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Anadarko Petroleum Corp. v. State Oil & Gas Board of Mississippi
99 So. 3d 109
Miss.
2012
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Background

  • In 1980, the Board force-integrated all interests in a 640-acre Rhoda Lee Brown No. 1 Well unit in Hancock County.
  • Kelly Oil obtained the leases and became operator by 1992.
  • In 2005–2006, Anadarko acquired about one-third of the Rhoda Brown Well drilling rights after Kelly Oil let some leases expire.
  • Kelly Oil charged Anadarko its share of more than $1.5 million in well costs; Anadarko disputed over $900,000 and petitioned the Board under Mississippi Code § 53-3-7(4) to determine propriety.
  • The Board proposed an order in March 2010 that all costs were actual, reasonable, and necessary but lacked findings of fact and reasoning; Anadarko requested proper findings.
  • After revisions, the Board issued a final order on April 12, 2010; the chancery court affirmed, and Anadarko appealed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Are the Board's findings sufficient for review? Anadarko: lack of detailed findings; insufficient basis for review. Kelly Oil/Board: record supports the costs despite fewer explicit findings. Vacate and remand for proper factual findings.

Key Cases Cited

  • Pursue Energy Corp. v. State Oil & Gas Bd., 524 So.2d 569 (Miss. 1988) (operators may recover only actual, reasonable, necessary costs)
  • McGowan v. Miss. State Oil & Gas Bd., 604 So.2d 312 (Miss. 1992) (requirement of sufficient reasoning for meaningful review)
  • Sierra Club, Inc. v. Miss. Dep’t of Envtl. Quality, 819 So.2d 515 (Miss. 2002) (lack of reasoned decision undermines review)
  • Limbert v. Miss. Univ. for Women Alumnae Ass’n, Inc., 998 So.2d 993 (Miss. 2008) (separation of powers restricts court from substituting judgment)
  • Davis v. Pub. Employees’ Ret. Sys., 750 So.2d 1225 (Miss. 1999) (separation of powers limits judicial review of agency action)
Read the full case

Case Details

Case Name: Anadarko Petroleum Corp. v. State Oil & Gas Board of Mississippi
Court Name: Mississippi Supreme Court
Date Published: Aug 2, 2012
Citation: 99 So. 3d 109
Docket Number: No. 2011-SA-00773-SCT
Court Abbreviation: Miss.