Star Energy Weald Basin

Limited and another

v.
Bocardo SA
Summary
I- Introduction

II- Trespass issues

III- Quantum of damages

IV- Conclusion

V-Questions
I-Introduction
Facts

An oil exploration company called Star Energy

extracted oil from the basement of the property of
Bocardo SA, without Bocardo’s knowledge or
consent.

Star energy has installed three wells outside the

property Bocardo. But the three wells enter into
the Bocardo property.
The oil company, has a statutory license that gives
it the exclusive right to exploit oil that lies in this
part of the UK.

But

The oil company has not negotiated with the

owner in order to install wells, contrary to what is
provided according to the Mines Act 1966.
Parties Appellant :

-Bocardo SA :

The landowner

Respondents :

-Star Energy Weald Basin Limited :

The oil company

Procedure
● Bocardo summoned the oil company before
the high court. According to the High Court,
there was a trespass.

● The Court of Appeal, as the High Court,

held that it was an actionable trespass, but
the court made a very substantial reduction
in the award of damages.

● Bocardo appealed to the Supreme Court on

the damages issue, and the respondents
cross-appealed on the trespass issue.
Arguments Appellant’s arguments:
-There is a trespass.

- At no point did Star Energy acquire any sort of right from

Bocardo.

-The fact that Bocardo does not use this underground part
of its land is irrelevant.

Respondent’s arguments :
-The appellant wasn't using that part of the underground.

- Star Energy’s operations did not “interfere ‘one iota with

Bocardo’s enjoyment of the land”.
Solution

The Supreme Court unanimously dismisses the

respondents’ cross-appeal on the trespass issue.

By a majority, the Supreme Court dismisses

Bocardo’s appeal on the damages issue.
Point of law
Is the extraction of minerals by an
unauthorized company on an
individual's land without causing any
damage a trespass?

If there was an actionable trespass,

what is the appropriate remedy?
II- Trespass
Notion of trespass Trespass to lands :

-”unjustifiable interference with land which is in the immediate

and exclusive possession of another”,

- actionable per se,

-intentional or negligently.
Does Bocardo’s title
to the lands extends
The Court holds that the owner of the surface is the owner
of the strata beneath it;

down this strata? There must obviously be some stopping point;

But :

It is not deep enough in order that the notion of property become

absurd in this case.
Does Bocardo is
entitled to Justices set out that Bocardo was in possession of what is
below the surface thanks to his title of property.
possession of the
subsurface strata
through which
theses facilities
pass?
Is there a defence to
trespass to land ?
Even if Star Energy was the owner of the oil, there was
nothing in the Act of Parliament that automatically granted
it a right of access through Bocardo’s substrata

No defence against the claim.

III- Quantum of
damages
I) A division of judges on the assessment of damages

- Lord Hope held that substantial damages should be

awarded
- Lord Brown, held the award of the Court of Appeal
should stand
- Lord Clarke would have preferred an assessment of
damages that gave some recognition to the fact that
Bocardo’s land had some special value

Justices based their decision on the section 8 of the Mines

Act 1966 which provides that the compensation would be
based on ‘what would be fair and reasonable between a
willing grantor and a willing grantee’ .
II) Consideration of the key metaphor in the
assessment of damage

“can Bocardo nevertheless assert and benefit from the key

value of the ancillary right which Star needed to acquire
here?”

- Key value is the particular value of the land. The UK

Supreme Court stated that the Act of parliament
retired the key value, because only the Crown and
its licences had any interest for oil.

- This leads to award a very limited sum of damages

to Brocardo
IV- Conclusion
V- Questions - Should an oil company be forced
to negotiate with the owners of
their land to extract the oil?

- Should the key value must be

take into consideration to evaluate
the damages ?