EOG Resources, Inc. v. Lucky Land Management, LLC

134 F.4th 868
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 14, 2025
Docket24-3211
StatusPublished
Cited by15 cases

This text of 134 F.4th 868 (EOG Resources, Inc. v. Lucky Land Management, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EOG Resources, Inc. v. Lucky Land Management, LLC, 134 F.4th 868 (6th Cir. 2025).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 25a0092p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ EOG RESOURCES, INC., │ Plaintiff-Appellee, │ > No. 24-3211 │ v. │ │ LUCKY LAND MANAGEMENT, LLC, │ Defendant-Appellant. │ ┘

Appeal from the United States District Court for the Southern District of Ohio at Columbus. No. 2:23-cv-04232—Edmund A. Sargus Jr., District Judge.

Argued: February 5, 2025

Decided and Filed: April 14, 2025

Before:THAPAR, NALBANDIAN, and DAVIS, Circuit Judges

_________________

COUNSEL

ARGUED: Daniel P. Corcoran, THEISEN BROCK, Marietta, Ohio, for Appellant. Christopher J. Baronzzi, PORTER, WRIGHT, MORRIS & ARTHUR LLP, Columbus, Ohio, for Appellee. ON BRIEF: Daniel P. Corcoran, THEISEN BROCK, Marietta, Ohio, for Appellant. Christopher J. Baronzzi, Robert J. Karl, Kyle C. Gilliam, PORTER, WRIGHT, MORRIS & ARTHUR LLP, Columbus, Ohio, for Appellee.

OPINION _________________

NALBANDIAN, Circuit Judge. Lucky Land Management owns property in Ohio. EOG Resources has drilling rights to the oil and gas under that property. The two couldn’t agree on whether EOG’s rights to drill included the right to drill from Lucky Land’s surface out to No. 24-3211 EOG Res., Inc. v. Lucky Land Mgmt., LLC Page 2

adjacent properties as well. So EOG sued. EOG then asked the district court to grant a preliminary injunction letting the company access the land to cut down trees and start constructing drills. The district court did so, finding that EOG would probably succeed on the merits.

We disagree. Lucky Land has the better reading of oil-and-gas law; generally speaking, your leased drilling rights don’t let you use the land’s surface to drill into neighboring lands, too. What’s more, EOG wouldn’t have suffered any irreparable injury if it had to wait while the litigation progressed. And preliminary injunctions aren’t shortcuts to the merits—by preventing irreparable injuries, they simply preserve the court’s ability to issue meaningful final relief at the end of the case. So they aren’t appropriate when there’s no prospect of irreparable harm.

Because neither the merits nor the equitable considerations favored EOG, we reverse.

I.

Brian Lucky runs Lucky Land Management, which buys, develops, and flips real estate. In 2022, Lucky Land bought a 313-acre rural property in Ohio for $720,000. Brian worked to develop it into a deer hunting site, spending hundreds of thousands of dollars to build access roads through the land, construct an entrance gate, dam springs to create watering holes, plant special grasses, cut hunting trails, and develop food plots (cleared, planted areas meant to attract deer). He intended the food plots to be the property’s main attraction and a primary selling point for potential purchasers. He invested around $300,000 just to clear and develop the plots. Between the purchase price and the development costs, he put well over a million dollars into the land.

Title to the oil and gas below the property was severed from the rest of the estate in the 1950s. The then-owner conveyed the land but reserved the oil and gas as follows:

The Grantor . . . hereby excepts from the above described real estate and reserves unto itself, its successors and assigns, any and all oil, petroleum and natural gas, and all rents and royalties therefrom, and rights thereto, conveyed to or acquired by it under or by virtue of the above mentioned deed; together with the right to enter in and upon the above-described real estate and prospect for, drill, recover and remove the oil, petroleum and natural gas, and all necessary and proper rights No. 24-3211 EOG Res., Inc. v. Lucky Land Mgmt., LLC Page 3

in connection therewith; provided, however, that the rights herein excepted and reserved shall not be exercised in such manner as to interfere with the mining and removal of the coal in and under the above-described real estate.

R. 2-2, Severance Deeds, p.2–9, PageID 29–36. Today, EOG Resources has leased the rights to drill for the oil and gas from the original grantor’s successor-in-interest.

In early 2023, EOG approached Lucky Land about accessing the land to drill. The parties negotiated for months but could not agree on the scope of EOG’s drilling operations. Lucky Land had been aware of the severance but had envisioned the mineral-estate owner building conventional vertical drills on the surface. EOG, though, wanted to build modern, larger horizontal drills, and it wanted to use them to produce oil and gas from thousands of neighboring acres.

Vertical drills go straight down. Horizontal drills do more; they head down and then sideways, vastly increasing how much of an underground reservoir one drill can reach. 1 Williams & Meyers, Oil and Gas Law § 104, LexisNexis (database updated Nov. 2025). Horizontal drills are more efficient, since one can tap thousands of acres that would otherwise take many vertical drills to access.

A single horizontal drill pad, though, runs larger than a single vertical drill pad. So while a few larger horizontal drills take up less overall space than many vertical drills, one horizontal drill pad disrupts more space in the immediate area than one vertical pad does. See Joshua P. Fershee & S. Alex Shay, Horizontal Drilling, Vertical Problems: Property Law Challenges from the Marcellus Shale Boom, 49 J. Marshall L. Rev. 413, 416–17 (2015); R. 65, Hr’g Tr., p.101, PageID 1865 (EOG’s witness describing how one horizontal pad takes up 8.5 acres and a vertical one takes up roughly 2 acres). That’s why surface owners commonly resist horizontal drills, arguing that they unreasonably burden the land. Fershee & Shay, supra, at 417–18.

Lucky Land objected to EOG’s plan to use the deer-hunting property as a central hub from which to drill horizontally under adjoining lands. Brian Lucky testified that the horizontal pads—which EOG wanted to build around the food plots—would cause the land to lose about half its $1.5 million value and would “virtually bankrupt” his company. R. 65, Hr’g Tr., No. 24-3211 EOG Res., Inc. v. Lucky Land Mgmt., LLC Page 4

p.264–65, PageID 2028–29. So Lucky Land refused to let EOG onto the property to begin construction.

EOG sued. After a hearing, the district court preliminarily enjoined Lucky Land from keeping EOG out and had EOG pay Lucky Land $100,000 in “due regard” for the surface disruption. EOG Res., Inc. v. Lucky Land Mgmt., LLC, No. 2:23-cv-4232, 2024 WL 1193824, at *13 (S.D. Ohio Feb. 23, 2024).

The preliminary injunction also ordered the parties to negotiate over a viable location for the drilling sites. Id. EOG’s proposed horizontal drill pads would take up between 35 and 45 acres on the 313-acre property’s surface, and EOG insisted on building them around where the deer food plots sat (the property’s prime location, on a ridge high and dry above the wetlands). Lucky Land would not agree. It asked EOG to site the drills away from the food plots. The district court didn’t follow up or adjudicate where the drills would go, and EOG had the preliminary injunction in hand, so the company entered the property and began clearing trees around the food plots.

Lucky Land appealed. A motions panel granted a stay of the preliminary injunction pending appeal, but not before EOG deforested around 35 acres.

II.

To secure a preliminary injunction, a plaintiff “must establish that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the public interest.” Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008).

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Bluebook (online)
134 F.4th 868, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eog-resources-inc-v-lucky-land-management-llc-ca6-2025.