The court of appeals affirmed a district court dismissal judgment. The court held the district court lacked jurisdiction over a lawsuit between two Montana corporations alleging state law claims arising from a dispute over lands held by the federal government in trust for various Indian allottees.

K2 America Corporation, a Montana corporation, engaged in exploration and production of oil and gas resources. K2 held leases in Montana. K2 retained John Harper as a contract operator to assist the company in oil and gas development. A portion of these leaseholds (“Allotment Lease”) was in land where title was held by the federal government in trust for various Indian allottees who were enrolled members of the Blackfeet Tribe.