United States Ex Rel. Wright v. Comstock Resources, Inc.

456 F. App'x 347
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 15, 2011
Docket10-40785
StatusUnpublished
Cited by2 cases

This text of 456 F. App'x 347 (United States Ex Rel. Wright v. Comstock Resources, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Ex Rel. Wright v. Comstock Resources, Inc., 456 F. App'x 347 (5th Cir. 2011).

Opinion

PER CURIAM: *

Mary Jo Kennard, Bradley Sloan Wright, and Elizabeth Ann Wright (collectively “Relators”) brought this qui tam action against Comstock Resources, Inc., and Comstock Oil & Gas, L.P., (collectively “Comstock”) alleging violations of the False Claims Act (“FCA”), 31 U.S.C. § 3729, et seq. The district court granted Comstock’s motion for summary judgment and denied Relators’ motion for partial summary judgment. Relators now appeal. For the reasons stated herein, we affirm.

I

This case concerns multiple state and federal mineral leases covering eleven different tracts of tribal lands of the Alabama and Coushatta Indian Tribes of Texas *349 (“Tribe”). As Lessee, Comstock possessed mineral rights under each of the tracts and claimed royalties on mineral production. Relators assert that, for various reasons, these leases were expired, invalid, or violated by Comstock’s trespass. According to Relators, the MMS-2014 forms, which Comstock was required to submit to the Government for determination of proper royalty amounts, were premised on these ineffective leases and therefore amounted to false claims under the FCA. The relevant facts, which the district court recited at length and which we now recite in brief, are best organized under the various tracts of land.

A federal agreement dated May 25, 1993, (“1993 Minerals Agreement”) covers Tract 1. The 1993 Minerals Agreement contains a “no surface occupancy” provision (“NSO provision”), which states that “the Lessee shall not conduct drilling operations or otherwise use the surface of the lands covered by this lease for any operations of any kind or nature.” Comstock’s predecessor in interest, Black Stone Oil Company (“BSOC”), nevertheless obtained the Tribe’s approval to drill Well No. 6 and Well No. 7 on Tract 1. Relators contend this violated the NSO provision and made Comstock a trespasser.

State of Texas leases cover Comstock’s operations on part of Tract 2 and Tracts 3 and 4, all of which had an original expiration date of April 1, 1989. On March 28, 1989, BSOC and the Tribe entered into a lease extension agreement which extended the primary terms of all three leases. The Department of Interior (“DOI”) subsequently approved the leases. However, title did not pass from the State to the Federal Government until August of 1989, and Relators contend that the Government had no authority to approve the lease extension agreement. Thus, Relators submit that the leases were not validly extended and expired by their own terms in 1989.

State leases originally covered part of Tract 2 and Tracts 5, 6, and 11, and Rela-tors asserted the expiration of these leases in their First Amended Complaint. Com-stock responded at the district court that, if the state leases did expire, its operations were nevertheless covered by a federal minerals agreement dated July 23, 1990, (“1990 Minerals Agreement”). Relators now contend that the 1990 Minerals Agreement also expired.

Lastly, State leases covered Tracts 7, 8, 9, and 10, all of which were set to expire in late 1982. Just before their expiration, the State executed an agreement pooling the various tracts of land into one unit. After the leases’ expiration dates, the Tribe and BSOC entered into a ratification agreement, declaring the leases in the pool as still in effect, even though they had, by their own terms, expired. The Government approved the ratification agreement. Relators now contend that, because the effective date of the ratification agreement predated the expiration of the leases covering Tracts 7 and 9, the ratification was ineffective as to these leases.

Relators originally filed this qui tam action in the District Court for the Eastern District of Texas, but a Multi-District Litigation Panel transferred the case to the District Court of Wyoming, which dismissed Relators’ claims for lack of subject-matter jurisdiction. On appeal, the Tenth Circuit reversed. The Wyoming district court subsequently remanded this case to the Eastern District of Texas, where Rela-tors moved for partial summary judgment that Comstock was a trespasser. Com-stock responded by moving for complete summary judgment. The district court granted Comstock’s motion and entered judgment against Relators, who now appeal.

*350 II

We review the district court’s summary judgment decisions de novo, applying the same standards as the district court. Burge v. Parish of St. Tammany, 187 F.3d 452, 465 (5th Cir.1999). Summary judgment is appropriate if “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R.Civ.P. 56(a). A dispute is “genuine” if the evidence is sufficient for a reasonable jury to return a verdict for the non-moving party. Hamilton v. Segue Software, Inc., 232 F.3d 473, 477 (5th Cir.2000). A fact issue is “material” if its resolution could affect the outcome of the action. Id. When reviewing summary judgment decisions, we construe all facts and inferences in the light most favorable to the non-moving party. Cooper Tire & Rubber Co. v. Farese, 423 F.3d 446, 454 (5th Cir.2005).

III

Initially, we must address Com-stock’s argument that we cannot dispose of this action without joining the Tribe as a party. Rule 19 of the Federal Rules of Civil Procedure mandates that a party must be joined if (1) “in that person’s absence, the court cannot accord complete relief among existing parties” or (2) “that person claims an interest relating to the subject of the action and is so situated that disposing of the action in the person’s absence may ... impair or impede the person’s ability to protect the interest” or “leave an existing party subject to a substantial risk of incurring double, multiple or otherwise inconsistent obligations because of the interest.” Fed.R.Civ.P. 19(a)(1). “Determining whether an entity is an indispensable party is a highly-practical, fact-based endeavor, and Federal Rule of Civil Procedure 19’s emphasis on careful examination of the facts means that a district court will ordinarily be in a better position to make a Rule 19 decision than a circuit court would be.” Hood ex rel. Miss. v. City of Memphis, Tenn., 570 F.3d 625, 628 (5th Cir.2009) (internal quotation marks and citation omitted).

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456 F. App'x 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-wright-v-comstock-resources-inc-ca5-2011.