Oxy USA, Inc. v. Red Wing Oil, LLC

Walker, J.:

In this appeal, we consider whether the district court properly terminated the reversionary rights of a landowner to one-half of the minerals under her land. Because we find the court did not correctly apply the law, we reverse and remand with instructions to restore the mineral rights to the landowner.

Facts

In January 1945, Frank Luther obtained the northeast quarter of a section of land in Haskell County (the northeast quarter), which was subject to an existing lease for the production of oil and gas. Shortly thereafter, in April 1945, Luther sold the 160-acre tract to E.W.…