Brooks v. Superior Oil Co.

COLLET, Circuit Judge.

The Superior Oil Company owned a leasehold in Ashley County, Arkansas, known as the “Bradley Lease”. One oil well, designated Bradley No. 1, had already been brought in but was not in production. On June 7, 1949, appellee wrote one Claude R. MeSpadden proposing the following agreement. Superior was to assign the lease to MeSpadden, reserving only certain overriding royalty rights in oil produced from the leasehold, if MeSpadden would drill another well on the property to a depth of 6,100-feet. By a second letter of July 15, 1949, an additional provision was imposed that…