Drilling Company’s Fight with City of Mustang Continues in Supreme Court

Despite oral arguments having been made before a State Supreme court referee, the legal fight between the City of Mustang and Tulsa’s Citizen Energy II LLC is anything but finished.

The fight focuses on the oil drilling company’s refusal to comply with Mustang’s drilling restrictions created late last year as Citizens Energy sought permission to drill two wells within city limits. When Mustang wanted restrictions on the drilling including a sound barrier and road maintenance, Citizens Energy balked. After a Canadian County District Judge ruled against Citizen Energy and granted a temporary injunction for Mustang, the company went to the State Supreme Court.

Since the Feb. 28 oral arguments, all sides have attempted to respond to motions to have the case dismissed. Ponca City sided with Mustang and and Oklahoma Independent Petroleum Association filed an amicus curiae brief as well.

Mustang contends the energy company has not disputed the city’s power to create drilling restrictions but is challenging the reasonableness of them. Citizens Energy argues Mustang does not have the power to limit the company’s commercial activities.

The drilling company argued that state law “makes it clear that the restriction enacted by the municipality must be a reasonable restriction.”

The Tulsa company, in its arguments said the legal briefs filed by Mustang and supported by Ponca City do not state “how the City of Mustang’s requirement to build a 16-feet tall permanent acoustical sound wall with a sound transmission rating of 25 is reasonable.”

The last filing in the case was March 2.