Allen v. Farmers Union Co-Operative Royalty Co.

1975 OK 102, 538 P.2d 204
CourtSupreme Court of Oklahoma
DecidedJuly 8, 1975
Docket46493, 46517 and 46526
StatusPublished
Cited by11 cases

This text of 1975 OK 102 (Allen v. Farmers Union Co-Operative Royalty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. Farmers Union Co-Operative Royalty Co., 1975 OK 102, 538 P.2d 204 (Okla. 1975).

Opinion

DAVISON, Justice:

The above styled and numbered cases are separate appeals from a single judgment rendered in the trial court. The multiplicity of propositions of error, counter-charges, and answers thereto render it nec *206 essary to dispose of the same in and by this decision.

The subject appeals (3) by defendants, Alice Mae Baines and Jane Louise Bowman (Baines-Bowman), and Flag-Redfern Oil Company, successor to Flag Oil Company (Flag), and Farmers Union Co-operative Royalty Company (Farmers), collectively referred to herein as “Appellants,” are prosecuted from a judgment rendered in favor of plaintiffs, Welton L. Allen, Frances D. Posey, Emily J. Stilwell, and El-dean Allen (Allen Heirs), quieting title to certain mineral interests in Allen Heirs.

The Allen Heirs filed suit in the lower court on July 12, 1972, against Appellants and Eagle-Picher Company to quiet their title “in and to all copper, gold, silver, lead or other types of metallic ores or metallic metals lying under or that may be produced from” the East Half of the Northwest Quarter, and the West Half of the Northeast Quarter, of Section 21, Township 1 South of Range 22 West of the I. M., in Jackson County, Oklahoma. Eagle-Picher was a party defendant because it held an alleged valid mining lease in the property. It was made a party for the alleged purpose of informing it of the quiet title proceeding, and no relief was sought against it.

There is no dispute as to the manner in which the parties acquired their interests in the property.

On October 18, 1921, one C. G. Spears was the owner of the fee title to the above described real estate. On that date, by warranty deed recorded October 25, 1921, in Book 32, Page 101, Spears, joined by his wife, conveyed the property to The First National Bank of Olustee, with the following reservation: “It is understood that the Grantors hereto reserve one-half interest in and to all oil, gas & mineral rights of above described land, * *.” This reserved interest, after being reduced to an undivided one-fourth interest by the following described conveyance, ultimately descended to and became vested in Baines-Bowman.

On May 31, 1929, by “Mineral Deed Special”, recorded June 15, 1929, in Book 11, page 459, Spears conveyed to Farmers “an undivided ¼ interest in and to all of the oil, gas and other minerals in and under, and that may be produced from” the above described real estate, “together with the right of ingress and egress at all times for the purpose of mining, drilling and exploring said land for oil, gas and other 'minerals and removing the same therefrom.” The instrument also provided'for payment to Farmers of rentals and royalties from any existing or future oil and gas lease, “it owning 14 of all oil, gas and other minerals in and under said lands, together with (4 interest in all future events.”

On August 25, 1930, Farmers executed a mineral conveyance, in favor of Flag Oil Company (of which Flag is successor) which was duly recorded March 31, 1938. In this instrument Farmers described the conveyance from Spears to it by date, and book and page of recording, and reciting that Farmers, under the conveyance from Spears, “was conveyed an undivided ¼ interest in and to oil, gas and other minerals and mineral royalty in and under said land to the extent set forth in said conveyance.” (Emphasis supplied). The instrument then stated Farmers was conveying to Flag Oil Company “an undivided ½6 interest in and to the oil, gas, coal, iron and other minerals and mineral royalty” in and under said land.

The title acquired by the Bank of Olustee from Spears, supra (which constituted the fee less Spears’ reservation of one-half of the oil, gas and mineral rights) by mesne conveyances became vested in one Shu-maker, who on April 5, 1943, by warranty deed duly recorded May 7, 1943, conveyed the property to E. L. Allen, with a provision in the habendum clause stating, “Except one half interest in and to all oil, gas and mineral rights reserved in warranty deed Dated Oct., 18th 1921 recorded in Book 32, Page 101.” Thereafter, on March 16, 1946, Shumaker, by Quit Claim Deed *207 duly recorded April 4, 1946, again conveyed the property to E. L. Allen, for the stated purpose of conveying all of grantor’s “Mineral rights * *,” as was intended by the prior warranty deed. The title of Allen descended to and became vested in the plaintiffs Allen Heirs.

At the trial of the cause the above instruments were introduced in evidence. The trial court also permitted Flag, as an offer of proof, to introduce testimony and evidence designed to show that, at the time Spears conveyed the mineral interest to Farmers and during their later relationship and dealings concerning the same, Spears and Farmers thought and believed they owned a mineral interest consisting of more than an interest in the oil, gas, and constituents thereof. This evidence was offered, as we understand it, to show the intentions of the parties in connection with the reservation and conveyances. The court permitted this evidence only as an offer of proof, refused to consider it, held the instruments were clear and unambiguous, and rendered judgment against the Appellants quieting title in the Allen Heirs to all the metallic minerals specifically and generally described above.

We are concerned here only with the proposition of whether one, several, or all of the Appellants, own any interest in the copper, gold, silver, lead or other types of metallic ores or metallic metals, lying under or that may be produced from the above described real estate. We are not concerned with what interest all of the parties, as between themselves, own in the oil, gas and constituents thereof.

It should also be understood that the situation presents two distinct chains of title. One chain of title stems from Spears’ reservation of one-half of “all oil, gas & mineral rights” in the warranty deed to First National Bank of Olustee, one portion of which severed minerals descended to Baines-Bowman, and the other portion being conveyed to Farmers, and then in part to Flag (supra). The other chain of title, covering the fee less the reservation of Spears, stems from First National Bank of Olustee and consists of mesne conveyances to one E. L. Allen, from whom it descended to the Allen Heirs (supra).

The parties have filed extensive briefs herein. A considerable part of Appellants’ complaints regarding the lower court’s judgment are based on criticism of our decision in Panhandle Cooperative Royalty Company v. Cunningham, Okl., 495 P.2d 108. In fact, our conclusions in the Panhandle case are directly or indirectly contrary to the Appellants’ contentions in this appeal.

The Appellants Baines-Bowman contend the Spears reservation (“all oil, gas & mineral rights”) is unambiguous, is distinguishable from the term “all oil, gas and other minerals,” and clearly means all minerals of every kind.

In support of this statement they cite Barker v. Campbell-Ratcliff Land Co., 64 Okl. 249, 167 P. 468. In that case the grantor inserted a reservation in his favor in the warranty deed conveying the property stating “ * * reserve all mineral rights upon the * * ” lands. The issue was whether an oil and gas lessee of the grantor could develop the land for oil and gas. We held the words “all mineral rights” did cover oil and gas.

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Bluebook (online)
1975 OK 102, 538 P.2d 204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-farmers-union-co-operative-royalty-co-okla-1975.