Jacobs Ranch Coal Co. v. Thunder Basin Coal Co., LLC

BURKE, Justice.

[¶ 1] Jacobs Ranch Coal Company (“Jacobs Ranch”) appeals the district court’s summary judgment decision that Thunder Basin Coal Company (“Thunder Basin”) is not liable for surface royalty payments in this case because the surface royalty at issue is not a covenant running with the land. The district court also denied Jacobs Ranch’s claims that it was entitled to indemnity from Thunder Basin. We will affirm the district court’s decision.

ISSUES

[¶ 2] Jacobs Ranch presents these issues:

1. Whether a surface royalty created when a coal company purchases the surface estate overlying…