IN THE SUPREME COURT OF THE FELEE STATE OF OKLAHOMA SUPREME COURT STATE OF OKLAHOMA OKLAHOMA INDEPENDENT JAN 1 0 2018 PETROLEUM ASSOCIATION s. KIM HATFIELD and- LUKE ES SMAN, Protestants/Petitioners, . ?3 try A: . vs' case No- ?osaIf] {2.3 RAY H. POTTS, MICHAEL O. THOMPSON, and MARY LYNN PEACHER, Respondents/Proponents. . APPLICATION AND PETITION TO ASSUME ORIGINAL JURISDICTION AND REVIEW THE CONSTITUTIONALITY OF INITIATIVE PETITION NO. 416 . ROBERT G. MCCAMPBELL, OBA No. 103 90 Anthony J. Ferate, OBA No. 21171 ADAM C. DOVERSFIKE, OBA No. 22548 LAW OFFICE OF ANTHONY J. FERATE JAKE M. KRATTIGER, OBA No. 30617 4308 Echohollow Trail GABLEGOTWALS Edmond, OK 73 025 One Leadership Square, 15th Floor Telephone: (202)486-7211 211 North Robinson Avenue ai@ferateolle.com Oklahoma City, OK 73102 Telephone: (405) 235-5 5 00 Attorney for Protestant/Petitioner, Facsimile: (405) 235?2875 Oklahoma Independent Petroleum rmceampbell@gablelaw.eom Association adoversoike@gablelaw.eom Lhattiaer@2ablelaw.com Attorneys for Protestants/PetitionerS,_ Oklahoma Independent Petroleum Association, S. Kim Hat?eld and Lake Essman JANUARY 10, 2018 Oklahoma Independent Petroleum Association, Kim Hat?eld, and Luke Essman (collectively, or ?Protestants?) request that the Court assume original jurisdiction to review the constitutionality of Initiative Petition No. 416, State Question 795 416?). 34 0.8. Okla. Sup. Ct. R. 1.194. As is shown in the brief supperting this Application and Petition, IP 416 is unconstitutional because it would create an unconstitutional retroactive tax in violation of Amend. V, US. Const. and it embraces more than one general subject in Violation of Article XXIV, 1 of the Oklahoma Constitution. OIPA respectfully requests that the Petition be declared invalid. I. PARTIES 1. Protestant/Petitioner Oklahoma Independent Petroleum Association represents more than 2,500 individuals and companies from Oklahoma?s oil and natural gas industry, and is the state?s largest oil and natural gas association. OIPA is anon?pro?t corporation and was incorporated under the authority of the Oklahoma Secretary of State in 1955. Its headquarters are located at 500 NE. 4th Street, Suite 200, Oklahoma City, OK 73104. 2. Protestant/Petitioner S. Kim Hat?eld is President of Crawley Petroleum (?Crawley?), an oil and natural gas exploration and production company based in Oklahoma City. Crawley pays gross production tax in Oklahoma. Mr. Hat?eld is also an individual owner of oil and gas working interests. Mr. Hat?eld is a resident of Oklahoma and has been a registered voter in Oklahoma County for more than 20 years. 3. Protestant/Petitioner Luke Essman is President and Chief Executive Of?cer of Canyon Creek Energy Operating, LLC, (?Canyon Creek?), a Tulsa based company focused on oil and gas production in the resource plays of Oklahoma. Canyon Creek pays gross production tax in Oklahoma. Mr. Essman is a resident of Oklahoma and has been a registered voter in Tulsa County?for more than 15 years. 4. ReSpondent Ray H. Potts signed the Initiative Petition as a Proponent. 5. Respondent Michael 0. Thompson signed the Initiative Petition as a Proponent. 6. Respondent Mary Peacher signed the Initiative Petition as a Proponent. 7 . One of the Protestants/Petitioners in this case, Oklahoma Independent Petroleum Association, is also a protestantfpetitioner in adifferent case ?led today attacking the gist of IP 416. These are two separate cases. This case challenges the constitutionality of IP 416. The other case challenges the gist set forth on the signature page. The two cases present independent grounds on which this Court should ?nd IP 416 to be invalid. I II. JURISDICTION 8. IP 416 was ?led with the Oklahoma Secretary 'of State on December 20, 2017. (Appx'. at Tab A.) i 9. Pursuant to 34 0.8. 8, the Secretary of State published notice of IP 416 on December 26, 2017. (Appx. at Tab B.) 10. A protest is due 10 business days after the notice. 34 0.8. Saturdays, Sundays, and legal holidays are excluded. In re Initiative Petition 397, 2014 OK 23, 11 19, 326 P.3d 496. Monday, January 1, 2018 is a legal holiday. 25 0.8. 82.1. The tenth business day after the notice is January 10, 2018. 11. The Protestants/Petitioners are citizens of Oklahoma, and this Court has jurisdiction to hear this protest. 34 0.8; 8. ??Any citizen can protest the suf?ciency and legality of an initiative petition.?? In re Initiative Petition 409, 2016 OK 51, 1] 2, 376 P.3d 250, quoting In re Initiative Petition 384, 2007 OK 48, 11 2, 164 P.3d 125. 12. ?When a protest is ?led in this Court, we are ?vested with original jurisdiction to evaluate and determine the suf?ciency of the proposed initiative petition pursuant to 34 0.8. Supp. 2015 In re Initiative Petition 409, supra, 2016 OK 51 at 1] 2, quoting In re Initiative Petition 2 403, 2016 OK 1, 1] 3, 367 P.3d 472. Pursuant to Rule 1.194 of this Court, a challenge to an initiative petition shall be treated as an original action in this Court. MERITS 13. Section 3 of IP 416, as drafted, would create a retroactive tax in violation of the due process clause of the i?h Amendment of the US. Constitution. Section 3 provides that the tax will be on oil and gas production ?after the effective date of this Article Since Article has been effect for many years, the tax would be retroactive. It may be that the proponents are I intending to distinguish between ?Article and ?Article and it may be that this reference to ?Article is a typographical error. If so, however, there is no provision for amendment of a petition by this Court. In any event, if a correction is to be made, it should be up to the proponents to supply the corrective language. 14. Also, IP 416 violates art. XXIV, 1. According to OKLA. CONST. art. XXIV, 1, a proposed amendment to the Oklahoma Constitution must ?embrace one general subject.? This rule is applicable to initiative petitions, In re Initiative Petition 314, 1980 OK 174, 1] 46, 625 P.2d 595, 601 and applies even to proposed amendments ?by article.? In re Initiative Petition No. 344, 1990 OK 75, 111] 2, 5, 797 P.2d at 327-28; In re Initiative Petition No. 342, 1990- OK 76, 1111 1?3, 797 P.2d 331, 332. ?The purpose of the one general subject criteria is to prevent deceit or the presentation of a misleading proposal and to prevent logrolling, the combining of unrelated proposals.? In re Initiative Petition No. 342, 1990 OK 76, 11 4, 797 P.2d at 332. 15. In violation of Article XXIV, Section 1, this Petition has more than one general subject: - a. Education Personnel Pay. IP 416 is an unprecedented constitutional setting of public employee pay via a $4,000 pay raise for ?certi?ed personnel? in common education. b. Gross Production Tax. IP 416 creates the ?rst constitutionally-mandated tax rate. Speci?cally, the Initiative Petition imposes a 5% gross production tax on oil and gas production, in addition to'the current gross production tax, which would be applied retroactively such that the tax would apply to Wells spudded after July 1, 2015. c. Alteration of Separation of Powers. Voters must agree to empower the Executive Branch via the Board of Equalization with the power to halt the legislative appropriation process for the entire State if certi?ed education personnel are not provided with their newly constitutionalized raises. 16. IP 416 represents a textbook example of logrolling. IV. REMEDY 17. Because IP 416 violates the single subject rule of art. XXIV, 1 of the Oklahoma Constitution,? it must be stricken from the ballot In re Initiative Petition No. 382, 2006 0K 45, 1[ 1, 142 P.3d 400, 402 V. CONCLUSION This Court should assume original jurisdiction of this matter, ?nd IP 416 to be invalid, order IP 416 stricken from the ballot. Respectfully submitted, ROBERT G. No. 10390 ADAM C. DOVERSPIKE, OBA No. 22548 JAKE M. KRATTIGER, OBA No. 30617 GABLEGOTWALS . One'Leadership Square, 15th Floor 211 North Robinson Avenue Oklahoma City, OK 73102 Telephone: (405) 235-5500 Facsimile: (405) 235?2875 rmccampbell?lgablelaweom adoverspike@gablelaw.com ikrattiger?lgablelawcom Attorneys for Protestants/Petitioners, Mike McDonald, Valerie Mitchell and Oklahoma Independent Petroleum Association An my] ,(fa?quo. 21171 LA ANTHONY J. FERATE 4308 Echohollow Trail Edmond, OK 73025 Telephone: (202)486-7211 . ai@feratepllc.eom Attorney for Protestant/Petitioner, Oklahoma Independent Petroleum Association CERTIFICATE OF SERVICE I hereby certify that on this 10th day of January 20?18, a true and correct copy of the above and forgoing was served by hand delivery or US. mail, postage prepaid, as follows: Ryan A. Ray Secretary of State?s Office Norman Wohlgemuth State of Oklahoma Chandler eter Barnett Ray 2300 N. Lincoln Boulevard '2900 Mid-Continent Tower Suite 101 401 South Boston Avenue Oklahoma City, OK 73105-4897 Tulsa, OK 74103?4065 Attorney for ReSpondents/Pmponems Attorney General?s Of?ce 313 NE. 21St Street Oklahoma City, OK 73105-4897 Robert G. McCampbell Adam C. Doverspike Jake M. Krattiger 1 78