10th Circuit Affirms Transfer of Bakken Shale Interest to Investors

DENVER - A federal circuit court has affirmed an order compelling the transfer of an overriding royalty interest in a tract of land atop the Bakken Shale formation in North Dakota from a gas exploration firm to an investor pursuant to their earlier settlement agreement. Roda Drilling Co., et al. v. Siegal, et al., No. 10-5139 (10th Cir.).

The 10th Circuit on Oct. 20 agreed with RoDa Drilling Co. that language in the earlier agreement mandates the transfer to RoDa of Palace Exploration Co.'s overriding royalty rights in lands that are currently assigned to another drilling company.

RoDa and Palace …