Danciger Oil & Refineries, Inc. v. Hamill Drilling Co.

This suit involves the construction of an oil and gas mining contract. The material question to be determined is whether^ or not certain royalty or mineral payments provided for therein were to be based on the value of the crude gas mined from the premises, or its value after the gas had been processed and manufactured into other products.

*155Danciger Oil and Relneries, Inc., will be referred to as Danciger, and Hamill Drilling Company et al will be referred to as Hamill. The material facts are these. Danciger owned oil and gas mining leases on about 5,000 acres of land in Brazoria County, in the…