ULTRA RESOURCES, INC. v. HARTMAN

Nos. S-08-0258, S-08-0259, S-08-0260, S-08-0261, S-08-0262, S-08-0263, S-08-0264.

226 P.3d 889 (2010)

2010 WY 36

ULTRA RESOURCES, INC. a Wyoming corporation and Williams Production Rocky Mountain Co., a Delaware corporation, Appellants (Defendants), v. Doyle and Margaret M. HARTMAN, John H. Hendrix Corporation, Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook, Appellees (Plaintiffs). Arrowhead Resources (U.S.A.) Ltd., Appellant (Defendant), v. Doyle and Margaret M. Hartman, John H. Hendrix Corporation, Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook, Appellees (Plaintiffs). Lance Oil & Gas Company, a Delaware corporation, Appellant (Defendant), v. Doyle and Margaret M. Hartman, John H. Hendrix Corporation Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook, Appellees (Plaintiffs). Shell Rocky Mountain Production, LLC, a Delaware corporation and SWEPI, LP, a Delaware limited partnership, Appellants (Defendants), v. Doyle and Margaret M. Hartman, John H. Hendrix Corporation, Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook, Appellees (Plaintiffs). Doyle and Margaret M. Hartman, John H. Hendrix Corporation, Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook, Appellants (Plaintiffs), v. Ultra Resources, Inc., a Wyoming corporation, Shell Rocky Mountain Production, LLC, a Delaware corporation, Lance Oil & Gas Company, a Delaware corporation, SWEPI, LP, a Delaware limited partnership, Williams Production Rocky Mountain Co., a Delaware corporation, and Arrowhead Resources (U.S.A.) Ltd., Appellees (Defendants). Ultra Resources, Inc., a Wyoming corporation, Appellant (Defendant), v. Doyle and Margaret M. Hartman, John H. Hendrix Corporation, Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook, Appellees (Plaintiffs). Shell Rocky Mountain Production, LLC, a Delaware corporation, Appellant (Defendant), v. Doyle and Margaret M. Hartman, John H. Hendrix Corporation, Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook, Appellees (Plaintiffs).

Supreme Court of Wyoming.

March 23, 2010.


Attorney(s) appearing for the Case

Representing Ultra Resources, Inc. and Williams Production Rocky Mountain Co.: Douglas J. Mason of Mason & Mason, P.C., Pinedale, Wyoming; George W. Mueller of Burns, Wall, Smith and Mueller, P.C., Denver, Colorado. Argument by Mr. Mueller.

Representing Doyle and Margaret M. Hartman, John H. Hendrix Corporation, Michael L. Klein and Jeanne Klein, Ronnie H. Westbrook and Karen Westbrook: Michael J. Sullivan and John A. Masterson of Rothgerber, Johnson & Lyons, LLP, Casper, Wyoming; James M. Lyons and D. Elizabeth Wills of Rothgerber, Johnson & Lyons, LLP, Denver, Colorado; J.E. Gallegos and Michael J. Condon of Gallegos Law Firm, P.C., Santa Fe, New Mexico. Argument by Messrs. Sullivan and Gallegos.

Representing Arrowhead Resources (U.S.A.) Ltd.: Nancy D. Freudenthal of Davis & Cannon, LLP, Cheyenne, Wyoming; Rebecca Hitchcock Noecker of Beatty & Wozniak, P.C., Denver, Colorado. Argument by Ms. Freudenthal.

Representing Lance Oil & Gas Company, Inc.: Paul J. Hickey of Hickey & Evans, LLP, Cheyenne, Wyoming; David W. Stark and Ezekiel J. Williams of Faegre & Benson, LLP, Denver, Colorado. Argument by Mr. Hickey.

Representing Shell Rocky Mountain Production, LLC and SWEPI, LP: David B. Hooper of Hooper Law Offices, P.C., Riverton, Wyoming; Phillip D. Barber of Phillip D. Barber, P.C., Denver, Colorado. Argument by Mr. Barber.

Before VOIGT, C.J., and GOLDEN, HILL, KITE, and BURKE, JJ.


KITE, Justice.

[¶ 1] This case encompasses seven appeals and cross-appeals and involves seven plaintiffs and six defendants.1 The contest is over a net profits interest (NPI) granted by Malco Refineries, Inc., El Paso Natural Gas Company, and Continental Oil Company (referred to in the documents as "First Parties") to Novi Oil Company (Novi) in the 1950s. The NPI was consideration for Novi's assignment of certain oil and gas leases...

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