Devon Energy v.

Walter & Teresa

Skrocki

Case Facts
The Lessor is: Walter Skrocki and Teresa
Skrocki (Skrockis)
The Lessee is: Devon Canada Corporation
(Devon)
Surface Lease signed in 1979 Andex Oil
Co. Ltd.
Expired shortly after
March 2007 Devon Field Tests
Wireline Rig conduct test
September 2007 Skrockis file Damage
Claim Application

Timeline of Events
March 2007 Wirelining for
suspended well
Aug 20 2007 Devon weed sprays
the well site
Aug 23 2007 Skrockis change
concerns from weed spray to oil left
on the ground
Aug 28 2007 Energy Utilities Board
inspects the well site. Devon
commences with remediation of oil
on ground and weeds sprayed

Timeline of
Events

Sept 2007 Damage claim filed by

Skrockis
Aug 2008 Devon takes soil samples
for oil, and take pictures for evidence
of cattle fecal staining
Sept 9 2008 The Board has the
hearing for the damages claim

The Situation
Room
The Skrockis are suing Devon for Damages for:
Cattle weight loss occurred in the grazing season

Skrockis claim insecure wellhead caused Oil Spill

and damages to Cattle
Cattle + Devon Oil = Diarrhea = weight of
cattle

Issues to be
Decided
1. Did the damages alleged by the
lessor arise out of the operations of
the Operator?

2. If so, what is reasonable

compensation for these damages?

Skrockis Damage Claim

Crippled
Heifer
$800
Compensation
for crippled
heifer

Loss of
gain
$17,600
Cost of

alternative
feeding
$6,300
Veterinar

y Bill

Skrockis Exhibits

Devons Issues
Speculation oil found near
wellhead was from lubricating
wirelining rig in Mar 2007
Veterinarian Assessment and
Devons pictures of the cattle found
insignificantevidence
Due to insufficient evidence Devon
is not responsible for the
replacement costs of any feed or
alleged tractor hours

Devons
Issues

Heifer was crippled due to

Skrockis incompetence
Weed spraying - Devon halted
when Skrockis requested and
then remediated affected area
Vet bill is not Devons
responsibility

Devons Exhibits

0.0449kg of Crude Oil

1 kg feedstuffs
500kg

25kg feedstuffs per day

25kg of feedstuff

1.12kg
1.12kg

500kg
500kg

1100lbs

1100lbs

Legislation
Under The Canadian Oil & Gas Operations Act

person authorized and directed to take over the management and

control of any work or activity under subsection (5 ) shall manage and control
that work or activity and take all reasonable measures in relation to
the spill that are referred to in subsection

25(6) A

Under The Canadian Environmental Protection Act

Section 95. (1) Where there occurs or is

a likelihood of a release into the

environment of a substance specified on the List of Toxic Substances in Schedule 1

in contravention of a regulation made under section 92.1 or 93 or an order made under
section 94, any person described in subsection (2) shall, as soon as possible in the
circumstances
(a) subject to subsection (4) and any regulations made under paragraph 97(b),

notify

an enforcement officer or any other person designated pursuant to the

regulations and provide a written report on the matter to the
enforcement officer or other person;
(b) take all reasonable measures consistent with the protection of the
environment and public safety to prevent the release or, if it cannot be prevented, to
remedy any dangerous condition or reduce or mitigate any danger to the
environment or to human life or health that results from the release of the substance or
may reasonably be expected to result if the substance is released; and

W
ha
VE ts
RD T
h
IC
e
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?

Decision
The Board denied the entire
Damage claim
Devon conducted due diligence
on their part of the drilling and
completions project, and found
insufficient evidence of the
accusations that the Skrockis
claimed

Reasons for Decision

The claim based on estimates
not supported by factual evidence
Devons veterinary statement
concludes Cow needs to
consume 2.5 liters of oil per 1100
pounds
1/3 of cattle displayed fecal
staining veterinary
No firm evidence was presented

Reasons continued
Visual Soil Analysis was inconclusive
Tall buttercup plant can cause diarrhea

The herd was left grazing too long in the

affected area

End

Questions ?