Heikkila v. Carver

WUEST, Chief Justice.

This is an appeal from a declaratory judgment concerning the rights and obligations of the parties under an arbitration provision in a contract for deed. We affirm in part and reverse in part.

Howard and Reino Heikkila (Heikkilas) owned a 5,920 acre ranch in Harding County, South Dakota. In 1971, they entered into an oil and gas lease with Inland Oil & Gas Corporation that covered 1,840 acres on the ranch. The granting clause provided that the lessor:

“... grants, leases, and lets exclusively to Lessee the land described below for the purpose of investigating, exploring

for,…