Senterra Limited v. Rice Drilling D, LLC, et al.

CourtDistrict Court, S.D. Ohio
DecidedOctober 20, 2025
Docket2:24-cv-03181
StatusUnknown

This text of Senterra Limited v. Rice Drilling D, LLC, et al. (Senterra Limited v. Rice Drilling D, LLC, et al.) 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
Senterra Limited v. Rice Drilling D, LLC, et al., (S.D. Ohio 2025).

Opinion

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

SENTERRA LIMITED,

Plaintiff,

v. Civil Action 2:24-cv-3181

Magistrate Judge Kimberly A. Jolson

RICE DRILLING D, LLC, et al.,

Defendants.

OPINION AND ORDER

Defendants’ Motion for Partial Judgment on the Pleadings is before the Court. (Doc. 42). For the following reasons, the Motion is DENIED. I. BACKGROUND This case concerns oil wells. Plaintiff Senterra Limited, LLC (“Senterra”) filed the action in the Belmont County Court of Common Pleas, and Defendants Rice Drilling D, LLC (“Rice”), EQT Production Company (“EQT”), and Gulfport Energy Corporation (“Gulfport”) quickly removed the case to federal court. (Doc. 1). The parties since consented to the jurisdiction of the Magistrate Judge under 28 U.S.C. § 636(c). (Docs. 33, 37). As alleged, Senterra owns two parcels of land in Belmont County, Ohio. (Doc. 22-1 at ¶ 29). In November 2012, Senterra entered into an oil and gas lease with Rice concerning those parcels (“the Lease”). (Id. at ¶¶ 31, 50; see also id. at 30–36 (memoranda of the lease)). Senterra alleges EQT and Gulfport also own a portion of the working interest in the Lease. (Id. at 32–33). As for Gulfport, Senterra says it and Rice entered into a joint venture agreement allowing Gulfport the right to drill a horizontal well under the Lease. (Id. at ¶ 59). And EQT allegedly owns all or a portion of Rice or has “some other agreement with” Gulfport resulting in an interest in the wells at issue. (Id. at ¶ 60). According to Senterra, the Lease permits Defendants to develop oil and gas minerals from two subsurface formations, the Marcellus Shale and the Utica Shale. But Senterra reserved its oil

and mineral rights for all other formations, including the Point Pleasant. (Id. at ¶ 51; see also id. at ¶ 72). Under the Lease, from December 2016 to January 2017 Defendants drilled three horizontal wells―Bigfoot Well #6, Bigfoot Well #8, and Bigfoot Well #10 (“the Wells”) on Senterra’s property. (Id. at ¶ 56). But in doing so, the Complaint alleges that the Wells impermissibly invaded the Point Pleasant formation. And because the Lease did not grant Defendants the authority to drill into or produce oil, natural gas, or other hydrocarbons from that formation, Defendants illegally produced and removed products from Senterra’s property. (Id. at ¶¶ 50–51, 63–69, 71). For these alleged Lease violations, Senterra brings claims for trespass, conversion, and unjust enrichment. (Id. at 86–117 (also asserting a claim for fees under the Lease’s indemnity clause)).

“In alternative to the other Counts,” Senterra’s Complaint asserts that Defendants Rice and EQT have not made proper royalty payments for the “gas, oil, and any other salable materials produced from the Wells at the prevailing price” in breach of the Lease. (Id. at ¶¶ 118–123). Because EQT “has been using the incorrect ownership decimal interest” for Senterra’s interests in the oil and gas rights, EQT owes Senterra “at least” $750,051.05 in back royalties. (Id. at 124– 129). Senterra also seeks a declaratory judgment (id. at ¶¶ 74–85), and damages (id. at 22–23). Several weeks after the Court partially granted Defendants’ motion to dismiss, Defendants filed a motion for partial judgment on the pleadings. (Doc. 42; see also Doc. 31 at 1–2 (dismissing Senterra’s unjust enrichment claim to the extent it seeks recovery for losses before May 16, 2018, and Senterra’s breach of contract claim for any underpaid royalties before May 16, 2020)). According to them, Senterra’s claims for trespass, conversion, and unjust enrichment are impermissible collateral attacks on drilling permits issued by the Ohio Department of Natural Resources (“ODNR”). (Doc. 42). Defendants’ Motion is fully briefed and ready for consideration.

(Docs. 43, 44). II. STANDARD The Federal Rules of Civil Procedure provide that, “after the pleadings are closed—but early enough not to delay trial—a party may move for judgment on the pleadings.” Fed. R. Civ. P. 12(c). “Judgment may be granted under Rule 12(c) where the moving parties clearly establish that no material issue of fact remains to be resolved and that they are entitled to judgment as a matter of law.” Williamson v. Recovery Ltd. P’ship, No. 2:06-cv-292, 2010 WL 3769136, at *2 (S.D. Ohio Sept. 24, 2010) (citations omitted). In examining a Rule 12(c) motion, the Court uses the same standard of review applied to a Rule 12(b)(6) motion to dismiss for failure to state a claim. Mixon v. State of Ohio, 193 F.3d 389, 399–400 (6th Cir. 1999). As such, the Court “must

construe the complaint in a light most favorable to plaintiffs, accept all well-pled factual allegations as true, and determine whether plaintiffs undoubtedly can prove no set of facts in support of those allegations that would entitle them to relief.” Bishop v. Lucent Tech., Inc., 520 F.3d 516, 519 (6th Cir. 2008) (citing Harbin-Bey v. Rutter, 420 F.3d 571, 575 (6th Cir. 2005)). While the Court’s view on a Rule 12 motion is typically limited to the pleadings, Bates v. Green Farms Condo. Ass’n, 958 F.3d 470, 483 (6th Cir. 2020), the Court may consider written instruments attached to the pleadings. See Smith v. City of Barberton, No. 1:20-cv-584, 2021 WL 752595, at *3 (N.D. Ohio Feb. 26, 2021). If “matters outside the pleadings are presented to and not excluded by the court, the Rule 12(c) motion then “must be treated as one for summary judgment under Rule 56. Fed. R. Civ. P. 12(d). III. DISCUSSION As noted, Defendants move for an order granting them judgment on the pleadings for

Senterra’s trespass, conversion, and unjust enrichment claims. (Doc. 42). They argue that the claims are impermissible collateral attacks on valid permits issued by ODNR that authorize them “to produce hydrocarbons from the Point Pleasant [formation] beneath unitized properties.” (Id. at 3, 8–12). The Court first addresses whether it can consider the ODNR permits before turning to the merits. A. Consideration of the ODNR Well Permits As a threshold issue, Defendants’ Motion requests that the Court consider certain permits issued by ODNR’s Division of Oil and Gas Resource Management. (Doc. 42). The three permits, which Defendants attached to their Motion, purportedly granted Rice permission to drill a well in the location of Bigfoot Wells #6, #8, and #10. (Doc. 42-1 at 2 (permit to “drill new well,

horizontally” for the purpose of “oil and gas” from “Utica thru Point Pleasant” under the lease and well name Bigfoot #6 between October 5, 2016 and October 5, 2018), 3 (permit to “drill new well, horizontally” for the purpose of “oil and gas” from “Utica thru Point Pleasant” under the lease and well name Bigfoot #8 between October 1, 2016 and October 1, 2018), 4 (permit to “drill new well” for “stratigraphic” purpose from “Utica thru Point Pleasant” under the lease and well name Bigfoot #10 between June 17, 2016 and June 18, 2018)). Senterra presents several arguments why the Court should pay the permits no mind.

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