Northern Oil and Gas, Inc. v. Moen, No. 14-3836 (8th Cir. 2015)
Annotate this CaseThis appeal stems from a dispute regarding the continued validity of an oil and gas lease covering land in Williams County, North Dakota. Appellants challenged the district court's grant of Northern Oil's and Limsco's motions for summary judgment. The court found Northern Oil and Limsco’s interpretation more persuasive and thus adopted their position that the Pugh clause in the lease divides the lease at PLSS-section boundaries. The court agreed with the district court that the lease remains valid because production from other areas in Section 3 maintains the lease as to the entire section and affirmed the judgment.
Court Description: Gruender, Author, with Loken and Melloy, Circuit Judges] Civil case - Oil and Gas law. The Pugh clause in the parties' lease divides the lease at Public land Survey System section boundaries; as a result, the lease remains valid because production from other areas in the section maintains the lease as to the entire section. [ December 09, 2015
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