Beatty v. Baxter
Supreme Court of Oklahoma
258 P.2d 626 (Okla. 1953)
James Hubbard's will left half his land to Fred, subject to a pre-existing oil and gas lease. To settle a will contest, Fred conveyed a mineral estate in his portion to his siblings for 20 years "and as long thereafter as oil or gas is produced," while granting a reversionary interest to J.B. and Zella Beatty (plaintiffs). In 1945, the last producing well on Fred's tract stopped producing, though its casing was never removed; wartime shortages of machinery delayed rehabilitation, and the well resumed production in 1948, with a new well added in 1947. The Beattys sued F.H. Baxter and Fred's other grantees (defendants) for a declaration that the production gap reverted the mineral estate to the Beattys. The trial court ruled for the defendants, and the Beattys appealed.
Whether a deed conveying a mineral interest in land already subject to an oil and gas lease is governed by different rules of construction than the oil and gas lease itself.