Claremore Daily Progress

April 2, 2013

Basler sues Material Services

Salesha Wilken
Special to the Progress

CLAREMORE — The Rogers County Commissioners met Monday in executive session to discuss a pending lawsuit against Material Services of Oklahoma in which Rogers County has been named as a defendant.

The board decided to direct District Attorney Janice Steidley to respond to the petition in case CJ-2013-168.
No other discussion was made public during the meeting.
Rogers County taxpayer Jimmie Dwayne Basler filed the lawsuit March 12, seeking judgment against Material Services to benefit all county taxpayers.
Material Services, a mining company, won a 2004 inverse condemnation lawsuit against Rogers County resulting in a multi million-dollar judgment.
A jury awarded $12.5 million in damages for the inability to mine the Christopher Neal Begley Limestone Rock Mining Lease located south of Oologah.
Approximately, $32 million was paid through the passage of a one third cent sales tax, to Material Services in 2012 due to interest accrued during the civil appeals process.
In Basler’s court filing, he alleges that Material Services “secretly assigned the Begley Lease,” to APAC Central, Inc. and the royalties contemplated to be paid by the lease agreement would be considered “double payments” of monies received through the 2004 judgment against Rogers County.
The Court of Civil Appeals determined that Material Services’ interest in the Begley lease property was void.
The court also ordered “until the compensation shall be paid to the owner or into the court for the owner, the property shall not be disturbed or the proprietary rights of the owner divested,” according to court documents.
Basler claims that Material Services was paid a substantial sum for the “secret assignment” of the Begley Lease to APAC to mine the property.
He further asserts all funds and consideration, whether paid, or to be paid in the future by APAC to Material Services belong to the Board of County Commissioners for the benefit of the taxpayers.  He is requesting those funds be paid to Rogers County to be applied to the original judgment resulting from the 2004 case.
Additionally, Basler is requesting that the BOCC be entitled to receive the net proceeds of any judgment in the case after costs, finder’s fee and attorney fees.