Cherokee Resources, Inc. v. Gold Energy Corp.

Lyle, J.:

Gold Energy Corporation appeals the judgment of the trial court denying its counterclaim which alleges that Cherokee Resources should be liable for its share of a guaranteed royalty payment due under an oil and gas lease. The facts are not in dispute and will be set forth chronologically.

On March 1, 1980, John Haddad, d/b/a H-H-H Oil Company, obtained an oil and gas lease from Stanley Dreher, Jr., and Maxine Dreher. The lease covered a 240-acre tract of land described as follows: The NW 14 and the W Vá of the SE !4 of Section 17, Township 24, Range 19, Allen County, Kansas. The lease…