Montana Attorney General Opinion 15-614

Opinion No. 614 Oil and Gas-Oil Consen'ation Roan1 -Crude Oil, Statement of Imports -Foreign Corpomtion -Refineries. HELD: The Oil Conservation Board has the power to require the producer of or dealer in crude oil within the state to furnish it with a monthly re- port of his activities in that behalf; and has the power to require the trans- [lorter or storer of crude oil within the state, irrespective of the place from whence it came, to furnish it with a monthly report of his actidties in that behalf. That the concern in question is a foreign corporation, engaged partly in interstate commerce, does not alter the ~ituation. The Act does not authorize the Board to demand a statement showing the quantity of crude oil refined in a plnnt during any l,riven period. September 18, 1934. It appefirs that the Ynle Oil Cor- poration is a foreign corporation au- thorized to do business in the State of :\Iontana. It operates a large oil re- finery at or near the city of Billings in which is processed crude oil pro- duced in Montana and elsewhere and purchased and transported hy it. Each month, on a certain day, it furnishes the Oil Consen'ation Board with a statement which shows the quantity of crude oil produced in Montana Hnd treated at its plant during the pre- ceding month. It has refused, howe\"er, to gh'e the board information regard- ing the quantit~' of crude oil which is produced outside the State of Montana and treated at its plant, thol1g"h re- quested so to do. You now desire to know what information the board is entitled to exact from this concern under the law. Chapter 18, Laws of Extraordinary Session 1933, created the Oil Conserm- tion Board. conSisting of five members. (Sec. 2) It is g-iven "general control. regulation and supervision of the pro- duction, transportation and storage of crude petroleum within the State of Montana." (Subd. 1, Sec. 9) It sball "require each and every producer. trans- porter, dealer in and/or storer of crude petroleum wi thin the state to furnish monthly, at least, and oftener if re- quired by the board, any and all infor- mation and reports to said hoard on such forms as it. may prescribe lind within the time specified by the hoa I'd, regarding any and all of the activities of such producer, transporter. dealer in and/or storer with respect to his said operations." (Subd. 4. Id.) It "shall likewise have the power to re- quire owners and/or operators of any storage and/or transportation facili- ties of crude petroleum in this state to make and file such sworn statements regarding the same and quantity and quality of the crude petroleum in stor- age and/or transportation of crude pe- troleum in such manner and to such ex- tent and at such time as shall be pre- scribed by said board by rules and regulations or by specified order in the performance of its duties under this Act." (Par. 2, Sec. 10.) The statute seems to be a valid ex- ercise of the police power of the state. (Gas Products Co. v. Rankill, 63 Mont. 372; C. C. Julian CO. Y. Capshaw, 292 OPINIOXS OF 'l'HE ATTOUXEY GEXERAL 421 Pac. 841; 12 C. J. 1157. et seq.) ThE' quoted parts of it are broad and rpn- sonably clear. I think they not onl, vest the bonrd with power to require the producer of, or denIer in. crude oil within the state to furnish it with a monthl, report of his activities in thnt behalf, but that the, also vest the board with power to require the transporter or storer of crude oil within the state. irrespective of the place from whence it came, to furnish it with a monthly re- port of his activities in thn t be·half. There cannot he much douht that this is so when it is remembered that the statute was primarily passed with the view of preventing oyer-production. rE'- suIting in great waste, of crude oil in the state. Without adequate knowledge of the amount of crude oil regu·larly hrought into the state for commercinl purposes the board would occup~- a ~orry position in its efforts to conserve this yital product of our own soil. The intention of the legislature must be given effect wheneyer possible. (Conley y. Conley, n2 Mont. 425: Conyerse Y. Noi,thern -Pac. Ry. Co., 2 Ferl. (2d) B59; 5B C. J. 948.) That the concern in question is a foreign corporation engaged partly in interstate commerce does not alter' the situation. The law applies to all alike and does not in any way attempt to in- terfere with or regulate interstate com- merce. So far as interstate shipments are concerned it merel~' requires the C011)Orntion nnd others similarly cir- cumstanced to ;.:b'e the board, at its (lirection. definite information regard- ing crude oil which has come to a state of rest in this jurisdiction. The legis- latiU"e could properly enact such a law. (State v. Sun hurst Hefining Co., 73 Mont. 68; Gallatin N. G. Co. v. Public Service Corn., 79 Mont. 269; Lewis y. 1'\orthern Pac. Ry. Co., 36 Mont. 207; 1 Thompson on Corporations, sec. 465; :3 Thompson on Corporations, sec. 18!)5; 17 Fletcher's C~'clopedia Con/orations, sec. 8453.) I find nothing in the statute which would justify the board in demanding of the Yale Oil Corporation a state- ment showing the quantity of crude oil refined in its plant during any given period. Statistics relating to the activities of oil refinel'ies are not COy- ered by the Aet. Opinion No, 615 Oil and Gas--Oil Conservation Boat'd -Rules and Regulations-Liability of Board !\Iembers, HELD: The adoption of a rule or regulation beyond the powers of the Oil Conserva tion Bonrd and enforce- ment thereof to the detriment of a producer. transporter or storer of or dealer in crude oil would render each 'member of the board personally Iiahle to such producer. transporter. storer or dealer. September 22, 1934. 1;"our request for an opinion follows: "At a recent meeting of the mem- bers of this Board, the' Secretary was directed to request you to gi\'e the Board an opinion as to the personal liability of the members of the Board as individuals for loss or damage suffered by any oil producer, trans- porter or refiner on account of any act or omission of the Board or an~' of its employees, under or connected with any rule, regulation or order promulgated by the Board under the Act approved December 2!l, In33 (chap- ter 18, Special Session Laws H133- 1934) entitled 'An Act to Prohihit and Prevent the Waste of Crude Petroleum ill the State of Montana (etc.)' "The question was raised in COIl- nection with recent discussion between Board members and representati\'es of producers concerning the advisahility of issuance by the Boa rd of orders intended to curtail or restrict crude oil production and transportation in the state in yiew of an alleged state of oyer-production existing and the apparent necessity of some action being taken by the Board with the view of preventing waste of oil as defined hy the Federal Petroleum Ad- ministrative Board." The request for an opinion being general in its terms, the opinion itself must necessarily be so. 'Ve think adoption of a rule or regu- lation beyond the powers of the Oil Conservation Board and enforcement thereof to the detriment of a producer, tl'llnsporter or storer of or dealer in crude oil would render each member