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SOTRANA-TEXAS CORP. v. MOGEN

No. A1-81-209.

551 F.Supp. 433 (1982)

SOTRANA-TEXAS CORP., Plaintiff, v. Clinton A. MOGEN; Bernice H. Mogen; Alice M. Madson, Ronald J. Mogen; Evelyn Chapman; Fayette Oil & Gas Corp.; and Ferguson Oil and Gas Co., Inc., Defendants.

United States District Court, D. North Dakota, Southwestern Division.

As Amended January 7, 1983.

Attorney(s) appearing for the Case

Nilles, Hansen, Selbo, Magill & Davies, Ltd., Frank J. Magill, Fargo, N.D., for plaintiff.

Bjella, Neff, Rathert, Wahl & Eiken, Paul W. Jacobson, Williston, N.D., for Fayette Oil & Gas Corp.

Pearce, Anderson & Durick, William P. Pearce, Bismarck, N.D., for Ferguson Oil & Gas and Dome Petroleum Corp.

MEMORANDUM AND ORDER

VAN SICKLE, District Judge.

In this diversity action, plaintiff seeks judgment declaring that the Mogen federal oil production unit is valid. Defendants resist, arguing that the unit is invalid because it was formed in bad faith.

I. Background

On February 18, 1976, the Mogens executed three oil and gas leases, and on April 23, 1976, a fourth lease, all to Agri-Empire for five year terms. William Champion, an...

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