McKAY, Circuit Judge.
This is an appeal from a summary judgment dismissal in the district court. Plaintiffs brought a trespass action for damages to their land caused by Defendant's seismic exploration activities. Plaintiffs originally filed their action in the state court of Oklahoma; Defendant removed it to federal district court based on diversity of citizenship. Defendant moved for summary judgment, arguing that it had permission to enter the property and conduct seismic testing from owners of the mineral rights and/or oil and gas leasehold rights, which lie under the surface estate of Plaintiffs' properties. The district court agreed and granted summary judgment for Defendant. Defendant sought an award of attorney's fees pursuant to title 12, section 940(A) of the Oklahoma Code. The district court awarded Defendant $71,560 in attorney's fees as the prevailing party. Plaintiffs appeal both the summary judgment and the award of attorney's fees.
Plaintiffs own surface estates in Roger Mills County in Western Oklahoma. Defendant is a company engaged in geophysical data services for the oil and gas industry. Owners of undivided interests in the oil and gas leasehold and/or mineral estate underlying Plaintiffs' lands granted permission to Defendant to enter the properties and conduct seismic exploration.
In its summary judgment ruling, the district court held "[i]t is undisputed that [D]efendant was granted permission to conduct seismic testing by the owners of the mineral rights and/or oil and gas leasehold rights that lie under the surface estate of [P]laintiffs' property." Aplt.App. at 301. The district court observed "[i]t is... well-established under Oklahoma law that an owner of mineral interests and/or oil and gas leasehold rights can validly grant a permit authorizing another person to conduct seismic exploration of the mineral estate." Id. at 302. Thus, the district court held that no trespass had occurred. The district court further found that "there is no support in the case law for [P]laintiffs' assertion that there must be a benefit to the mineral estate in order for an owner to have authority to assign his right to conduct seismic operations." Id. at 303. Regardless, the district court found there was a benefit to the mineral estate in this case from the "greater potential for the development of the land as a result of the seismic operations." Id.
After the district court granted summary judgment, Defendant moved for an award of attorney's fees. Plaintiffs argued that because the district court held there was no trespass, and therefore did not address the issue of injury to Plaintiffs' properties, title 12, section 940(A) of the Oklahoma Code did not apply. The district court rejected Plaintiffs' argument
"We review the district court's grant of summary judgment de novo, applying the same legal standard used by the district court." Garrison v. Gambro, Inc., 428 F.3d 933, 935 (10th Cir.2005) (quotation omitted). "When applying this standard, we view the evidence and draw reasonable inferences therefrom in the light most favorable to the nonmoving party." Id. (quotation omitted). Summary judgment is available "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R.Civ.P. 56(a).
We agree with the district court that Oklahoma law clearly permits owners of mineral estates to grant access to the surface property in order to conduct seismic exploration. In Oklahoma, the owner of a mineral interest has the right to enter the land to explore for oil and gas. See DuLaney v. Okla. State Dep't of Health, 868 P.2d 676, 680 (Okla.1993).
Plaintiffs argue that while a mineral owner may assign its right to an oil and gas lessee, a lessee may not similarly assign its right. Plaintiffs are mistaken. In Hinds, the oil and gas lessee executed a contract conveying its surface easement to a third party, similar to the conveyance in this case. Hinds, 591 P.2d at 698. The Oklahoma Supreme Court upheld the conveyance. Again, "leasehold interests are freely alienable under [Oklahoma] law." Id. at 699.
Plaintiffs also argue that Oklahoma law requires that any conveyance of surface rights must benefit the mineral estate, perhaps relying on the statement in Hinds that "the transfer of rights to [the defendant] did not operate to benefit any premises other than those of landowner-lessor." Id. at 700. In Hinds, the oil and gas lessee conveyed to a third party the right to enter onto the surface to lay and maintain
Defendant entered onto Plaintiffs' properties with the express, written consent of the owners of leasehold interests. Thus, no trespass occurred, and summary judgment was proper. To the extent Plaintiffs now raise the issue of Defendant's unreasonable use of Plaintiffs' surface properties, we do not address such issue; Plaintiffs did not raise it in the district court. See Utah Animal Rights Coal. v. Salt Lake Cnty., 566 F.3d 1236, 1244 (10th Cir.2009) ("[W]e generally do not consider new theories on appeal — even those that fall under the same general category as one that was presented in the district court.").
We now turn to the issue of attorney's fees. We must first consider our jurisdiction. Defendant claims we lack jurisdiction to review the district court's award of attorney's fees because Plaintiffs did not file a second notice of appeal after the district court's fee award. See Utah Women's Clinic, Inc. v. Leavitt, 75 F.3d 564, 567 (10th Cir.1995) ("The Supreme Court has held that the question of attorney's fees and costs are collateral to and separate from a decision on the merits."). Here, the district court entered its summary judgment dismissal on July 19, 2011. Plaintiffs filed their timely notice of appeal on August 12, 2011. The district court awarded attorney's fees to Defendant on October 11, 2011. Plaintiffs did not file an additional notice of appeal after the October 11th order. However, on November 8, 2011, within thirty days of the fee-award order, Plaintiffs filed their opening brief in the previously-noticed appeal and specifically challenged the fee award. It is appropriate to construe Plaintiffs' brief as the functional equivalent of a notice of appeal from the order awarding fees if it provides the notice required by Fed. R.App. P. 3(c)(1). See Smith v. Barry, 502 U.S. 244, 248, 112 S.Ct. 678, 116 L.Ed.2d 678 (1992).
We review "a district court's award of attorney fees ... subject to an abuse of discretion standard, but any legal conclusions that provide a basis for the award are reviewable de novo." Tulsa Litho Co. v. Tile & Decorative Surfaces Magazine Publ'g Inc., 69 F.3d 1041, 1043 (10th Cir.1995). Defendant is entitled to attorney's fees if a contract or statute so provides. Walden v. Hughes, 799 P.2d 619, 619 (Okla.1990). Title 12, section 940(A) of the Oklahoma Code provides:
Okla. Stat. tit. 12, § 940(A) (emphasis added). The Oklahoma Supreme Court has interpreted Section 940(A) to "contemplate only those actions for damages for the negligent or willful physical injury to property." Woods Petroleum Corp. v. Delhi Gas Pipeline Corp., 700 P.2d 1011, 1013 (Okla.1984). "A party who successfully defends a property damage claim is entitled to an attorney fee award under section 940 of title 12." Lee v. Griffith, 990 P.2d 232, 234 (Okla.1999); see also Evans v. Sitton, 735 P.2d 334, 336 (Okla. 1987) ("Section 940(A) states that if a judgment is rendered for the defendant, the defendant is entitled to attorney fees as the prevailing party.").
Finally, we hold that the district court did not abuse its discretion in awarding Defendant $71,560.00. The district court carefully reviewed Defendant's affidavits and time records in support of its fee request pursuant to the relevant factors set forth in State of Oklahoma ex rel. Burk v. City of Oklahoma City, 598 P.2d 659, 661 (Okla.1979). Further, the district court reduced the hourly rates of several of Defendant's attorneys based on its own knowledge of prevailing market rates. See Lippoldt v. Cole, 468 F.3d 1204, 1225 (10th Cir.2006). The fee award was therefore reasonable.
For the foregoing reasons, we