STATOIL OIL & GAS LP v. ABACO ENERGY, LLC

No. 20160261, No. 20160262.

897 N.W.2d 1 (2017)

2017 ND 148

STATOIL OIL & GAS LP, Plaintiff and Appellant v. ABACO ENERGY, LLC; American Heart Association, Inc.; American Lung Association; American Syringomyelia Alliance Project; Altshule 1988 Trust; Herma C. Altshule & Joel Altshule, as Trustees of the Altshule 1988 Trust; American Cancer Society, Inc.; Anne Carlsen Center; Arlene Sax; Benefit Fund of the Mckenzie County Healthcare Systems; Bomont Enterprises, LLC.; Brent Clum; C and M, LLC; Carla Dickerson; Carol Kummer; Cody Oil and Gas Corporation; Continental Resources Inc., LLC; Darrell & Judy Rud Family Revocable Living Trust; Pam Gunderson, successor-in-interest to David Gunderson; David Peterson; Duke Royalty, LLC; Diane Ehrlich; Donald Maston; Donna Maston; Earthstone Energy, Inc.; Family Counseling Service of San Gabriel Valley; Mark Fliginger; Global Gas and Oil, LLC; Gary Sax; Gayle A. Lysne Revocable Living Trust; Glenn Sax Revocable Living Trust; Glenn Sax; H4 Royalty, LLC; Herbert Maston; Hess Bakken Investments I, LLC; Hess Bakken Investments II, LLC; Hess Corporation; Hill, LP; Irish Oil & Gas Inc.; Johnson Family Trust; John W. Johnston; Sue Johnston; JRB Investments, LLC; Michele Knots; MBI Oil and Gas, LLC; MBI Overrides, LLC; Robert McNamara; Tracey NcNamara; Vincent Melashenko; Mercy Medical Foundation; Mirada Energy, LLC; Missouri River Royalty Corporation; MJM Land Development, LLC; John S. Murray; John Murray, as the personal representative of the Estate of Nancy A. Murray, deceased; Patricia A. Murray; John Murray, as the Personal Representative of the Estate of William S. Murray, deceased; Muscular Dystrophy Association, Inc.; Larry Nelson; Myrna Nelson; Noble Royalties Access Fund 12 LP; Noble Royalties Access Fund XI LP; North Dakota Elks Association; Northern Energy Corporation; Northern Oil and Gas, Inc.; Nueva Forma Energy Partners; Orrion Energy, LLC; Olson Vermaaker, LLC.; Paris Land Company, LLC; Prairie of the South, LLC; Rainbow Energy Marketing Corporation; Reef 2001 Private Drilling Fund LP; Roanie Ponie, LLC; Darrell Rud; Judy Rud; San Gabriel Valley Medical Center Foundation Community Benefit Fund; Sandy River Resources, LLC; Sax Family Mineral, LLP; Arlene Sax; Carol Dean Sax; Gary Sax; Glenn Sax; Laura J. Sax; Mark Sax; Patricia L. Sax; SKT Royalty, LLC; Merilyn Jean Smith; Sharon Smith; Smith Minerals, LLP; Sourcerock Exploration, LLC; Split Creek Enterprises, LLC; St. George Coal Co.; North Dakota Board of University and School Lands; Stewart Geological, Inc; Sue Johnston; Sukman Family Trust; Richard and Carol Sukman, Trustees; Sunshine Pacific Corp.; Three Horns Energy, LLC; Twin City Technical, LLC; Wild Basin Oil & Gas, LLC; Williams County North Dakota; United Energy Trading, LLC; Vincent Melashenko; Wild Basin Oil and Gas LLC; Wolfe Exploration; Wood River Investment Company, LLC; Zavanna, LLC; Zeneco IV, LLC; Slawson Exploration Company, Inc.; LGFE-J L.P.; LGFE-M L.P.; Mark Fliginger and JRB Investments, LLC, Defendants and Continental Resources, Inc.; Noble Royalties Access Fund XI; Noble Royalties Access Fund 12 LP; Mirada Energy, LLC; Orrion Energy, LLC; Slawson Exploration Company, Inc.; Split Creek Enterprises, LLC; Wild Basin Oil & Gas, LLC; Zavanna, LLC; Cody Oil & Gas Corporation; LGFE-M L.P.; LGFE-J L.P.; Abaco Energy, LLC; Brent Clum; David Peterson; Earthstone Energy, Inc.; Global Gas and Oil, LLC; Hill LP; JRB Investments, LLC; MBI Overrides, LLC; Missouri River Royalty Corporation; Rainbow Energy Marketing Corporation; REEF2011 Private Drilling Fund LP; SourceRock Exploration LP; Stewart Geological, Inc.; Sunshine Pacific Corp.; United Energy Trading, LLC; Vincent Melashenko; Wolfe Exploration; Benefit Fund of the McKenzie County Healthcare Systems; Altshule 1988 Trust; Herma C. Altshule and Joel Altshule, as Trustees of the Altshule 1988 Trust; C and M, LLC; Carla Dickerson; Diane Ehrlich; Pam Gunderson, successor-in-interest to David Gunderson; The Johnson Family Trust; John W. Johnston; Sue Johnston; Carol Kummer; Gayle A. Lysne Revocable Living Trust; Donald Maston; Donna Maston; John S. Murray; John Murray, as the personal representative of the Estate of Nancy A. Murray, deceased; Patricia A. Murray; John Murray, as the personal representative of the Estate of William S. Murray, deceased; Larry Nelson; Myrna Nelson; Daryl & Judy Rud Family Revocable Living Trust; Arlene Sax; Carol Dean Sax; Gary Sax; Glenn Sax; Mark Sax; Laura J. Sax; Patricia L. Sax; Sax Family Mineral, LLP; Smith Minerals, LLP; Sukman Family Trust; Richard and Carole Sukman, Trustees; and Wood River Investment Company, LLC, Appellees and North Dakota State Engineer, Interested Party and Statoil Oil & Gas LP, Plaintiff and Appellant v. 1280 Royalties, LLC; Altitude Minerals; American State Bank & Trust Co. of Williston, as Trustee of the Vern & Juanita Neff Mineral Trust; Amy Reep; Ann M. Dorwart; Ann Marie Aakhus and Edward Grundy Aakhus, as Successor Co-Trustee of Trust B-1979 Aakhus Family Trust; Ann Marie Aakhus; Arlie J. Skurdal; Ashley Mark Wollertson; B&F Oil and Gas, Inc.; Bell State Bank and Trust, as Trustee for the Bradley K. Brakke Family Trust; Bemidji State University Foundation; Boedecker Resources; Carl H. Oksol, as Trustee of the Carl H. Oksol Revocable Living Trust; Carlos R. Pierce and Jolynn C. Pierce, as Trustees of the Pierce Living Trust; Carolynne Jones; Carrie Ellen Levering; Ceanne Woodley Brunk; Charles L. Scofield; Charles N. Hawkins and Janet Hawkins, as Trustees of the Charles Hawkins Revocable Trust; Cheryl R. Plante; Chesapeake Mid-Continent Corp.; Christine C. Suny; Christopher Oman; Christopher Thomas Cantarine, as Trustee of the Christopher Thomas Cantarine Living Trust; Cirrus Minerals, LLC; Clifford E. Stewart; Concordia College Corporation; Continental Resources, Inc.; Crown Resources, LLC; Curtis Hancock; Curtis Kleppen; D.B. Young; Dale Donovan; Daniel H. Mott, M.D.; Daniel Sondreal; Darrel Grande; David Bergh; David James Lambert and Gayle Anne Lambert, as Trustees of the Lambert Family Trust; David L.G. Sondreal; Deann Johnson; Debbie S. Pickett; Deann Johnson; Debbie S. Pickett; Debra Erickson; Dennis J. Baber; Dennis L. Peltier; Dennis Sherlock; Dennis W. Yockim; Diamond Resources Co.; Diana G. Anderson; Diane L. Oman; Diane M. Clarkin; Donald J. Peterson; Donald K. Fisher; Donn Skadeland; Dorothy Bergh; Douglas I. Hoialmen; Dr. and Mrs. Williams O. Robertson; Durango, Inc.; Eileen Peltier; Elizabeth Cantarine, as Trustee of the Anthony Cantarine Revocable Trust Agreement; Elizabeth E. Kleppen; Elva M. Smith, as Trustee of the Hunter S. Smith and Elva M. Smith Family Mineral Trust; Ernest S. Dopp; Evan Skurdal; Family Tree Corporation; First National Bank & Trust Co. of Williston and Helen G. Anderson, as Co-Trustees of the Helen G. Anderson Trust; First National Bank & Trust Co. of Williston, as Trustee of the Hilda Noe Grandchildren Trust; Francis Peterson, Inc.; Fanklin L. Bergh; G3 Energy, LLC; Gary J. Peltier; Gary L. Brune; Gary R. Sukut; Gary S. Schwab; Gayle M. Coauette; Gregory A. Hauge; Harley Kleppen; Hurley Oil Properties, Inc.; Inga C. Dickson; Isabella M. Verretta; J. Cleo Thompson and James Cleo Thompson Jr., L.P.; James E. Messler, as Trustee of the James and Carolyn Messler Living Trust; James Peltier; James V. Lee; Jan Mary Burdick Hill; Janet Kondelis; Javo Oil and Gas Company; Jeannine Lavens; Jennifer Burdick; Jerald H. Stockman, as Trustee of the Stockman Family Minerals Trust Created by Trust Agreement; Jessica Burdick; Jill Sondreal Baker; Joann Wheeler; Jocelyn Birch Burdick, as Trustee of the JBB Trust; Jody L. Khan-Hauge; John C. Abbott and Sharon A. Abbott, as Trustees of the Abbott Family Trust; John M. Broschat; John R. Bergh; J.P. Furlong Co.; Joseph P. Furlong; Karen Martin; Kari R. Brakke Puckropp; Kathleen Johnson; Kathleen Wood Austin; Kathryn Martin; Keith L. Janssen; Kevin Ross Brekke; Kirk D. Martinez; Kristine L. Sathre; L. Mae Sukut; Larry R. Snyder and Sandra L. Snyder, as Joint Tenants; Lawrence D. Schram; Leah Sondreal; Leslie Hanson; Leslie R. Ellesson; Lester R. Sauvage, M.D.; Lewis Revocable Trust of September 21, 2007; Linda Brekke Johnson; Lisa Gunderson; Lois C. Zeigler, as Trustee Under the Last Will and Testament of Frederick H. Zeigler; Lori Fitzpatrick; Tristan Van De Streek; Luke D. Hauge; Lyle C. Jones, Jr.; Lynette M. Ellesson; M.C.M. Oil and Gas; Marc Washburn, as Successor Trustee of the Eva Claire Washburn Trust Agreement; Marcus D. Lee; Margaret E. Anderson; Margaret E. Smith, as Trustee of the Margaret E. Smith-Wiebenga Trust; Margret Tomlinson; Maria Dumba; Maridel Woodley Stout; Marilee Montgomery; Mario Skurdal; Marjorie A. Harp; Mark T. Hauge; Marlaine K. Evje; Martha M. Berlin; Mary A. Anderson; Mary Elizabeth Burdick Frizat; Maureen Larson; Maurice C. Bergh; Melissa Sherlock; Michael D. Brekke; Michael T. Fitzmaurice; Michele M. Baber; Michelle Peltier; Milnor J. Theige; Milton P. Reiersgord; MSBP Limited Partnership; Nancy Amiot; Noble Energy, Inc.; Nola F. Turner; North Dakota Rural Rehabilitation Corporation; Northland Royalty Corp.; Oasis Petroleum North America, LLC; Orville Walraven; Patrick Rabon; Patsy L. Wood; Powers Energy Corporation; R.D. Bakken; Rachel Sondreal Knodle; Rhoady Lee, Jr.; Richard B. Coughlin and Kristine C. Coughlin, as Trustees of the Coughlin Minerals Trust Created by Trust Agreement; Ricky Vance; Riverbend Bakken Partners, LLC; Robert C. Dyer; Robert D. Brekke; Robert E. Walstad; Robert Michael Montgomery; Robert R. Sundet and Beverly R. Sundet, as Trustees of the Sundet Family Trust; Robert William Burdick; Ronny M. Wollertson; Ross M. Harmon; Ruth E. Oksol, Kathleen K. Oksol, and Karla R. Osborn, as Co-Trustees of the Ruth E. Oksol Revocable Living Trust; Ruth Wood Sease; Sandra C. Metz; Sandra L. Pew; Schmitz Legacy, LLC; Scott Rabon; Selma N. Burdick, as Trustee of the Selma N. Burdick Revocable Trust; Shannon Joseph Wollertson; Sheri L. Baber; Shirley Bervig; Shirley L. Schwab, as Trustee of the Shirley L. Schwab Trust under Trust Agreement; SoloCorp; Stanford A. Reep; State of North Dakota, By and Through the Board of University and School Lands; Steven L. Brekke; Susan M. Hols; TDB Resources, LP; Teresa Bragg; The Bruegger Mercantile Company, or Its Successors in Interest; The Dublin Company; The Estate of Genevieve J. Youndale; The Estate of Joseph C. Brekke; The Estate of Marjorie J. Dickman; The Estate of Margret Brekke; The Estate of B.O. Brekke; The Estate of Raymond F. Brekke; The Estate of Roger T. Johnson; The Estate of Virginia J. Dopp; Thomas A. Cantarine and Elizabeth B. Cantarine, as Trustees of the Thomas and Elizabeth Cantarine Trust; Thomas A. Linder; Thomas Peltier; Timothy A. Brakke; Timothy Lovseth; Timothy R. Lee; Timothy R. Theige; Tod G. Maleckar; Upstream Oil LLC; Vantage Exploration, LLC; Vikki Scharmer; W North Fund III, LP; W.R. Sukut; Wallace L. Herreid and Virginia M. Herreid, as Joint Tenants; Wayne B. Brekke; Walter E. Johnson; Wesley C. Theige; Western Energy Corporation; Wild Horse Oil & Gas, Inc.; William A. Bergh; William F. Baber; Williams County, North Dakota; Yosefu K. Hauge; and all other persons unknown claiming any Estate or Interest In, or Lien or Encumbrance Upon, The Property Described Herein, Defendants and Continental Resources, Inc.; Noble Royalties Access Fund XI; Noble Royalties Access Fund 12 LP; Mirada Energy, LLC; Orrion Energy, LLC; Slawson Exploration Company, Inc.; Split Creek Enterprises, LLC; Wild Basin Oil & Gas, LLC; Zavanna, LLC; Cody Oil & Gas Corporation; LGFE-M L.P.; LGFE-JL.P., Appellees and North Dakota State Engineer, Intervenor.

Supreme Court of North Dakota.

Filed June 16, 2017.


Attorney(s) appearing for the Case

John E. Beerbower (argued), Ryan A. Shores , David A. Higbee (on brief), Washington, D.C. and Lyle W. Kirmis (on brief), Bismarck, N.D., for appellant and plaintiff Statoil Oil & Gas LP.

Michael D. Schoepf (argued) and Lawrence Bender (on brief), Bismarck, N.D., for defendants and appellees Continental Resources, Inc., Mirada Energy, LLC, Noble Royalties Access Fund XI OP, Noble Royalties Access Fund 12 LP, Orrion Energy LLC, Slawson Exploration Company, Inc., Split Creek Enterprises, Wild Basin Oil & Gas, LLC, Zavanna LLC, Zeneco IV, LLC.

Ariston E. Johnson , Watford City, N.D., for defendants and appellees Altshule 1988 Trust, Herman C. Altshule and Joel Altshule, as Trustees of the Altshule 1988 Trust, Benefit Fund of the McKenzie County Healthcare Systems, C and M, LLC, Carla Dickerson, Carol Dean Sax, Carol Kummer, Darrell and Judy Rud Family Revocable Living Trust, Diane Erlich, Donald Maston and Donna Maston, Gary Sax, Gayle A. Lysne Revocable Living Trust, Glenn Sax, John W. Johnston, John S. Murray, John S. Murray as the personal representative of the Estate of Nancy A. Murray, John Murray as the personal representative of the Estate of William S. Murray, Johnson Family Trust, Larry Nelson, Myrna Nelson, Pam Gunderson, successor in interest to David Gunderson, Patricia A. Murray, Richard and Carol Sukman, as Trustees of Sukman Family Trust, Arlene Sax, Laura Sax, Mark Sax, Patricia Sax, Sax Family Mineral, LLP, Smith Minerals, LLP, Sue Johnson, Wood River Investment Company.

Leona E. Filis and Devon H. Decker (on brief), Houston, Tex., for defendants and appellees Abaco Energy, LLC, Brent Clum, Cody Oil & Gas, Earthstone Energy, Inc., LGFE-J LP, LGFE-M LP, Global Gas & Oil, LLC, Hill LP, JRB Investments, LLC, MBI Oil & Gas, MBI Overrides, LLC, Vincent Melashenko, Missouri River Royalty, Northern Energy Corporation, David Peterson, Rainbow Energy Marketing Corporation, Reef 2011 Private Drilling Fund LP, Sourcerock Exploration, LLC, Stewart Geological, Inc., Sunshine Pacific Corp, United Energy Trading, LLC, Wolfe Exploration.


[¶ 1] Statoil Oil & Gas LP appeals from judgments dismissing without prejudice its actions against numerous defendants, seeking a determination of the proper distribution of oil and gas revenues from Williams and McKenzie County wells on land adjacent to the Missouri River and under Lake Sakakawea. We affirm, concluding...

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