Reese Exploration, Inc., Plaintiff-Appellant/cross-Appellee v. Williams Natural Gas Company, Defendant-Appellee/cross-Appellant

BRORBY, Circuit Judge.

Reese Exploration (Reese) brought a diversity action against Williams Natural Gas (WNG) alleging that WNG negligently permitted gas from its underground storage formation to infiltrate an overlying formation from which Reese was attempting to recover oil. The escaped gas inhibited Reese’s oil recovery program. The district court found WNG negligent and awarded Reese Exploration compensatory damages, but denied injunctive and declaratory relief. Both parties appeal the decision. We consolidate the appeals and reverse the district court in part, holding WNG was not…