Law360 Canada ( July 20, 2026, 9:32 AM EDT) -- Appeal by Persist Oil and Gas Inc. (Persist) from a decision granting Flowers summary judgment and a permanent injunction prohibiting Persist from operating a bitcoin mining operation on lands subject to a surface rights lease. The lease, executed in 1999, permitted use of the land for purposes necessary for the exploration, development and production of hydrocarbons. Persist acquired the lease, which expired in 2019 but continued to operate due to regulatory constraints requiring reclamation. Persist later installed generators and equipment to run a bitcoin mining operation using natural gas from its compressor site. Flowers objected and sought declarations, an injunction, and damages, asserting the mining operation breached the lease. Persist argued the activity was incidental to hydrocarbon production, commercially reasonable, and consistent with industry practices and regulatory approvals, including a right of entry order and approvals from energy regulators. The judge concluded the bitcoin mining operation was not permitted under the lease and granted an injunction. On appeal, Persist argued the judge erred in contractual interpretation, failed to consider the right of entry order and regulatory context, misapprehended the evidence, and wrongly granted injunctive relief. The issues were whether the mining operation fell within the permitted uses of the lease and whether the injunction was properly granted....