Quality Coal Company v. Guthrie

May 4, 1938, M. H. Guthrie and Donald McKenzie, who, prima facie, owned surface and mineral rights incident to Guthrie’s island, 1 executed a written lease 2 whereby they ‘ ‘. . . gave, granted, demised and leased” for eight years the lands described.

Appellant company agreed to pay ten cents per ton for all coal mined and removed from the premises. If such transactions amounted to less than $500 per year, the difference “. . . between the royalty so paid and the said sum of $500,” was due the lessors.

In September, 1939, appellees 3 alleged that the company, as an incident to mining and…