E&P Laredo Oil Inc.’s subsidiary Lustre Oil Co. has settled a three-year lawsuit with Erehwon Oil & Gas LLC and A&S Minerals Development Co. LLC (ASMD), Laredo Oil said in a March 11 press release.
The confidential settlement agreement resolves a title dispute between the parties regarding mineral rights in Valley County, Montana, and includes an undisclosed cash amount.
The agreement “provides clear title to both parties regarding their mineral rights. I feel this settlement positively resets our relationship with ASMD and we look forward to working with ASMD as we develop our mineral rights in the area,” Mark See, chairman and CEO of Laredo Oil, said in the release.
The suit arose in February 2021 when Lustre filed a quiet title action to establish the company’s rights related to mineral leases in Valley County, according to Laredo Oil’s Securities and Exchange Commission filings.
Lustre also sought damages related to A&S to “improperly produce oil on the property subject to Lustre’s mineral leases,” regulatory filings show.
In June 2023, the Montana Seventeenth Judicial District Court granted the defendants’ motion to dismiss without addressing the merits of Lustre’s quiet title action.
Lustre appealed the decision to the Montana Supreme Court and on April 6, 2023, the court’s unanimous decision reversed the “District Court’s decision related to Lustre’s quiet title action and remanded the case to the District Court for further proceedings,” according to Laredo’s SEC filings.
Lustre filed an amended complaint in June 2023 with the district court to reopen the original suit with a different judge.
Recommended Reading
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Global Partners Buys Four Liquid Energy Terminals from Gulf Oil
2024-04-10 - Global Partners initially set out to buy five terminals from Gulf Oil but the purchase of a terminal in Portland was abandoned after antitrust concerns were raised by the FTC and the Maine attorney general.
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.
As ONEOK Digests Magellan, Sets Stage for More NGL Growth in 2024
2024-02-28 - ONEOK is continuing the integration of its newly acquired Magellan assets in 2024 as the company keeps an eye out for M&A opportunities and awaits regulatory approvals for certain projects.
IKAV and VTTI to Buy Majority Stake in Italy's Adriatic LNG Terminal
2024-03-27 - The closing of the deal to buy majority stake in the Adriatic LNG terminal by VTTI and IKAV is expected in the second half of the year.