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191945P.pdf 07/20/2020 Slawson Exploration Co., Inc. v. Nine Point Energy, LLC
U.S. Court of Appeals Case No: 19-1945
U.S. District Court for the District of North Dakota - Bismarck
[PUBLISHED] [Shepherd, Author, and Smith, Chief Judge, and Melloy, Circuit
Judge]
Civil case - Bankruptcy. Slawson and Nine Point's predecessor-in-interest
signed and oil and gas exploration agreement committing the
predecessor-in-interest to make a 10% payment towards the cost of
developing wells in which the predecessor-in-interest elected to
participate; when Nine Point filed bankruptcy, Slawson filed a proof of
claim for the 10% payments and argued they was not dischargeable because
the agreement was a covenant running with the land; the bankruptcy court
reserved the question and permitted Slawson to commence litigation to
resolve the issue; the district court did not err finding the obligation
did not run with the land under North Dakota law, as the obligation to
make the payment did not directly benefit the land; nor was the obligation
enforceable as an equitable servitude or a real property interest.