Oil & Gas Litigation Analysis
Home Cases Sun Oil Co. (Delaware) v. Madeley
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Sun Oil Co. (Delaware) v. Madeley

Supreme Court of Texas No. C-120 resolved

The Texas Supreme Court reversed summary judgment for lessors who claimed entitlement to working interest gas proceeds under a 1932 oil and gas lease, holding that the unambiguous lease language reserved to lessors only one-half of working interest oil profits, not gas. Despite Sun Oil's decades-long practice of voluntarily paying lessors a share of working interest gas proceeds, the Court rejected the use of extrinsic evidence and estoppel theories to create contractual obligations not expressed in the integrated writing.

Analysis