Summary: Ladra suffered physical injuries in her home from a partial building collapse caused by a 5.0 magnitude earthquake. She claims to have suffered damages in excess of $75,000. Ladra sued local oil and gas operators in Lincoln County district court, including 25 "John Doe" defendants claiming that their activities had caused the earthquake. Defendant's moved to dismiss the district court matter, claiming that the Oklahoma Corporation Commission had exclusive jurisdiction over cases involving oil and gas operations. The trial court granted the motion. Ladra appealed the dismissal.
Legal Issue: The sole question before the Court was whether the Oklahoma Corporation Commission had exclusive jurisdiction over cases involving oil and gas operations. The Court affirmed that the Corporation Commission did have exclusive jurisdiction over "the exploration, drilling, development, production and operation of wells used in connection with the recovery, injection or disposal of mineral brines." 17 O.S. §52. However, the Corporation Commission is limited solely to the resolution of public rights, and is without authority (or means) to settle disputes between two or more private individuals where a public issue is not involved. Thus, the Corporation Commission can hear evidence and issue orders regarding the spacing and placement of wells, but it cannot hear cases where damages are sought by one party against another.
Discussion: While it was touted as 'allowing individuals to sue oil and gas producers for earthquake damages' when announced, this case really does not speak to that issue. Rather, the Court has announced that the issue of whether damages may be sought should be conducted through the state district courts, and not the Oklahoma Corporation Commission.
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