FPL Farming Ltd. v. Environmental Processing Systems, L.C.
351 S.W.3d 306
| Tex. | 2011Background
- EPS obtained TCEQ permits in 1996 to drill and operate two deep wastewater injection wells adjacent to FPL lands.
- Wells inject non-hazardous wastewater about a mile beneath the surface, below drinking water, with potential subsurface plume migration.
- FPL, owner of surface and subsurface rights, sued EPS for trespass, negligence, and unjust enrichment after alleging subsurface migration into FPL's land.
- Trial court and appellate court held EPS immune from tort liability due to permits, prompting Supreme Court review.
- Texas Water Code Chapter 27 (Injection Well Act) governs permits; §27.104 states permit does not relieve civil liability; agency rules also state permits do not authorize injuries.
- The Court held that a permit does not immunize a permittee from private tort liability and remanded for further trespass-related issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does a TCEQ permit immunize the permittee from trespass liability? | FPL contends permit immunity shields EPS from trespass damages. | EPS argues permit bars only regulatory action, not tort liability. | Permit does not immunize from trespass liability. |
| Does §27.104 negate private tort claims despite agency permits? | §27.104 supports no civil liability despite permit. | §27.104 interpreted contrary to permit liability rule. | Statutory text does not deny trespass claim; permits do not negate liability. |
| Is 30 TEX. ADMIN. CODE § 305.122(c) compatible with permitting and liability? | Code provision limits liability alignment with permits. | Code supports permit-based action without immunizing liability. | Code language confirms no authorization of injury by permit; liability remains. |
Key Cases Cited
- Magnolia Petroleum Co. v. R.R. Comm'n, 170 S.W.2d 189 (Tex. 1943) (permit is a negative pronouncement; does not immunize private tort liability)
- R.R. Comm'n of Tex. v. Manziel, 361 S.W.2d 560 (Tex. 1962) (agency authorization for subsurface operations not dispositive of trespass liability)
- Coastal Oil & Gas Corp. v. Garza Energy Trust, 268 S.W.3d 1 (Tex. 2008) (facts distinguish mineral ownership; limitations on immunity from trespass)
- Berkley v. R.R. Comm'n of Tex., 282 S.W.3d 240 (Tex.App.-Amarillo 2009) (permit does not immunize from consequences of actions affecting third parties)