LADRA v. NEW DOMINION, LLC
2015 OK 53
| Okla. | 2015Background
- Plaintiff Sandra Ladra was injured when chimney/rock facing fell during a 5.0 earthquake near her Prague, Oklahoma home on Nov. 5, 2011.
- Ladra sued New Dominion, Spess Oil Co., and others in Lincoln County district court, alleging their wastewater injection wells proximately caused the earthquake and her injuries (private tort damages > $75,000).
- Defendants moved to dismiss for lack of jurisdiction, arguing the Oklahoma Corporation Commission (OCC) has exclusive jurisdiction over oil and gas well matters.
- The district court granted dismissal on that ground; Ladra appealed to the Oklahoma Supreme Court.
- The Supreme Court considered whether the OCC’s exclusive regulatory jurisdiction precludes district court adjudication of private tort claims arising from regulated oil-and-gas operations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether OCC’s exclusive jurisdiction bars district court tort claims arising from injection-well operations | Ladra: Private tort suit for damages belongs in district court; she seeks damages, not review of OCC orders | Defendants: OCC’s exclusive jurisdiction over exploration/operation of injection wells precludes district-court adjudication | Held: District court has jurisdiction over private tort claims; OCC jurisdiction is limited to public-rights/regulatory matters |
| Whether adjudication of private tort claims would impermissibly collaterally attack OCC orders | Ladra: Her claim does not seek to reverse or modify any OCC order; it seeks damages for injuries | Defendants: Allowing suit would constitute oversight or collateral attack on OCC regulation | Held: District courts may adjudicate private damage suits so long as the action does not seek to reverse/modify OCC orders (collateral attack prohibited) |
Key Cases Cited
- Kingwood Oil Co. v. Hall-Jones Oil Corp., 396 P.2d 510 (Okla. 1964) (district courts properly adjudicate private torts arising from regulated oil-and-gas operations)
- Rogers v. Quiktrip Corp., 230 P.3d 853 (Okla. 2010) (OCC lacks authority to decide private disputes where public interest absent)
- Grayhorse Energy, LLC v. Crawley Petroleum Corp., 245 P.3d 1249 (Okla. Civ. App. 2010) (OCC orders do not immunize operators from district-court lawsuits)
- Marathon Oil Co. v. Oklahoma Corp. Comm'n, 910 P.2d 966 (Okla. 1994) (distinguishing OCC public-rights jurisdiction)
- Pelican Production Corp. v. Wishbone Oil & Gas, Inc., 746 P.2d 209 (Okla. Civ. App. 1987) (district court may only inquire into whether OCC had jurisdiction to issue an order)
- NBI Services, Inc. v. Ward, 132 P.3d 619 (Okla. Civ. App. 2006) (questions of negligence/absolute liability regarding well operations are for district court)