Justia Energy, Oil & Gas Law Opinion Summaries

Appellants Angeline Maki and other relatives of Richard Arndt (collectively "Maki defendants") appealed a judgment that declared that Appellee Richard Arndt and others (collectively "Arndt plaintiffs") were the owners of mineral interests underlying the Arndt family farm, and the Arndt plaintiffs cross-appealed part of the judgment that denied their claim against the Maki defendants for attorney fees and costs for slandering title to the minerals. Upon review, the Supreme Court concluded the district court properly granted summary judgment dismissing the Maki defendants' counterclaim for reformation of a 1973 contract for deed and a 1984 personal representative's deed and correctly quieted title to the minerals in the Arndt plaintiffs. The Court further concluded, however, that genuine issues of material fact existed on the claim for attorney fees and costs for slandering title to the minerals. View "Arndt v. Maki" on Justia Law

This case concerned three rivers which flow through Montana and then beyond its borders. At issue was whether discrete, identifiable segments of these rivers in Montana were nonnavigable, as federal law defined that concept for purposes of determining whether the State acquired title to the riverbeds underlying those segments, when the State entered the Union in 1989. Montana contended that the rivers must be found navigable at the disputed locations. The Court held that the Montana Supreme Court's ruling that Montana owned and could charge for use of the riverbeds at issue was based on an infirm legal understanding of the Court's rules of navigability for title under the equal-footing doctrine. The Montana Supreme Court erred in its treatment of the question of river segments and portage and erred as a matter of law in relying on evidence of present-day primarily recreational use of the Madison River. Because this analysis was sufficient to require reversal, the Court declined to decide whether the State Supreme Court also erred as to the burden of proof regarding navigability. Montana's suggestion that denying the State title to the disputed riverbeds would undermine the public trust doctrine underscored its misapprehension of the equal-footing and public trust doctrines. Finally, the reliance by petitioner and its predecessors in title on the State's long failure to assert title to the riverbeds was some evidence supporting the conclusion that the river segments over those beds were nonnavigable for purposes of the equal-footing doctrine. Accordingly, the judgment was reversed. View "PPL Montana, LLC v. Montana" on Justia Law

Appellant, Whitney Holding Corporation, challenged a decision of the district court quieting title in a certain mineral estate in favor of Appellees, Clarence and Peggy Terry. The Supreme Court affirmed, holding (1) the district court did not err in concluding that the parties intended, and the limited warranty deed conveying the property from Whitney to the Terrys reflected, that Whitney did not reserve a mineral interest in the property; (2) the district court properly determined that the deed was ambiguous and did not err in considering extrinsic evidence to interpret the deed; and (3) the Terrys' quiet title action was not barred by the statute of limitations. View "Whitney Holding Corp. v. Terry" on Justia Law

BP appealed a district court order granting summary judgment in favor of Charles V. Stanley, Jr., and his business (defendants), in BP's action seeking to enforce a restrictive covenant in a deed. BP also appealed the district court's award of attorneys' fees and costs. The court held that the district court erred in finding the Petroleum Restriction (PR), in the Special Warranty Deed that was attached to the Purchase and Sale Agreement (PSA) at issue, was overbroad and unenforceable where the PR did not prohibit Stanley from operating a non-BP-branded vehicle repair business on his property so long as the business did not also sell non-BP-branded gasoline. The court also concluded that the PR's prohibition of the sale of certain enumerated items was too inconsequential to invalidate the entire PR. Therefore, the PR on the whole "afford[s] a fair protection" to BP's interest without being "so large as to interfere with the interests of the public." Therefore, the court reversed the district court's grant of summary judgment to defendants, vacated the fee and cost award, remanding for further proceedings. View "BP Products North America, Inc. v. Stanley, Jr." on Justia Law

Defendants-Appellants Stanley and Catherine Jensen, as trustees of the Stanley and Catherine Jensen Family Living Trust, appealed the district court's decision that granted Plaintiff-Respondent Rocky Mountain Power's motion for summary judgment. Defendants are record owners of a cattle ranch that lies within a corridor established by the Utility for a 345 kilovolt transmission line. The Utility sought a perpetual easement and a right of way for the Utility and its successors and assigns to locate, construct, reconstruct, operate, and maintain a 150 foot wide high-voltage overhead power line utility corridor through the eastern part of Defendants' property. In 2008, Defendants entered into an Occupancy Agreement with the Utility, waiving all defenses to the Utility's acquisition of the easement, except the claim of just compensation. Upon execution of the Agreement, Defendants were paid $215,630 which would be deducted from any final determination of just compensation for the easement. Under the terms of the Occupancy Agreement, if just compensation was determined to be less than $215,630, Defendants were not required to return the difference. The parties were unable to reach an agreement for just compensation within a specified time, so the Utility filed its Complaint in early 2009, seeking a decree of condemnation, an award of easement, and specific performance of the Occupancy Agreement. The Utility filed a motion for summary judgment, contending that Defendants did not identify any expert witnesses or laid a proper foundation for any probative evidence of just compensation. Upon review, the Supreme Court found that Defendants failed to establish a genuine issue of material fact to establish the fair market value of their property. Accordingly, the Court affirmed the district court's judgment. View "Rocky Mountain Power v. Jensen" on Justia Law

The Tribes share an interest in a Wyoming Reservation. Consolidated suits, filed in 1979, claimed that the government breached fiduciary and statutory duties by mismanaging the Reservation's natural resources and income derived from exploitation of those resources. The Court of Federal Claims divided the suit into phases. One addressed sand and gravel and has been settled. The other two phases were devoted to oil and gas issues. An issue concerning the Government's failure to collect royalties after October, 1973 has been resolved. The final phase concerned pre-1973 oil and gas royalty collection and a series of discrete oil-and-gas issues. In 2007, the court granted the government judgment on the pleadings, finding that the claim was not filed within six years of the date on which it first accrued. The Federal Circuit vacated, finding that the claim asserted a continuing trespass, so that the Tribes can seek damages for trespasses which occurred within six years of the filing of this suit and all trespasses that occurred after the filing of this suit. The Tribes must establish that the government had a duty to eject trespassers from the parcels. View "Shoshone Indian Tribe v. United States" on Justia Law

In this consolidated appeal, three sets of landowners asserted claims against Arrington for breach of contract, promissory estoppel, and unjust enrichment relating to Arrington's failure to pay cash bonuses under oil and gas leases. The district court granted summary judgment to the landowners on the breach of contract claims and thereafter dismissed the landowners' other claims with prejudice on the landowners' motions. The court rejected the landowners' assertion that the lease agreements could be construed without considering the language of the bank drafts; the drafts' no-liability clause did not prevent enforcement of the lease agreements; Arrington entered into a binding contract with each respective landowner despite the drafts' no-liability clause; the lease approval language of the drafts was satisfied by Arrington's acceptance of the lease agreements in exchange for the signed bank drafts and as such, did not bar enforcement of the contracts; Arrington's admitted renunciation of the lease agreement for reasons unrelated to title precluded its defense to the enforceability of its contracts; Arrington's admission that it decided to dishonor all lease agreements in Phillips County for unrelated business reasons entitled the landowners to summary judgment; there was no genuine issue of material fact as to whether Arrington disapproved of the landowner's titles in good faith. Accordingly, the district court did not err in granting summary judgment on the breach of contract claims. View "Smith, et al. v. David H. Arrington Oil & Gas, Inc.; Foster, Jr., et al. v. Arrington Oil & Gas, Inc.; Hall, et al. v. Arrington Oil & Gas, Inc." on Justia Law

Defendant Baker Hughes Inteq, Inc. appealed the district court's order that denied its motion to compel arbitration. Plaintiff EEC, Inc. and Baker contracted for Baker to provide drilling equipment for use in EEC's horizontal oil and natural gas well in Oklahoma. The equipment was lost in the well. EEC filed suit in Oklahoma state court alleging that Baker’s negligence damaged its well. Baker removed the case to federal court, invoked diversity jurisdiction, and filed counterclaims for the value of its equipment. Baker also sought to compel arbitration. Baker prepared and EEC signed numerous documents containing arbitration clauses which were ultimately ruled as unenforceable by the district court. The court also denied Baker’s motion to reconsider. Further, the court enjoined Baker from proceeding with arbitration, and stayed further district court proceedings pending appeal of its orders. Upon review of the arbitration clauses at issue in this case, the Tenth Circuit found disagreed that because there were differences in the multiple clauses they were rendered unenforceable. The Court reversed the district court's judgment denying Baker's motion to compel arbitration and remanded the case with directions to order the parties to pursue arbitration. View "EEC, Inc. v. Baker Hughes Oilfield" on Justia Law

JB Mineral Services, LLC (JB), appealed the grant of summary judgment declaring an oil and gas lease terminated and awarding statutory damages, costs, and attorney fees to Dahn P. Beaudoin and J. Willard Beaudoin, as trustees of the William Beaudoin Irrevocable Mineral Trust (Beaudoins). JB sought to lease the Beaudoins' oil and gas interests, and sent a lease, a supplemental agreement and a document it alleged was a "120-say sight draft" for $165,000. Later, JB sent a revised lease and a 25-day sight draft to Beaudoins, reflecting JB's claim that Beaudoins owned 3.68 fewer mineral acres than covered in the original lease. The revised lease would also have extended the term of the lease approximately six months longer than a July 2009 lease. Beaudoins never executed or agreed to the revised lease and did not present the second sight draft for payment. Beaudoins claim that the "termination date" under the supplemental agreement was January 12, 2010, which was 120 business days after they signed the lease and supplemental agreement in July, 2009. JB's position was that it had until January 20, 2010, to pay a supplemental bonus payment by funding the July 2009 sight draft. Beaudoins' counsel responded by faxed letter dated January 20, 2010, reiterating that the lease had already terminated and was invalid. JB never authorized payment of the July 2009 sight draft, but recorded the original July 2009 lease on January 20, 2010. Beaudoins sued JB to have the lease declared invalid and for statutory damages, costs, and attorney fees. Upon review, the Supreme Court affirmed summary judgment in favor of the Beaudoins, finding the district court did not err in concluding JB failed to timely pay or tender the sum required to continue the 2009 lease and that the lease automatically terminated by its express terms. View "Beaudoin v. JB Mineral Services" on Justia Law

A public power and irrigation district (District) filed an action against a development and other sublessees (collectively, Development) to quiet title to land owned by District and leased by Development. Development filed motions to dismiss the complaint, arguing that District's complaint failed to state a claim upon which relief could be grante. The district court sustained the motions and overruled Development's motion for attorney fees. The Supreme Court reversed, holding that the district court erred in granting Development's motions to dismiss because (1) the allegations in District's complaint, taken as true, were plausible and thus were sufficient to suggest that District had presented a justiciable controversy, and (2) the motions to dismiss filed in this case provided no notice that Development was asserting the affirmative defenses of judicial estoppel, collateral estoppel and res judicata. Remanded. View "Central Neb. Pub. Power v. Jeffrey Lake Dev." on Justia Law