Wyoming Resources Corporation v. T-Chair Land Company

[1] Appellant Wyoming Resources Corporation (WRC) and Appellee T-Chair Land
Company (T-Chair) entered into contractual agreements providing WRC access to oil and
coalbed methane production wells by roads on T-Chair's ranch property. A dispute arose
after T-Chair contended that improperly controlled water produced from WRC's coalbed
methane production wells was damaging the surface of its ranch property. When WRC
began to operate more wells without resolving this dispute, T-Chair blocked WRC's access
to the roads on its property, denying WRC access to its wells. Wyoming statute permits a gas
production company to obtain an access easement through a condemnation action when
necessary. After determining that WRC had access by contract, the district court decided
that the easement was not necessary and dismissed the condemnation action. The primary
issue in this appeal is the meaning of the statutory language, "the property sought to be
acquired is necessary for the project," found in Wyo. Stat. Ann. § 1-26-504(a)(iii)
(LexisNexis 2001). Addressing the limited question whether contractual rights preclude
condemnation proceedings, we hold that the district court's conclusion on this question is in
error as a matter of law and reverse its determination.

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Click the case caption above for the full text of the Court's opinion.

The issue of public use and necessity
has many components, and because the trial court did not determine those issues or others as
required under W.R.C.P. 71.1, we reverse and remand for further proceedings.

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