Grynberg Petroleum Co. v. Evergreen Energy Partners, LLC

485 F. Supp. 2d 1217, 2007 U.S. Dist. LEXIS 32649, 2007 WL 1279491
CourtDistrict Court, D. Colorado
DecidedMay 2, 2007
DocketCivil Action 06-cv-02352-EWN-MEH
StatusPublished
Cited by3 cases

This text of 485 F. Supp. 2d 1217 (Grynberg Petroleum Co. v. Evergreen Energy Partners, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grynberg Petroleum Co. v. Evergreen Energy Partners, LLC, 485 F. Supp. 2d 1217, 2007 U.S. Dist. LEXIS 32649, 2007 WL 1279491 (D. Colo. 2007).

Opinion

ORDER AND MEMORANDUM OF DECISION

NOTTINGHAM, District Judge.

This is a contract case. Plaintiff Gryn-berg Petroleum Company brings suit against Defendant Evergreen Energy Partners, LLC (“Defendant Evergreen”), Defendant David M. Reavis (“Defendant Reavis”), and John Doe Defendants, alleging Defendants failed to satisfy various contractual obligations relating to a natural gas deposit. This matter is before the court on “Defendant Evergreen Energy Partners, LLC’s Motion to Dismiss,” filed November 22, 2006. Jurisdiction is premised upon diversity of citizenship, 28 U.S.C. § 1332.

FACTS

1. Procedural History

On or about September 18, 2006, Plaintiff filed this action in state court in Denver, Colorado. (Notice of Removal, Ex. A [Compl.] [filed Nov. 11, 2006] [hereinafter “Notice of Removal”].) 1 Plaintiff alleged two claims for breach of contract: (1) breach of a January 24, 1980 Seismic Option and Farmout Agreement (the “Farm-out Agreement”) between Plaintiff and the Superior Oil Company (“Superior Oil”); and (2) breach of a related Operating Agreement between the same parties. (See Compl. ¶ 5, Ex. A [Farmout Agreement].) Plaintiff alleges that Defendants, as successors-in-interest to the rights of Superior Oil under both agreements, breached the agreements by failing to develop the underlying properties, refusing to reimburse Plaintiff for rentals and shut-in royalties, and by failing to obtain production from an underlying natural gas well. (Id. at 1-2.) Plaintiff asserts it is entitled to: (1) terminate both agreements; and (2) receive reimbursement and interest on rentals, shut-in royalties, and other costs it incurred in fulfilling its obligations under the agreements. (Id. ¶¶ 16, 20.)

On November 22, 2006, Defendant Evergreen removed the action to this court. (Notice of Removal.) On the same day, Defendant Evergreen filed a motion to dismiss, arguing: (1) the court lacks personal jurisdiction over Defendant Evergreen; and (2) as neither Plaintiff nor Defendant Evergreen are parties to the *1220 Farmout Agreement, the complaint fails to state a claim. (Def. Evei-green Energy-Partners, LLC’s Mot. to Dismiss [filed Nov. 22, 2006] [hereinafter “Def. Evergreen’s Br.”].) On December 1, 2006, Defendant Reavis joined in removal of the case and the motion to dismiss, arguing: (1) the court lacks personal jurisdiction over Defendant Reavis; and (2) no contract exists between Plaintiff and Defendant Reavis. (Def. David M. Reavis’s Joinder in Removal, Rule 12[b][2] Mot. to Dismiss for Lack of Personal Jurisdiction, and Rule 12[b][6] Mot. to Dismiss for Failure to State a Claim [filed Dec. 1, 2006] [hereinafter “Def. Reavis’ Br.”].) On December 12, 2006, Plaintiff filed a combined response. (Pl.’s Combined Resp. to Defs.’ [sic] Evergreen Energy Partners, LLC’s and David M. Reavis’ Mots, to Dismiss [filed Dec. 12, 2006] [hereinafter “Pl.’s Resp.”].) On December 27, 2006, Defendant Reavis replied. (Def. David M. Reav-is’ Reply to PL’s Resp. to Reavis’ Rule 12[b][2] Mot. to Dismiss for Lack of Personal Jurisdiction and Rule 12[b][6] Mot. to Dismiss for Failure to State a Claim [filed Dec. 27, 2006] [hereinafter “Def. Reavis’ Reply”].) On January 11, 2007, Defendant Evergreen filed its reply. (Def. Evergreen Energy Partners, LLC’s Reply to PL’s Resp. to Mot. to Dismiss [filed Jan. 11, 2007] [hereinafter “Def. Evergreen’s Reply”].) This matter is fully briefed.

On March 30, 2007, Defendant Reavis filed a motion requesting that the court hold oral argument on the motion to dismiss. (Def. David M. Reavis’ Mot. for Oral Argument on His Rule 12[b][2] Mot. to Dismiss for Lack of Personal Jurisdiction, and Rule 12[b][6] Mot. to Dismiss for Failure to State a Claim [filed Mar. 30, 2007].) On April 5, 2007, Plaintiff responded. (PL’s Opp’n to Def. David M. Reavis’ Mot. for Oral Argument [filed Apr. 5, 2007].) A reply has yet to be filed.

2. Factual Background

The following facts are taken from Plaintiffs complaint and the parties’ affidavit submissions in connection with the motion to dismiss. Although the court is required to construe conflicting affidavits in Plaintiffs favor, see Wenz v. Memory Crystal, 55 F.3d 1503,1505 (10th Cir.1995), I present conflicting affidavit accounts to the extent necessary to frame the parties’ legal arguments.

a. General Jurisdictional Facts and Allegations

Plaintiff is an oil and gas company that maintains its principal place of business in Greenwood Village, Colorado. (Comply 1.) Defendant Evergreen is an energy company that maintains its principal place of business in Houston, Texas. (Id. ¶ 2.) Defendant Reavis is an individual who resides in Portland, Texas. (Id. ¶ 3.)

Defendant Evergreen does not, and never has, maintained an office in Colorado, nor has it ever had employees in Colorado. (Def. Evergreen’s Reply, Ex. 4 ¶ 4 [Korne-gay Aff.].) Defendant Evergreen is not registered with the Colorado Secretary of State’s office, nor has it ever applied to conduct business in Colorado. (Id., Ex. 4 ¶ 3 [Kornegay Aff.].) Defendant Evergreen neither owns property nor holds leases in Colorado. (Id., Ex. 4 ¶ 5 [Kornegay Aff.].) Defendant Evergreen does not advertise in Colorado. (Id., Ex. 4 ¶ 6 [Kornegay Aff.].)

Defendant Reavis has never resided in Colorado. (Def. Reavis’ Reply, Ex. A ¶ 3 [Reavis Aff.].) Defendant Reavis has never: (1) had a telephone listing or mailing address in Colorado; or (2) had any bank accounts in Colorado. (Id., Ex. A ¶¶ 5, 6 [Reavis Aff.].) In the past ten years, Defendant Reavis has not: (1) appointed a Colorado resident agent for service of process; (2) conducted any business in Colorado; (3) owned, leased, rented, operated, *1221 or maintained any real property in Colorado; or (4) owned any tangible personal property in Colorado. (Id., Ex. A ¶¶ 4, 8-10 [Reavis Aff.].)

b. Facts and Allegations Relating to the Farmout Agreement

The Farmout Agreement was negotiated and signed in Denver, Colorado in 1980. (Compl. ¶ 5; Pl.’s Resp., Ex. A ¶ 2 [Gryn-berg Aff.].) The Farmout Agreement is an agreement “by and between THE SUPERIOR OIL COMPANY ... and CELESTE C. GRYNBERG.” 2 (Compl., Ex. A at 1 [Farmout Agreement].) At the time the agreement was executed, both parties were Colorado residents. (Id.) In the Farmout Agreement, Plaintiff and Superi- or Oil allocated certain rights and responsibilities relating to twenty-five federal oil and gas leases. (Id. ¶¶ 7-8; Pl.’s Resp., Ex. A ¶ 3 [Grynberg Aff.].) Twenty-two of the leases are located in Utah, and the other three are in Colorado. (Id., Ex. A ¶ 3 [Grynberg Aff.].) Plaintiff neglects to state the location of the lease at issue in this case. (See Compl.; Pl.’s Resp.)

According to Plaintiff, Defendants are the successors-in-interest of Superior Oil’s rights

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Bluebook (online)
485 F. Supp. 2d 1217, 2007 U.S. Dist. LEXIS 32649, 2007 WL 1279491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grynberg-petroleum-co-v-evergreen-energy-partners-llc-cod-2007.