Justia Energy, Oil & Gas Law Opinion Summaries

Rocky Mountain Steel Foundations, Inc. appealed a judgment invalidating its oil and gas construction liens and awarding attorney fees to Mitchell's Oil Field Services, Inc., also known as Wood Group, and Travelers Casualty and Surety Company of America (collectively "Mitchell's"). Mitchell's, as general contractor, entered into a contract with Brockett Company, LLC, as subcontractor, and Amber Brockett, as personal guarantor (collectively "Brockett"), to purchase construction materials for installation on certain oil wells. Brockett purchased materials from Rocky Mountain to fulfill Brockett's contract with Mitchell's. Mitchell's paid Brockett in full. Rocky Mountain delivered the materials, and Mitchell's installed the materials. Rocky Mountain thereafter recorded two oil and gas well liens against the wells because Brockett had not paid Rocky Mountain. Mitchell's recorded lien release bonds, with the liens attached to the bonds. Mitchell's received payment in full, then Rocky Mountain filed to foreclose on the liens. The parties agreed Mitchell's paid Brockett in full before Rocky Mountain delivered the materials to the wells and before Mitchell's or the leaseholders received notice of the liens. The parties agreed Rocky Mountain timely and properly satisfied all statutory and other requirements to create, perfect, and foreclose on the liens. Rocky Mountain recorded the liens on well leaseholds by ConocoPhillips Company and Burlington Resources Oil & Gas Co. (the "owners"). Brockett did not answer or appear at any hearings and admitted to nonpayment, but asserted it has no assets with which to pay. The district court granted summary judgment in favor of Rocky Mountain for its breach of contract claim against Brockett. The parties submitted their remaining claims to the district court solely on interpretation of the oil and gas construction liens provided by N.D.C.C. ch. 35-24. The court found N.D.C.C. 35-24-04 invalidated Rocky Mountain's liens after the owners paid Mitchell's. The primary issue before the North Dakota Supreme Court was whether N.D.C.C. 35-24-04 permitted a subcontractor's oil and gas construction lien when an owner fully paid the general contractor. Rocky Mountain argued the district court erred in finding Rocky Mountain's liens were invalidated when the owners fully paid Mitchell's. The Supreme Court agreed: Section 35-24-02, N.D.C.C., allowed contractors to file liens for unpaid materials furnished or services rendered "in the drilling or operating of any oil or gas well upon such leasehold." The district court erred in interpreting N.D.C.C. sections 35-24-04 and -07 to invalidate Rocky Mountain's liens, and also erred in awarding attorney fees to Mitchell's. View "Rocky Mountain Steel Foundations, Inc. v. Brockett Company, LLC" on Justia Law

Rocky Mountain Steel Foundations, Inc. appealed a judgment invalidating its oil and gas construction liens and awarding attorney fees to Mitchell's Oil Field Services, Inc., also known as Wood Group, and Travelers Casualty and Surety Company of America (collectively "Mitchell's"). Mitchell's, as general contractor, entered into a contract with Brockett Company, LLC, as subcontractor, and Amber Brockett, as personal guarantor (collectively "Brockett"), to purchase construction materials for installation on certain oil wells. Brockett purchased materials from Rocky Mountain to fulfill Brockett's contract with Mitchell's. Mitchell's paid Brockett in full. Rocky Mountain delivered the materials, and Mitchell's installed the materials. Rocky Mountain thereafter recorded two oil and gas well liens against the wells because Brockett had not paid Rocky Mountain. Mitchell's recorded lien release bonds, with the liens attached to the bonds. Mitchell's received payment in full, then Rocky Mountain filed to foreclose on the liens. The parties agreed Mitchell's paid Brockett in full before Rocky Mountain delivered the materials to the wells and before Mitchell's or the leaseholders received notice of the liens. The parties agreed Rocky Mountain timely and properly satisfied all statutory and other requirements to create, perfect, and foreclose on the liens. Rocky Mountain recorded the liens on well leaseholds by ConocoPhillips Company and Burlington Resources Oil & Gas Co. (the "owners"). Brockett did not answer or appear at any hearings and admitted to nonpayment, but asserted it has no assets with which to pay. The district court granted summary judgment in favor of Rocky Mountain for its breach of contract claim against Brockett. The parties submitted their remaining claims to the district court solely on interpretation of the oil and gas construction liens provided by N.D.C.C. ch. 35-24. The court found N.D.C.C. 35-24-04 invalidated Rocky Mountain's liens after the owners paid Mitchell's. The primary issue before the North Dakota Supreme Court was whether N.D.C.C. 35-24-04 permitted a subcontractor's oil and gas construction lien when an owner fully paid the general contractor. Rocky Mountain argued the district court erred in finding Rocky Mountain's liens were invalidated when the owners fully paid Mitchell's. The Supreme Court agreed: Section 35-24-02, N.D.C.C., allowed contractors to file liens for unpaid materials furnished or services rendered "in the drilling or operating of any oil or gas well upon such leasehold." The district court erred in interpreting N.D.C.C. sections 35-24-04 and -07 to invalidate Rocky Mountain's liens, and also erred in awarding attorney fees to Mitchell's. View "Rocky Mountain Steel Foundations, Inc. v. Brockett Company, LLC" on Justia Law

Samantha Hall was diagnosed with leukemia; she attributed the disease to a ConocoPhillips refinery’s emissions of a chemical known as benzene. Hall lived near ConocoPhillips’s refinery in Ponca City, Oklahoma. Roughly two decades later, she developed a form of leukemia known as “Acute Myeloid Leukemia with Inversion 16.” Liability turned largely on whether benzene emissions had caused Hall’s leukemia. On the issue of causation, the district court excluded testimony from two of Hall’s experts and granted summary judgment to ConocoPhillips. After review, the Tenth Circuit Court of Appeals affirmed because: (1) the district court did not abuse its discretion in excluding the expert testimony; and (2) expert testimony was necessary to create a genuine issue of material fact on causation because of the length of time between the exposure to benzene and the onset of Hall’s disease. View "Hall v. Conoco" on Justia Law

Samantha Hall was diagnosed with leukemia; she attributed the disease to a ConocoPhillips refinery’s emissions of a chemical known as benzene. Hall lived near ConocoPhillips’s refinery in Ponca City, Oklahoma. Roughly two decades later, she developed a form of leukemia known as “Acute Myeloid Leukemia with Inversion 16.” Liability turned largely on whether benzene emissions had caused Hall’s leukemia. On the issue of causation, the district court excluded testimony from two of Hall’s experts and granted summary judgment to ConocoPhillips. After review, the Tenth Circuit Court of Appeals affirmed because: (1) the district court did not abuse its discretion in excluding the expert testimony; and (2) expert testimony was necessary to create a genuine issue of material fact on causation because of the length of time between the exposure to benzene and the onset of Hall’s disease. View "Hall v. Conoco" on Justia Law

The Supreme Court reversed the decision of the Nebraska Power Review Board (Board) transferring two newly annexed territories from the Elkhorn Rural Public Power District (ERPPD) to the City of Neligh’s electrical service area and assessing the economic impact at $490,445.90. At issue on appeal was what compensation was owed to ERPPD for reintegration costs under Neb. Rev. Stat. 70-1010(2)(b). The Court held that the Board’s actions were arbitrary, capricious, and unreasonable because the Board erred in failing to award compensation for reintegration costs under section 70-1010(2)(b) to ERPPD for the lost substation unit. View "In re Application of City of Neligh" on Justia Law

The Supreme Court reversed the decision of the Nebraska Power Review Board (Board) transferring two newly annexed territories from the Elkhorn Rural Public Power District (ERPPD) to the City of Neligh’s electrical service area and assessing the economic impact at $490,445.90. At issue on appeal was what compensation was owed to ERPPD for reintegration costs under Neb. Rev. Stat. 70-1010(2)(b). The Court held that the Board’s actions were arbitrary, capricious, and unreasonable because the Board erred in failing to award compensation for reintegration costs under section 70-1010(2)(b) to ERPPD for the lost substation unit. View "In re Application of City of Neligh" on Justia Law

The Supreme Court affirmed the order of the State Corporation Commission concluding that certain large customers may purchase electricity from any licensed supplier of energy in the Commonwealth under Va. Code 56-577(A)(5) without being subject to the notice requirement set forth in section 56-577(A)(3). Specifically, the Court held (1) customers who satisfy the size requirements of section (A)(3) can purchase electricity from a competitive service provider under section (A)(5), provided that they satisfy the separate conditions of section (A)(5); (2) sections (A)(3) and (A)(5) are not in conflict; and (3) the notice requirement in section (A)(3) does not apply to purchases made under section (A)(5). View "Virginia Electric & Power Co. v. State Corp. Commission" on Justia Law

The common law rule against perpetuities does not invalidate a grantee’s future interest in the grantor’s reserved non-participating royalty interest (NPRI). In addition, section 91.402 of the Texas Natural Resources Code does not preclude a lessor’s common law claim for breach of contract.The court of appeals concluded that the rule did not bar the grantees’ future interest in the NPRI. The court, however, found that the reservation’s savings clause was ambiguous and remanded the case for a jury to determine the proper interpretation. The court held that section 91.402 does not bar a claim for breach of contract. Finally, while determining that several of the grantees’ claims failed as a matter of law, the court of appeals upheld the trial court’s award of attorney’s fees against the grantor pursuant to Tex. R. Civ. P. 91a. The Supreme Court affirmed. View "ConocoPhillips Co. v. Koopmann" on Justia Law

The common law rule against perpetuities does not invalidate a grantee’s future interest in the grantor’s reserved non-participating royalty interest (NPRI). In addition, section 91.402 of the Texas Natural Resources Code does not preclude a lessor’s common law claim for breach of contract.The court of appeals concluded that the rule did not bar the grantees’ future interest in the NPRI. The court, however, found that the reservation’s savings clause was ambiguous and remanded the case for a jury to determine the proper interpretation. The court held that section 91.402 does not bar a claim for breach of contract. Finally, while determining that several of the grantees’ claims failed as a matter of law, the court of appeals upheld the trial court’s award of attorney’s fees against the grantor pursuant to Tex. R. Civ. P. 91a. The Supreme Court affirmed. View "ConocoPhillips Co. v. Koopmann" on Justia Law

The lessee of certain mineral interests could not justifiably rely on extra-contractual representations by the lessor’s agent despite “red flags” and a negation-of-warranty clause in the sales documents explicitly placing the risk of title failure on the lessee.In its complaint, the lessee alleged breach of contract, fraud, and negligent misrepresentation. Following a pre-trial conference, the trial court issued an order under Tex. R. Civ. P. 166(g) disposing of all of the lessee’s claims, concluding (1) the unambiguous terms of the letter of intent and leases precluded the lessee’s contract claim; and (2) as a matter of law, the lessee could not establish the justifiable-reliance element of its fraud and negligent-misrepresentation claims. The court of appeals affirmed the trial court's ruling regarding the contract claim but reversed on fraud and negligent misrepresentation. The Supreme Court reversed the court of appeals and reinstated the trial court’s judgment, holding (1) justifiable reliance was an essential element of the lessee’s remaining causes of action; and (2) as a matter of law, the lessee could not show justifiable reliance. View "JPMorgan Chase Bank, N.A. v. Orca Assets G.P., LLC" on Justia Law