Skelly Oil Co. v. Savage

The opinion of the court was delivered by

Schroeder, J.:

This is an interpleader action by Skelly Oil Company (plaintiff-appellee), the purchaser of liquid hydrocarbons produced from a well located on a unitized leasehold, to construe an oil and gas lease and particularly the pooling or unitization clause therein which provides for the pooling of “gas rights only” where both natural gas and liquid hydrocarbons are produced from the same well.

The question presented is whether the ownership of the royalty interest in the liquid hydrocarbons is in the owners of the land on which the well is…