Opinion ID: 2512015
Heading Depth: 1
Heading Rank: 2

Heading: Michael L. Levin and Diane L. Levin

Text: On June 14, 2006, the Levins leased 128 acres in Miami County to Maw. The lease, drafted by Maw, contained a habendum clause, which stated in pertinent part: 2. This is a PAID-UP LEASE and shall remain in force and effect for a term of six (6) months ('Primary Term') from this date and as long thereafter as gas or its constituent products or other hydrocarbons are produced from said land, ... or as long as LESSEE is conducting operations on said land.... If, at the expiration of the Primary Term, gas is not being produced from the premises ..., but LESSEE is engaged in drilling, reworking or dewatering operations thereon, then this Lease shall continue in full force and effect as long as operations are being continuously prosecuted. The lease's shut-in royalty clause stated: 4. If, at any time, while there is a gas well or wells on the above land ..., and such well or wells are shut in, and if this lease is not continued in force by some other provisions hereof or if a well has been completed and dewatering operations have commenced, then it shall, nevertheless, continue in force as long as said well or wells are shut in and it shall be considered that gas is being produced from the leased premises in paying quantities within the meaning of this lease by the LESSEE paying or tendering to LESSOR annually, in advance a substitute or shut-in gas royalty.... The Levins and Maw entered into a second lease for the same acreage on December 1, 2006, because the first lease was about to expire with no activity. The lease remained the same, except the primary term in the habendum clause changed from 6 months to 45 days ... from December 14, 2006. The second lease also included a provision stating: The shut-in gas period called for in paragraph # 4 above shall not exceed one (1) year[ ] and any one (1) year period in time. Although the parties do not agree on specific dates, a natural gas well was drilled sometime between February 6, 2007, and February 22, 2007, on the subject acreage. While the Levins' apparently knew the lease had been assigned, the lessees' joint answer indicates that Maw assigned the Levins' lease to Clary on March 26, 2006. The record on appeal does not appear to support this chronology. It shows the original Levins' lease beginning June 14, 2006, almost 3 months after the alleged assignment. In addition, the Levin acreage is not listed in the March 26, 2006, assignment agreement between Maw and Clary. Despite these gaps, Clary alleges it tendered shut-in royalty and advance royalty checks to the Levins; and the record shows the Levins received and negotiated a $128 check from Clary on February 22, 2007. On June 22, 2007, the Levins leased their land to KGE and signed an affidavit of nonproduction.