Supreme Court of Arkansas

Richard G. Gawenis Appellant v. Arkansas Oil & Gas Commission, and Seeco, Inc. Appellees

May 28, 20152015 Ark. LEXIS 390

Summary

The court affirmed the circuit court’s approval of the Commission’s forced integration of Gawenis’s unleased mineral interests into a drilling unit. It held that the integration order was a constitutional exercise of the State’s police power rather than a compensable taking, because Gawenis could lease his interests, participate in drilling, or receive compensation under the order. The court also held that he had no constitutional right to a jury trial because he did not establish that the integration constituted a corporate appropriation of his property. Justice Josephine Linker Hart, dissenting, would have held that secondary recovery methods appropriated Gawenis’s property and entitled him to a jury trial on full compensation.