Pirl v. Equinor USA Onshore Properties Inc.

CourtDistrict Court, S.D. Ohio
DecidedAugust 27, 2024
Docket2:22-cv-03854
StatusUnknown

This text of Pirl v. Equinor USA Onshore Properties Inc. (Pirl v. Equinor USA Onshore Properties Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pirl v. Equinor USA Onshore Properties Inc., (S.D. Ohio 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

PAMELA K. PIRL, et al.,

Plaintiffs,

v. Civil Action 2:22-cv-3854 Magistrate Judge Jolson

EQUINOR USA ONSHORE PROPERTIES INC.,

Defendant.

OPINION & ORDER

This matter is before the Court on the parties’ cross-motions for summary judgment. (Docs. 36, 37). For the following reasons, Defendant’s Motion for Summary Judgment is GRANTED (Doc. 36), and Plaintiffs’ Motion for Partial Summary Judgment is DENIED (Doc. 37). The Clerk is DIRECTED to enter judgment in favor of Defendant. I. BACKGROUND This case involves a contract dispute over the use of land. Plaintiffs Pamela and Shannon Pirl initiated this lawsuit against Defendant Equinor USA Onshore Properties Inc. (“Equinor”) in the Monroe County Court of Common Pleas. (See Doc. 1). Defendant then removed the case to federal court. (Id.). The parties subsequently consented to Magistrate Judge jurisdiction under 28 U.S.C. § 636(c). (Docs. 10, 11). Pamela Pirl owns about 146 acres of real property in Monroe County, Ohio. (See Doc. 31 at 23; Doc. 29-3 at 1). In 2012, Pamela and her husband Joseph Pirl, now deceased, entered into an oil, gas, and coalbed methane lease with Northwood Energy Corporation. (Doc. 31 at 19–20). At some point before June 2014, the lease was assigned to Equinor under its former name, Statoil USA Onshore Properties, Inc. (Doc. 29 at 37; see also Doc. 33 at 22). Under the lease, Equinor and the Pirls then negotiated a Surface Use and Damages Settlement Agreement (“SUA” or “the Agreement”) to facilitate Equinor’s construction of a well pad. (Doc. 29-3 (the SUA); see also Doc. 29-2 at 8 (addendum to Oil and Gas Lease detailing when Equinor needed written approval for the construction of a well pad)). The Pirls’ son,

Shannon, also participated in the SUA negotiations, but ultimately the SUA made no express mention of him, nor did he sign the agreement. (Doc. 29 at 32–33; 41–42; see generally Doc. 29- 3). The SUA provides: NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration paid by Operator to Surface Owner, the receipt and sufficiency of which are hereby acknowledged, Surface Owner does hereby grant, convey and assign to Operator the exclusive right to build, operate, and maintain a well pad, and appurtenant equipment and facilities (whether above or below the surface) upon the Lands, pipelines to transport gas, condensate, oil and any associated hydrocarbons from the well pad and other lands, temporary above- ground pipelines to transport water to and from the well pad or to other well pads in the area (see below), and the right of ingress and egress across the Lands, temporary storage for equipment that is in transport from one well pad to other well pads and further described and/or depicted, for informational purposes only, on the plat attached hereto as Exhibit “A” and made a part hereof by reference, subject to the following terms and conditions.

(Doc. 29-3 at 1 (defining Joseph R. Pirl and Pamela K. Pirl as “Surface Owner”; defining Statoil USA Onshore Properties, Inc. as “Operator”; defining the Pirls’ 146.063-acre tract of land as “the Lands”)). A topography plat titled “Surface Use Plans” is attached to the SUA as the above- referenced Exhibit A. (Id. at 1, 6). In addition to the 3.2 acre well pad, Exhibit A depicts topsoil stockpiles, filter fabric fence (“SFF”) lines, and the existing tree and property lines. (Id. at 6). Exhibit A also shows a site-boundary line, or the limit of disturbance (“LD”). (Id.). C.-L es—_E REY he 21S { ae Kp , ik Bare! | oe OD RN ot aura \\ : ee | Sx Lf eters \\ eat ia Si DSS nS SF SSR PS ISLA foc “| AOS vk ie SERS fa To | WYyae SS 2Ssss SS ULL

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“Exhibit A” In relevant part, the SUA also contains the following provisions: 8. FACILITIES. Operator shall not drill a well within SEVEN HUNDRED AND FIFTY feet (750’) of ary DWELLING HOUSE NOW ON THE PREMISES, OR NEARER THAN FIVE HUNDRED (500’) FEET OF ANY BUILDING NOW ON THE PREMISES without Surface Owner’s written consent. Surface Owner shall not erect any building or structure, or plant any trees within two hundred feet (200’) of a well or within twenty-five feet (25°) of a gathering line, pipeline, or other surface facility of Operator without Operator’s written consent . . . Operator agrees to confer with Surface Owner regarding the location of surface facilities before beginning construction. Operator shall maintain and reclaim all of Operator’s well sites, roads, easements and other facilities in accordance with normal industry practices, and shall reclaim all disturbed areas when required by and in accordance with all applicable legal requirements. 3s 2 3 15. New fences and relocated fences will be gated and locked and Surface Owner will be provided keys to said locks. 16. Pad site to be fenced. 17. Any existing fences, to be relocated, will be done with the approval of Surface Owner in order to protect cattle. 18. Stock piled top soil will be seeded and mulched to minimize run off. 19. Reclaimed area will be seeded with a good pasture mix agreed to by

Operator and Surface Owner.

20. At Operators [sic] sole expense, an area of approximately 8 acres of pasture will be fenced off for cattle grazing, said location shall be mutually agreed upon by Surface Owner and Operator but shall not be unreasonably withheld.

21. In the event above ground pipelines transect areas that are used for cattle grazing, Surface Owner and Operator shall mutually agree upon burying pertinent sections of said pipeline or building a temporary fence around pipelines in order to ensure safety of the cattle.

(Doc. 29-3 at 2–3). Equinor paid $73,000.00 upon execution of the SUA “for damages occasioned by Operator’s use of the surface of the Surface Owner’s property for its operations and as compensation for Surface Owner’s loss of use, crops, timber or other value occasioned by Operator’s use of the surface for the operations described [in the SUA].” (Id. at 1, ¶ 2). The amount was calculated by multiplying $5,000 by 14.6 acres, the total limit of disturbance depicted in Exhibit A. (Doc. 31 at 31–32; Doc. 29-3 at 6; see Doc. 29-2 at 8 (addendum to the oil and gas lease stating “Lessor will be compensated for the use of [] the surface on a per acre basis at the rate of $5,000.00 per acre utilized”)). The finalized SUA was executed on June 25, 2014, and Equinor finished construction of the site in February 2016. (Id.; see Doc. 29-5). An as-built survey depicts the ultimate coordinates and dimensions of the well pad, the fencing surrounding the pad and installed around the site, and the topsoil stockpile at the southern tip of the plat. (Id.). And the final limit of disturbance was 12.0 acres rather than 14.6 acres. (Doc. 35 at 77; Doc. 35-4 at 20 (fence line survey showing “well site limit of disturbance 12.0 acres”)).

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