Oklahoma Court of Civil Appeals | Oct. 19, 2022

Decisions

B&B BUCKLES PROPERTIES v. OIL PRODUCERS INC. OF KANSAS
2022 OK CIV APP 34
Case Number: 119137
Decided: 10/19/2021
Mandate Issued: 10/12/2022

¶1 Plaintiff B&B Buckles Properties, LLC (Buckles) appeals judgment following non-jury trial entered in favor of operator, Oil Producers, Inc. of Kansas (OPIK), and a group of lessees or working interest owners holding an interest in an oil and gas lease (collectively, Defendants). Below, Buckles contended that Defendants breached the implied covenant to further develop the Lease, to which Buckles was a successor in interest, by failing to drill a horizontal well and sought cancellation of the Lease. OPIK attempted to comply with Buckles’ demand. An operator dispute arose between OPIK and Defendant Midstates Petroleum Company which prevented a horizontal well from being drilled.1 Midstates acquired a working interest in the well after initiating that dispute.

¶2 The trial court found that Buckles did not establish that Defendants failed to act as a reasonably prudent operator, with the exception of Midstates, that Defendants were not liable for the breach, and that Buckles was not entitled to cancellation of the Lease, an order requiring a horizontal well be drilled, or money damages. Buckles appeals the trial court’s refusal to cancel the Lease. Alternatively, Buckles appeals an interlocutory minute order denying approval of a partial settlement between Buckles and a portion of the Defendants. Based on our review of the facts and applicable law, we affirm the trial court’s judgment of September 18, 2020. We dismiss Buckles’ appeal of denial of the motion to approve settlement for lack of an appealable order.

¶44 For the foregoing reasons, we affirm the trial court’s Judgment in favor of Defendants, dated September 18, 2020. We dismiss Buckles’ appeal of the denial of its joint motion to enforce a partial settlement agreement between it and Pate.


RUSHMORE LOAN MANAGEMENT SERVICES v. SOLORIO
2022 OK CIV APP 33
Case Number: 119697
Decided: 09/01/2022
Mandate Issued: 10/05/2022

¶1 Rushmore Loan Management Services, LLC (Rushmore) appeals a June 7, 2021 order granting Timothy K. Solorio’s (Solorio) motion for disbursement of surplus funds. Based on our review of the record and applicable law, we reverse the order and remand to the trial court with directions to hold an evidentiary hearing to determine the rights of Rushmore, Solorio, and any other claimant to the surplus funds.