Hunt Oil Co. v. Kerbaugh

283 N.W.2d 131
CourtNorth Dakota Supreme Court
DecidedAugust 22, 1979
DocketCiv. 9586
StatusPublished
Cited by30 cases

This text of 283 N.W.2d 131 (Hunt Oil Co. v. Kerbaugh) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunt Oil Co. v. Kerbaugh, 283 N.W.2d 131 (N.D. 1979).

Opinion

SAND, Justice.

Ivan and Shirley Kerbaugh appealed from an order of the district court enjoining them from interfering with geophysical explorations carried on over their property by the plaintiffs, Hunt Oil Co. and Williams Oil Co. The Kerbaughs asserted the oil companies do not have an unlimited right to conduct seismic exploration over their property and also that the record in this case was inadequate to grant the oil companies injunctive relief. We conditionally affirm.

This case involves geophysical exploration for oil and gas over approximately 1000 acres of land located in Williams County and owned by the Kerbaughs. The Ker-baughs acquired about 480 acres of this land in 1966 by way of a warranty deed which reserved in the grantor “. ALL of the minerals, including oil and gas, in and under or that may be produced and saved from said lands, together with the right of ingress and egress.” The Ker-baughs own the remaining land under a 1972 contract for deed which also reserved in the grantor all the minerals under the land, together “with such easement for ingress, egress and use of the surface which may be incidental or necessary to use such rights.”

The owners of the mineral estates in this case leased their oil and gas interests to Edward Mike Davis for a period of five years in 1974 and 1975, respectively. 1 Davis then conducted seismic exploration over the property in the early part of 1976. Ivan Kerbaugh testified that after the 1976 seismic activity, the flow from a spring which supplied water to his home and livestock, gradually decreased until it stopped in November 1976. Kerbaugh said he restored the flow of the spring, although at a reduced rate, at his own expense. Ivan also testified, that as a result of the 1976 exploration, open holes were left in his property, along with various types of debris.

In 1977, Davis assigned the oil and gas leases to Williams Exploration Co., 2 who subsequently assigned a share of the same leases to Hunt Oil Co. The following summer the oil companies contracted with Pa *134 cific West Exploration Co. to conduct seismic exploration activities over certain lands in Williams County, including the Kerbaugh property. Pacific West Exploration contacted Ivan Kerbaugh for permission to conduct the exploration, offering to pay $50 per hole plus additional amounts for damages to growing crops. Kerbaugh rejected the offer and counteroffered with a request of $200 per hole, plus $1 per rod of tracks on the land, a commitment to cement shut any holes, and a guarantee of continued water supply. Although Kerbaugh later reduced his requests, they were rejected by Pacific.

When surveying for the exploration started, Kerbaugh requested the surveyors to leave until an agreement was reached as to compensation for damages to his surface rights. The oil companies then filed a summons and complaint seeking temporary and permanent injunctive relief restraining the Kerbaughs from interfering with the oil companies in th,e exercise of their rights under the oil and gas lease. Three affidavits were filed in support of the requested relief.

On 22 August 1978, the district court issued an order to show cause why Ker-baugh should not be restrained from interfering with the oil companies and issued an ex parte temporary injunction. Upon issuance of the temporary injunction, Pacific West Exploration commenced the seismic activities. The Kerbaughs thereafter filed a motion to vacate the ex parte temporary injunction which was granted after a hearing held 28 August 1978. On 7 September 1978 the show cause hearing on the permanent injunction was held, after which the district court entered an order granting the restraint.

Kerbaughs appealed from the order contending the record was inadequate to grant injunctive relief, and that the oil companies did not have an unlimited right under the mineral leases to enter upon the Kerbaugh property for extensive exploration activities, particularly in light of prior harm to the Kerbaugh property from such activities.

The oil companies contended in their brief and in oral argument before this court, that because they have concluded their exploration activities, the issues presented in this case are moot and the appeal should therefore be dismissed.

We have stated that a party who makes a motion for the dismissal of an appeal has both the burden of presenting a record proving the necessary facts, as well as sustaining the grounds thereon. Verry v. Murphy, 163 N.W.2d 721, 726 (N.D.1968). In this case the oil companies did not file an affidavit setting forth as a fact that the exploration activity has been completed. In addition, the permanent injunction is not limited in time. Consequently, the court is without a means of ascertaining as a fact that the exploration activities over the Ker-baugh property have been completed. The oil companies have failed to present a record proving the necessary facts in support of their argument of mootness. Thus we must deny their motion to dismiss and reach the issues presented for our review by the Kerbaughs.

The Kerbaughs argued the oil companies did not have an unlimited right to conduct seismic exploration over the Kerbaugh property. 3 This court in Christman v. Emineth, 212 N.W.2d 543, 550, 70 A.L.R.3d 366 (N.D.1973), adopted the general rule set forth in 58 C.J.S. Mines and Minerals § 159b *135 as to the implied rights of the mineral estate owner:

“ * * unless the language of the conveyance repels such a construction, as a general rule a grant of mines or minerals gives to the owner of the minerals the incidental right of entering, occupying, and making such use of the surface lands as is reasonably necessary in exploring, mining, removing, and marketing the minerals * * *. The incidental right of entering, occupying, and making such use of the surface lands as is reasonably necessary exists in the case of a reservation of mineral rights as well as a grant.’ ”

We have also considered the rights of the lessee under the usual oil and gas lease. In Feland v. Placid Oil Co., 171 N.W.2d 829, 834 (N.D.1969), Chief Justice Teigen, speaking for the court, stated:

“Under a usual oil and gas lease, the lessee, in developing the leased premises, is entitled to use of the land reasonably necessary in producing the oil .
“ ‘Whether the express uses are set out or not, the mere granting of the lease creates and vests in the lessee the dominant estate in the surface of the land for the purposes of the lease; by implication it grants the lessee the use of the surface to the extent necessary to a full enjoyment of the grant. Without such use, the mineral estate obtained under the lease would be worthless. . . Texaco, Inc. v. Faris, 413 S.W.2d 147, 149 (Tex.Civ.App.1967).”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bang, et al. v. Continental Resources
2025 ND 131 (North Dakota Supreme Court, 2025)
Northwest Landowners Association v. State
2022 ND 150 (North Dakota Supreme Court, 2022)
Robert L. Andrews v. Antero Resources Corp. and Hall Drilling, Inc.
828 S.E.2d 858 (West Virginia Supreme Court, 2019)
Twin City Technical LLC v. Williams County
2019 ND 128 (North Dakota Supreme Court, 2019)
Krenz v. XTO Energy, Inc.
2017 ND 19 (North Dakota Supreme Court, 2017)
Woody Investment, LLC v. Sovereign Eagle, LLC
2015 NMCA 111 (New Mexico Court of Appeals, 2015)
Mosser v. Denbury Resources, Inc.
112 F. Supp. 3d 906 (D. North Dakota, 2015)
Fisher v. Continental Resources, Inc.
49 F. Supp. 3d 637 (D. North Dakota, 2014)
BTU Western Resources, Inc. v. Berenergy Corp.
31 F. Supp. 3d 1346 (D. Wyoming, 2014)
Sagebrush Resources, LLC v. Peterson
2014 ND 3 (North Dakota Supreme Court, 2014)
Kartch v. EOG Resources, Inc.
845 F. Supp. 2d 995 (D. North Dakota, 2012)
Hayes v. A.J. Associates, Inc.
960 P.2d 556 (Alaska Supreme Court, 1998)
Duncan Energy Co. v. United States Forest Service
50 F.3d 584 (Eighth Circuit, 1995)
Norken Corp. v. McGahan
823 P.2d 622 (Alaska Supreme Court, 1991)
Knife River Coal Mining Co. v. Neuberger
466 N.W.2d 606 (North Dakota Supreme Court, 1991)
Amoco Production Co. v. Carter Farms Co.
703 P.2d 894 (New Mexico Supreme Court, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
283 N.W.2d 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-oil-co-v-kerbaugh-nd-1979.