DocketNumber: 20090796
Judges: Durrant, Lee, Durham, Parrish, Nehring, Durrant'S
Filed Date: 8/19/2011
Status: Precedential
Modified Date: 10/19/2024
AMENDED OPINION
opinion of the Court:
INTRODUCTION
1 Appellants, Marion Energy, Inc. (Marion) and the State of Utah School and Institutional Trust Lands Administration (the Trust), lease and own oil and gas deposits that lie underneath property owned by the KFJ Ranch Partnership (KFJ). In order to build a road to access these deposits, Marion and the Trust seek to condemn a portion of KFJ's land. To do so, they rely upon a statute that permits the exercise of eminent domain for the construction of "roads ... to facilitate ... the working of ... mineral deposits."
12 We conclude that the answer to this question is not apparent from the statute's plain language, as is evident from the fact that the phrase "mineral deposits" is defined in some sections of the Utah Code to include oil and gas, but defined in other sections to exclude oil and gas. Because we find that this phrase is susceptible to either of these reasonable interpretations, we conclude that the statute upon which Marion and the Trust rely is ambiguous. When faced with such an ambiguity in a statute purporting to grant the power of eminent domain, we strictly
BACKGROUND
13 KFJ is the owner of the KFJ Ranch, which consists of approximately 9,400 acres of land located near Price, Utah. Approximately 6,600 acres of this land are owned by KFJ in fee simple The remaining 2,800 acres are leased from the state and federal governments.
4 Marion is the lessee of two oil and gas deposits located in Price, Utah. Marion leased these deposits from the Trust. Both of the leases lie beneath surface land owned or leased by KFJ.
€ 5 In an effort to exploit its leased oil and gas deposits, Marion wishes to construct two wells on surface lands owned by KFJ. Due to the topography of the land and the proposed well locations, Marion contends that it is "impossible ... to access [its] leases without crossing surface lands owned and/or controlled by" KFJ. To resolve this dilemma, Marion attempted to negotiate an easement with KFJ that would allow Marion to cross KFJ's land to access its oil and gas deposits. KFJ refused these requests.
16 Following KFJ's refusal, Marion and the Trust brought a condemnation action in the district court seeking to condemn nearly fifteen acres of KFJ's property to construct a four-mile-long road giving Marion access to the proposed well locations. An appraiser hired by Marion estimated that the total value of the land sought to be condemned was $28,000.
T 7 In their condemnation action before the district court, Marion and the Trust attempted to invoke what they refer to as the "express rights of eminent domain granted by the legislature and codified as Utah Code [section] 78B-6-501(6)(a)." Section 501(6)(a) permits the exercise of eminent domain for the construction of "roads, railroads, tramways, tunnels, ditches, flumes, pipes, and dumping places to facilitate the milling, smelting, or other reduction of ores, or the working of mines, quarries, coal mines, or mineral deposits including minerals in solution.
18 After initiation of the condemnation action, KFJ moved to dismiss based on its contention that section 501(6)(a) does not grant Marion and the Trust the power of eminent domain to condemn land to build a road to access leased oil and gas deposits. In response to KFJ's motion, the district court conducted a hearing to determine whether section 501(6)(a) "provide[s] authority to take lands for roads to access oil and gas deposits."
T9 To resolve this question, the district court began by noting that it was "required to consider the plain language of the statute, to consider that each word has been used advisedly, and to presume any omissions are purposeful." Looking to the statute's text, the court then observed that section 501(6)(a) "lists the substances for which land can be condemned for roads, and [that] oil and gas are not included." Additionally, the court determined that the fact that "oil and gas are specifically mentioned in Utah Code [section] 78B-6-501(6)(d) ... shows [that] the legislature purposefully intended to exclude oil and gas from [section] 78B-6-501(6)(a)." Based on this analysis, the district court granted KFJ's motion to dismiss, concluding that section 501(6)(a) "does not provide authority to take land for roads to access oil and gas deposits."
T 10 On appeal, Marion and the Trust contend that the district court erred in concluding that section 501(6)(a) does not provide
T 11 In contrast, KFJ argues that the plain language of section 501(6)(a) does not authorize Marion to condemn land to build a road to access its leased oil and gas deposits. Alternatively, KFJ contends that section 501(6)(a) is ambiguous and that we must strictly construe this ambiguity against Marion-the party seeking to exercise the power of eminent domain. We have jurisdiction to hear this appeal pursuant to section 78A-3-102(8)(j) of the Utah Code.
STANDARD OF REVIEW
(12 "We review questions of statutory interpretation for correctness, affording no deference to the district court's legal conclusions."
ANALYSIS
I. SECTION 501(6)(@) DOES NOT AUTHORIZE MARION TO CONDEMN LAND TO BUILD A ROAD TO ACCESS ITS OIL AND GAS DEPOSITS
T 13 In relevant part, section 501(6)(a) of the Utah Code provides that the right of eminent domain may be exercised for the building of "roads ... to ... facilitate the ... working of ... mineral deposits."
114 It is well settled that when faced with a question of statutory interpretation, "our primary goal is to evince the true intent and purpose of the Legislature."
115 When the "'meaning of [a] statute can be discerned from its language, no other interpretive tools are needed.
¶16 For instance, because the exercise of eminent domain results in the derogation of a property owner's right to use and enjoy his land, we have stated that any ambiguity in statutory language purporting to grant the power of eminent domain must be strictly construed in favor of the property owner and against the condemning party.
T 17 Given this rule of strict construction, Marion is authorized to condemn KFJ's land to build a road to access its leased oil and gas deposits only if such authority is expressly granted or clearly implied by the plain language of section 501(6)(a).
A. The Language of Section 501(6)(a) Is Ambiguous and Does Not Clearly or Implicitly Provide Authority to Take Land to Build a Road to Reach Oil and Gas Deposits
118 When interpreting statutory language, we generally seek to "read each term according to its ordinary and accepted meaning."
{19 In Carrier, this court was asked to determine whether a zoning ordinance's use of the phrase "mineral extraction" encompassed gravel pit operations.
{20 Like the term "mineral," the phrase "mineral deposit" may be "used in many senses" and is "susceptible to limitation or expansion according to the intention with which it is used." Thus, to determine what the phrase "mineral deposits" actually incorporates in any given situation, we must look to the context in which the phrase is used. Unfortunately, the context in which the phrase "mineral deposits" is used in section 501 does not indicate whether the Legislature intended the phrase to encompass oil and gas deposits. Indeed, looking at the text of section 501(6)(a) and its accompanying subsections, we are persuaded that reasonable arguments can be made in favor of defining "mineral deposits" so broadly as to include oil and gas, or so narrowly as to exclude oil and gas.
4 21 In examining the text of section 501 as "a whole,"
T23 In reaching this conclusion, we also find relevant that other sections of the Utah Code specifically define the phrase "mineral deposits" as both including or exeluding oil and gas. For instance, section 58C-1-103(4) of the Utah Code-the School and Institutional Trust Lands Management Act (SIT-LA)-defines the term "mineral" as including "oil, gas, and hydrocarbons."
[ 24 In the instant case, both parties have cited to these sections of the code and have argued that these definitions support their respective interpretations of "mineral deposits." But rather than support the proposition that the phrase "mineral deposits" generally encompasses or excludes oil and gas, these statutory definitions merely reinforce the conclusion that whether oil and gas are appropriately deemed mineral deposits depends on the context in which the phrase is used.
€ 25 In sum, the phrase "mineral deposits" does not have a single fixed meaning. Instead, the phrase may be used in a variety of ways and must be interpreted based on the context in which it is used. Because the context of section 501(6)(a) does not indicate whether the Legislature intended the phrase "mineral deposits" to include oil and gas, and because the Legislature has defined the phrase in other sections of the code as both including or excluding oil and gas, we conclude that the phrase is susceptible to two reasonable interpretations. Based on these competing reasonable interpretations, we hold that section 501(6)(a)'s use of the phrase "mineral deposits" is ambiguous.
B. Narrowly Interpreting Section 501(6)(a) Would Not Create an Absurd Result
126 In opposition to the conclusion that section 501(6)(a) is ambiguous, Marion and the Trust contend that narrowly interpreting the phrase "mineral deposits" would create an absurd result. We disagree. Generally, when interpreting statutes we seek to avoid interpretations "which render some part of a provision nonsensical or absurd."
128 While a narrow interpretation of the phrase "mineral deposits" may deprive Marion of one means of accessing its leased oil and gas deposits, Marion still has other available means of accessing and exploiting them. For instance, Part 4 of SITLA-which governs the minerals leased by Marion-provides that "[al mineral lessee ... has the right at all times to enter upon the leasehold for prospecting, exploring, developing, and producing minerals and shall have reasonable use of the surface."
29 The same section also provides specific means of gaining access to privately owned property such as "securing the written consent or waiver of the surface owner or lessee"
130 Because Marion has alternative avenues of access to its leased mineral rights, we do not believe that it would be absurd to interpret section 501(6)(a)'s use of the phrase "mineral deposits" as not encompassing oil and gas. In further support of this conclusion, we also note that we do not think that such a narrow interpretation would create a "result ... so absurd that the legislative body which authored the legislation could not have intended it."
C. Because We Find That Section 501(6)(a) Is Ambiguous, We Strictly Construe Its Language in Favor of KFJ
131 Given our conclusion that seetion 501(6)(a) is susceptible to two reasonable interpretations, and that neither of these interpretations would create an absurd result, we must turn to other rules of statutory construction. As discussed above, because the exercise of eminent domain results in the derogation of a property owner's right to use and enjoy his land, we strictly construe any ambiguity in statutory language purporting to grant the power of eminent domain in favor of the property owner and against the condemning party.
32 In reaching this conclusion, we recognize that Marion and the Trust have advanced public policy arguments in support of their interpretation of section 501(6)(a). But
CONCLUSION
133 In interpreting statutory language, our primary goal is to give effect to the legislature's intent. To accomplish this goal, we begin by looking to the statute's plain language. When the language of a statute purporting to grant the power of eminent domain is ambiguous, we strictly construe all ambiguities against the condemning party.
4 34 In the instant case, we conclude that section 501(6)(a)'s use of the phrase "mineral deposits" is ambiguous because it may be understood to have at least two reasonable meanings: either including or excluding oil and gas. Given this ambiguity, we must construe the statute in favor of KFJ and against Marion. Based on this rule of strict construction, we hold that section 78B-6-501(6)(a) of the Utah Code does not provide Marion with authority to condemn land to build a road to access its leased oil and gas deposits. We therefore affirm the district court's dismissal of Marion and the Trust's condemnation action.
The court has rewritten paragraphs 28-30.
. Cope Ann. § 78B-6-501(6)(a) (2008). Since this appeal was filed the language of section 501(6)(a) has been amended. Except where otherwise indicated, we refer to the 2008 version of the statute throughout this opinion.
. See Bertagnoli v. Baker, 117 Utah 348, 215 P.2d 626, 627-28 (1950) ('The right of eminent domain, being in derogation of the rights of individual ownership in property, has been strictly construed by the courts so that no person will be wrongfully deprived of the use and enjoyment of his property."); Great Salt Lake Auth. v. Island Ranching Co., 18 Utah 2d 45, 414 P.2d 963, 969 (1966) (Callister, J., dissenting) ("When the right to exercise the power [of eminent domain] can only be made out of argument and inference, it does not exist.").
. Utah Cope Ann. § 78B-6-501(6)(a) (2008).
. State v. Gallegos, 2007 UT 81, ¶ 8, 171 P.3d 426.
. See Utah Cope Ann. § 78B-6-501(6)(a) (2008).
. Salt Lake Cnty. v. Holliday Water Co., 2010 UT 45, ¶ 27, 234 P.3d 1105 (internal quotation marks omitted).
. State v. Miller, 2008 UT 61, ¶ 18, 193 P.3d 92 (quoting State ex rel. Z.C., 2007 UT 54, ¶ 6, 165 P.3d 1206).
. Hutter v. Dig-It, Inc., 2009 UT 69, ¶ 32, 219 P.3d 918.
. Carrier v. Salt Lake Cnty., 2004 UT 98, ¶ 30, 104 P.3d 1208 (internal quotation marks omitted).
. State v. Harker, 2010 UT 56, ¶ 12, 240 P.3d 780 (quoting LPI Servs. v. McGee, 2009 UT 41, ¶ 11, 215 P.3d 135); see also Nelson v. Salt Lake Cnty., 905 P.2d 872, 875 (Utah 1995) ("When language is clear and unambiguous, it must be held to mean what it expresses, and no room is left for construction." (internal quotation marks omitted)).
. Taylor ex rel. Taylor v. Ogden City Sch. Dist., 927 P.2d 159, 167 (Utah 1996) (Durham, J., dissenting).
. See, e.g., Cnty. Bd. of Equalization v. Utah State Tax Comm'n, 944 P.2d 370, 373-74 (Utah 1997) (noting that we construe ambiguities in tax imposition statutes "liberally in favor of the taxpayer" (internal quotation marks omitted)); Bertagnoli v. Baker, 117 Utah 348, 215 P.2d 626, 627-28 (1950) (holding that all ambiguities in statutes granting the power of eminent domain must be construed strictly against the condemning party).
. See, e.g., Bertagnoli, 215 P.2d at 628 (''The right of eminent domain, being in derogation of the rights of individual ownership in property, has been strictly construed by the courts so that no person will be wrongfully deprived of the use and enjoyment of his property."); see also Salt Lake Cnty. v. Murray City Redevelopment, 598 P.2d 1339, 1345 (Utah 1979) (" 'Statutes conferring the power of condemnation under the right of eminent domain are strictly construed." (quoting Tremonton v. Johnston, 49 Utah 307, 164 P. 190, 191 (1917))); Great Salt Lake Auth. v. Island Ranching Co., 18 Utah 2d 276, 421 P.2d 504, 505-06 (1966) (applying the rule of strict construction articulated in Bertagnoli ).
. 215 P.2d at 627 (emphasis added). The dissenting opinion contends that the rule articulated in Bertagnoli is not "well-settled" because it conflicts with our statement in Monetaire Mining Co. v. Columbus Rexall Consolidated Mines Co. that 'it is generally agreed that where the right of eminent domain is granted for a particular purpose, then the statute must be given a liberal construction in furtherance of such purpose." 53 Utah 413, 174 P. 172, 175 (1918). But unlike the rule of strict construction articulated in Ber-tagnoli, the rule announced in Monetaire Mining Co. does not apply to ambiguous eminent domain statutes. See id. Instead, the rule announced in Monetaire Mining Co.-under which we are to liberally construe eminent domain statutes-applies only when a statute "clearly] and explicit{ly] ... grants the right of eminent domain for [a particular] purpose." Id. (emphases added). Accordingly, because these rules are designed to resolve entirely distinct issues, we disagree that they conflict with one another.
. See, e.g., Norman J. Singer & J.D. Shambie Singer, Suturrtanp Statutes anp Staturory ConsTRUcTION § 64:6 (7th ed. 2010) ("Grants of the power of eminent domain must be found expressly or by necessary implication in legislation, and the policy has become well established that such grants are strictly interpreted against the condemning party and in favor of the owners of property sought to be condemned."); 26 Am. Jur. 2p Eminent Domain § 24 (2010) ("A grant of the power of eminent domain is to be strictly construed against the condemning party and in favor of the property owner, and the prescribed method of taking must be strictly pursued."); 29A C.J.S. Eminent Domain: Who May Exercise Power § 24 (2010) ("The right to exercise the power of eminent domain must be conferred by statute, either in express words or by necessary implication. Because such power is in derogation of common right, the acts conferring it generally should not be enlarged or extended by inference or implication. Instead, they are to be strictly construed in favor of the landowner so that no person will be deprived of the use and enjoyment of his or her property except by a valid exercise of the power.").
. See Bertagnoli, 215 P.2d at 627-28; see also Island Ranching Co., 414 P.2d at 969 (Callister, J., dissenting) ("When the right to exercise the power [of eminent domain] can only be made out of argument and inference, it does not exist."). The dissenting opinion contends that the canon articulated in Bertagnoli should not be applied in cases "where the interests of two private property holders are at issue." Infra 151. We disagree. Although Marion and the Trust have property interests at issue in this case, only KFJ faces the possibility of being permanently deprived of its property through the unauthorized use of the power of eminent domain. The protection of private property owners against such unauthorized condemnations is the very purpose for which the rule of strict construction an
. Harker, 2010 UT 56, ¶ 12, 240 P.3d 780 (internal quotation marks omitted).
. 2004 UT 98, ¶ 1, 104 P.3d 1208.
. Id. ¶ 32.
. Id.
. Id. (quoting Bumpus v. United States, 325 F.2d 264, 266 (10th Cir.1963)).
. Id. (quoting Bumpus, 325 F.2d at 266).
. Id. ¶ 41.
. Harker, 2010 UT 56, ¶ 12, 240 P.3d 780 (internal quotation marks omitted).
. Utah Cope Ann. § 78B-6-501(6)(d) (2008).
. Id. § 53C-1-103(4) (2009).
. Id. § 40-8-4(6) (2010) (emphasis added).
. See Carrier, 2004 UT 98, ¶ 34, 104 P.3d 1208.
. O'Dea v. Olea, 2009 UT 46, ¶ 32, 217 P.3d 704 (internal quotation marks omitted).
. Encon Utah, LLC v. Fluor Ames Kraemer, LLC, 2009 UT 7, ¶ 73, 210 P.3d 263 (quoting State ex rel. Z.C., 2007 UT 54, ¶ 15 n. 5, 165 P.3d 1206).
. State ex rel. Z.C., 2007 UT 54, ¶ 13, 165 P.3d 1206.
. Utah Cope Ann. § 53C-2-409(2)(a) (2009) (emphases added).
. Id. § 409(3)(a).
. Id. § 409(3)(c).
. See State ex rel. Z.C., 2007 UT 54, ¶ 13, 165 P.3d 1206.
. See, e.g., Bertagnoli, 215 P.2d at 628 ("The right of eminent domain, being in derogation of the rights of individual ownership in property, has been strictly construed by the courts so that no person will be wrongfully deprived of the use and enjoyment of his property.").
. See, e.g., State v. Ireland, 2006 UT 82, ¶ 21, 150 P.3d 532 ("[SJhould any part of our interpretation bring[] about a result contrary to the intention of the Legislature, it is a matter for the Legislature to remedy." (second alteration in original) (internal quotation marks omitted)); Kincheloe v. Coca-Cola Bottling Co. of Ogden, 656 P.2d 440, 442 (Utah 1982) ("[AJuy recommended change to [statutory] law should be addressed to the legislature and not the court.").