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KENTUCKY-WEST VIRGINIA GAS CO. v. MARTIN

Nos. 85-CA-1830-MR, 85-CA-1904-MR.

744 S.W.2d 745 (1987)

KENTUCKY-WEST VIRGINIA GAS COMPANY and Kepco, Inc., Appellants, v. Harry MARTIN, Administrator with the Will Annexed of the Estate of Gomer R. Martin, Sr., Appellee, and Harry MARTIN, Administrator with the Will Annexed of the Estate of Gomer R. Martin, Sr., and Executor of the Estate of Golda Martin, Cross-Appellant, v. KENTUCKY-WEST VIRGINIA GAS COMPANY and Kepco, Inc., Cross-Appellees.

Court of Appeals of Kentucky.

Rehearing Denied October 9, 1987.

Discretionary Review Denied by Supreme Court February 23, 1988.

Attorney(s) appearing for the Case

Michael D. Baker, Lexington, Morris Kennedy, Ashland, James A. Combs, Prestonsburg, A. George Mason, Jr., Kingsport, Tenn., for appellants/cross-appellees.

Richard E. Fitzpatrick, Winnifred L. Bryant, Jeff A. Woods, Lexington, for appellee/cross-appellant.

Before HOWERTON, C.J., and COMBS and HAYES, JJ.

HAYES, Judge:

The question presented is whether the rule against perpetuities operates to void a preemptive option in favor of the lessor in an oil and gas lease between the parties to this appeal. We are convinced that the option falls within the proscription of the rule and is also barred by the Kentucky rule against unreasonable restraints on alienation and thus may not be enforced by appellees.

In 1921, the predecessors in title of both appellants and...

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