Bocardo SA v Star Energy UK Onshore Ltd & Anor

Bocardo SA v Star Energy UK Onshore Ltd & Anor

The drilling and use of pipelines under the claimant's land at significant depth constituted a trespass, as ownership of the subsoil remains with the surface owner absent statutory expropriation of access rights. Damages are to be assessed not on a nominal basis but as a negotiated percentage of the value of oil extracted, reflecting a fair and reasonable agreement between willing parties, with 9% determined as appropriate. The claim is limited to trespasses occurring within six years prior to the claim form, as the claimant could with reasonable diligence have discovered the facts by 1997, and any earlier claims are statute-barred.

Parties
Claimant: Bocardo SA; First Defendant: Star Energy UK Onshore Ltd; Second Defendant: Star Energy Weald Basin Ltd
Jurisdiction
England and Wales
Judgment Date
24 July 2008
Procedural Posture
Civil / Judgment at First Instance
Outcome
Claim allowed in part; damages awarded for trespass from 22 July 2000 to 31 December 2007 and for future extraction, assessed at 9% of income received; earlier claims statute-barred.
Legal Topics
Trespass, Ancillary Rights, Damages Assessment, Limitation Periods, Compulsory Acquisition, Oil and Gas Extraction
Property Law Tort Law Energy Law Trespass Ancillary Rights Damages Assessment Limitation Periods Compulsory Acquisition +1 more

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Parties

Bocardo SA

Claimant

Star Energy UK Onshore Ltd

First Defendant

Star Energy Weald Basin Ltd

Second Defendant

Procedural Posture

Civil / Judgment at First Instance

Legal Issues

  1. 1 Whether the drilling of pipelines under the claimant's land at great depth constituted a trespass.
  2. 2 The proper measure of damages for such trespass, including the relevance of statutory compensation regimes.
  3. 3 Whether the claim was time-barred by limitation statutes or extended by deliberate concealment.

Ratio Decidendi

The drilling and use of pipelines under the claimant's land at significant depth constituted a trespass, as ownership of the subsoil remains with the surface owner absent statutory expropriation of access rights. Damages are to be assessed not on a nominal basis but as a negotiated percentage of the value of oil extracted, reflecting a fair and reasonable agreement between willing parties, with 9% determined as appropriate. The claim is limited to trespasses occurring within six years prior to the claim form, as the claimant could with reasonable diligence have discovered the facts by 1997, and any earlier claims are statute-barred.

Court Disposition

Claim allowed in part; damages awarded for trespass from 22 July 2000 to 31 December 2007 and for future extraction, assessed at 9% of income received; earlier claims statute-barred.

Orders

  • Damages to Bocardo assessed at 9% of income received by Star Onshore between 22 July 2000 and 31 December 2007.
  • Damages at 9% of all future income from oil and gas extraction until exhaustion.