Eason Oil Co. v. Howard Engineering, Inc.

OPALA, Vice Chief Justice.

The dispositive first-impression issue this case presents for our review is whether the working interest ownership regime in a producing well completed under Corporation Commission spacing and compulsory pooling orders is altered when a subsequent order reduces the size of drilling and spacing units for the same common source of supply. We answer in the negative, holding that once production was established from the designated common source of supply, the working interest in the producing well vested in proportion to participation under valid compulsory pooling…