Citation. 642 P.2d 230 (Okla. 1982) · Read the full opinion →
Facts. The Oklahoma Legislature enacted appropriation legislation directing that revenues generated from Oklahoma’s school trust lands — granted at statehood under the Oklahoma Enabling Act of 1906 — be applied in part to general state-government purposes rather than exclusively to the support of the common schools. The Oklahoma Education Association, joined by other beneficiary-side plaintiffs, brought an original action against Governor George Nigh and other state officers seeking declaratory and injunctive relief.
Holding. The Oklahoma Supreme Court held that the legislation diverting school trust revenues to non-school purposes was unconstitutional under the Oklahoma Constitution and the Oklahoma Enabling Act of 1906. The school land grant and its acceptance by the state, the Court explained, created an “irrevocable compact” between the United States and Oklahoma, dedicating the lands and their proceeds to public education and that purpose alone. OEA v. Nigh, 642 P.2d at 235. The Legislature lacked authority to redirect trust revenues for general state purposes, however worthy. The Court permanently enjoined the diversion and ordered the revenues restored to the common school fund.
Why it matters. OEA v. Nigh is the leading state-supreme-court holding that the legislative branch of a granted state has no power to redirect school trust revenues to non-school purposes, and its “irrevocable compact” language has become a standard reference. The South Dakota Supreme Court in Kanaly v. State, 368 N.W.2d 819, 823 (S.D. 1985), expressly relied on OEA v. Nigh in cataloguing the synonymous formulations courts have used to describe the school land grant — “irrevocable compact” (Nigh), “solemn agreement” (Andrus), and “contract” (Platte Valley). The case is doctrinally crucial wherever a legislature has attempted to repurpose trust revenues for non-school objectives, including land conservation, infrastructure, general-fund deficits, or local-government assistance.
Cited in. Oklahoma, South Dakota, Montana, Utah, Wyoming, and Nebraska trust-lands jurisprudence; particularly cited in cases involving legislative diversions of trust revenue and in disputes over the irrevocability of the original grant terms.
Limits of this annotation. This entry is a scholarly summary, not a Shepardized citation analysis, and is not a substitute for current legal research. Readers should verify the case’s continuing validity in their jurisdiction before relying on it in litigation. Last updated: 2026-05-18.
