At all times the Hardimans own the surface and all of the minerals in a 60-acre tract of land. In 1976 they enter into an oil and gas lease with Cimarron Oil's predecessor in interest. This lease covers all the rights to develop the "oil and gas" in the land. The lease remains in effect when Howard Energy obtained its lease. In 2001 the Hardimans enter into a "Coal Bed Methane Lease" with Howard Energy, covering the same land leased to Cimarron Oil, but covering the coal bed methane gas. The trial court holds that the Hardimans' 1976 lease does not encompass coal bed methane gas and therefore Howard Energy holds the leasehold rights to the coal bed methane gas. Held: Affirmed. The court concludes that when the Cimarron Oil lease is executed in 1976 the parties did not contemplate the possibility of developing the gas found in coal seams. The court, in an apparent effort to protect the coal estate, concludes that coal bed methane was not included in the 1976 lease of "oil and gas."
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