District Court Rejects Lease-Termination Suit by Top Lessee and Lessor's Family Members
In Mercury-Ward LLC v. Anadarko Petroleum Corp., a top lessee and family members of the lessor argued that Anadarko's lease had terminated because an extension of the lease was executed by one family member but not her children. Anadarko argued that its lease extension was valid because, among other reasons, (1) the lessor inherited the minerals in fee simple, not in life tenancy, and thus had full authority by herself to execute the lease extension; and (2) the lessor's children had no standing to challenge the lease extension's validity because, under their father's will, their prospective interest in the minerals was unvested as a matter of law. The trial court agreed with Anadarko, entering judgment that Plaintiffs take nothing on their claims.