Greer v. Salmon

In Greer v. Salmon, 82 N.M. 245, 479 P.2d 294 (N.M. 1970), the New Mexico Supreme Court construed a habendum clause like the one in this case in conjunction with two savings clauses: a cessation-of-production clause and a shut-in royalty clause. Greer, 479 P.2d at 296. The New Mexico Court held that a gas well capable of production would only hold the lease if the lessee paid an annual shut-in royalty. Greer, 479 P.2d at 299. Thus, the New Mexico Court relied on provisions within the lease's four corners to ascertain the habendum clause's meaning.