Summary 2009 WY 114

Summary of Decision issued September 15, 2009

Summaries are prepared by Law Librarians and are not official statements of the Wyoming Supreme Court.

Case Name: Stone v. Devon Energy Production Co., LP

Citation: 2009 WY 114

Docket Number: S-08-0267

Appeal from the District Court of Johnson County, the Honorable John G. Fenn, Judge.

Representing Appellants Stone and Loundagin: Stpehen R. Winship of Winship & Winship, PC, Casper, Wyoming.

Representing Appellees Devon Energy and Carpenter & Sons: Scott P. Klosterman of Williams, Porter, Day & Neville, PC, Casper, Wyoming.

Facts/Discussion: Stone and Loundagin assigned their operating rights under a state oil and gas lease to Devon and Carpenter. When Devon and Carpenter did not offer to reassign the operating rights to them six months before the lease expiration date, Stone and Loundagin filed an action against them for breach of contract, ejectment, trespass, conversion, an accounting and injunctive relief. In Stone I the Court held that the contract required Devon and Carpenter to make a reassignment offer six months before the lease expiration date but affirmed the partial summary judgment because it concluded Stone and Loundagin could not prove they suffered damages.
The Court considered whether the district court properly granted summary judgment for Devon and Carpenter on the claims for ejectment, specific performance, trespass, conversion, an accounting and injunctive relief. The record reflected that at the time the first summary judgment order was entered, the parties and the district court intended the order to be the final judgment. In Stone I the Court held that Devon breached the supplemental agreement when it did not make the reassignment offer by October 2, 2001. The Court further concluded that the lease never terminated and Devon retained the right to drill and produce the lands subject to the lease. Because Devon retained the right to drill and produce the lands, Stone and Loundagin could not show that they were entitled to possession of those lands or that Devon unlawfully kept them out of possession. The claims for trespass, conversion, specific performance or injunctive relief failed as well for the same reason.

Conclusion: Devon retained the right to drill and produce the lands so Stone and Loundagin could not show that they were entitled to possession of those lands or that Devon unlawfully kept them out of possession. The claims for trespass, conversion, specific performance or injunctive relief also failed for the same reason.

Affirmed.

J. Kite delivered the decision.

Link: http://tinyurl.com/psfh9h .

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