MARK L. HORNSBY, Magistrate Judge.
This case arises out of the Haynesville Shale natural gas play. Plaintiff, Magnolia Point Minerals, LLC ("Plaintiff"), alleges that Defendant, Chesapeake Louisiana, LP ("Chesapeake") breached a "no cost" provision contained in an addendum to an oil & gas lease between Plaintiff and Chesapeake. Plaintiff argues that the no cost provision should be interpreted to prohibit Chesapeake from deducting post-production costs from Plaintiff's royalty. In ruling on various dispositive motions, Judge Hicks has determined that an examination of extrinsic evidence, include evidence on the custom, pattern, or practice in the industry, is required in order to determine the meaning of the "no cost" provision.
Plaintiff has propounded written discovery to Chesapeake seeking information and documents regarding Chesapeake's leasing practices in North Louisiana, the use of no cost provisions, and Chesapeake's understanding of the industry custom regarding the use of no cost provisions. Plaintiff also issued subpoenas to two lease brokers, J.W. Porter and Beta Land Services, seeking essentially the same information. Chesapeake objects to Plaintiff's discovery and the subpoenas on numerous grounds, including ambiguity, relevance, undue burden, and privilege.
Before the court is Plaintiff's Motion to Compel (Doc. 119). The court has reviewed each of the interrogatories and requests that were briefed by the parties. For the reasons that follow, the motion is granted in part and denied in part.
As a general matter, Chesapeake's objections to Plaintiff's discovery regarding extrinsic evidence are baseless.
Chesapeake objects to several requests on the basis that the requests are unclear or ambiguous. For example, Chesapeake argues that the terms" and requests a legal conclusion, even though Plaintiff defined the term in its requests. That definition makes clear that the term is designed to focus and limit the interrogatories and requests to leases containing language referring to costs, charges, or expenses that might be interpreted as limiting, altering or otherwise affecting what Post Production Costs, if any, are to be borne by the lessor's royalty interest. These requests are not ambiguous. In fact, it is difficult for the court to envision how these requests could have been made more clear.
It is not an undue burden to require Chesapeake to identify its containing no cost provisions. It may be time consuming to search its databases, but that is not an undue burden under the circumstances of this case.
Based on Judge Hicks' rulings, the extrinsic evidence sought by Plaintiff is at the heart of this matter. For the purposes of discovery, it is highly relevant.
Chesapeake is ordered to provide a proper privilege log, if it has not already done so.
Also before the court are two
The fact that the lease brokers will have to make a judgment call regarding which leases contain no cost provisions does not require them to make legal conclusions. All document requests require the producing party to exercise at least some degree of judgment regarding the responsiveness of documents.
Chesapeake's confidentiality arguments are overruled. The existing protective order provides sufficient protection.
All requests for fees, costs, or sanctions in connection with the discovery motions are denied.
Unless the parties otherwise agree, the deadline for compliance with this order is March 4, 2015.
Chesapeake has filed a motion to exclude 23 witnesses who were listed by Plaintiff in an amended witness list. Nineteen of the witnesses pertain to industry custom and usage for no cost provisions. Chesapeake argues that Plaintiff's amended witness list is untimely and the newly identified witnesses should be excluded.
Chesapeake's Motion to Exclude (which includes a request for sanctions) is denied. However, Plaintiff is directed to pare down its list of 19 custom and practice may call witnesses to no more than six. If a brief extension of the discovery deadline is necessary as a result of Plaintiff's additional witnesses, counsel shall confer and present a joint motion for an extension to the court.