KAPSNER, Justice.
[¶ 1] Sagebrush Resources, LLC, appeals from a summary judgment dismissing with prejudice its action for trespass and for injunctive relief against Daryl, Larry, and Galen Peterson, determining the action was frivolous and not made in good faith, and awarding the Petersons $23,729 in attorney fees. Sagebrush argues the district court abused its discretion in deciding Sagebrush's claims were frivolous and not made in good faith and in awarding the Petersons $23,729 in attorney fees. We hold the district court did not abuse its discretion in awarding the Petersons attorney fees under N.D.C.C. § 28-26-31, and we affirm.
[¶ 2] In April 2011, Sagebrush sued the Petersons, alleging that at all material times it was the owner and operator of several oil and gas wells and related equipment in Bottineau County. Sagebrush alleged the Petersons had wrongfully entered Sagebrush's property without permission and sought damages for trespass and to enjoin them from unlawfully interfering with Sagebrush's oil and gas exploration and production activities. Sagebrush claimed: (1) that "on or about January 28, 2011," Galen Peterson "was seen in, around and on the well site of Rice Well, as well as certain equipment, dikes, berms, tanks and other facilities" owned, used, and operated by Sagebrush in connection with that well; (2) that on September 28, 2010, on March 8, 2011, and on other occasions Daryl Peterson or Larry Peterson "entered into and upon the Cramer Central Tank Battery and climbed onto and upon several of the tanks and other facilities ... for the purpose of taking pictures"; (3) that "on certain occasions in the past year," Daryl Peterson was "in, around and on the well sites for the Bronderslev Wells and the Peterson Wells, as well as on the equipment, dikes, berms, tanks and other facilities owned and used by Sagebrush in connection with its operation" of those wells; and (4) that "on certain occasions over the past year," Daryl Peterson "was seen on the well sites for certain of the Kuroki Wells."
[¶ 3] The Petersons answered, generally denying any wrongdoing. They specifically alleged that Larry and Daryl Peterson entered the Cramer Central Tank Battery at the request of Rick Hummel, the Bottineau Emergency Services Manager, and that Daryl Petersen had been at the site of the Peterson Wells to document spills on his land and had driven on the
[¶ 4] In responses to discovery, Sagebrush stated that information about the claimed trespass was based on encounters with one or more of the Petersons and review of complaints and information submitted by Daryl Peterson to the North Dakota Industrial Commission, including pictures of the various well sites. Sagebrush stated it was damaged by the Petersons' actions because they:
[¶ 5] The Petersons moved for summary judgment, claiming Sagebrush could not show that the Petersons actually entered the well sites without authorization or that Sagebrush was damaged. The Petersons asserted that Sagebrush, as a well operator, did not have a sufficient property interest in the surface estate to maintain a trespass claim under Hunt Oil Co. v. Kerbaugh, 283 N.W.2d 131 (N.D.1979). The Petersons also contended Sagebrush did not have standing to seek injunctive relief because Sagebrush was not currently operating any oil and gas wells in North Dakota and lacked a sufficient property interest in the wells to seek injunctive relief. The Petersons claimed Sagebrush's lawsuit was frivolous and not brought in good faith and sought attorney fees under N.D.C.C. §§ 28-26-01(2) and 28-26-31.
[¶ 6] In an affidavit supporting the Petersons' motion for summary judgment, Daryl Peterson averred he was a board member of the Northwest Landowners Association ("NWLA"), a grassroots organization in northwestern North Dakota working to save farmland and protect agriculture, and stated:
[¶ 7] Galen Peterson submitted an affidavit stating that on March 17, 2011, he met with Scott Dihle, Scott Rice, and Daryl Peterson on a township road across from the Rice Well to discuss a spill on that well site, but they did not enter the location and did not take any pictures. Larry Peterson also submitted an affidavit, stating: (1) he was a member of the Bottineau County Local Emergency Planning Committee; (2) he did not enter the Cramer Central Tank Battery site or take pictures on September 28, 2010; (3) he accompanied Daryl Peterson and Rick Hummel of the Bottineau County Local Emergency Planning Committee to the Cramer Central Tank Battery on March 8, 2011, to inspect a spill; and (4) he did not take any pictures or climb on any tanks or facilities. The Petersons also submitted an affidavit from Rick Hummel stating that Larry and Daryl Peterson accompanied him to the Cramer Central Tank Battery on March 8, 2011, to inspect a spill.
[¶ 8] Sagebrush resisted the Petersons' motion for summary judgment, arguing it had a legal right to use as much of the surface of its leasehold interest as necessary to explore and produce its mineral interests under Hunt, 283 N.W.2d 131, and it provided sufficient evidence of the Petersons' unauthorized entry onto Sagebrush's well sites and equipment to defeat their motion for summary judgment. Sagebrush claimed the Petersons' self-serving denials were insufficient to permit summary judgment because the record clearly demonstrated they provided the Industrial Commission with photographs that could only have been taken from property controlled by Sagebrush and on which the Petersons were not authorized to enter. Sagebrush asserted that by entering Sagebrush's well sites and conducting unauthorized inspections, the Petersons interfered with Sagebrush's use of the well sites. Sagebrush argued the interference, whether technically a trespass or not, was clearly actionable under Hunt. Sagebrush claimed actual harm was not an element of trespass and it was required to prove only the Petersons interfered with its property, regardless of whether the interference caused actual damages. Sagebrush also represented that its claim for injunctive relief had become moot as a result of its sale of the property and agreed to dismissal of that claim.
[¶ 9] After a hearing, the district court granted the Petersons' motion for summary judgment. The court stated Sagebrush presented only allegations and no factual evidence to support its claim of an unauthorized physical presence by any of the Petersons on the well sites. The court said assuming the Petersons took photographs on the well sites, that fact did not support a trespass claim because Sagebrush had an implied easement for the limited purpose of using the surface for mining but did not have an ownership or possessory interest necessary to support a trespass claim. The court recognized Sagebrush had a legal right to prohibit interference with its use of the surface but there was no evidence the Petersons interfered with Sagebrush's leasehold interests. The court said that although the Petersons may have taken photographs, there was no evidence the Petersons blocked roadways,
[¶ 10] The district court then determined Sagebrush's lawsuit was frivolous and was not brought in good faith, explaining:
[¶ 11] The Petersons thereafter filed an affidavit by counsel itemizing their attorney fees. Sagebrush responded that Petersons' claimed attorney fees were excessive. Sagebrush's response also recognized its later sale of the properties at issue mooted the request for injunctive relief, but asserted that when the action was initiated in April 2011, the claim for injunctive relief was made in good faith and supported by existing law. The Petersons responded by submitting a March 15, 2011 document from the Industrial Commission to Petro Harvester Operating Company, LLC, approving a "change of operator from Sagebrush ... to Petro Harvester ... 92 wells." An accompanying "notice of transfer of oil and gas wells — form 15" indicates an assignment date of January 28, 2011, from Sagebrush as the transferring operator to Petro Harvester as the receiving operator, but this record does not include an "attached" list identifying the specific wells transferred.
[¶ 12] In awarding the Petersons attorney fees, the district court reiterated its determination that there was no basis in law or fact for Sagebrush's claims and that Sagebrush was not acting in good faith. The court said Sagebrush's "newfound argument it was necessary to sue the [Petersons] to avoid potential liability for personal injuries" on the premises was without merit because "[b]y the time [Sagebrush]
[¶ 13] Sagebrush does not challenge the district court's summary judgment dismissal of its lawsuit against the Petersons. Rather, Sagebrush argues the court erred in awarding attorney fees to the Petersons under N.D.C.C. §§ 28-26-01 or 28-26-31, because the court abused its discretion in deciding that when filed, Sagebrush's claims were frivolous and not made in good faith. Sagebrush argues its claims were not frivolous under N.D.C.C. § 28-26-01 and an award of attorney fees was not justified on this record under N.D.C.C. § 28-26-31.
[¶ 14] Under North Dakota law, parties to a lawsuit generally pay their own attorney fees, absent statutory or contractual authority. Strand v. Cass County, 2008 ND 149, ¶ 9, 753 N.W.2d 872.
[¶ 15] Section 28-26-01(2), N.D.C.C., requires courts in civil actions to award attorney fees to the prevailing party upon finding a claim for relief is frivolous. Strand, 2008 ND 149, ¶ 11, 753 N.W.2d 872. "Frivolous claims are those which have `such a complete absence of actual facts or law that a reasonable person could not have expected that a court would render
[¶ 16] Under N.D.C.C. § 28-26-31, a district court is authorized to award attorney fees for "[a]llegations and denials in any pleadings in court, made without reasonable cause and not in good faith, and found to be untrue." Under that language, this Court has said that an award of attorney fees "requires a finding that allegations and denials in any pleadings are made without reasonable cause and not in good faith, and found to be untrue." Westchem Agric. Chems., Inc. v. Engel, 300 N.W.2d 856, 859 (N.D.1980). We have said an award of attorney fees under N.D.C.C. § 28-26-31 is within a district court's discretion, but we have also recognized that "[a]lthough the district court's award of attorney's fees and costs under N.D.C.C. § 28-26-31 is discretionary, the court's exercise of that discretion must be based on evidence that the pleadings were made without reasonable cause and not in good faith, and are found to be untrue." Strand, 2008 ND 149, ¶ 14, 753 N.W.2d 872.
[¶ 17] A district court "abuses its discretion when it acts in an arbitrary, unreasonable, or unconscionable manner, when the court misinterprets or misapplies the law, or when its decision is not the product of a rational mental process leading to a reasoned determination." Barrett v. Gilbertson, 2013 ND 35, ¶ 25, 827 N.W.2d 831.
[¶ 18] Within that framework for awarding attorney fees under either N.D.C.C. § 28-26-01(2) or N.D.C.C. § 28-26-31, we examine Sagebrush's claims. Sagebrush's complaint alleged a claim for damages for trespass for wrongful and unauthorized entry on equipment and on oil and gas wells owned and operated by Sagebrush and a claim for injunctive relief to prevent the Petersons from unlawfully interfering with Sagebrush's oil and gas exploration and production activities.
[¶ 19] An actionable claim for trespass to chattels or personal property generally requires dispossession of the property, impairment of the condition, quality or value of the property, loss of use of the property, or other harm. See Restatement (2nd) of Torts § 218 (1965); 1 Dan B. Dobbs, Paul T. Hayden, and Ellen M. Bublick, The Law of Torts § 60 (2nd ed.2011); W. Page Keeton, Prosser and Keeton on Torts § 14 (5th ed.1984). Sagebrush did not allege or attempt to establish
[¶ 20] To the extent Sagebrush's complaint includes a claim for trespass to real property, this Court has "defined trespass as `an "intentional harm,"'" where a person "`intentionally and without a consensual or other privilege ... enters land in possession of another or any part thereof or causes a thing or third person so to do.'" Tibert v. Slominski, 2005 ND 34, ¶ 15, 692 N.W.2d 133 (quoting McDermott v. Sway, 78 N.D. 521, 529-30, 50 N.W.2d 235, 240 (1951)). The essence of a trespass to real property is interference with possession of land, and this Court has said a person who commits a trespass "`is liable as a trespasser to the other irrespective of whether harm is thereby caused to any of his legally protected interests.'" Tibert, at ¶ 15 (quoting McDermott, at 530, 50 N.W.2d at 240). See 75 Am.Jur.2d Trespass § 18 (2007). Under North Dakota law, an oil and gas lessee acquires an easement in the surface estate for purposes of developing its mineral estate. Slaaten v. Cliff's Drilling Co., 748 F.2d 1275, 1278 (8th Cir.1984). This Court has said an easement is a nonpossessory interest in land belonging to another which entitles the easement holder to limited use or enjoyment of the land. Schatz v. Schatz, 419 N.W.2d 903, 907 (N.D.1988).
[¶ 21] In line with the foregoing authorities, Sagebrush acknowledges the Petersons' alleged actions "may not technically constitute a trespass under North Dakota law," but asserts it was entitled to pursue injunctive relief to preclude interference with its exploration and production activities.
[¶ 22] In Hunt, 283 N.W.2d at 135, this Court held an oil and gas lessee had an implied right to use as much of the surface as reasonably necessary in exploring, mining, removing, and marketing minerals. This Court explained, however, the oil and gas lessee must give due regard for the surface owner's rights and must exercise that degree of care and use which is a just consideration for the surface owner's rights. Id. We adopted the "accommodation" doctrine for evaluating the interests of the oil and gas lessee and the surface owner:
Id. at 136-37 (quoting Getty Oil Co. v. Jones, 470 S.W.2d 618, 627-28 (Tex.1971) (on motion for rehearing)).
[¶ 23] Other courts have also recognized the viability of an oil and gas lessee's action to enjoin others from interfering with the lessee's reasonable use of the surface for oil and gas development. See Getty Oil Co. v. Royal, 422 S.W.2d 591, 592-94 (Tex.Civ.App. 1967) (recognizing oil and gas lessee's action against surface owner to enjoin construction across access roads to oil and gas wells and upholding jury verdict that surface owner's placement of gates on roads was not unreasonable interference with lessee's operation of oil and gas well); Flying Diamond Corp. v. Rust, 551 P.2d 509, 510-12 (Utah 1976) (recognizing oil and gas lessee's action to enjoin surface owner from interfering with oil drilling operation); Mingo Oil Producers v. Kamp Cattle Co., 776 P.2d 736, 740-42 (Wyo.1989) (recognizing oil and gas lessee's action against surface owner to establish right to access for development and production).
[¶ 24] Those authorities provide an oil and gas lessee with a cause of action to enjoin surface owners or others from interfering with its implied right to use as much of the surface as is reasonably necessary for exploring, mining, removing, and marketing minerals. Hunt, 283 N.W.2d at 135-40. In appropriate circumstances, an action for injunctive relief allows a court to enjoin a surface owner or others from unlawfully interfering with the lessee's right to use as much of the surface as is reasonably necessary for exploring, mining, removing, and marketing minerals.
[¶ 25] Here, Sagebrush's complaint includes a claim for injunctive relief for unlawful interference with Sagebrush's lease interest under Hunt. However, there is evidence in this record to support the district court's determination that when Sagebrush initiated this lawsuit against the Petersons in April 2011, it had transferred its interest as an operator of the wells to Petro Harvester. Other than allegations in its complaint, Sagebrush identified no evidence establishing an interest in the wells when it initiated its claim for injunctive relief in April 2011. Evidence in the record supports the court's determination that Sagebrush transferred its interests in the subject wells to Petro Harvester before it initiated this lawsuit.
[¶ 26] On that record, the district court reiterated that Sagebrush's claims were both frivolous and false and not made in good faith. Section 28-26-31, N.D.C.C., authorizes a court to award attorney fees for allegations "made without reasonable cause and not in good faith, and found to be untrue." Under this Court's deferential standard of review, we conclude the
[¶ 27] Sagebrush argues the district court abused its discretion in deciding the Petersons' requested attorney fees were not excessive and in awarding them $23,729. Sagebrush claims the court did not examine the number of hours claimed by the Petersons for attorney fees and did not evaluate whether that number of hours was reasonable in light of the nature of the case.
[¶ 28] Sagebrush did not seek to cross-examine any witnesses about the amount or reasonableness of attorney fees claimed by the Petersons. See Westchem, 300 N.W.2d at 859-60. The district court provided a reasoned explanation for the amount of the award of attorney fees and did not misapply the law. Under this Court's deferential standard of review, we conclude the court's award of $23,729 in attorney fees was not arbitrary, unreasonable, or unconscionable and the court did not abuse its discretion in its award.
[¶ 29] The Petersons argue Sagebrush's appeal is frivolous under N.D.R.App.P. 38 and request attorney fees on appeal.
[¶ 30] Under N.D.R.App.P. 38, this Court may award costs, including attorney fees, if it determines an appeal is frivolous. "`An appeal is frivolous if it is flagrantly groundless, devoid of merit, or demonstrates persistence in the course of litigation which could be seen as evidence of bad faith.'" Lucas v. Porter, 2008 ND 160, ¶ 28, 755 N.W.2d 88 (quoting Witzke v. City of Bismarck, 2006 ND 160, ¶ 19, 718 N.W.2d 586). We conclude Sagebrush's appeal from the decision awarding attorney fees is not flagrantly groundless, devoid of merit, nor does it evidence persistence in the course of litigation which demonstrates bad faith. We conclude Sagebrush's appeal is not frivolous, and we decline to award the Petersons attorney fees on appeal.
[¶ 31] We affirm the judgment.
[¶ 32] MARY MUEHLEN MARING, S.J., CAROL RONNING KAPSNER, DANIEL J. CROTHERS, and DALE V. SANDSTROM, JJ., concur.
[¶ 33] The Honorable LISA FAIR McEVERS was not a member of the Court when this case was heard and did not participate in this decision. Surrogate Judge MARY MUEHLEN MARING, sitting.
VANDEWALLE, Chief Justice, concurring specially.
[¶ 34] I concur in the result reached in the opinion of the Court. I agree the oil and gas lessee has a limited right to use the surface to produce the oil and gas and the surface owner does not lose all right to use that surface even though the mineral interest is the dominant estate. Hunt Oil Co. v. Kerbaugh, 283 N.W.2d 131, 135 (N.D.1979). I write specially to note my belief that the oil and gas lessee does have the right and perhaps the responsibility to keep people, including the surface owner, off of dangerous property the lessee is
[¶ 35] GERALD W. VANDE WALLE, C.J.