Page v. Fees-Krey, Inc.

LOHR, Justice.

We granted' certiorari to review a decision of the court of appeals1 which reversed a judgment of the district court that J. H. Page, Jr. (Page, Jr.), is the owner of a two percent overriding royalty interest in a federal oil and gas lease. We reverse the decision of the court of appeals.

The material facts are not in dispute. In 1951 the United States, as lessor, entered into an oil and gas lease with Marie Maro-ney, as lessee, covering certain real property in Rio Blanco County, Colorado.

In 1955 Phillips Petroleum Company (Phillips) acquired all of the lessee’s interest in the…