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ELM RIDGE EXPLORATION CO., LLC v. ENGLE

Nos. 11-2192, 12-2017, 12-2109.

721 F.3d 1199 (2013)

ELM RIDGE EXPLORATION COMPANY, LLC, Plaintiff/Counterclaim Defendant-Appellee/Cross-Appellant, v. Fred ENGLE, Defendant/Counterclaimant/Third-Party Plaintiff-Appellant/Cross-Appellee, v. Central Resources, Inc., Third-Party Defendant-Appellee, and Giant Exploration and Production Company, Third-Party Defendant.

United States Court of Appeals, Tenth Circuit.

July 9, 2013.

Attorney(s) appearing for the Case

Michael Newell (Lewis C. Cox, III, with him on the briefs), Heidel, Samberson, Newell, Cox & McMahon, Lovington, NM, appearing for Appellant/Cross-Appellee Fred Engle.

William E. Zimsky, Abadie & Schill, PC, Durango, CO, appearing for Appellee Central Resources, Inc., and Appellee/Cross-Appellant Elm Ridge Exploration Company, LLC.

Before LUCERO, MURPHY, and MATHESON, Circuit Judges.

MATHESON, Circuit Judge.

This case concerns a dispute between Elm Ridge Exploration Company, LLC ("Elm Ridge"), the operator of certain oil and gas leases in New Mexico, and Fred Engle, the majority owner of the leases. An operating agreement (the "Operating Agreement" or "Agreement") governs their relationship. Elm Ridge seeks to recover costs it incurred in drilling a well on the leasehold property (the West Bisti 22-1T well or "1T" well). Mr. Engle contends, among...

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