Mengden v. Peninsula Production Co.

DANIEL, Justice.

This suit involves the pooling provisions of two adjacent mineral leases which were farmed out to the same assignee; the allocation of production on two gas units formed by the assignee from portions of both leases; and the method of calculating “payouts” and partial reversions under the farmout agreements. Peninsula Production Company, et al., successors in interest of the farmout-assignors, and Walter H.' Mengden, Sr., the assignee who formed the gas units, sought declaratory judgments to determine the effective date of Peninsula’s reversion or “back-in” right to one-fourth…