FEDERAL LAND BANK, ETC. v. Terra Resources, Inc.

The appellant, The Federal Land Bank of New Orleans (Bank), appeals from a summary judgment declaring an instrument entitled "Oil, Gas and Mineral Lease" to be a valid and subsisting lease. We affirm.

On September 5, 1974, the Bank, as lessor, executed an oil, gas and mineral lease to one Homer Lynn, covering an undivided one-half interest in and to all oil, gas and other minerals in and under the North half of the Northeast quarter, Section 28, Township 15 South, Range 13 West, in Fayette County, Alabama. Four days later, Mr. Lynn assigned his interest to appellee Terra Resources, Inc.…