Osage Nation v. Wind Capital Group, LLC

In 1906, Congress passed the Osage Allotment Act, which severed the surface and mineral estates for Osage Nation (plaintiff) reservation land as follows: the surface estates were deeded to individual citizens of the Osage Nation, and the mineral estates were retained in trust, for the benefit of the Osage Nation. While the surface estates have since been sold or transferred to non-Indians, the mineral estate is still held in trust for the Osage Nation. Wind Capital Group L.L.C. and Osage Wind, L.L.C. (collectively, the wind farm) (defendants) leased approximately 8,500 acres of land from the owners of seven contiguous surface estates. The wind farm planned to construct a wind-energy facility with 94 turbines, connected by underground lines installed approximately four feet beneath the surface. The entire facility was expected to occupy less than 2 percent of the 8,500 acres of leased land while creating a dozen permanent jobs and providing energy to 50,000 households. The Osage Nation sued the wind farm seeking a permanent injunction to prevent the facility’s construction. The Osage Nation offered expert-witness testimony that the facility would impact oil-and-gas operations, the greatest impact would occur during the year of construction, and the completed facility “might, possibly” unreasonably interfere with development of the mineral estate.