Lario Oil and Gas Company v. EOG Resources, Inc.
2013 ND 98
| N.D. | 2013Background
- In 2004, riparian landowners leased land to Context Energy, which assigned these leases to EOG; White Lake was treated as navigable, suggesting mineral rights under the lake belonged to the State.
- In 2005 the ND Attorney General memo suggested White Lake may not have been navigable at statehood, impacting ownership of under-lake minerals.
- In 2008 Lang & Co. leased the same lands beneath White Lake to Lang, which assigned these leases to Lario; Lang’s leases described only the land beneath the lake bed.
- In 2009 the State disclaimed ownership of land beneath White Lake, including minerals; EOG tendered bonus for the wet acres which lessors refused.
- In 2010 Lario filed suit seeking a judgment validating its Lang leases and quieting title to the oil and gas under White Lake; EOG cross-moved for summary judgment.
- The district court granted Lario summary judgment, holding that the Lang leases failed to describe wet acres and quieting title in Lario; the appellate court reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do the 2004 leases include the wet acres under White Lake? | Lario contends the wet acres were not conveyed due to the specific land description and lack of explicit wet-acre language. | EOG contends the leases conveyed the entire mineral interest including wet acres, despite dry-acre notation. | Yes; EOG possessed the wet acres. |
| Should Mother Hubbard clauses affect the outcome? | Lario argues the clauses broaden the description to cover adjoining land not specifically described. | EOG argues clauses are not controlling given the express wet-acre conveyance. | Not reached. |
Key Cases Cited
- Hild v. Johnson, 2006 ND 217 (ND 2006) (specific description controls over acreage; not navigability for title)
- Brigham Oil and Gas, L.P. v. Lario Oil & Gas Co., 2011 ND 154 (ND 2011) (summary judgment standards; contract interpretation guides)
- Irish Oil and Gas, Inc. v. Riemer, 2011 ND 22 (ND 2011) (contractual interpretation of oil and gas leases)
