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Judge rules in favor of Flower Mound in Titan lawsuit (updated)

Published: Friday, June 1, 2012 2:06 PM CDT
A Denton County judge ruled Thursday night in favor of Flower Mound and the town’s oil and gas board of appeals in a lawsuit stemming from the board’s denial of variance requests made by Titan Operating, LLC.


Judge Douglas Robison issued his ruling to uphold the board’s decision via email shortly before 6 p.m. Thursday.

On Dec. 16, 2010, the board denied several variance requests to allow gas drilling at the Powell 1H well on about 24 acres east of Long Prairie Road, south of Spinks Road and north of Lakeside Parkway.

Titan was seeking variances on the distance from a property line to a well bore, which ranged from 105 feet to 447 feet, and a property line to storage tanks, which ranged from 106 feet to 210 feet. The town's requirement for all of those setbacks at the time was 500 feet, with the ability for the applicant to request variances down to zero feet.

Robison stated that the Oil and Gas Board of Appeals is a quasi-judicial body acting on behalf of the town. In addition, he stated that the standard of review for its decisions is that of abuse of discretion and that the board of appeals did not abuse its discretion given the statutes and regulations it was applying.

“We are pleased with the court’s ruling, upholding the town’s ordinances and it is our hope that further litigation can be avoided,” said Mayor Tom Hayden. “However, the residents of Flower Mound and this council will continue to support the actions and the decisions of the Oil and Gas Board of Appeals, and we will take all appropriate measures to defend the town’s oil and gas ordinances that were dutifully enacted and supported by our residents. We are, and have been, confident that the actions of the Oil and Gas Board of Appeals were legal and justified under the circumstances, and I can say on behalf of the town council that we are pleased by Judge Robison’s decision.”

Attorneys from Titan could not be reached for comment.

More litigation is likely, however.

Town attorney Terry Welch said this was the first step in the battle over the mineral rights at the Powell site. Thursday’s hearing was a partial summary judgment to determine if the board of appeals acted legally in making its decision.

While Robison ruled in the town’s favor Thursday, he could still determine that the board’s decision resulted in a taking, an action that damages, destroys, impairs or prohibits development of a mineral interest without compensation.

On June 15, there is a hearing scheduled to begin the process for the takings portion of the case. Welch said the actual hearing may not occur until next year.

Thursday morning, attorneys for Titan and the town each had 25 minutes to present their case at the 393rd Judicial District Court in Denton.

An abatement for the lawsuit was granted on Sept. 7, 2011, but it was reinstated March 16, 2012.

In its lawsuit, Titan contended that "the board's denial of Titan's request for simple variances for setbacks related to lot lines was made without reference to applicable criteria and standards, is illegal in whole or in part, constitutes an abuse of discretion, was arbitrary and capricious, and should be reversed."

Welch stated "the board's actions certainly were not illegal, were not an abuse of discretion and the decision of the board was based on solid evidence and testimony."

During the Dec. 16 board of appeals meeting, residents voiced concerns over the pad site being near Bluebonnet Elementary School and Shadow Ridge Middle School. They also worried about drilling operations being near an electrical substation.

But an attorney representing Titan that night said the request met the setback requirements from a school and that Oncor had signed a waiver regarding the substation.

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