Justia North Dakota Supreme Court Opinion Summaries

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

Brigham Oil and Gas, L.P. ("Brigham"), appealed a partial judgment that dismissed its action against Lario Oil & Gas Company ("Lario") and Murex Petroleum Corporation ("Murex") which sought oil and gas production payments based on a claimed leasehold interest in certain mineral acres in Mountrail County. The Triple T, Inc. ("Triple"), and Christine Thompson, as sole trustee of the Navarro 2009 Living Trust Agreement, appealed an order denying their motions to intervene and to vacate the judgment. The land that contained the oil and mineral rights at issue in this case were probated in 2008 and became a part of the Navarro Trust. Late that year, the Trust executed an agreement which purported to resolve an issue over ownership of the mineral rights. In 2009, Brigham commenced this action against Lario and Murex alleging that it was entitled to a percentage of the production from the oil and mineral interests from the 2008 agreement. Brigham argued the district court erred in determining that Lario had the controlling interest in the 2008 agreement and that Brigham had no interest in the oil and gas leasehold estate in the subject property. Upon review of the lengthy trial record and the applicable legal authority, the Supreme Court affirmed the district court's judgment and order. View "Brigham Oil v. Lario Oil" on Justia Law

In 1953, Standard Oil Company owned a refinery in Mandan, and the Northern Pacific Railway Company owned land between the refinery and the Heart River. Northern Pacific executed a written permit granting Standard Oil permission to construct a pipeline along Northern Pacificâs right-of-way from the refinery to the river. The permit provided that Standard Oil could not transfer or assign the permit without Northern Pacificâs permission. In 1998, Northern Pacificâs successor-in-interest sold the portion of land that contained Standard Oilâs pipeline. In 2001, Standard Oilâs successor-in-interest, sold the refinery. In 2004, Tesoro, the new owner of the refinery, filed a âNotice of Permitâ along with the 1953 permit, with the Recorderâs Office. Later that year, the property was sold to Riverwood Commercial Park. Disputes arose between Riverwood and Tesoro over Riverwoodâs planned development of the property. The dispute bounced between the district and Supreme Court for various theories of recovery. Riverwoodâs theories centered on the characterization of the 1953 âpermitâ: all of Riverwoodâs claims would fail as a matter of law if the 1953 permit was not a license but an easement. After thorough review of the record, the Supreme Court concluded that the 1953 permit was indeed an easement, and affirmed a grant of summary judgment in favor of Tesoro and Standard Oil.