Netahla v. Netahla

In 1969, Grantors and an oil company entered into a continuing oil and gas lease covering Grantors’ property. Less than seven months later, Grantors entered into a mineral deed with Grantee covering the same property. The mineral deed had a primary term of fifteen years. In 2012, Plaintiffs, the sole heirs of Grantors, filed a declaratory judgment seeking a declaration that the royalty interest held by Defendants, the sole heirs of Grantee, had terminated. The district court granted summary judgment for Defendants, concluding that because the mineral deed stated that it was subject to the terms of the continuing oil and gas lease and because Grantor was a party to both the lease and the mineral deed, the parties intended that they be read together. The Supreme Court reversed, holding (1) the “subject to” clause in the mineral deed did not incorporate the provisions of the lease; and (2) therefore, Defendants’ mineral interest did not continue past its fifteen-year term. View "Netahla v. Netahla" on Justia Law