IN THE DISTRICT COURT OF COAL COUNTY
STATE OF OKLAHOMA
OKLAHOMA ENERGY ADVISORS PLLC;
Plaintiff,
v.
CANYON CREEK ENERGY OPERATING, LLC AND CANYON CREEK ENERGY-ARKOMA, LLC,
Defendants.
Case No. CJ-20-8
PETITION
COMES NOW the Plaintiff, OKLAHOMA ENERGY ADVISORS PLLC, and hereby submits its Petition against the above-named Defendants, CANYON CREEK ENERGY OPERATING, LLC and CANYON CREEK ENERGY-ARKOMA, LLC.
In support of its Petition, the Plaintiff hereby alleges, and states as follows:
PARTIES, JURISDICTION, AND VENUE
1. Plaintiff, OKLAHOMA ENERGY ADVISORS PLLC, referred to herein as “Plaintiff” or “OEA,” is an oil and gas law firm organized as a Professional Limited Liability Company authorized to do business in the State of Oklahoma situate in Oklahoma County, Oklahoma.
2. CANYON CREEK ENERGY OPERATING, LLC and CANYON CREEK ENERGY-ARKOMA, LLC, collectively referred to herein as “Defendants” or “Canyon,” are Limited Liability Companies engaged in the oil and gas production and exploration business.
Defendants are authorized to do business in the State of Oklahoma, and are situate in Tulsa County, Oklahoma.
3. The Bills 1-30E well also known as the Bills 1-29/32H well API # 35-029-21381 is a horizontal oil and gas well ("Well" or "the Well") with a surface location in Section 30-2N-9EIM and a wellbore location in Sections 29-2N-9EIM and 32-2N-9EIM, all in Coal County, State of Oklahoma.
4. Plaintiff filed Oil and Gas Well Liens ("Liens" or "the Liens") against the Defendants Canyon Creek Energy Operating, LLC and Canyon Creek Energy-Arkoma in Book 898, Page 738 and Book 898, Page 401, respectively, in the Office of the County Clerk, Coal County, Oklahoma pursuant to Title 42 Oklahoma Statutes Section 146.
5. This court has jurisdiction over the parties and subject matter of this action, and this Court is a proper venue for an action to foreclose the liens as provided by Title 42 Oklahoma Statutes Section 172.
GENERAL STATEMENT OF FACTS
6. OEA was hired by Defendants to prepare a Division Order Title Opinion ("DOTO") covering the Well in Coal County, Oklahoma.
7. OEA prepared the DOTO, which included updating two Drilling Title Opinions prepared by other law firms, for two 640-acre spaced units, and combined them into a single opinion for a multi-unit horizontal well to be produced on a 1280-acre basis. These actions required a total of 248.30 hours of attorney examination and preparation at the rate of $200.00 per hour.
8. At Canyon’s request, OEA also updated the DOTO referenced in paragraph 7 above and provided a Supplemental DOTO, requiring a total of 27.00 hours of attorney examination and preparation at the rate of $200.00 per hour.
9. On or about October 18, 2019, OEA submitted a bill to Canyon for $49,660 for services rendered to Canyon in connection with the DOTO. OEA has received no objection to said bill, nor has OEA received any payment or assurances that the bill will paid, even after the filing of the Liens and service of same by certified mail.
10. On or about January 14, 2020, OEA also submitted a bill to Canyon for $5,400.00 for services rendered to Canyon in connection with the Supplemental DOTO. OEA has received no objection to said bill, nor has OEA received any payment or assurances the bill will be paid, even after the filing of the Liens and service of same by certified mail.
COUNT I: BREACH OF CONTRACT
Plaintiff adopts and re-alleges every paragraph above as if set forth verbatim herein.
11. Canyon owes OEA a balance for services rendered in the amount of $55,060 as shown by the Liens attached hereto as Exhibits “1” and “2”.
12. The balances have been due and owing since October 18, 2019, the date of the DOTO, and January 14, 2020 the date of the Supplemental DOTO respectively, and the Defendants have failed to make any objection or payment, or provide any assurances of payment, even after receiving notification of the filing of the Liens.
13. Canyon has received numerous requests from OEA to be paid in full.
14. Plaintiff is entitled to payment for services rendered in the amount of $55,060.00 and attorney’s fees as provided by statute and costs of this action.
COUNT II: UNJUST ENRICHMENT
Plaintiff adopts and re-alleges every paragraph above as if set forth verbatim herein.
15. As a result of Canyon's failure to pay for services rendered as mentioned above, OEA has unwillingly conferred an economic benefit upon Canyon.
16. Canyon has been unjustly enriched by its unlawful acts, and Canyon should not be allowed to retain the value of the benefit conferred upon Canyon from its unlawful use of the attorney work product of OEA.
17. As a result of the conduct described above, Canyon has been unjustly enriched and should be required to disgorge Canyon's wrongful gain.
COUNT III: FORECLOSRE OF OIL AND GAS WELL LIEN
18. OEA has filed the Liens in the amount of $55,060.00 above referenced against the Well and is entitled to have them enforced.
19. OEA is entitled to judgement in the amount of $55,060.00, plus costs, interest and attorney's fees in pursuing this action and to have the judgement foreclosed as a lien by sale of the working interest in the subject Well all in accordance with statute.
COMBINED PRAYER FOR RELIEF
WHEREFORE, Plaintiff prays that this Court award the following relief:
1. Actual damages of $55,060.00, and/or disgorgement of profits against Defendants in like amount.
2. Foreclosure of the judgment as a lien upon the working interest of the subject Well as provided by statute.
3. Attorney’s Fees, costs, interest, and such other and further relief as provided by statute, law, or in equity; and
4. Any such other relief as may be just and proper.
ATTORNEY'S LIEN CLAIMED
Respectfully submitted,
Michael S. Booze, OBA #20628
Miles L. Halcomb OBA #12957
OKLAHOMA ENERGY ADVISORS, PLLC
P. O. Box 12874
Oklahoma City, Oklahoma 73157
405-241-9936
[email protected]
[email protected]
ATTORNEYS FOR PLAINTIFF
OIL & GAS LIEN
(PURSUANT TO TITLE 12 OKLAHOMA STATUTES SECTION 4726)
STATEMENT OF CLAIM
STATE OF OKLAHOMA )
COUNTY OF COAL )
Know all men by these presents: That OKLAHOMA ENERGY ADVISORS, PLLC, an Oklahoma Professional Limited Liability Company, duly authorized to conduct business in the State of Oklahoma, has a claim against CANYON CREEK ENERGY-ARKOMA, LLC for the sum of Fifty Two Thousand Two Hundred & 00/100 Dollars ($52,200.00), due to OKLAHOMA ENERGY ADVISORS, PLLC and that the claim is made for and on account of provision of the following labor and materials furnished Division Order Title Opinion and Supplemental Division Order Title Opinion for the Bills1-29/32H wellbore API# 35-029-21381 located in Sections 29 & 32-2N-9EIM, Coal County, Oklahoma, having a surface location in Section 30-2N-9EIM, Coal County, Oklahoma. And that such work was performed or materials supplied by OKLAHOMA ENERGY ADVISORS, PLLC was last performed or supplied on the 14th day of January, 2020, according to an itemized statement thereof hereto attached, marked "Exhibit A" and made a part of this statement, and that such labor, was done and services rendered in pursuance of a contract with CANYON CREEK ENERGY-ARKOMA, LLC. Said contract was performed to determine the ownership of working interest, royalty interest, mineral interest and overriding royalty interest in the above referenced wellbore as required by Oklahoma Statutes requiring appropriate distribution of oil and gas revenues for the well located in said county and state as aforesaid; that the sum is just due and unpaid, and OKLAHOMA ENERGY ADVISORS, LLC has and claim and lien upon the working interest in said wellbore and the surface equipment upon the said premises on which the same is situated, to the amount of $52,200.00 as above set forth, according to the laws of the State of Oklahoma.
Dated this 15th day of January 2020.
Miles L. Halcomb, Of Counsel
OKLAHOMA ENERGY ADVISORS, PLLC
STATE OF OKLAHOMA )
) SS:
COUNTY OF OKLAHOMA )
Miles L. Halcomb, of lawful age, being first duly sworn, upon oath, says: That he is Of Counsel attorney for OKLAHOMA ENERGY ADVISORS, PLLC mentioned in the foregoing statement of oil and gas lien; that he has read said statement and knows the contents thereof; that the name of the owner, the name of the contractor, the name of the claimant, the description of the property upon which the lien is claimed, and the items of the account as therein set forth, are just, true and correct.
Subscribed and sworn to before me this 15th day of January, 2020.
Elizabeth Anne Hill
Notary Public
My Commission expires: 05/14/2023
(seal)
October 18, 2019
Mr. Blake Gray
Canyon Creek Energy Operating, LLC
2431 East 61st Street, Suite 400
Tulsa, Oklahoma 74136
Exhibit A
INVOICE
<table>
<tr>
<th>Date</th>
<th>DESCRIPTION</th>
<th>Time (hours)</th>
<th>Rate</th>
<th>Total</th>
</tr>
<tr>
<td>10/18/19</td>
<td>Division Order Title Opinion – Bills 1-29/32H Well – Sec. 29 & 32, Township 2N, Range 9E, Coal County, Oklahoma</td>
<td>248.30</td>
<td>$200.00</td>
<td>$49,660.00</td>
</tr>
<tr>
<td colspan="2">TOTAL</td>
<td>248.30</td>
<td></td>
<td>$49,660.00</td>
</tr>
</table>
Please Tender Payment To:
Oklahoma Energy Advisors, PLLC
P.O. Box 12874
Oklahoma City, Oklahoma 73157
Tel: 405.241.9936
Email:
[email protected]
Tax ID: 81-0978746
January 14, 2020
Mr. Blake Gray
Canyon Creek Energy Operating, LLC
2431 East 61st Street, Suite 400
Tulsa, Oklahoma 74136
INVOICE
<table>
<tr>
<th>Date</th>
<th>DESCRIPTION</th>
<th>Time (hours)</th>
<th>Rate</th>
<th>Total</th>
</tr>
<tr>
<td>1/14/20</td>
<td>Update Division Order Title Opinion – Bills 1-29/32H Well – Sec. 29 & 32, Township 2N, Range 9E, Coal County, Oklahoma</td>
<td>27.00</td>
<td>$200.00</td>
<td>$5,400.00</td>
</tr>
<tr>
<td colspan="4">TOTAL</td>
<td>27.00</td>
<td>$5,400.00</td>
</tr>
</table>
Please Tender Payment To:
Oklahoma Energy Advisors, PLLC
P.O. Box 12874
Oklahoma City, Oklahoma 73157
Tel: 405.241.9936
Email:
[email protected]
Tax ID: 81-0978746
SENDER: COMPLETE THIS SECTION
■ Complete Items 1, 2, and 3.
■ Print your name and address on the reverse so that we can return the card to you.
■ Attach this card to the back of the mailpiece, or on the front if space permits.
1. Article Addressed to:
Canon Creek Energy Operating, LLC
2431 East 01st Street, Suite 400
Tulsa, Oklahoma 74136
9590 9403 0475 5173 9551 85
2. Article Number (Transfer from service label)
7019 1640 0000 1900 9250
U.S. Postal Service™
CERTIFIED MAIL® RECEIPT
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For delivery information, visit our website at www.usps.com.
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Extra Services & Fees (check box, add fee or rate) $2.80
Return Receipt (hardcopy) $0.00
Return Receipt (electronic) $0.00
Certified Mail Restricted Delivery $0.00
Adult Signature Required $0.00
Adult Signature Restricted Delivery $0.00
Postage $1.15
Total Postage and Fees $7.45
Sent To:
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COMPLET THIS SECTION ON DELIVERY
A. Signature X (Media Mann)
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3. Service Type
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PS Form 3811, April 2015 PSN 7530-02-000-9053
Coal County Clerk
COALGATE, OK
Eugina Loudermilk, County Clerk
Receipt Number: 2020-00000924
1/16/2020 10:35:59AM
Doc No. Doc Typ Fees DocStamp
RE- CORD $14.00
REC PRES $10.00
Total Filing
RECEIVED
JAN 21 2020
Received
Check #1124 $24.00
Total Received $24.00
Received of OKLAHOMA ENERGY ADV
Received by ANITA
OIL & GAS LIEN
(PURSUANT TO TITLE 12 OKLAHOMA STATUTES SECTION 146)
STATEMENT OF CLAIM
STATE OF OKLAHOMA )
COUNTY OF COAL )
Know all men by these presents: That OKLAHOMA ENERGY ADVISORS, PLLC, an Oklahoma Professional Limited Liability Company, duly authorized to conduct business in the State of Oklahoma, has a claim against CANYON CREEK ENERGY OPERATING, LLC for the sum of Fifty Five Thousand Sixty & 00/100 Dollars ($55,060.00), due to OKLAHOMA ENERGY ADVISORS, PLLC and that the claim is made for and on account of provision of the following labor and materials furnished Division Order Title Opinion and Supplemental Division Order Title Opinion for the Bills1-29/32H wellbore API# 35-029-21381 located in Sections 29 & 32-2N-9EIM, Coal County, Oklahoma, having a surface location in Section 30-2N-9EIM, Coal County, Oklahoma. And that such work was performed or materials supplied by OKLAHOMA ENERGY ADVISORS, PLLC was last performed or supplied on the 14th day of January, 2020, according to an itemized statement thereof hereto attached, marked "Exhibit A" and made a part of this statement, and that such labor, was done and services rendered in pursuance of a contract with CANYON CREEK ENERGY OPERATING, LLC. Said contract was performed to determine the ownership of working interest, royalty interest, mineral interest and overriding royalty interest in the above referenced wellbore as required by Oklahoma Statutes requiring appropriate distribution of oil and gas revenues for the well located in said county and state as aforesaid; that the sum is just due and unpaid, and OKLAHOMA ENERGY ADVISORS, LLC has and claim and lien upon the working interest in said wellbore and the surface equipment upon the said premises on which the same is situated, to the amount of $55,060.00 as above set forth, according to the laws of the State of Oklahoma.
Dated this 30th day of January 2020.
Miles L. Halcomb, Of Counsel
OKLAHOMA ENERGY ADVISORS, PLLC
STATE OF OKLAHOMA )
) SS:
COUNTY OF OKLAHOMA )
Miles L. Halcomb, of lawful age, being first duly sworn, upon oath, says: That he is Of Counsel attorney for OKLAHOMA ENERGY ADVISORS, PLLC mentioned in the foregoing statement of oil and gas lien; that he has read said statement and knows the contents thereof; that the name of the owner, the name of the contractor, the name of the claimant, the description of the property upon which the lien is claimed, and the items of the account as therein set forth, are just, true and correct.
Subscribed and sworn to before me this 30th day of January, 2020.
Elizabeth Anne Hill
Notary Public
My Commission expires: May 14, 2023
(seal)
ELIZABETH ANNE HILL
NOTARY
# 19004947
EXP.:05/14/23
STATE OF OKLAHOMA
PUBLIC
October 18, 2019
Mr. Blake Gray
Canyon Creek Energy Operating, LLC
2431 East 61st Street, Suite 400
Tulsa, Oklahoma 74136
Exhibit A
INVOICE
<table>
<tr>
<th>Date</th>
<th>DESCRIPTION</th>
<th>Time (hours)</th>
<th>Rate</th>
<th>Total</th>
</tr>
<tr>
<td rowspan="2">10/18/19</td>
<td>Division Order Title Opinion – Bills 1-29/32H Well – Sec. 29 & 32, Township 2N, Range 9E, Coal County, Oklahoma</td>
<td>248.30</td>
<td>$200.00</td>
<td>$49,660.00</td>
</tr>
<tr>
<td>TOTAL</td>
<td>248.30</td>
<td></td>
<td>$49,660.00</td>
</tr>
</table>
Please Tender Payment To:
Oklahoma Energy Advisors, PLLC
P.O. Box 12874
Oklahoma City, Oklahoma 73157
Tel: 405.241.9936
Email:
[email protected]
Tax ID: 81-0978746
January 14, 2020
Mr. Blake Gray
Canyon Creek Energy Operating, LLC
2431 East 61st Street, Suite 400
Tulsa, Oklahoma 74136
INVOICE
<table>
<tr>
<th>Date</th>
<th>DESCRIPTION</th>
<th>Time (hours)</th>
<th>Rate</th>
<th>Total</th>
</tr>
<tr>
<td>1/14/20</td>
<td>Update Division Order Title Opinion – Bills 1-29/32H Well – Sec. 29 & 32, Township 2N, Range 9E.</td>
<td>27.00</td>
<td>$200.00</td>
<td>$5,400.00</td>
</tr>
<tr>
<td>TOTAL</td>
<td></td>
<td>27.00</td>
<td></td>
<td><b>$5,400.00</b></td>
</tr>
</table>
Please Tender Payment To:
Oklahoma Energy Advisors, PLLC
P.O. Box 12874
Oklahoma City, Oklahoma 73157
Tel: 405.241.9936
Email:
[email protected]
Tax ID: 81-0978746
SENDER: COMPLETE THIS SECTION
■ Complete Items 1, 2, and 3.
■ Print your name and address on the reverse so that we can return the card to you.
■ Attach this card to the back of the mailpiece, or on the front if space permits.
1. Article Addressed to:
Canyon Creek Energy Operating, LLC
2431 EAST GISt Street Suite
400
TULSA, OKLAHOMA 74130
9590 9402 5490 9249 0656 50
2. Article Number (Transfer from service label)
7019 2970 0002 0638 7838
COMPLETE THIS SECTION ON DELIVERY
A. Signature
X LeeMac Maxx
B. Received by (Printed Name)
C. Date of Delivery
2/3/2020
D. Is delivery address different from item 1?
Yes
If YES, enter delivery address below:
No
3. Service Type
□ Adult Signature
□ Adult Signature Restricted Delivery
(X) Certified Mail®
□ Certified Mail Restricted Delivery
□ Collect on Delivery
□ Collect on Delivery Restricted Delivery
□ Insured Mail
□ All Restricted Delivery ID)
□ Priority Mail Express®
□ Registered Mail™
□ Registered Mail Restricted Delivery
□ Return Receipt for Merchandise
□ Signature Confirmation™
□ Signature Confirmation Restricted Delivery
PS Form 3811, July 2015 PSN 7530-02-000-9053
U.S. Postal Service
CERTIFIED MAIL RECEIPT
Domestic Mail Only
For delivery information, visit our website at www.usps.com
Certified Mail Fee
$_________________________
Extra Services & Fees (check box, add fee as appropriate)
Return Receipt (hardcopy) $_________________________
Return Receipt (electronic) $_________________________
Certified Mail Restricted Delivery $_________________________
Adult Signature Required $_________________________
Adult Signature Restricted Delivery $_________________________
Postage $_________________________
Total Postage and Fees $_________________________
Sent To
Street and Apt. No., or PO Box No.
City, State, ZIP+4
PS Form 3800, April 2015 PSN 7530-02-000-9047 See Reverse for instructions
