Hughes v. Samedan Oil Corporation

MURRAH, Circuit Judge.

This suit involves the interpretation of the royalty provisions of an “Operating Agreement’’ on an oil and gas prospecting permit covering government owned lands in Lea County, New Mexico. The permit was issued to appellant, Sarah B. Hughes, in 1926 under authority of the Mineral Leasing Act of February 25, 1920. 41 Stat. 437, 30 U.S.C.A. § 181-et seq. The Operating Agreement entered into in 1927 between Hughes, as permittee, and one Clark, predecessor in interest of appellees, 1 provided inter alia that Clark as “Operator” should drill and develop the land embraced in…