Phillips Petroleum Company v. Heber A. Peterson and Astrid N. D. Peterson, Phillips Petroleum Company v. John H. Haslem and Rebecca H. Haslem

PHILLIPS, Chief Judge.

This appeal involves the validity of a unitization provision in certain oil and gas leases. It reads as follows:

“12. Lessee shall have the right to unitize, pool, or combine all or any part of the above described lands with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall be deemed modified to…