Humble Exploration Co. v. Amcap Petroleum Associates-1977

ROWE, Justice.

This is a summary judgment case. Ap-pellees, as Non-operators, brought suit against appellant, Humble, for a declaratory judgment construing in ten prospect agreements, tax provisions affecting the “payout” date for vesting of Humble’s twenty-five percent reversionary “back-in” interest. The trial court, finding the applicable provisions unambiguous, held as a matter of law that under the agreements “the tax imposed by the Crude Oil Windfall Profit Tax Act of 1980, 26 U.S.C. § 4986, is a ‘production,’ ‘severance’ or other ‘similar’ or ‘applicable’ tax measured by pro duction…