Santa Fe Energy Co. v. Baxter

OPINION

ROBERTSON, Justice.

This is a declaratory judgment case. The sole issue on appeal is whether a tax shifting clause in an oil and gas lease places the burden on the lessee to pay all taxes levied under the Windfall Profit Tax Act of 1980. Appellants, Santa Fe Energy Company and Kirby Forest Industries, Inc. (“Santa Fe”) are the lessors. Appellees, Murphy H. Baxter, John L. Cox, Pioneer Production Corporation and Wing Corporation (“Baxter”) are the lessees. Baxter brought a declaratory judgment action claiming the tax shifting clause in the lease did not place the burden of paying all…