Thompson v. Magnolia Petroleum Co.

A rich oil field was discovered in Illinois in 1938; Thereupon, this dispute arose between a trustee of a railroad in reorganization tender § 77 of the Bankruptcy Act (11 U. S. C. 205) and other claimants as to the legal,right to drill for and capture fugitive oil under the railroad’s right of way traversing the newly discovered field. The trustee asserts fee simple ownership of the right of way lands with consequent right to reduce the underlying oil to possession. Respondents deny the trustee’s alleged title or that he has any interest in the land beyond a mere easement — a limited right to…