Justia North Dakota Supreme Court Opinion Summaries

Debra Ganske, Wesley Borgen, Michael Borgen, Sue Evans, and Linda McCoy ("the Borgens") appealed a district court summary judgment quieting title in certain oil and gas leases in Golden Eye Resources, LLC and dismissing their counterclaim for rescission or cancellation of the leases. Golden Eye cross-appealed. Upon review of the matter, the Supreme Court reversed and remanded, concluding the district court erred in concluding the Borgens' fraudulent inducement claims were barred as a matter of law, and the court therefore erred in dismissing their rescission action and quieting title in the leases in Golden Eye. View "Golden Eye Resources, LLC v. Ganske" on Justia Law

Defendants Citation Oil & Gas Corp., Petro-Hunt LLC, and other working interest owners appealed a district court summary judgment quieting title to an oil and gas lease in Greggory Tank. In 1982, George and Phyllis Tank executed an oil and gas lease in favor of Petro-Lewis Funds, Inc. The parties agreed to extend the primary term of the lease for three more years, ending July 15, 1989. In May 1983, the Tank 3-10 well was spudded in the northwest quarter. The well produced until October 1996. In June 1998, the Tank 3-10R well was spudded and replaced the Tank 3-10 well. The Tank 3-10R well continues to produce oil or gas. In June 1988, the Tank 13-10 well was spudded in the southwest quarter. The well continuously produced oil or gas until October 2008, and intermittently produced oil or gas until January 2012. Tank was the successor in interest to George and Phyllis Tank and was the owner of minerals in the southwest quarter of section 10. In September 2011, Tank sued the defendants, seeking to cancel the oil and gas lease to the extent it covered the southwest quarter. The defendants moved for summary judgment, seeking dismissal of all of Tank's claims. The defendants argued the continued drilling and operation of oil and gas wells on the leased property maintained the lease beyond the primary term and the lease remained in full force and effect. The district court denied the defendants' motion for summary judgment, ruling the lease had expired and was no longer valid on the southwest quarter. The court determined summary judgment was appropriate because there were only issues of law to resolve, including the interpretation of an unambiguous contract and the application of undisputed facts. Finding no reversible error in the district court's decision, the Supreme Court affirmed. View "Tank v. Citation Oil & Gas Corp." on Justia Law

Patrick Wagner appealed the grant of summary judgment that held as a matter of law that his property was burdened by either an express or an implied roadway easement, and that dismissed his claims for injunctive relief and damages against Crossland Construction Company, Inc., Baker Hughes Oilfield Operations, Inc., M & K Hotshot & Trucking, Inc., and Titan Specialties, Ltd. Upon review of the matter, the Supreme Court concluded that, as a matter of law, the language in the warranty deed at issue in this case did not create or reserve an express easement. Furthermore, the Court concluded genuine issues of material fact precluded the district court from resolving whether an implied easement exists. Accordingly, the Court reversed and remanded the case for further proceedings. View "Wagner v. Crossland Construction Company, Inc." on Justia Law

Earl and Harold Van Sickle appealed, and Hallmark & Associates, Inc., Frank Celeste, William R. Austin, Phoenix Energy, Bobby Lankford, and Earskine Williams, and Missouri Breaks, LLC, cross-appealed an amended judgment that held Missouri Breaks liable to the Van Sickles for unpaid pre-bankruptcy confirmation royalties and awarding the Van Sickles interest and attorney's fees. Upon careful consideration of the trial court record, the Supreme Court concluded the court did not err in holding Missouri Breaks liable under state law for pre-bankruptcy confirmation royalties owed to the Van Sickles. Furthermore, the Court concluded the district court did not abuse its discretion in awarding the Van Sickles attorney's fees and did not err in awarding them simple interest under the statute. View "Van Sickle v. Hallmark & Assoc., Inc." on Justia Law

Greggory Tank appealed a judgment quieting title to certain McKenzie County oil, gas and mineral interests in Debbora Rolla, the personal representative of the estate of George Tank. Because the district court did not err in ruling the challenged quitclaim deeds reserved mineral interests in George Tank and reserved in him a life estate in the surface only, the Supreme Court affirmed. View "Rolla v. Tank" on Justia Law

North Central Electric Cooperative appealed a district court judgment affirming a Public Service Commission order that dismissed its complaint against Otter Tail Power Company. The Commission decided it did not have regulatory authority over Otter Tail's extension of electric service to a facility owned by the Turtle Mountain Band of Chippewa Indians on tribal trust land within the Turtle Mountain Indian Reservation. North Central argued on appeal: (1) the Commission has jurisdiction under North Dakota law; and (2) the Commission's findings were not supported by a preponderance of the evidence and did not sufficiently address North Central's evidence. Upon review, the Supreme Court affirmed, concluding the Commission did not err in deciding it lacked authority to regulate the Tribe's decision to have Otter Tail provide electric service to a tribal-owned facility on tribal-owned land within the reservation. View "North Central Electric Coop., Inc. v. Public Service Commission" on Justia Law

EOG Resources, Inc. appealed a district court judgment that granted Lario Oil & Gas Co.'s motion for summary judgment and quieted title of an oil and gas leasehold estate in Lario's favor. Upon review of the matter, the Supreme Court reversed and remanded, concluding the district court erred by deciding EOG did not lease the rights to the oil and gas interests. View "Lario Oil & Gas Co. v. EOG Resources, Inc." on Justia Law

Northern Oil & Gas, Inc. appealed a judgment ordering reformation of an oil and gas lease and quieting title to the oil and gas leasehold estate in Murex Petroleum Corporation, John H. Holt, LBK Sales & Service, Inc., Racer Oil & Gas, LC, and Double L, LLC. In 2007, a landman working for Morris Creighton signed an oil and gas lease with the original mineral holder. The lease was recorded, but a month later, a typographical error was discovered in the lease’s property description. Six months later, Creighton assigned his interest in the lease, with an exception of an overriding royalty interest, to Antares Exploration Fund, L.P. Antares then assigned its interest in the Creighton lease to Northern. Northern brought an action to quiet title against Creighton and Murex to determine rights of the parties to the oil and gas leasehold estate. Murex filed a third-party complaint against the original mineral rights holders, a cross-claim against Creighton, and a counterclaim against Northern. Upon review, the Supreme Court concluded that the district court erred in concluding, as a matter of law, that Creighton was not a good faith purchaser and the Court held that there was a question of fact whether Creighton had constructive notice when he acquired rights under the lease. The Court reversed the judgment and remanded the case for further proceedings. View "Northern Oil & Gas, Inc. v. Creighton" on Justia Law

Slawson and Gadeco were owners of oil and gas leasehold interests in a section of real property located in Mountrail County which comprised the spacing unit for the Coyote 1-32H well. In 2009, Slawson sent Gadeco and to other working interest owners in the spacing unit invitations to participate in the cost of drilling and completing the well. The Supreme Court reversed an Industrial Commission order authorizing Slawson Exploration Company to assess a 200 percent risk penalty against Gadeco, LLC, for failing to accept Slawson's invitation to participate in the well within 30 days, and remanded to the Commission to explain its decision. On remand, the Commission determined Slawson's invitation to Gadeco to participate in the well complied with regulatory requirements and authorized Slawson to assess a 200 percent risk penalty against Gadeco. Gadeco appealed the district court judgment affirming the Industrial Commission's order on remand. The district court reversed the Commission's decision holding that, after sending the July 8, 2009 invitation to participate, Slawson changed three of the five requirements for an invitation, The court determined the changed facts required that Slawson provide Gadeco with a new invitation to participate. The Commission again authorized Slawson to assess a 200 percent risk penalty against Gadeco, ruling Slawson's invitation to participate complied with the regulatory requirements for a valid invitation to participate and Gadeco failed to accept the invitation within 30 days of receipt. The district court affirmed the Commission's order, concluding its "findings and conclusions are sustained by the law and by substantial and credible evidence." The Supreme Court nevertheless concluded that the Commission has discretion and administrative expertise to evaluate compliance with the requirements for an invitation to participate. The Commission therefore did not err in construing the language in the regulation to require Gadeco's election to participate to be received by Slawson within 30 days of Gadeco's receipt of the invitation and in authorizing Slawson to assess the risk penalty against Gadeco. View "Gadeco v. Industrial Commission" on Justia Law

SM Energy Company appealed a summary judgment declaring that A.G. Golden and other plaintiffs were entitled to a four percent overriding royalty interest in leases and lands covered by a 1970 letter agreement and ordering SM to pay amounts due to Golden and the other plaintiffs for these interests, and an order denying SM's motion to amend or for relief from the judgment. Upon review of the matter, the Supreme Court concluded the district court erred in ruling as a matter of law that SM through its predecessors in interest, expressly assumed an "area of mutual interest" clause in the 1970 letter agreement and in expanding the judgment to include unpled and unlitigated properties within the area of mutual interest. Furthermore, the Court concluded the court correctly ruled as a matter of law that SM owed Golden and the other plaintiffs retroactive royalty payments on production from a certain well located on the subject property. View "Golden v. SM Energy Company" on Justia Law