989 F.3d 625
8th Cir.2021Background
- In 1980 the Arkansas Oil and Gas Commission authorized the Turner No. 1 Well, which produced gas from two separate formations: the Hale (via the casing zone) and the Viola (via the tubing zone); production from the two zones was metered separately and not to be commingled.
- Turner alleged in 2016 that the two zones had been commingled; the Commission ordered the well shut in for testing, which showed equalized pressures between the tubing and casing zones.
- XTO contends (supported by its geologist and reservoir engineer) that the Viola formation "watered out" around November 1982 and remained flooded through 2018, with a water column in the tubing above the Viola perforations, making post-1982 Viola production impossible.
- Turner sued in state court for breach of contract and conversion (claiming unpaid gas from the Viola); XTO removed to federal court and moved for summary judgment after discovery.
- Turner pointed to three items as creating a fact issue: a 1999 production spike, post-2001 equalized pressures, and 1996–1998 third-party pressure-test forms listing "Tubing" as the producing zone; XTO explained these as: (a) the 1999 spike could not have come from the tubing because tubing pressure was lower than pipeline pressure, (b) equalized pressures were explained by a hole in the tubing allowing casing gas into tubing, and (c) the third-party forms contained a typographical/error admission.
- The district court granted summary judgment for XTO; the Eighth Circuit affirmed, concluding Turner produced no admissible evidence that the Viola produced gas after 1982.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Viola Formation produced gas through the Turner No. 1 Well after 1982 | Turner: Equalized pressures (post-2001), the 1999 production spike, and Seagull test forms showing "Tubing" create a genuine dispute that Viola produced after 1982 | XTO: Expert evidence shows the Viola watered out in 1982 and remained flooded; pressure data and water column make post-1982 Viola production impossible; alternate explanations (hole in tubing, typographical errors) explain the disputed records | Court: No genuine dispute; record establishes Viola watered out in 1982 and Turner offered no contrary expert evidence to show post-1982 production |
| Whether the 1999 production spike indicates tubing/Viola production | Turner: Spike shows additional gas entering pipeline, implying tubing/Viola contribution | XTO: Tubing pressure was lower than pipeline pressure in 1999; gas cannot flow from lower to higher pressure without a compressor, so spike could not have come from tubing | Held for XTO: Spike does not create a triable issue because it is physically inconsistent with tubing as the source |
| Whether equalized pressures and Seagull test forms create triable issues | Turner: Equalized pressures and pressure-test notations support an inference that tubing/Viola was producing | XTO: Equalization is explained by a tubing hole allowing casing/Hale gas into tubing; Seagull forms contain a known error/typo and other entries show casing was tested | Held for XTO: These records, without contrary expert proof, are insufficient to defeat summary judgment |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary-judgment standard; mere scintilla of evidence insufficient)
- Dick v. Dickinson State Univ., 826 F.3d 1054 (Eighth Circuit standard of review for summary judgment)
- Sprenger v. Federal Home Loan Bank of Des Moines, 253 F.3d 1106 (nonmoving party entitled to reasonable inferences not based on speculation)
- P.H. v. School Dist. of Kansas City, 265 F.3d 653 (facts and inferences on summary judgment must be properly supported by the record)
- Williams v. Mannis, 889 F.3d 926 (nonmoving party must substantiate allegations with probative evidence to survive summary judgment)
- Barber v. C1 Truck Driver Training, LLC, 656 F.3d 782 (summary judgment survives where opposing evidence is speculation or conjecture)