Local Federal Savings & Loan Ass'n v. Eckroat

This is an action to recover oil payments allegedly due the plaintiffs under an oil and gas mining lease on their premises.

The defendant Local Federal Savings & Loan Association conveyed the premises to plaintiffs by warranty deed. The habendum portion of the deed contained the usual covenants of warranty, but concluded with the clause “except an oil and gas lease to Phillips Petroleum Co.” The lease so referred to had been executed by the aforesaid association to the defendant Phillips Petroleum Company prior to the execution of plaintiffs’ deed, and contained the usual royalty provisions to…