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PALMER v. BILL GALLAGHER ENTERPRISES

No. 102,150.

240 P.3d 592 (2010)

Charles F. PALMER and Dolores Palmer, husband and wife, Appellees/Cross-appellants, v. BILL GALLAGHER ENTERPRISES, L.L.C., Appellant/Cross-appellee.

Court of Appeals of Kansas.

September 24, 2010.

Attorney(s) appearing for the Case

Ryan M. Peck and Clinton M. Goos , of Morris, Laing, Evans, Brock & Kennedy, Chartered, of Wichita, and Kurt F. Kluin , of Kluin Law Office, LLC, of Chanute, for appellant/cross-appellee.

W.J. Fitzpatrick , of Fitzpatrick & Bass, of Independence, for appellees/cross-appellants.

Before HILL, P.J., PIERRON and LEBEN, JJ.

HILL, J.:

Charles and Dolores Palmer granted a 2-year oil and gas lease on their farm in 1996. The lessee drilled one gas well on the property, but it has never produced any oil or gas. The lease has a minimum-royalty clause calling for the Palmers to receive at least $1,000 every year, beginning with the second year of the lease. The lease called for this minimum-royalty to come either from production earnings or, if there was inadequate production, by the lessee...

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