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Author: Admin | 2025-04-28
To the surface injury entitling the lessorto damages); Speedman Oil Co v. Duval Coty Ranch Co, 504 SW2d 923(Tex Civ App 1973) (sustained a temporary injunction restraining thepumping, flowing, or producing of oil and gas due to history of spillsof oil and salt water); Winslow v. Duval Coty Ranch Co, 519 SW2d 217(Tex Civ App 1975 ref'd n.r.e.) (finding that the plaintiff may beentitled to an injunction against pollution of the surface estate). Anoil and gas lessee was found liable for surface damage when itconstructed a road to a well site from the east rather than from thenorth, which would have minimized surface damage and not interfered withthe irrigation of the land. Flying Diamond Corp v. Rust, 551 P2d 509 (Utah 1976). 4. Statutory Prohibition of "Waste" §20.13The Supervisor of Wells Act, MCL 324.61501 et seq.,Michigan's oil and gas regulatory statute, may limit a lessee's rightto use the surface. The Act, codified as Part 615 of NREPA, specificallyprohibits waste in the exploration and development of minerals. Part615 defines "waste" as follows: (q) "Waste" in addition to its ordinary meaning includes all of the following: (i) "Underground waste," as those words are generally understood in the oil business, and including all of the following: . . . (B) Unreasonable damage to underground fresh or mineral waters, natural brines or other mineral deposits from operations for the discovery, development, and production and handling of oil or gas. (ii) "Surface waste", as those words are generally understood in the oil business, and including all the following: (A) The unnecessary or excessive or surface loss or destruction without beneficial use, however caused, of gas, oil or other product, but including the loss or destruction, without beneficial use, resulting from evaporation, seepage, leakage, or fire, especially a loss or destruction incident to or resulting from the manner of spacing, equipping, operating, or producing a well or wells, or incident to or resulting from inefficient storage or handling of oil. (B) The unnecessary damage to or destruction of the surface; soils; animal, fish, or aquatic life; property or other environmental values from or by oil and gas operations. (C) The unnecessary endangerment of public health, safety, or welfare from or by oil and gas operations. . . . MCL 324.61501(q) (emphasis added).The Michigan Supreme Court has held that a lessee may be denied apermit for the development of minerals that would result in serious orunnecessary damage
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