Hale v. Gypsy Oil Co.

Citations

• 113 Kan. 176
• 213 P. 824
• 1923 Kan. LEXIS 359

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Oil and Gas Lease — Assignment and Subsequent Assignment of Part Interest in the Lease — Contract of Lease and Subsequent Assignments Construed— Liability of Assignee to Pay Share of Rent. The owner of 160 acres of land executed an oil and gas lease thereon containing a provision that in case oil or gas was found in paying quantities the lessor was to receive an additional payment of $5,000 out of the first production. The lessee assigned his interest in a specified 80 acres of the lease by an instrument providing that whichever party to such instrument first struck oil on his part of the lease, the other should pay half of the $5,000 thereby made payable to the lessor, and that the contract was binding upon legal representatives, successors and assigns of the parties. The assignee in turn assigned an undivided half of his interest, by a writing in which the new assignee agreed to pay half of all rentals and royalties accruing on account of the lease and of all bonuses provided therein payable out of the proceeds of oil, and was authorized to pay all future rentals, the assignor agreeing to make reimbursement for its share thereof. Thereafter the original lessee struck oil on the acreage he had retained and paid the lessor $5,000. It is held that the second _assignee was liable for the payment of $1,250 to the lessee.</p>