Nygaard v. Continental Resources, Inc.

NEUMANN, Justice.

[¶ 1] Terrence W. Nygaard, Trustee of the Terrence W. Nygaard Trust (“Ny-gaard”), appealed from a judgment declaring an oil and gas lease held by Continental Resources, Inc. (“Continental”), is valid. Continental and Diamond Resources, Inc. (“Diamond”), cross-appealed from the denial of their claim for attorney fees. We conclude Diamond’s tender of a sight draft extended the lease, and Nygaard’s claim was not frivolous. We affirm.

[¶ 2] On January 4, 1995, Nygaard executed an oil and gas lease to Diamond for three years. Diamond paid the bonus consideration with a thirty-day…