Cassinos v. Union Oil Co

In Cassinos v. Union Oil Co. (1993) 14 Cal.App.4th 1770, the oil and gas lessee did not use its rights in the property to extract oil and gas; rather, it injected wastewater from its other operations into the leased oil and gas property. The wastewater injection damaged not only the mineral rights in the leased land, but also affected the entire oil field into which the wastewater was injected. The injured party, whose rights were affected by the wastewater migration into the oil field, argued that, because the oil lessee had "intentionally trespassed into the mineral estate to solve its offlease wastewater disposal problem and to benefit its other, offsite mineral holdings, the appropriate measure of damages under these circumstances is the cost to dispose of the wastewater injected during the pertinent period. This theory of damages sounds in quasi-contract, a remedy sought in the plaintiff's complaint." The court agreed, and found that $ 1.75 per barrel was the fair market cost of properly disposing of the wastewater. The oil lessee had injected over two million barrels of wastewater into the oil field; the court therefore affirmed the judgment for some $ 3.6 million as the "reasonable value" of the trespassory use. (Cassinos v. Union Oil Co., supra, 14 Cal.App.4th 1770, 1784-1789.)