Murray v. BEJ Minerals, LLC

George Severson owned a sizable ranch in Montana. In 2005, Severson severed and sold the surface estate to Mary Ann and Lige Murray (plaintiffs). The mineral estate was deeded separately, as follows: two-thirds to Severson’s sons, Jerry and Robert (collectively, the Severson brothers), and one-third to the Murrays as tenants in common. The Severson brothers’ majority interest was held by BEJ Minerals, LLC and RTWF LLC (collectively, BEJ) (defendants). The mineral deed, also called a mineral reservation, stated that it covered “the oil, gas, hydrocarbons, and minerals in, on and under . . . the property.” The deed was silent on whether dinosaur fossils were part of the mineral estate. Shortly after the surface-estate and mineral-estate deeds were executed, the Murrays discovered several rare and valuable dinosaur fossils on the property. BEJ asserted an ownership interest in the fossils under the mineral deed. The Murrays then filed an action in Montana state court seeking a declaratory judgment that the fossils were part of the surface estate. BEJ removed the pending action to federal district court by asserting diversity jurisdiction. The district court ruled for the Murrays, holding that the dinosaur fossils were not minerals. BEJ appealed. The Ninth Circuit initially reversed but then on rehearing certified a question to the Montana Supreme Court regarding whether, under Montana law, dinosaur fossils constituted minerals for the purpose of a mineral deed.