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293 P.3d 630
Idaho
2012
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Background

  • 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)
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Case Details

Case Name: Ida-Therm, LLC v. Bedrock Geothermal, LLC
Court Name: Idaho Supreme Court
Date Published: Dec 20, 2012
Citations: 293 P.3d 630; 2012 WL 6621130; 154 Idaho 6; 2012 Ida. LEXIS 244; 39108
Docket Number: 39108
Court Abbreviation: Idaho
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    Ida-Therm, LLC v. Bedrock Geothermal, LLC, 293 P.3d 630