Cities Service Oil Co. v. McCrory

McDONALD, Chief Justice.

Appellee executed and delivered to appellant an oil and gas lease which, in addition to reserving the usual one-eighth royalty, reserved what is commonly known as an oil payment, the latter being provided for in a clause reading as follows:

“As a part and parcel of this lease, Lessor hereby reserves unto himself, his successors or assigns, an undivided one-eighth (⅛⅛) interest in the leasehold estate herein demised, together with the right to receive, free of cost or expense of development or operation of the leased premises, one-eighth (⅛&) of the seven-eights (%ths)…