Opinion ID: 172804
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: This case involves a dispute over which of two energy companies, Trans-Western Petroleum, Inc., or Wolverine Gas and Oil Corp., currently holds a valid oil and gas lease on a portion of land in Utah. Trans-Western asserts that it has a valid lease with a lease term beginning on August 17, 2004. Wolverine acknowledges that the primary term of its lease expired on August 17, 2004. However, Wolverine asserts that its placement of the lands covered by the lease into a unit  a group of separately leased lands covering a common supply of oil or gas  has extended the term of its lease. Both parties filed proceedings seeking declaratory judgments. The district judge held that Wolverine's lease permitted the inclusion of the lease lands in an exploratory unit. However, the district judge held that the unit's production allocation scheme failed to meet the unitization requirements of the lease and therefore the lease had expired on August 17, 2004. [1] In appeal No. 08-4120, Wolverine appeals the district judge's decision that the unit's production allocation scheme failed to meet the unitization requirements of Wolverine's lease. And in appeal No. 08-4121, Trans-Western appeals the district judge's decision that Wolverine's lease permits the inclusion of the lease lands in an exploratory unit. Having appellate jurisdiction under 28 U.S.C. § 1291, we hold that the production allocation scheme of the unit fails to meet the unambiguous requirements of Wolverine's lease, and that the lease expired by its terms on August 17, 2004. Accordingly, we AFFIRM in No. 08-4120, and DISMISS No. 08-4121 as moot.