Production Payment Expressed as Percentage of Production from Land Held Reduced When Some but Not all Burdened Leases Expired The court in Apache Deepwater, LLC v. McDaniel Partners, Ltd., No. 14-0546, 59 Tex. Sup. Ct. J. 411, 2016 WL 766731 (Tex. Feb. 26, 2016, reh'g denied), rev 'g 441 S.W.3d 530 (Tex. App.-El Paso 2014), construed a 1953 assignment of oil and gas leases covering land in Upton County, Texas, that reserved to Hugh W. Ferguson, Jr., the assignor, from his assignment to L.H. Tyson, the following production payment interest: the title and ownership of one-sixteenth of thirty-five sixty-fourths of seven-eighths (l/16th of 35/64ths of 7/8ths, being one-sixteenth of the entire interest in the production from said lands to which Assignor claims to be entitled under the terms of said respective oil and gas leases) of the total oil, gas, casinghead gas and other minerals in and under and which may be produced from the above described land, i.e., from each and both of said Surveys 3 6 and 37 until the net proceeds of said reserved interest in the production... shall have amounted in the aggregate to $3,550,00.00 and 1,420,000 barrels of oil.
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