8th Circuit decides North Dakota case Tuesday, July 23, 2024

The 8th Circuit Court of Appeals decided Mikkelson Land, LLLP v. Continental Resources, Inc. on Tuesday, July 23rd, 2024, affirming the district court's decision.

"The case involves a dispute over a Surface Use Agreement (SUA) between Mikkelson Land, LLLP, and Continental Resources, Inc. The disagreement centers on whether the SUA authorized Continental to install water pipelines on Mikkelson's property. Mikkelson claimed that the SUA did not permit such installations and filed a lawsuit alleging breach of contract, trespass, and seeking injunctive relief. Continental argued that the SUA explicitly allowed for the installation of water pipelines and moved forward with the project, compensating Mikkelson as per the SUA terms.

The United States District Court for the District of North Dakota reviewed the case and granted summary judgment in favor of Continental. The court found that the SUA was unambiguous and explicitly authorized Continental to install water pipelines. The court also noted that the SUA included provisions for compensation related to the installation of such pipelines. Additionally, the court considered an addendum to the SUA, which expanded Continental's rights and further supported the installation of the pipelines. The district court concluded that Continental's actions were within the scope of the SUA and dismissed Mikkelson's claims.

The United States Court of Appeals for the Eighth Circuit reviewed the appeal and affirmed the district court's decision. The appellate court agreed that the SUA's language was clear and unambiguous, granting Continental the right to install water pipelines. The court emphasized that the SUA specifically contemplated future installations of water pipelines and provided a payment structure for them. The court also found that the addendum to the SUA expanded Continental's rights, allowing for necessary operations, including the installation of water pipelines. Consequently, the appellate court upheld the summary judgment in favor of Continental, rejecting Mikkelson's arguments." (Mikkelson Land, LLLP v. Continental Resources, Inc., No. 23-2628 (8th Cir. 2024) :: Justia)

View the court's opinion here: https://media.ca8.uscourts.gov/opndir/24/07/232628P.pdf