Morton v. Yonkers (In Re Vallecito Gas, L.L.C.)

E. GRADY JOLLY, Circuit Judge:

Appellant Harvey Leon Morton (“Morton”), the trustee of the Valleeito Gas, L.L.C. (“Valleeito”) bankruptcy estate, appeals the district court’s judgment affirming the bankruptcy court’s judgment in favor of various owners of overriding royalty interests (collectively, the “Appellees”) to a lease that Morton seeks to sell on behalf of the bankruptcy estate. For the following reasons, we AFFIRM the judgment of the district court.

I

In March 2006, Valleeito purchased a gas lease called the “Hogback Lease,” located on Navajo Nation land in New Mexico, from Tiffany Gas…