Hogan Thompson Schuelke Secures Win for Devon Energy Subsidiary in North Dakota Lease Dispute

Energy litigation firm Hogan Thompson Schuelke recently secured a win in the Eighth Circuit Court of Appeals on behalf of Grayson Mill Bakken, a subsidiary of Devon Energy, in an oil and gas lease termination dispute with MBI Oil and Gas (MBI). The dispute concerned a valuable oil and gas lease in the Bakken formation in McKenzie County, North Dakota.

The dispute, which began in 2022, centers around whether MBI’s 2013 oil and gas lease with Grayson Mill and Royalty Interests Partnership (Royalty) expired after its three-year term ended in 2016. MBI contended that its lease remained in effect due to ongoing production, although MBI never drilled a well nor produced any oil or gas from the “Calhoun Well” that was located on the leased premises.

Representing Grayson Mill, Hogan Thompson Schuelke argued that MBI’s lease was terminated and that its later-acquired lease was still valid, and as a result filed a counterclaim asserting causes of action for quiet title, declaratory judgment, and a statutory claim for failure to release a terminated lease. Along with co-defendant Royalty, represented by Norton Rose Fulbright, Grayson Mill successfully removed the case to federal court.

In April 2024, the U.S. District Court for the District of North Dakota issued three Motions for Summary Judgment in the matter. Hogan Thompson Schuelke won the summary judgment on behalf of Grayson Mill, and Grayson Mill successfully counterclaimed to quiet title to the acreage.

MBI appealed the district court’s summary judgment order to the Eighth Circuit Court of Appeals. Following oral argument by Hogan Thompson Schuelke and Norton Rose Fulbright, the Court issued its opinion affirming the district court’s ruling on July 25, 2025. The Court also agreed on the district court’s summary judgment terminating MBI’s lease and confirming the validity of Grayson Mill and Royalty’s lease.

Hogan Thompson Schuelke managing partner Christopher Hogan, partner James Schuelke and associate Hannah Warren represented Grayson Mill in the dispute. Senior counsel Will Moss of Norton Rose Fulbright served as co-counsel, representing Royalty.