Peveto v. Starkey

In 1960, Jones granted Peveto (defendant) a term royalty interest lasting 15 years and thereafter for as long as minerals were produced in paying quantities -- a determinable fee that could theoretically continue forever. In 1973, Jones granted an identical royalty interest in the same property to Starkey (plaintiff), but that grant was to take effect only once the earlier Peveto interest expired. Jones and Peveto later extended Peveto's primary term before it would have expired; Starkey sued for a declaration that his interest was valid and Peveto's void, and the trial and appellate courts ruled for Starkey.