Montana Supreme Court

Phoenix Capital v. Board of Oil & Gas

April 30, 20242024 MT 89

Summary

The Court affirmed the judgment upholding the Board’s forced pooling of Phoenix’s mineral interests and imposition of statutory risk penalties. It held that the operator’s good-faith attempts to obtain the predecessor owner’s voluntary participation satisfied the statutory requirement, and that the predecessor’s refusal bound the successor owner. The Court further held that the operator’s election letters were written demands and that penalties were warranted based on the predecessor’s actual refusal to participate, regardless of the timing of drilling. The Court did not address the cross-appeal because it affirmed on both issues.