Followwill v. Merit Energy Co.

C&K Petroleum, Merit Energy's (defendant) predecessor, held federal oil and gas leases requiring royalties to be calculated under federal regulations; Followwill and Irwin (plaintiffs) provided geological services to C&K in exchange for overriding royalties, under an agreement stating those royalties would be "computed and paid in the same manner as the corresponding lessor's royalty," with assignments referencing payment for gas sold under the underlying leases' terms. The plaintiffs sued Merit, arguing their overriding royalties should instead have been computed under the Wyoming Royalty Payment Act (WRPA), a statute that didn't exist when the royalty agreement was made, and Merit moved for summary judgment.