeats that assertion. Fisher v.

District Court, 1976, 96 S.Ct.424 U.S. 382, 943, 47 L. Ed.

2d 106, reh. den., 96 S. Ct. 1524, 425 U.S. 926, 47 L. Ed.

2d 772.

6. The State of Montana could not tax personal
property located on a reservation, or require a cigarette
vendor's license or collection of sales tax for products

sold to on-reservation Indians. Moe v. Salish & Kootenai

Tribes, 1976, 95 S. Ct. 1634, 424 U.S. 463, 48 L. Ed. 2d 96.
Montana is also a disclaimer state.

Such language does not bespeak of limitations of the
Oklahoma disclaimer to a mere "proprietary" interest as
the Oklahoma Supreme Court states in this instance. The

court below improperly relied upon Organized Village,

supra, for its implied assertion that the Enabling Act

Page 24

disclaimer is now something less than what it was
immediately after Statehood. Having done so, the
Oklahoma Court has invaded traditional federal

sovereignty.

THE STATE OF OKLAHOMA HAS NOT ASSUMED
JURISDICTION ON RESTRICTED INDIAN LANDS

The opinion issued by the Oklahoma Supreme Court,
by way of summary, reasoned (I) that the disclaimer
provisions of the Oklahoma Constitution applied to
"proprietary" powers and not political or police power; (2)
that Pub. L. 83-280, (hereafter Pub. L. 280), 67 Stat. 588
1953) (and its successor Civil Rights Act of 1968)
empowered a state, without more, to enlarge its
jurisdiction to Indian lands to the same extent as the
federal governments withdrew its jurisdiction; and (3) that
Congress, in requiring a State to "amend" its constitution
or statutes, only imposed such an obligation to do that
affirmative act "where necessary," that is, where the
constitution or statutes pose impediments to assumption
of sovereignty.

An analysis of the general relinquishment of federal

jurisdiction over restricted Indian lands, through State

Page 25

consent, was treated extensively in Kennerly v. District
Court, 1971, 91 S. Ct. 480, 400 U.S. 423, 27 L. Ed. 2d 507.
By way of summary, the U. S. Supreme Court limited the
application of Pub L. 280, extending criminal jurisdiction
extending civil jurisdiction to the five states enumerated.
Montana (as Oklahoma) was not an enumerated State.

Said the Court, at 400 U.S. 424, 425:

“ett

"Prior to the passage of Title IV of the Civil

Act of 1968, 82 Stat. 78, 25 U.S.C. Sections
1321-1326 (1964 ed., Supp. V)... state assumption of
civil jurisdiction -- was governed by Section 7 of
the Act of August 15, 1953, 67 Stat. 590.

Section 7 of that siatute provided:

'The consent of the United States is hereby given to
any other state not having jurisdiction with respect
to criminal offenses or civil causes of action, or
with respect to both, as provided for in this Act
(referring to Sections 2 and 4, see n. |, supra), to
assume jurisdiction at such time and in such a
manner as the people of the State shall,

affirmative legislative action, obligate and bind
State to assumption thereof.’ (Emphasis added).

* et

The Kennerly Court, faced with an action to enforce

a debt incurred within the boundaries of the Blackfeet
Reservation by members of the tribe, noted that the
Montana legislature, by legislative enactment, had
extended criminal, but not civil, jurisdiction over the

lands of the Flathead tribe,

Page 26

i

* eet

"But Montana never took ‘affirmative legislative
action'-- concerning either civil or criminal
jurisdiction -- with respect to the Blackfeet
Reser vation."

x*ert

The Blackfeet tribe, however, had adopted as part

of its tribal law an enactment which, unilaterally, granted
the State concurrent jurisdiction with the tribal courts
over civil suits. Hence, the Kennerly Court was faced

with Pub. L. 280.

In discussing the necessity of State "affirmative

legislative action" to extend its jurisdiction over Indian

lands, the Kennerly Court stated, 400 U.S. 427:

eek t

"Nor was the requirement of affirmative legislative
action an idle choice of words; the legislative
history of the 1953 statute shows that the
requirement was intended to assure that state
jurisdiction would not be extended until the
jurisdiction to be responsible for the portion of
Indian country concerned manifested by political
action their willingness and ability to discharge
their new responsibilities." enone added).

* ek &

Nor did the pre-1968 tribal action constitute the

requisite consent required under the Civil Rights Act of
1968, 25 U.S.C. Sections 1321-1326. Said the Court, 400
U.S. 428:

Page 27

"=>

*xeet

Title IV of the 1968 statute repealed Section 7 of the

1953 Act (Pub. L. 280, supra) and substituted a new

regulatory scheme for the extension of state civil

and criminal jurisdiction to litigation involving

Indians living in Indian country."

* tt

The provisions of the 1968 Act, Pub. L. 90-284, Title
IV, Sections 402, 404, 82 Stat. 79 (April ll, 1968), 25
U.S.C. Sections 1321, 1324, enabled a state to assume civil
jurisdiction upon the occurrence of two contingencies: (1)
"consent of the tribe occupying the particular Indian
country or part thereof," 25 U.S.C. Section 1321, and (2)

amendments to constitutions and statutes for the removal

_ of legal impediments, 25 U.S.C. Section 1324.

By way of summary, therefore, the assumption of
State jurisdiction over restricted Indian lands in Oklahoma

must, according to Kennerly, supra, have come about in

one of two ways if the 1953 and 1968 congressional
enactments are to furnish a basis of jurisdiction:

l. If assumed under authority of Pub. L. 280 such
assumption of jurisdiction must flow from
"affirmative legislative action" of the State of
Oklahoma; or

2. If assumed under authority of the Civil Rights

Page 28

Act of 1968, such assumption must be
preceeded by the electoral consent of
Choctaw tribe and the affirmative assertion of
jurisdiction of the State.

There is nothing in the record nor has research
developed the criteria precedent to the Corporation
Commission's assumption of jurisdiction over oil wells on
Indian land. Requisite consent of the Choctaw tribe is not
evident in the record below and none is believed to exist.
Legal research has uncovered no "affirmative legislative
action" wherein the State of Oklahoma " manifested by
political action (its) willingness and ability to discharge

their new responsibility." Kennerly, supra, 400 U.S. 427.

Assuming this discussion to be a accurate reflection of
the law, then it follows that the restrictions of Oklahoma
law impose more than a mere proprietary disclaimer, but
an unqualified constitutional impediment. Okla. Const.
Art. 1, Section3.

Ill

PUB. L. 80-336 TRANSFERS NO FEDERAL
JURISDICTION TO THE CORPORATION COMMISSION
IN VIEW OF EXISTING FEDERAL OIL AND GAS
REGULATIONS AND ABSENCE OF FEDERAL
APPROVAL OF ORDERS.

Page 29

Rt

The Oklahoma Supreme Court cited no authority
wherein Congress has yielded to the Oklahoma
Corporation Commission an independent power to
regulate oil and gas exploration activities on Indian lands
except that which may be said to exist in the provisions of
Pub.L. 80-336, c.459, Sec.ll, Act of August 4, 1947,
61 Stat. 731:

* ket

All restricted lands of the Five Civilized Tribes are
hereby made subject to all oil and gas conservation
laws of Oklahoma: Provided, that no order of the
Corporation Commission affecting restricted Indian
land shall be valid as to such land until submitted to
and approved by the Secretary of the Interior or his
duly authorized representative. (Emphasis original)

x*reet
A condition precedent, however, to the application of

Oklahoma law is the approval of the Secretary of the
Interior. The Court below entirely disregarded the
regulations of the Department of Interior which
specifically preclude the application of State or local law
with respect to the regulation of Indian lands. 25 CFR
Part 1 Sec.1.4(2):

x*eet &

(a) Except as provided in paragraph (b) of this
section, none of the laws, ordinances, codes,
resolutions, rules or other regulations of any
State or political subdivision thereof limiting,
zoning or otherwise governing, regulating, or

Page 30

¢%

controlling the use or development of any real
or personal proper including water rights,
shall be applicable to any such propert

leased from or held or used under agreement
with and belonging to any Indian or Indian
tribe, band, or cummunity that is held in trust
by the United States or is subject to a
restriction against aliention imposed by the

United States. (30 Fed. Reg. 7520 (June 9,
1965).

eek

Moreover, the record below does not reflect and there is
not known to be an application by the Corporation
Commission to the Interior Department for an approval of
its Order in this case. The Department of Interior,
however, knew of the pending action before the
Commission; the District Engineer for USGS testified at
the hearing (Appendix A, para 25). The Findings of Fact
of the Commission reflect that, at all Stages of their
activities, Petitioners complied with all federal
regulations, both regulations of BIA and USGS, and were
released from federal obligations under the lease.
(Appendix A, paras. 25-36; See Appendix J for
regulations under which Petitioner was bound).

In short, the abundant and pervasive regulatory
scheme adopted and exercised by the Department of
Interior has pre-empted whatever authority the

Corporation Commission may have had _ under

Page 31

Pub.L.80-336, supra. Bryan v. Itasca County, supra. The

Corporation Commission's order to Petitioners to enter
into Indian land and to perform acts with respect to that
land is an invalid invasion of the exclusive domain of

federal authority Northern Natural Gas Co. v. State

Corporation Commission of Kansas, 1962, 83S. Ct. 646,

373 U.S. 84,9 L.Ed 2d 601, reh. den. 83 S.Ct. 10ll, 371

U.S. 960, 10 L.Ed 2d 14, an authority upon which
Petitioners were entitled to rely.

By way of summary, Petitioners contend that,
having submitted to and complied with federal regulatory
requirements imposed to date, they should not be subject
to Oklahoma jurisdiction. Petitioners state that the body
of law recited above -- indeed, the body of legal history.
left uncited because of limitations of space -- make
clear that the State of Oklahoma has entered upon a
course of enforcement which it is constitutionally unable
to do, assuming a power of regulation clearly given to and
yet retained by the federal government and invading,
without authority of law, the preempted field of federally
regulated concerns. Petitioners may well be subject to
the same order from federal authority; they may well be

subject to landowner action; they cannot be, given the

Page 32

status of the law, subject to actions by the State of

Oklahoma.

CONCLUSION

Given the extensive oil and gas _ exploration
activities required to meet national energy needs, the
relative role of state and federal government in
regulating the nature and manner of such activities on
Indian lands must be clearly defined.

To Petitioners' knowledge, this Court has never
expressed itself as to the extent, if any, to which a State
may assume regulatory authority for development of
minerals located on Indian lands. Hence, Petitioners
present a case of new impression.

Moreover, while this Court has spoken to a need for
affirmative action by disclaimer States to assume civil
and criminal jurisdiction under Pub. L. 280 and the 1968
Civil Rights Act, it is clear from the rather cursory
treatment of Petitioner's cause by the court below that
this court should once again express itself to (I) the
manner by which federally imposed and required state

constitutional disclaimers may be removed, (2) the extent

Page 33

y -

to which a removal permits States to assert its police
power and other regulatory schemes and (3) the conflict
between apparent delegations of federal authority over
Indian lands in the nature of Pub. L. 80-336 and the
pervasive federal regulations affecting both State and
federal interests.

Petitioners pray, therefore, that this Court grant
their Petition and, upon review of the merits, reverse the
decision below.

Respectfully submitted,
WESNER COKE & BOYD

Geos

By f
arry R. Boyd
8th Floor,
Heritage Square II
5001 L.B.J. Freeway
Dallas, Texas 75234
(214)661-5402

Attorney for Petitioners

CERTIFICATE OF SERVICE BY MAIL

On the 19th day of December, 1980, I, Larry R.
Boyd, a member of the Bar of the State of Texas and of
the Supreme Court of the United States, certify that, in

accordance with Rule 28.3 of the Rules of the Supreme

Page 34

e%

Court, mailed to the following named counsel of record
below, at the addresses shown, three (3) copies of the
foregoing Petition for Writ of Certiorari to the Supreme
Court of the State of Oklahoma, by depositing the same in
a United States mailbox, first class postage prepaid:
Corporation Commission of Oklahoma
by serving:
Harvey Cody, Attorney
Oil and Gas Conservation Division
Oklahoma Corporation Commission
Jim Thorpe Office Building
Oklahoma City, Oklahoma 73105

Attorney for Respondents

*

cemented to the surface. Ten sacks of cement pumped
to the bottom; mud was used to fill the hale.

32. Admittedly, most of Oklahoma Corporation
Commission required forms in this case were not
filed with the Commission. Reports were filed with
the U. S. Gedlogical Survey. At the time of filing,
the requirements of the USGS for completion and
plugging were evidently the same as those of the
Oklahoma Corporation Commission. However, since
most of the required forms were not filed with the
Commission, it is difficult to ascertain whether or
not the wells were properly plugged.

33. The evidence shows that in the case of the
B-2 Well, Halliburton records indicate that the
casing was cemented to the surface. The report
Gundry Notices and Reports on Wells) filed with the
USGS and signed by a J. Wayne Johnson indicates that
casing was left in the hole, five sacks of cement
placed in the bottom and three sacks placed in the
top to cover the hole. Although this report was
approved by the Deputy Supervisor, it is noted that
the actual plugging operations were not witnessed.

APPENDIX A

y » *

34. The Sundry Notices and Reports on Wells

- filed with the USGS for Well No. 1-B indicates that

surface casing was set to a depth of 40 feet below
ground level and cemented to surface. Ten sacks of
cement were pumped to the bottom of the hole, mud
added and after settling for 3 days surface casing
cut off at li inches below ground level and three
sacks of cement pumped into the top. The notice
filed also indicates that the plugging operations
were not witnessed.

35. A letter dated November 21, 1958, to the
Area Director, Bureau of Indian Affairs from the
Acting District Engineer states that a lease
inspection made November 20, 1958, indicated wells
on the Sophie Harrison Lease, NW/4 NE/4 NW/4 and ©
NW/4NE/4NW/4NE/4NW/4 NW/4 andS/2NW/4NW/4NW/4
were plugged and surface remedial work completed.

36. Against this information, we have the
testimony that a hale located where the Harrison B-2
Well should be is purging salt water. That
Continental Oil Company dug a pit 25 feet deep
around this location attempting to find the surface

APPENDIX A

7%

"SS

2

casing and that none was located. There was also
testimony indicating that casing was noted lying on
the ground at the time the plugging of the B-2 was
being accomplished.

37. The Commission finds that the Sophie
Harrison B-2 Well and the Sophie Harrison B-1 Well
were not plugged in accordance with the Rules and
Regulations of the Corporation Com mission,

APPENDIX A

ey

ORDER
IT IS THEREFORE ORDERED by the Corporation
Com mission of Oklahoma that Curry & Curry plug the
Sophie Harrison B-2 Well, located in the SW/4 NW/4
NW/4 and the Sophie Harrison B-1 Well Located in the
SE/4 NW/4 NE/4 NW/4 of Section 10, Township 3 South,
Range 5 West, Stephens County, Oklahoma within 90
days of the date of the Order and to file report of
Plugging within 10 days after completion of
Plugging.
DONE AND PERFORMED this _10_ day of.

January, 1978.
CORPORATION COMMISSION OF OKLAHOMA

S/Rex Privett
REX PRIVETT, CHAIRMAN

amp Baker
HAMP BAKER, VICE-CHAIRMAN

an Eric Cart
JAN ERIC CARTWRIGHT, COMMISSIONER
ATTEST:

S/ Ed Overhciser
ED OVERHOLSER, SECRETARY

APPENDIX A

-%

APPENDIX B

IN THE SUPREME COURT OF THE
STATE OF OKLAHOMA
P.W. CURREY AND

MRS. JAMES D. CURREY
d/b/a CURREY & CURREY,

)
)
)
Appellants,
vs. ) NO. 51906
)
CORPORATION COMMISSION ) FILED
OF OKLAHOMA; DAN R. ) SUPREME COURT
DUNNETT, DIRECTOR OF ) STATE OF ,
CONSERVATION FOR ) OKLAHOMA
CORPORATION COMMISSION ) ROSS N. LILLARD,
OF OKLAHOMA ) JR., CLERK
A ) January 31,
1978

PETITION IN ERROR

Appellants state:
L This Appeal is brought to review the

decision of the Corporation Commission of the State
of Oklahoma, said decision being issued on the 10th
day of January, 1978 as Order No. 137283 in Cause
P.D.No. 8236 by the Com mission styled as fallows:
COMPLAINT OF DAN R. DUNNETT, DIRECTOR OF
CONSERVATION, FOR AN ORDER REQUIRING
CURRY & CURRY TO PLUG WELLS LOCATED
IN THE SW/4 NW/4 NW/4 OF SECTION 10

TOWNSHIP 3 SOUTH, RANGE 5 WEST,
STEPHENS COUNTY, OKLAHOMA.

APPENDIX B

* #3

Xx

A true and correct copy of the “Report of the
Com mission" incorporating the Order Complained of
is attached as "Exhibit A" and incorporated herein
by reference,

2. The’ style and number assigned to
proceedings below is as contained with Exhibit A.

a: Sie proceedings below were initiated upon
the Complaint of Appellee Dan R. Dunnett (hereafter
"DUNNETT") in his capacity as Director of
Conservation for the Corporation Commission of
Oklahoma (hereafter "Commission") wherein DUNNETT
sought an Order from the Commission to compel
Appellants, Respondents below, to plug certain oil
and gas wells located in Stephens County, Oklahoma,
one or more of which wells were said to be
“purging”. Upon hearing, the Acting Trial examiner
for the Commission issued his "Report of the Trial
Examiner," which inter alia recommended that
Appellants be required to "properly plug” the
alleged offensive wells, although the evidence
indicated that the wells had once been plugged.
Appellants took exception to the "Report of the
Trial Examiner" and, upon hearing, the Commission,

APPENDIX B

*%

in effect, affirmed the Trial Examiner's Report,
finding that two of the wells "were not plugged in
accordance with the Rules and Regulations of the
Corporation Commission and ordering Appellants to
"pluc" the two wells within ninety (90) days of the
date of the Order and to file appropriate plugging
reports.

4. The decision and Order appealed from was
rendered on the 10th day of January, 1979, with
compliance by Appellants to be accomplished on or
before ninety (90) days thereafter.

5. Appellants complain of the following
error by the Com mission in its decision and Order:

a. The Commission lacked jurisdiction to
enter said Order as against Appellants for one or
more or the following reasons:

} The wells in question are located
on restricted Indian land and, as such, drilling and
Plugging operations are under the exclusive
jurisdiction of the United States government to the
exclusion of the Com mission;

2) Assuming that the Commission

had, to some degree, a superintending jurisdiction

APPENDIX B

|

in the plugging of wells on restricted Indian lands,
such jurisdiction did not extend to exceed or
contravene the plugging requirements imposed by
federal regulatory agencies;

3) Assuming that the Commission
had, to some degree, a superintending jurisdiction
in the plugging of wells, it had no authority under
applicable plugging statutes to compel Appellant to
re-enter the wells and replug or repair plugs on the
wells,

b. The findings and conclusions made by
the Commission are not supported by evidence or law,
to-wit:

}) All creditable evidence support
a finding that each of the wells was plugged in a
manner which complied with existing federal and
State regulations and the custom and practice of the
industry;

2) The applicable “plugging”
statute, 52 O.S. 1951 Sec. 53, did not authorize the
Commission to compel Appellant to re-enter, replug
or repair plugs when, once having done ™,
Appellants had abandoned the wells;

APPENDIX B

7%

3) Such statutory authority which
may have been enacted subsequent to the plugging of
the wells and which purports to grant authority to
the Commission to compel Appellants to re-enter and
replug the wells constitute, as a matter of law, ex
post facto legislation and may not be applied to
Appellants;

4) The compulsive order of the
Commission as against Appellants was barred by the
Statute of Limitatons; and

5) No evidence exists which will
Support a conclusion that the manner or method of
Plugging by Appellants did not comply with the Rules
and Regulations of the Corporation Com mission.

WHEREFORE, premises considered,
Appellants pray this Honorable Court to grant the
fallowing relief:

lL =«*‘To set aside and vacate the Order of
the Commission wherein the Commission compels
Appellants to

"...plug the Sophie Harrison B-2 Well,

located in the SW/4 NW/4 NW/4 and the

Harrison B-l Well located in the

SE/4 NW/4 NE/4 NW/4 of Section 10,

Coca” Gilet ame as a a
County, Oklahoma within 90 days of

APPENDIX B

‘*>

date of the Order and to file report of
Pluggin within 10 days after completion

of plugging;"

2. To dismiss Appellants from this and
any other proceedings before the Commission or other
tribunal to abate or correct such conditions as may
now or may hereafter exist at the sites of the wells
described in the Report of the Com mission;

3. To order costs of this appeal to be
assessed against and paid by the Com mission, and

4. Such other and further relief as to
which Appellants are entitled.

P, W. CURREY AND MRS. JAMES D. CURREY
G/b/a CURREY & CURREY a/k/a
CURREY,SHIELDS& CU RREY,Appellants
s/Manville T. Buford

MANVILLE T. BUFORD

Buck, Crabtree, Ransdell & Buford

1700 Park Harvey Center
Oklahoma City, Oklahoma 73102

Attorneys for Appellants

APPENDIX B

7%

CERTIFICATE OF MAILING

On this 31 day of January, 1978, a
true and correct copy of the foregoing was filed
with the Corporation Commission of Oklahoma and
mailed, postage prepaid, to the following:

Honorable Larry D

Attorney General of the State Oklahoma
Capitol Building

Oklahoma City, Oklahoma 73105

Nathan Sherman

Assistant Conservation A
Oklahoma Corporation Com mission
Jim Thorpe Building

Oklahoma City, Oklahoma 73105

John R. Robertson, Jr.
Attorney for Continental Oil Company

1000 Fidelity Plaza
Oklahoma City, Oklahoma 73102

Charley W. Nease

District Engineer

U. S. Gedlogical Survey

50 Penn Place

Oklahoma City, Oklahoma 73112

Don B. Edinger

Acting Trial Examiner

Oklahoma Corporation Com mission
Jim Thorpe Building

Oklahoma City, Oklahoma 73105

S/Manville T. Buford
MANVILLE T. BUFORD

APPENDIX B

et

APPENDIX C

IN THE SUPREME COURT OF THE STATE OF OKLAHOMA

P. W. Currey and

Mrs, James D. Currey
G/b/a Currey & Currey
a/k/a Currey, Shields &
Currey,

Appellants,
vs.

Corporation Com mission
of Oklahoma; Dan R.
Dunnett, Director of
Conservation for
Corporation Com mission
of Oklahoma,

Appellees.

me me ee ee ee ee eee ee ee ee eee

No. 51,906

FILED

June 12, 1979

ROSS N. LILLARD, JR.
Clerk,

SUPREME COURT
STATE OF OKLAHOMA

Appeal from Order of Corporation Commission

directing Appellants to replug abandoned oil and gas
wells which are purging salt water onto the surface

of the land.

ORDER OF THE CORPORATION COMMISSION AFFIRMED

Manville T. Buford,

Buck, Crabtree, Ransdell &

Buford

Oklahoma City, Oklahoma

APPENDIX C

For Appellants;

*%

Harvey Cody,
Conservation Attorney,
Nathan S. Sherman,
Assistant Conservation

Attorney,
Oklahoma Corporation

Com mission, For Appellees.
WILLIAMS, J.

Appeal is taken by P. W. Currey and Mrs, James
D. Currey d/b/a Currey & Currey a/k/a Currey,
Shields & Currey (Appellant/Currey) from Order No.
137273 of the Corporation Commission (Commission)
directing Currey to replug two wells located in
Stephens County.

Appellant obtained oil and gas exploration
lease rights to restricted Choctaw lands located in
Stephens County, Oklahoma. The lease was obtained
throught the Bureau of Indian Affairs (BIA), which
then turned direct supervision to the United States
Geological Survey (USGS).

Evidence adduced before the Trial Examiner for
the Commission disclosed further that Currey
Grilled three wells, "Sophie Harrison No, 1,”
"Sophie Harrison No. B-l" and Sophie Harrison No.
B-2" (wells). All three wells were abandoned in the
mid-1950's. The wells were thereafter plugged, and

APPENDIX C

‘FX

appropriate reports made to USGS. Parties disagree
as to the degree of compliance with Commission

filing requirements, but both agree that Currey did
not fully comply with all Commission filing
requirements,

In 1976 Continental Oil Company, an adjacent
and contiguous lessee, discovered salt water
purging from one of Currey'’s wells. Continental
informed the Commission, which thereafter inspected
the site, found one well to be purging and issued a
complaint. The complaint was later amended to
encompass another well found to be purging.

Extensive testimony was taken by the trial

examiner regarding compliance with USGS plugging
requirements and conformity to Commission filing

requirements, The degree of compliance is not
deter minative.

It is not disputed that the wells were drilled
and operated by Currey over twenty years ago, and
that now two of these wells are spewing forth salt
water in excess of forty barrels a day onto the
ae

APPENDIX C

*%

Appellant contends generally that the
Corporation Commission has no jurisdiction to order
reworking or replugging of wells because the wells
are located oon restricted Indian lands under
exclusive jurisdiction of the Federal Government.

Appellant Currey further argues that even if
the Federal Government lacks exclusive
jurisdiction, still the Commission is without
statutory authority to compel replugging. We shall
deal with the second argument first.

Appellant relies heavily on Minshall_ v.
Corporation Commission, OkL, 485 P.2d 1058 (97)),
which has been further clarified by Ashland Oil,
Inc. v. Corporation Commission, __P.24 _.
Ashland supra clarifies Minshall and addresses
itself more specifically to such facts as are
invalved in the case at bar as fallows:

Ashland urges on appeal that Minshall v.
Corporation Commission, Ok. 485 P.2d 1058
(971) controls. In Minshall, the Corporation
Commission found that a well drilled, plugged,
and abandoned by Minshall was leaking gas

through and onto the ground. Apparently

APPENDIX C

relying upon 52 0.S. Supp. 1965, $3101 the
Commission ordered Minshall to replug the

well

On appeal, the Minshall cour: stated in
its syllabus: ‘Neither 17 0O.S. 1961, §53, nor
any of the provision of Senate Bill No, 396 of
the Thirtieth (1963) Oklahoma Legislature
(Chapter 191 O.S.L. 1965; 52 O.S. Suppe.
1965-1969, §§309 through 317) imposes upon any
- one an obligation to replug, or repair, an
abandoned well that has been plugged but is
Presently leaking salt water, oil, gas, or
other deleterious substances,'

~»-At page 1061 of Minshal, we
read: *** If the well has been plugged, the
question of whether or not it was properly
Plugged in accordance with the then-effective
rules and regulations is not invalved.'

Additionally, as the Commission correctly
points out, the Court in Minshall clearly
limited its consideration to the 7

“oo

L Amended by Laws, c.217, § 2.

APPENDIX C

Powey cS
a

+

=. ae

2.

application of 52 O.S. Supps. 1965-1969,
§§309-315 on the question of an operator's
responsibility and did not concern itself with
amendments to that Act enacted subsequent to
the order of the Commission or with any other
existing statuLes,

For purposes of the instant action it is
important td note that the Court did not
consider the impact of the 1970 Amendment to
§310 (Laws 1970, ch. 217, §2) which provides:
'*** (b) that the operator or any other person
responsible for plugging, replugging or
repairing the well in such manner as is
necessary to prevent further pollution cannot
be found, or is financially umable to pay the

cost of performing such work.* **'
Without question, this provision supplies
the ve im of the

Operator's liability for ‘plugging, _repilugaing

or which was found m at the

time of Minshall was decided. Consideration of

this provision together with numerous other
statutory declarations”

17 OS. 1971, §§5l, 53; 52 OS. 1971, §§ 86.2,

86.3, 271-279, 309-320; 52 O.S. Supp. 1975, §102.

APPENDIX C

= ahs

leaves absolutely no room for doubt that
the Corporation Commission has the

Statutory power to order an operator to
replug wells which were improperly
Plugged.*** (Emphasis added).

The record reveals the Commission's finding
that the wells were not properly plugged was
Supported by substanial evidence. ett Cole 4s 8
required to weigh the evidence on appeal, but to
review the evidence and affirm the order where the
finding and conclusions of the Commission are
sustained by law and substanial evidence. 0S.
1971 Const. Art. 9 §20; Superior Oil Co. v.
Oklahoma _ Corporation Commission, OkL, 242 P.2d 454
(1952). Assuming Oklahoma has jurisdiction over
wells drilled on restricted Indian land, _ the
Commission has the authority to order reworking or
replugging of these wells, and we so hald,

Next requiring attention is appellant's second
Major argument that because the wells were drilled
on restricted Indian lands Oklahoma is_ without

jurisdiction.

APPENDIX C

*%

Currey cites as _ authority OS. 1971
Const. Art. 1 sec. 3 as follows:

The people inhabiting the State do agree
and declare that they forever disclaim all
right and title in or to any wunappropriated
public lands lying within said limits owned or
held by any Indian, tribe, or nation; and that
until the title to any such public land shall
have been extinguished by the United States,
the same shall be and remain subject to the
jurisdiction, disposal, and control of the
United States.

and Public Law No. 83-280, 67 Stat 588 (1953),
which in pertinent part states:

Sec. 6. Notwithstanding the provisions of
any Enabling Act for the admission of State,

the consent of the United States is hereby
given to the people of any State to amend,
where necessary, thei: State constitution or
exisiting statutes, as the case may be, to
remove any legal impediment to the assumption
of civil and criminal jurisdiction § in

APPENDIX C

LS *

accordance with the provisions of the Act

**%*. (Emphasis added.

Appellant simply argues that the Constitutional
impediment under Sec. 3 supra has not been properly
removed by any Constitutional amendment. Appellant
proceeded on the assumption that if a right is held
by the Federal Government and later abrogated, then
there must be an affirmative corresponding state
enactment to fill the void. This assumption is
erroneous,

A federal district court held? in construing P.
L. 280 supra that "Congress, under the
constitutional power to regulate commerce with the
Indians, has preempted the field of regulation of
Indian land to the extent that such is necessary to
protect the Indians’ rights therein and to preserve
title thereto until the day when the Indian has
developed culturally to a point where he can deal
and manage his own affairs."

The Court goes on further to say that,
"Congress in recent years has recognized that
3. the Agua Caliente Band of Mission Indians’

Tribal Council et al, v. The City of Palm Springs,
etc., et al, (D.C., Cal), 347 F. Supp. 42, (1972).

APPENDIX C

ey

Indians in some states, .. . have reached a state

of acculturation where some federal controls might
properly be relaxed.*** Public Law 280, like other
Similar laws in recent years, is a withdrawal by
Congress from its preemption in this field. It has
done so in this case by express grant to the state
of authority, among other things, to exercise its
police power in such a way as to impose upon Indian
lands the same regulations imposed upon all lands
within the boundaries of the state. To the extent

that any further’ withdrawal by the Federal

Government occurs, the sovereignty cf the state
becomes enlarged to that extent.” (Emphasis added).

In 1947, prior to the drilling and plugging of
the wells in question, Public Law 80-336, found in
61 Stat. 731, Act of August 4, 1947 Ch. 459, was
passed by the Congress of the United States,
Section IL of said Act specifically withdraws
Congress from preemption in the field of oil and gas
conservation and thereby enlarged the sovereignty
of Oklahoma to that extent. I+ reads:

"1 AD restricted lands of the Five
Civilized Tribes are hereby made subject to all Of

APPENDIX C

**

and Gas Conservation laws of the State of Oklahoma;
. +. "(Emphasis added).

No affirmative statutory enactment was
necessary for Oklahoma to assume jurisdiction
abrogated by the federal government.

The United States Supreme Court in Organized
Village of Kake v. Egan, 369 U.S. 60 (1962), in an
Opinion by Mr. Justice Frankfurter, construed an
Alaskan conservation law, in light of a
Constitutional provision similar to Oklahoma's
Article 1, Sec.3. Indian communities brought an
action against the Governor of Alaska to enjoin
enforcement of the Alaska Anti-Fish Trap
Conservation Law. !

The principal dispute concerned,” ... the
meaning of sec. 4 of the Statehood Act, in which the
State disclaimed all right and title to and the
United States retained absolute jurisdiction and
control over, inter alia, ‘any lands or other

property ..., the right or title to which may be
held by any Indians ...' o is held by the United
States in trust for said natives." Organized

Village of Kate, supra, at p. 565.

APPENDIX C

7.

The Court states further at page 567 that:

Although the reference to fishing rights

is unique, the _ retention of ‘absalute’
federal jurisdiction over Indian lands
adopts the formula of . nine _ prior
Statehood acts. Indian lands in Arizona
remained ‘under the absolute jurisdiction
and control’ of the United States, 36
Stat. 557; Yet in Williams v. Lee, 358
U.S. 217, 220, 223, 79 S.Ct. 269, 270,
272, 3 L.Ed.2d 251, we declared that the
test of whether a state law could be
applied on Indian reservations there was
whether the application of that law would
interfere with reservation self
government. The identical language
appears in Montana's Admission Act, 25
Stat. 676, 677. Yet in Draper v. United
States, 164 U.S. 240, 17 S.Ct. 107, 41
L.Ed. 419, the Court held that a
non-Indian who was accused of murdering
another non-Indian on a Montana
Reservation could be prosecuted only in

the state courts, ***

Draper and Williams indicate that

‘absolute’ federal is not
invalably ve

(Organized Village Kake, supra.)
(Emphasis added).

Oklahoma's disclaimer of right and title to
Indian lands is a disclaimer of proprietary rather
than governmental interests, "The State may well
waive its claim to any right or title to the lands
and stil have all of its political or police power
with respect to the actions of the people on those

APPENDIX C

lands, as long as that does not affect the title to
the land." Kake, supra.

We hald that the power of the Corporation
Commission to regulate oil and gas conservation
measures under the laws of the state on restricted
Indian lands and order appellant to replug purging
wells, is not precluded by the federal -urisdiction.
Our Constitutional mandate contained in O.S. 1971
Art, 1 Sec, 3 stating that Indian lands “shall be
and remain subject to the jurisdiction, disposal,
and control of the United States", envisions
undiminished and not exclusive jurisdiction. We so
hald.

CONCUR: Hodges, Barnes, Simms, Dodlin and

Hargrave, JJ.

CONCUR BY REASON OF STARE DECISB:

Lavender, C.J. and Opala, J.

APPENDIX C

APPENDIX D

IN THE SUPREME COURT OF THE STATE OF OKLAHOMA

P. W. CURREY and
MRS. JAMES D. CURREY
G/b/a CURREY & CURREY

)
a/k/a CURREY, SHIELDS )
& CURREY )
)
Appellants,
Vv. ) NO.51,906
) FILED
CORPORATION ) JUNE 25, 1979
COMMISSION OF ) ROSS N. LILLARD, JR.
OKLAHOMA, et.aL, ) CLERK
) SUPREME COURT
Appellees. ) STATE OF OKLAHOMA

PETITION FOR REHEARING

Appellants, by and through counsel and
pursuant to Rule 28, Rules of the Supreme Court of
Oklahoma, respectfully petition the Court for
rehearing in the captioned cause. In support

thereof, Appellants state:

de The Opinion issued and filed June 12,
1979, involved matters of first impression in this
r jurisdiction and constitute, apart from the novel

APPENDIX D

nature thereof, matters on considerable concern to
the parties and the implementation and enforcement
of oil and gas conservation laws of the State.

2. Appellant believes and, in good faith and
with all due respect to the Court, states that the

Court erred in its interpretation of the provisions
cf statute in hdiding that the Corporation

Commission had present authority and jurisdiction
to compe! an oil operator, operating under federal
regulatory restrictions to reenter and = replig
abandoned wells once plugged.

3. Appellant believes the Court erred in its
determination that federal jurisdiction with
respect to restricted Indian lands has_ been
withdrawn in a manner so as to enlarge state
regulatory jurisdiction in and on such lands,

4. Appellant believes the Court erred in its
determination that the federal government has
extended to the State of Oklahoma, without
affirmative acts of the State, exclusive or
concurrent jurisdiction over Indian lands so as to
authorize the Corporation Commission to exercise

APPENDIX D

‘o)

= » *

regulatory control over oail and gas operations
thereon,
5. Appellants believe that the Court either

disregarded or misinterpreted what Appellant
regards as a fundamental principle of law supporting
Appellants’ position, to wit: that the existence of
pervasive federal regulation in the area of oil and
gas operations on Indian lands, including the
reworking and replugging thereon, has preempted the
imposition of . state - regulatory power
notwithstanding other jurisdictional issues, Such
federal regulation, even if operated in conjuction
with state jurisdiction, previals over’ state
regulations to the extent that a conflict exists,
Appellants respectfully believe that such an issue
is of such magnitude with respect to Appellants
rights and obligations that it would work an
injustice not to have the issue treated by this
Court,

WHEREFORE, Appellants pray the Court, upon
consideration, withdraw its Opinion issued and
filed June 12, 1979, and issue its Order vacating
the Order of the Corporation Commission, for costs

APPENDIX D

Pa and such other relief as to which Appellants may be
os
entitled,
Respectfully submitted,
s/Manville T. Buford
Manville T. Buford
P. 0. Box 60855
Oklahoma City, Oklahoma
73106
(405) 521-3921
a
, CERTIFICATE OF MAILING
On this 25th day of June, 1979, a true and
correct copy of the foregaing was mailed, postage
prepaid, to the fallowing:
Hon, Jan Eric Cartwright Nathan Sherman
Attorney General Assistant
Conservation
Capitol Building Attorney
> Oklahoma City, Oklahoma Jim Thorpe Building
73105 Oklahoma City,
Oklahoma 73105
John R. Robertson,
Attorney
1000 Fidelity Plaza
n Oklahoma City, Oklahoma
73102:
Manville T, Buford
ay
APPENDIX D

‘ APPENDIX E

> | IN SUPREME COURT OF THE STATE OF OKLAHOMA

P.W.Currey and Mrs.
James D. Currey d/b/a
Currey & Currey a/k/a

)
Currey, Shields & )
Currey,
r Appellants,
vs. ) No, 51,906
) FILED
Corporation Commission ) September 22,1980
of Oklahoma; Dan R. ) ROSS N. LILLARD, JR.
Dunnett, Director of ) CLERK
Conservation for ) SUPREME COURT
Corporation Commission ) STATE OF OKLAHOMA
of ) !
Oklahoma, )
)
Appellees. )

CORRECTION ORDER

Tt is hereby ordered that the typewritten
Opinion of this court filed and promulgated in the
above styled case on the 12th day of June 1979, be
ordered to be corrected and it is corrected as
hereinafter set forth, that is to say that in the
ninth line of page 6 of such typewritten opinion
next following the end of the partial quotation

APPENDIX E

Pi a i

which concludes with the words and grammatical
symbol, to-wit: State of Oklahoma; and next
preceding the grammatical symbols and words,
to-wit: --."(Emphasis added)., there be
inserted in lieu of tthe ellipsis symbol) the
following words and grammatical symbols, to-wit
Provided, That no order of the Corporation
Commission affecting restricted Indian land shall
be valid as to such land until submitted to and

approved by the Secretary of the Interior or his
duly authorized representative.
| Tt is further ordered that the vote of the

Justices shown at the conclusion of such typewritten
Opinion ( in addition to the name of the author of
the opinion occurring at the commencement of the
body thereof) be corrected as fallows:

BARNES, SIMMS, DOOLIN, and HARGRAVE, JJ.

concur.

LAVENDER, C.J., and OPALA, J. concur by reason

of stare decisis.

HODGES, J., dissents.

Tt is further ordered that such opinion with
such language added and with said ellipsis symbol

APPENDIX E

deleted (and as heretofore ordered corrected and so
corrected, including correction of the vote of the
: Justices), shall otherwise remain in full force and
effect,

DONE BY ORDER OF THE SUPREME COURT IN

CONFERENCE this 22nd day of September, 1980.

. s/Robert E. Lavender
Chief Justice

APPENDIX E

‘
| APPENDIX F
©
FILED
SEPTEMBER 22, 1980
ROSS N. LILLARD, JR.
? CLERK
. SUPREME COURT
STATE OF OKLAHOMA
IN THE SUPREME COURT OF THE STATE OF OKLAHOMA
Monday, September 22, 1980
THE CLERK IS DIRECTED TO ISSUE THE FOLLOWING ORDERS:
!
51,906 P.W. Currey And Mrs. James D. Currey d/b/a
Currey And Currey v. Corporation Com mission
of Oklahoma; Dan R. Dunnett, Director Of
Conservation For Corporation Commission of
Oklahoma,
Rehearing denied.
(NOTE: Other orders on cases not relevant have been
deleted)
me
S/Robert E, Lavender
CHIEF JUSTICE

APPENDIX F

*%

APPENDIX G

STATE OF OKLAHOMA ) MANDATE
). &.
SUPREME COURT )

P.W.CURREY AND MRS.
JAMES D.CURREY d/b/a
CURREY &CURREY a/k/a
CURREY, SHIELDS & CURREY,

vs. No. 51,906
CORPORATION COMMISSION
OF OKLA.; DAN R. DUNNETT, Corporation Com mission
DIRECTOR OF CONSERVATION of Oklahoma
FOR CORPORATION PD-82-36

ee ee ee ee ee eet eet ee eet ee ee ee

COMMISSION OF OKLA.,
THE SUPREME COURT OF OKLAHOMA:
To the Honorable Judge of the Corporation
Com mission of Oklahoma in said State of Oklahoma.
Whereas, the Supreme Court of the State
of Oklahoma, did on the 12th day of June, 1980
render an opinion in the above entitled cause,
appealed from the Corp. Comm. Court of Oklahoma

ORDER OF THE CORPORATION COMMISSION AFFIRMED

See Attached Correction Order of September 22,

~ 1980.

APPENDIX G

>

Now, Therefore, you are hereby com manded
to cause such Affirmance to show of record in

your court and to issue such process and take
such other and further action as may be in accord
with right and justice and said opinion.

Witness, the Honorable Robert F. Lavender,
Chief Justice of the Supreme Court of the State
of Oklahoma, at the City of Oklahoma City, this

25th day of September, 1980.
ROSS N. LILLARD JR., Clerk

By S/Pamela J. Barney Deputy.

APPENDIX G

a
~

"= APPENDIX "H"

APPLICABLE. PROVISIONS OF THE

UNITED STATES CONSTITUTION

Article I, Section 8, Clause 3:

The Congress Shall Have Power

keke
To regulate Com merce with foreign Nations, and
among the several States, and with the Indian .
Tribes;

zkxekerek

Article VI, Clause 2:
zkeaerk

This Constitution, and the Laws of the United
States which shall be made in Pursuance thereof;
and all Treaties made, or which shall be made,
under the Authority of the United States, shall
be the supreme Law of the Land; and the Judges
in every State shall. be bound thereby, any Thing

APPENDIX H

in the Constitution or Laws of any State to the
Contrary notwithstanding.

zxe«eek

APPENDIX H

APPENDIX I

APPLICABLE PROVISIONS OF FEDERAL STATUTES

OKLAHOMA ENABLING ACT,
Act of June 16, 1906, c. 3335, §1,
34 Stat. 267

x*kekk

That the inhabitants of all that part of the
area of the United States now constituting the
Territory of Oklahoma and the Indian Territory, as
at present described, may adopt a constitution and
become the State of Oklahoma, as_ hereinafter

provided: Provided, that nothing contained in the

said constitution shall be construed to limit or
impair the rights of persons or property pertaining,
to the Indians of said Territories (0 long as such
rights shall remain unextinguished) or to limit or

affect the authority of the Government of the United
States to make any law or regulation respecting such

APPENDIX I

Indians, their lands, property or other rights by

treaties agreement, law or otherwise, which it would
have been competent to make if this Act had never

been passed. (Pertinent portions underscored)

xkeek

Pub. L. 83-280, c.505, Act of August 15, 1953, §§6,
7, 67 Stat. 590:

xkkeetk

Sec. 6. Notwithstanding the provisions of
any Enabling Act for the admission of a State, the

consent of the United States is hereby given to the
people of any State to amend, where necessary, their
State constitution or existing statutes, as the case
may be, to remove any legal impediment to the
assumption of civil and criminal jurisdiction in
accordance with the provisions of this Act:
Provided, that the provisions of this Act shall not
become effective with respect to such assumption of
jurisdiction by any such State until the people
thereof have appropriately amended their State
constitution or statutes as the case may be.

(Emphasis original).

APPENDIX I

Sec. 7. The consent of the United States is
hereby given to any other State not have
jurisdiction with respect to criminal offenses or
civil causes of action, or with respect to both, as
provided for in this Act, to assume jurisdiction at
such time and in such manner as the people of the
State shall, by affirmative legislative action,
z obligate and hind the State to assumption thereof,

xxketk

Pub, L. 90-284, Act of April ll, 1968, Title IV,
§404, 82 Stat. 77, 79, 25 U.S. C. §1324.

reek

Sec. 404. Notwithstanding the provisions
of any enabling Act for the admission of a State,

the consent of the United States is hereby given to
the people of any State to amend, where necessary,
‘their State constitution or existing statutes, as
the case may be, to remove any legal impediment to
the assumption of civil or criminal jurisdiciton in
accordance with the provisions of this title. The
provisions of this titile shall not become effective

APPENDIX I

with respect to such assumption of jurisdiction by
any such State until the people thereof have
. appropriately amended their State constitution or
Statutes, as the case may be.

zxexetk

. Pub. L. 80-336, §0, Act of August 14, 1947, c. 459,
, 61 Stat. 731

zee

All restricted lands of the Five Civilized
Tribes are hereby made subject to all oil and gas
conservation laws of Oklahoma: Provided, that no
order of the Corporation Commission affecting
restricted Indian land. shall be valid as to such
land until submitted ole deereees «ty te
Secretary of the Interior or his duly authorized

representative. (Emphasis original)

zxxeek

APPENDIX I

v4

APPENDIX J

APPLICABLE FEDERAL REGULATIONS

A, 25 CFR Part 1 §§ _12-14-Applicahility

of Rules.

§L2 Applicability of regulations and
reserved authority of the Secretary of the Interior.

The regulations in Chapter I of Title 25 of the
Code of Federal Regulations are of general
application. Notwithstanding any limitations
contained in the regulations of this Chapter, the
Secretary retains the power to waive or make
exceptions to his regulations as found in Chapter I
of Title 25 of the code of Federal Regulations in
all cases where permitted by law and the Secretary
finds that such waiver or exception is in the best
interest of the Indians.

§L3 Scope.

Chapters I and II of this title contain the
bulk of the regulations of the Department of the

APPENDIX J

Interior of general application relating to Indian
affairs. Subtitle B, Chapter I, Title 43 of the
Code of Federal Regulations contains rules relating
to the relationship of Indians to public lands and
townsites, Subtitle A of Title 43 of the Code of
Federal Regulations has application to certain
aspects of Indian affairs and among other things,
contains procedural rules for appellate and other
administrative review and for practice before the
Department of the Interior, of which the Bureau of
Indian Affairs is a part. Indian health matters are
covered in 42 CFR Part 36. Title 30 of the Code of
Federal Regulations contains regulations on ail and
gas and other mining operations, which, under
certain circumstances, may be applicable to Indian
resources,
(25 FR 3124, Apr.l2, 1960, as amended at 40 FR
20625, May 12, 1975)
§1.4 State and local regulation of the use
of Indian property.
(a) Except as provided in paragraph (b) of
this section, none of the laws, ordinances, codes,
rules or other of State

APPENDIX J

the use or development of any real or personal
property, including _water__rights, __shall_be

to such leased from or held
Or_used under agreement with and belonging to any

Indian _or Indian tribe, band, or community that is
held in trust by the United States or is subject to
a__restriction against alienation imposed by the
United States.

(b) The Secretary of the Interior ao his

authorized representative may in specific cases or
in specific geographic areas adopt or make
applicable to Indian lands all or any part of such
laws, ordinances, codes, resdlutions, rules or
other regulations referred to in paragraph (a) of
this section as he shall determine to be in the best
interest of the Indian owner or owners in achieving
the highest and best use of such property. In
determining whether, or to what extent, such laws,
ordinances, codes, resdlutions, rules or other
regulations shall be adopted or made applicable, the
Secretary or his authorized representative may

APPENDIX J

*%

consult with the Indian owner or owners and may
consider the use of, and restrictions or limitations
on the use of, other property in the vicinity, and
such other factors as he shall deem appropriate.

(30 FR 7520, June 9, 1965) (Pertinent portions
underscored)

B. 25 CFR Part 183, §183.1 (1954 Ed.) —- "Leasing
of Restricted Sands of Members of Five Civilized
Tribes, Oklahoma, for Mining.”

§182.1 Definitions. The term "Area Director”
in this part refers to the officer in charge of the
Five Civilized Tribes Indian Agency. Whenever the
term "superintendent" is used in this part, the term
"Area Director" shall be substituted therefor.

The term “supervisor” in this part refers to a
representative of the Secretary of the Interior
under direction of the Director of the United States
Geological Survey Geological Survey, authorized and
empowered to supervise and direct operations under
on et a x the” etn lease, to furnish
ecientific and technical information and advice, to
ascertain and record the amount and value of
production, and to determine and record rentals and

royalties due and paid.

APPENDIX J

. -

(6 F.R. 9192, Sept. Il, 195])

C. 30 CFR, Part 221 §§221L3-22L5 inclusive 0949
Ed.) — “Oil and Gas Operating Regulations,” .

§22L3 Jurisdiction. Drilling and producing
Operations, handling and gaging of oil and the |
measurement of gas and other products,
determination of royalty liability, receipt and
delivery to those entitiled thereto of rayalty
accruing to the lessor and paid in amount and manner
Of peyiheck of Camegen ensued ‘unvier akboeiy. cf
the regulations in this part for defaults of
non-compliance with duties by the lessee and, in
general, all operations subject to the regulations
in this part are under the jurisdiction of the
Supervisor for any district as delineated by the
Director. As to producing leases of Indian lands,
the officer in charge, and as to lands within naval
petraleum reserves, the supervisor shall determine
rental liability, record rentals, royalties, and
other payments, and maintain lease accounts. Upon
request, the supervisor or the Director will advise
any person concerning the regulations in this part,
and will furnish technical information and advice

APPENDIX J

relative to oil and gas development and operation on

§22L4 General functions. The supervisor is
hereby authorized to Heinle compliance with lease
terms, with the regulations in this part, and all
other applicable regulations, and with applicable
law to the end that all operations shall conform to
the best practice and shall be conducted in such
Manner as to protect the deposits of the leased
lands and result in the maximum ultimate recovery of _
oil, gas, or other products with minimum waste,
Inasmuch as conditions in one area may vary widely
from conditions in another area, the regulations in
this part are general, and detailed procedure
hereunder in any particular area is subject to the
judgement and discretion of the supervisor, and to
any areal plan of development that may be adopted
pursuant to law. The supervisor may require
Satisfactory evidence that a lease is in good
Standing, that the lessee or operator is authorized
to conduct operations, and that an acceptable bond
has been filed before permitting operations on the
leased land.

APPENDIX J

§22L5 Supervision. of operations, The
Supervisor shall inspect and supervise operations
under the regulations in this part; prevent waste,
damage to formations or deposits containing oil, gas
or water or to coal measures or other mineral
deposits, and injury to life or property; and shall
issue instructions necessary, in his judgment, to

7%

accomplish these purposes,

APPENDIX J

APPENDIX K

APPLICABLE PROVISIONS OF OKLAHOMA CONSTITUTION

Okla, Constitution, Art. 1, §3

The people inhabiting the State do agree ani

declare _ that they forever disclaim all right and

title _in_or to any unappropriated public lands lying

within the boundaries thereof, and to all lands

lying within said limits owned or held by any
Indian, tribe, or nation; and that until the title
to any such land shall have been extinguished

by the United States, the same shall be and remain
Subject to the jurisdiction, disposal, and control
of the United States. Land belonging to citizens of
the United States residing without the limits of the
State shall never be taxed at a higher rate than the
land belonging to residents thereof. No taxes shall

be imposed by the State on lands or property

belonging to or which may hereafter be purchased by
the United States oor reserved for its use.

(Applicable provisions underscored).

APPENDIX K

*.%

APPENDIX "L"

APPLICABLE. PROVISIONS OF
Title 52, Oklahoma Statutes 1971 §243:

The Corporation Commission shall have authority to
make regulations for the prevention of waste of
natural gas, and for the protection of all natural
gas, fresh water, and oil bearing strata encountered
in any well drilled for oil or natural gas, and to
make such other rules and regulations as may be
necessary to enforce this act.

Title 52, Oklahoma Statutes 1971 §273
***the Corporation Commission shall have
authority to make rules and regulations for the
prevention of such waste, and for the protection of
all fresh water strata, and oil and gas bearing
strata, encountered in any well drilled for oil

Title 17, Oklahoma Statutes 1971, §§51-53:

(§5) The Corporation Commission is hereby
empowered and authorized to create and establish an
oil and gas department under the jurisdiction and
Supervision of the Corporation Commission, and is

APPENDIX L

hereby authorized to appoint with the approval and
consent of the Governor, a chief oil and gas
conservation agent who shall have charge of the oil
and gas department herein authorized."

(§52) All authority and duties now
conferred upon the Corporation Commission or other
departments of the State government in reference to
the conservation of ail and gas and the drilling and
Operating ail and gas wells and the construction and
regulation of oil and gas pipe lines, are hereby
conferred exclusively upon the Corporation
Com mission,

(S53) The Corporation Commission is hereby
authorized to prescribe rules and regulations for
the plugging of all abandoned cil and gas wells.
The same shall be plugged under the direction and
Supervision of the conservation agents of the
Corporation Commission as may be prescribed by the
Corporation Commission. All orders and regulations
in reference to plugging wells shall be made after
general hearing as now presecribed by law for the
promulgation of orders by the Corporation
Com mission.

APPENDIX L

Title 75, Oklahoma Statutes 1971 § 184 relating
to the decennial codification of statutes.

The Oklahoma Statutes 1971, compiled,
codified and annotated and indexed under the
provisions of House Bill No. 1085, Title 75, Chapter
6A, Oklahoma Session Laws 1971, Page 266, and
compiled, codified and annotated under the
Supervision of the Justices of the Supreme Court of
the State of Oklahoma and approved by them on
November 9, 1971, and promulgated and published by

John Rogers, Secretary of State, under proclamation
dated January 5, 1972; said Oklahoma Statutes being
further identified as four volumes,’ Volume 1
containing pages 1 to 1616, inclusive, Volume 2
containing pages 1617 to 3324, inclusive, Valume 3
containing pages 3325 to 5157, inclusive, and Valume
4 containing pages 5159 to 6604, inclusive, are
hereby adopted as the Code and Revised Statutes of
the State of Oklahoma t© be known as Oklahoma
Statutes 1971, and that all general laws of the
State of Oklahoma not therein contained are hereby
repealed; Provided, however, that this act shall not
be construed to repeal or in any way affect or
modify any special or local laws or any law making

APPENDIX L

*.

an appropriation or any law relating to any special
dischice, Cc Validating’ ect oc any law. affecting ‘any
bond issue or by which any bond issue may have been
authorized, not to affect any pending preceedings or
any existing rights or remedies, nor the running of
the Statutes of Limitations in force at the time of
the approval of this act; but all such local and
special laws, laws making appropriations, laws
relating to special elections, validating acts, and
laws relating to or authorizing bond issues, pending
yiccaslingk: “Gal diately tips end coewed, ont
Statutes of Limitations running and in force at the
time of the approval of this act shall continue and
exist in all respects as if this act had not been
passed. Provided, further, that this act shall not
be construed to alter, change, impair, disparage,
vest or divest, or_in any way affect any right or

interest of the United States, the State of
Oklahoma, any of the Five Civilized Tribes, or other
Tribes or Nations of Indians within the State of

Oklahoma.

(Laws 1972, c.. 19, § ll, eff. | Feb, 7, 1972.)

(Pertinent portions underscored).

APPENDIX L

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385007_0995%3A1. Public record. Not legal advice.
