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UNION PACIFIC RESOURCES CO. v. TEXACO

Nos. 93-223, 93-224.

882 P.2d 212 (1994)

UNION PACIFIC RESOURCES COMPANY, a Delaware corporation, as Successor in Interest to Champlin Petroleum Company, Appellant (Plaintiff), v. TEXACO, INC., a Delaware corporation; and Wexpro Company, a Utah corporation, as Successor in Interest to Mountain Fuel Supply Company, Appellees (Defendants). AMOCO PRODUCTION COMPANY, a Delaware corporation, Appellant (Plaintiff), v. TEXACO, INC., a Delaware corporation; and Wexpro Company, a Utah corporation, as Successor in Interest to Mountain Fuel Supply Company, Appellees (Defendants).

Supreme Court of Wyoming.

Rehearing Denied November 2, 1994.

Attorney(s) appearing for the Case

Loyd E. Smith of Lathrop & Rutledge, P.C., Cheyenne, and Gretchen A. VanderWerf and Lino S. Lipinsky de Orlov of Hawley and VanderWerf, P.C., Denver, CO, for Union Pacific Resources Co.

Bradley S. McKim of Amoco Corp., Denver, CO and Stan L. Spangler of Shaw, Spangler & Roth, P.C., Denver, CO, for Amoco Production Co.

Neil J. Short, Casper, and Craig R. Carver of Gibson, Dunn & Crutcher, Denver, CO, for Texaco, Inc.

Neil J. Short, Casper, for Wexpro Co.

Before GOLDEN, C.J., and THOMAS, CARDINE, MACY, and TAYLOR, JJ.

TAYLOR, Justice.

The primary question in these consolidated appeals concerns the interpretation of a contract. The contract is an operating agreement formed by four oil and gas companies who own exclusive rights to exploit minerals on certain lands in Wyoming. The contract allocates expenses and profits for natural gas exploration and production. The allocation of profit varies depending upon the geologic formation from which...

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