Cherokee Water Co. v. Forderhause

GREENHILL, Chief Justice.

This case involves the construction of a deed. The deed conveyed the surface of the subject property, but the grantors reserved the mineral estate. The deed gave the grantee, Cherokee, a preferential right to acquire the minerals if the grantor decided to sell the minerals. The grantor executed an oil and gas lease to a third party. The main question is whether the oil and gas lease constituted a sale so as to give Cherokee a preferential right to acquire the minerals.

Cherokee Water Company [Cherokee], as holders of the preferential right to purchase, brought suit…