PROPERTY – Oil and gas leases, pipelines, attorney fees: Holly Creek Production Corp. v. Rose (COA 3/27/2009)

Holly Creek Production Corp. v. Rose
2008-CA-000260
 03/27/2009
2009 WL 792722
Opinion by Judge Clayton; Judges Moore and Stumbo concurred.

The Court affirmed in part and reversed and remanded in part a judgment of the circuit court terminating an oil and gas lease.

The Court held that because there was no end date to the landowner’s option to request that pipelines be buried, appellant was required to bury the pipelines with the cost to be determined by the court and that because the lease must be enforced, it was not forfeited.

The Court then held that the trial court properly concluded that there was no genuine issue of material fact and that farm-tap amounts should be included in the calculation of royalties.

The Court finally held that the trial court did not abuse its discretion in dismissing a counterclaim for legal fees incurred to defend against appellee’s claim of trespass, as the action for trespass appeared to be brought in good faith.