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FOR PUBLICATION

FILED
Aug 06 2010, 9:35 am
of the supreme court, court of appeals and tax court

CLERK

ATTORNEY FOR APPELLANT: MARK SMALL Indianapolis, Indiana

ATTORNEYS FOR APPELLEES: GREGORY F. ZOELLER Attorney General of Indiana KATHY BRADLEY Deputy Attorney General Indianapolis, Indiana

IN THE COURT OF APPEALS OF INDIANA
CYNTHIA A. SOAMES, Appellant-Petitioner, vs. INDIANA DEPARTMENT OF NATURAL RESOURCES and THOMAS A. YOUNG/ YOUNG OIL COMPANY, Appellees-Respondents. ) ) ) ) ) ) ) ) ) ) )

No. 49A05-0912-CV-726

APPEAL FROM THE MARION SUPERIOR COURT The Honorable Michael D. Keele, Judge Cause No. 49F12-0905-MI-20717

August 6, 2010

OPINION - FOR PUBLICATION

NAJAM, Judge

STATEMENT OF THE CASE Cynthia Soames appeals the trial court's denial of her verified petition for judicial review of the Natural Resource Commission's ("NRC") final order requiring Soames to refrain from interfering with Thomas Young/Young Oil Company's ("Young") efforts to plug three oil wells on Soames' property. Soames presents a single issue for our review, namely, whether the NRC abused its discretion when it ordered that the oil wells on her property be plugged. We affirm. FACTS AND PROCEDURAL HISTORY In 1997, Soames and Young entered into a lease agreement whereby Young operated three oil wells located on property in Miami County owned by Soames. Accordingly, Young obtained permits from the Indiana Department of Natural Resources ("DNR") to operate the wells. In 1998, Soames filed a complaint against Young alleging breach of contract. That litigation spanned approximately eleven years. And, in 2005, Young stopped oil production on Soames' property when the lease agreement was terminated by court order. On August 16, 2007, DNR issued notices of violation ("NOVs") to Young alleging that each of the three wells it operated on Soames' property were in noncompliance with "312 IAC 16-1 et seq. or IC 14-37 et seq." Appellant's App. at 426. The NOVs instructed Young to take the following "corrective action" by October 16, 2007:

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Operate, or plug and abandon, or obtain a temporary abandonment permit for [each] well per 312 IAC 16-5-20. NOTE: A pressure test is required prior to obtaining a temporary abandonment permit. Post well and lease identification showing the Permit Number, Lease Name, Section, Township and Range per 312 IAC 16-5-10. NOTE: This identification must be readable from 20 feet. Remove all vegetation and inflammable materials from all well operations and facilities as per 312 IAC 16-5-11. Id. On September 10, 2007, Young petitioned for administrative review of the NOVs alleging that Young was unable to "address all the ordered actions due to ongoing litigations [sic] of the Oil and Gas Lease in Miami County, actions taken by the landowner and questions about the permit and violation notices." Id. at 424. After Soames was added as a third party respondent, an administrative law judge ("ALJ") held a hearing on Young's petition on October 29, 2008. Following that hearing, the ALJ issued its "Nonfinal Order" with findings and conclusions in relevant part: 20. Young Oil has offered to cap or plug the subject wells, which are the subject of the NOVs, as per DNR rules. Soames has refused Young Oil permission to come upon her real estate in order to cap those wells with threat of arrest. D. Fire Hazard Prevention 21. "Regulation of the oil and gas industry has been justified on the theory that many phases of it are affected with a public interest." 8 AM. JUR. 2D, Gas and Oil

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