In 2006, plaintiffs executed a lease to Anadarko ostensibly covering a 62-acre tract of land. The lease contains a warranty that the lessor has full title to the premises. It also contains a proportionate reduction clause so that if the lessor owns less than 100 of the mineral estate, the economic benefits under the lease will be proportionately reduced. Prior to the payment of the bonus, an Anadarko employee notified Shedden that there was an outstanding 1/2 mineral interest owned by a third party due to an 1894 deed. He thus informed Shedden that their per-acre bonus payment would be based on 31 acres and not 62 acres. Two years later, Shedden files a quiet title action regarding the 1/2 mineral estate which leads to a judgment awarding Shedden title to the entire mineral estate. In March 2011, Anadarko tenders to Shedden a check in order to extend the lease as per its terms and calculates the amount owed based on the full 62 acres. Plaintiffs file a declaratory judgment action asserting mat the 1/2 mineral interest that they recovered in the quiet title action was not leased to Anadarko.
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