McCormick v. Krueger

EVANS, Justice.

The plaintiffs appeal from a take nothing summary judgment entered in favor of the defendants.

The plaintiffs contend that their overriding royalty interest, reserved under a farm-out of a 1969 oil and gas lease, was “washed out” when the owners of the working interest allowed the lease to expire, and that defendant Krueger, who in 1975 bought the leasehold equipment from the working interest owners and then acquired a new lease from the landowner, became bound under the terms of the lease and farmout agreement to honor the plaintiffs’ overriding royalty interest.

The essential…