Trading Bay Energy Corp. v. Union Oil Co.

MEMORANDUM **

Trading Bay Energy Corporation (“Trading Bay”) appeals the district court’s summary judgment ruling on breach of contract and various tort claims as well as the grant of enhanced attorney’s fees to Appellees, Marathon Oil Company (“Marathon”) and Union Oil Company of California (“Unocal”). The district court granted summary judgment in favor of Marathon and Unocal on the breach of contract claim and dismissed the tort claims as lacking merit. The district court also granted an enhanced attorney’s fee award of 30 percent of actual costs under Alaska Rule of Civil Procedure 82(b)(3). We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

The district court in its summary judgment order determined that Paragraph 11 of the Letter Agreement, as modified, unambiguously limited Trading Bay’s right to participate in wells drilled on leases subject to the Letter Agreement. The first sentence of Paragraph 11 of the Letter Agreement states: “Sellers [Trading Bay] shall have the right to participate for up to a 10% working interest position in any well drilled on the leases identified in Exhibit A.” 1 While the language of the *563 Letter Agreement may support an…