Egeland v. Continental Resources, Inc.
v.
Continental Resources, Inc.;
Flying J Oil & Gas, Inc.;
Big West Oil & Gas, Inc.;
Samedan Oil Corporation; and
M.J. Armstrong, Defendants and Appellees
Judge Ronald L. Hilden
| Appellant: | Hardy, Maus & Nordsven, P.C. | |
| Appellee: | Pearce & Durick |
1. Whether forced pooling of an oil and gas lease constitutes committing the lands to a "unit plan of development or operation".
ANSWER: Yes.
2. Whether the pugh clause in the subject oil and gas leases prevails over the Habendum clause so that both leases expired as to all lands not within a producing unit on March 8, 1996.
ANSWER: Yes.
3. Whether Continental Resources, Inc., has a fiduciary obligation to Mary Egeland as unit operator so that it is obligated to pay any royalties due her arising from the expiration or termination of the oil and gas leases.
ANSWER: Yes.
Appellee's Statement of the Issues:
Did the district court properly grant summary judgment to the Defendants dismissing Egeland's complaint on the merits with prejudice.
a. Whether the district court properly concluded that the Pugh clause contained in each of the oil and gas leases at issue does not override the "habendum clause" and the "continuous drilling operations clause" contained in each lease.
b. Whether the district court properly concluded that the force pooling orders entered by the North Dakota Industrial Commission ("Commission") did not breach the terms and conditions of the oil and gas leases at issue.
c. Whether the district court properly concluded that the Defendants did not breach any fiduciary obligations they may have had to Egeland by virtue of the oil and gas leases at issue.
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