293 P.3d 630
Idaho2012Background
- Bell Deed (1946) reserved all oil, gas, and minerals in the Bell Property to grantor(s).
- Dispute centers on whether the reservation includes geothermal resources.
- Plaintiffs (Ida-Therm’s predecessors) contend geothermal not included; Bedrock contends geothermal included.
- District court held mineral estate includes geothermal resources and granted Bedrock summary judgment.
- Ida-Therm appeals, arguing mineral language is ambiguous and geothermal is not included; court reverses.
- Judgment reversed; geothermal resources are not included; C.C. Mann’s successors own geothermal rights; costs awarded to Ida-Therm.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the Bell Deed reservation include geothermal resources? | Ida-Therm argues ‘mineral’ does not include geothermal. | Bedrock argues the reservation includes geothermal resources. | Geothermal resources not included; reservation ambiguous leading to grantor-favorable interpretation. |
| Is the term ‘mineral’ ambiguous, and how should it be interpreted? | Ambiguity exists; extrinsic evidence may illuminate intent. | Term is unambiguous and should be interpreted as severing mineral estate. | ‘Mineral’ is ambiguous; interpret narrowly in favor of the grantee (Ida-Therm) and construe against the grantor. |
Key Cases Cited
- C & G, Inc. v. Rule, 135 Idaho 763 (Idaho 2001) (ambiguous deed interpretation; canons of construction apply)
- Gardner v. Fliegel, 92 Idaho 767 (Idaho 1969) (shadow of ambiguity; parol evidence aiding intent)
- Latham v. Garner, 105 Idaho 854 (Idaho 1983) (easement language ambiguous; multiple reasonable interpretations)
- Kinney v. Keith, 128 P.3d 297 (Colo. App. 2005) (mineral term varies by jurisdiction; ambiguity depends on context)
- Northern Nat. Gas Co. v. Grounds, 441 F.2d 704 (10th Cir. 1971) (policy concerns and certainty in mineral definitions; forcefulness of definitions)
