Leonard v. Prater

On May 8, 1922, appellees executed an oil and gas lease to appellant C. A. Leonard on,200 acres of land in Brown county, for a term of 3½ months from date. Leonard by mesne conveyances assigned interests to the other appellants. No cash consideration was paid for the lease, but it provided for payment of one-eighth royalty on the gross production of oil and “⅛ net proceeds of all gas sold * ⅜ * from each well where gas only is found,” and further that lessors be paid “out of the first oil produced on said lease five thousand dollars worth of oil, except that the expense of operating the lease…