Sun Oil Co. (Delaware) v. Madeley

GREENHILL, Chief Justice.

This case involves the construction of an oil and gas lease. It provides a ⅛⅛ royalty, about which there is no problem. It is also not disputed that the lease reserves to lessors one-half the net profits from the Vsths working interest oil. The principal issue is whether lessors are entitled to one-half the proceeds from the Vsths working interest gas, casinghead gas and condensate (“working interest gas”).

Martha Foster Madeley and others, as lessors, brought suit against Sun Oil Company, as lessee, for declaratory judgment as to the proper interpretation of the lease…