Hoover Tree Farm, L.L.C. v. Goodrich Petroleum Co.

LThe trial court determined that a $7.6 million payment and a higher lease royalty were owed to the plaintiffAessor under a mineral lease because of the operation of a so-called most favored nations clause in the lease. The clause required a bonus-related payment and higher royalty for the lessor in the event that the original lessee or its “successors and assigns” acquired other nearby leases for a higher bonus or royalty. The defendani/lessee transferred an undivided one-half interest in the lease pertaining to the deeper zones of production, and its transferee thereafter acquired third…