Oxy USA, Inc. v. Red Wing Oil

by
The Supreme Court affirmed the decision of the court of appeals that Alice King was the legal owner of minerals under a section of land that was the subject of this lawsuit (the Property) and that Luther Term Interest Holders could not establish the elements of adverse possession in this case.In 2009, Oxy USA, Inc. developed an oil and gas well on a unitized production unit of land that included the Property. While the well was not located on the Property, the owner of the minerals under the Property was entitled to receive royalties from the production. Oxy initiated this interpleader and quiet title action to determine the rightful legal owner of the minerals under the property. King owned the surface of the property and an undisputed one-half interest in the minerals. Luther Term Interest Holders, dozens of people and entities, claimed some fraction of the disputed one-half mineral interest. The district court granted summary judgment in favor of the Luther Term Interest Holders. The court of appeals reversed. The Supreme Court affirmed, holding that title in the disputed minerals must be quieted in favor of King. View "Oxy USA, Inc. v. Red Wing Oil" on Justia Law