Sunbelt Exploration Co. v. Stephens Production Co.

Tom Glaze, Justice.

This case involves oil and gas leases and, as such, the facts leading to the present appeal are lengthy and complicated. Because the facts are important to our decision, they are set out below as simply as possible.

In the 1950s, the appellees Stephens Production Co. and Chevron USA, Inc. acquired oil and gas leases in the Arkoma Basin from the appellant lessors’ predecessors' in title. The leases provide for the payment of royalties on the basis of market value, with the royalties constituting the lessors’ chief consideration for conveying their rights in the leaseholds.…