BILLINGS -- A federal lawsuit by a Wyoming energy company seeking to drill on a Montana ranch has been dismissed and re-filed in Montana state court.
U.S. District Judge Donald Molloy of Missoula dismissed the case Wednesday at the request of both parties after it was determined that the federal court did not have jurisdiction.
Pinnacle Gas Resources Inc. of Sheridan, Wyo., which sued Diamond Cross Ranch LLC, filed a similar lawsuit Monday in the state's 16th Judicial District in Rosebud County, said Billings attorney Chris Mangen, who represents Pinnacle.
A hearing had been set for Wednesday before District Judge Joe Hegel, but was canceled after Diamond Cross moved to have another judge appointed to the case.
Pinnacle is seeking a preliminary injunction to prevent Diamond Cross from denying access to mineral leases held by Pinnacle. Pinnacle has an oil and gas lease for private minerals on 10,316 acres of the southeastern Montana ranch; it says the lease will expire if it cannot begin drilling by Jan. 11.
The company said it provided Diamond Cross with notice as required by state law and a surface and damage agreement. The ranch's attorney said in court records that Pinnacle's paperwork did not meet the state's notification requirements.
Posted in State-and-regional on Thursday, January 3, 2008 12:00 am
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