IN RE LUFF EXPLORATION CO.

No. 27147.

864 N.W.2d 4 (2015)

2015 S.D. 27

In the Matter of the Petition of LUFF EXPLORATION COMPANY, Denver, Colorado, for an Order Pooling All Interests in a Spacing Unit for the South Medicine Pole Hills Field Described as the E/2 of Section 33 and the W/2 of Section 34, Township 23 North, Range 4 East and the NW/4 of Section 3 and the NE/4 of Section 4, Township 22 North, Range 4 East, Harding County, South Dakota, and to Authorize the Recovery of Risk Compensation in Addition to the Pro Rata Share of Reasonable Actual Costs from the Interest of Any Lessee or Unleased Mineral Owner who Elects not to Participate in the Risk and Cost of Drilling and Completing a Well on Said Spacing Unit; and for Other Relief as the Board Deems Appropriate.

Supreme Court of South Dakota.

Decided May 6, 2015.


Attorney(s) appearing for the Case

Scott Sumner , Rapid City, South Dakota, Attorney for appellant Linda Golden.

John W. Morrison of Crowley Fleck, PLLP, Bismarck, North Dakota, and Brett M. Koenecke of May, Adam, Gerdes & Thompson, LLP, Pierre, South Dakota, Attorneys for appellee Luff Exploration Company.

Marty J. Jackley , Attorney General, Richard M. Williams , Assistant Attorney General, Pierre, South Dakota, Attorneys for appellee South Dakota Department of Environment and Natural Resources.


[¶ 1.] Linda Golden owned a mineral interest that was within a "spacing unit"1 in which Luff Exploration Company desired to drill for oil. Because Golden rejected Luff's offer to lease her mineral interest or participate in the cost of drilling, Luff petitioned...

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