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 an agency order compulsorily integrating Gawenis’s unleased mineral interests into a natural-gas drilling unit. It held that compulsory integration was a constitutional exercise of the State’s police power rather than a compensable taking, and that Gawenis had no constitutional right to a jury trial because the order did not constitute a corporate appropriation of his property. Justice Josephine Linker Hart, dissenting, would have held that secondary-recovery methods appropriated Gawenis’s minerals and entitled him to a jury determination of full compensation.