Amarillo Oil Co. v. McBride

67 S.W.2d 1098
CourtCourt of Appeals of Texas
DecidedJanuary 22, 1934
DocketNo. 4128.
StatusPublished
Cited by11 cases

This text of 67 S.W.2d 1098 (Amarillo Oil Co. v. McBride) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amarillo Oil Co. v. McBride, 67 S.W.2d 1098 (Tex. Ct. App. 1934).

Opinion

JACKSON, Justice.

Teant L. McBride, joined by his wife, Annie V., as grantors, on May 17, 1920, executed a deed by which the grantees named therein each acquired an interest in a section of land.

The deed stipulates:

“That I, Teant B. McBride, joined pro for-ma by my wife Annie V. McBride, of the County of Potter and State of Texas, for and in consideration of the love and affection I bear my father Dave N. McBride and my brothers and sisters, to-wit: (naming them) have given, granted and conveyed and by these presents do give, grant and convey unto my said father Dave N. McBride * * * my brothers Robert G. McBride * * * Amos P. McBride * * * and my sisters Jennie M. Wright, wife of Bert B. Wright. * * .* and Montie G. Rockwell, wife of Marshall H. Rockwell * * * upon the terms and conditions hereinafter set out:
“All that certain tract of land situated in Potter County, Texas, known and described as *1099 Section No. 98 in Block No. 46 of the Houston ■ & Texas Central Ry. Co. land * * * containing 640 acres more or less.”

Then follows a regular 'habendum clause and a special warranty clause from which is omitted the name of Dave N. McBride, after which is this provision:

“The intention and purpose of this conveyance is to vest sufficient title in my said father, Dave N. McBride, to the above described property, so that he can, during his life, use, occupy and enjoy it, and receive therefrom all the benefits as completely as though he had a fee simple title; and to that end he may execute and deliver oil and gas, or other mineral leases to all or any part thereof; provided such leasehold estates so conveyed shall not convey to the lessee more than seven-eighths of such oil, gas or other minerals discovered on or under the surface of such premises, always reserving the other one-eighth of such oil, gas or mineral products to himself and his assigns. And if oil, gas or other valuable minerals be discovered on or under said land, then and in such case the leasehold estate shall remain in the lessee, his heirs and assigns for such term and upon such conditions and requirements of the lessee after the ' death of my said father Dave N. McBride, as if he were living, except that the rents and royalties therefrom shall be payable to my said above named brothers and sisters, as their respective interest may appear. And such reservation of one-eighth interest in such ■ oil, gas and other minerals, so contained in the lease contracts of my said father, may be transferred by him for and during his life time only, after his death such reservation rights shall vest in my said named brothers and sisters aforesaid, as applied to their' re- . ⅛-pective parts of said land as hereinafter set forth. And at the death of my said father, Dave N. McBride, my said brothers and sisters i shall have and become the owners in fee sim- " pie of said tract of land in the following parts and parcels,”

, It is then stipulated that Robert G. McBride shall own in his own separate right in fee simple the N. E. ½; Amos P. McBride shall i own in his own separate right in fee simple the S. W. ⅛ ; Jennie M. Wright shall own in her own separate right in fee simple the N. W. ½ ; and Montie G. Rockwell shall own in her own separate right in fee simple the S. E. ⅛ of said section.

On February 10,1926, Dave N. McBride, by his attorney in fact, leased and let the oil, gas, and mineral rights-on the south 600 acres of said section to the Amarillo Oil Company for a consideration of $6,000 cash and an annual rental of $600. The lease is on a regular 88 form, and contains the following provisions:

“It is agreed that this lease shall remain in force for a term of five years from this date, and as long thereafter as oil or gas, or either of them, is produced from said land by the lessee:
“In consideration of the premises the said lessee covenants and agrees:
“1st. To deliver to the credit of lessor, free of cost, in the pipe line to which he may connect his wells, the equal of one-eighth part of all oil produced and saved from the leased premises.
“2nd. To pay the lessor one-eighth royalty for the gas from each well where gas only is found, while the same is being used' off the premises, and lessor to have gas free of cost from any such well for all stove3 and all inside lights in the principal dwelling- house on said land during the same time by making his own connections with the wells at his own risk and expense.
“3rd. To pay lessor for gas produced from any oil well and used off the premises at the rate of one-eighth royalty for the time during which gas shall be used.
“If no well be commenced on the said land on or before the 10th day of February, 1927, this lease shall terminate as to both parties, unless the lessee on or before that date shall pay or tender to the lessor or to the lessor’s credit in the American State Bank at Amarillo, Texas, or its successors, which shall continue as a depository regardless of changes in ownership of said land, the sum of six hundred ($600.00) Dollars, which shall operate as a rental and cover the privilege of deferring the commencement of a well for 12 months from said date. In like manner and upon like payment or tenders the commencement of a well may be further deferred for a like period for the same number of months successively, And it is understood and agreed that the consideration first recited herein, the down payment, covers not only the privileges granted to the date when said first rental is payable as aforesaid, but also the lessee’s option of extending that period aforesaid, and any and all other rights conferred.
“Should the first well drilled on the above described land be a .'dry hole, then and in that event, if a second well is not commenced on said land within twelve months from; the expiration of the last rental period for which rental has been paid; this lease shall terminate as to both parties unless the lessee on or *1100 before the expiration of said, twelve months shall resume the payment of rentals in the same amount and in £be same manner as here-inabove provided. And it is agreed that upon the- resumption of the payment of rentals, as above provided, that the last proceeding paragraph hereof governing the payment of rentals and the effect thereof, shall continue in force just as though there had been no interruption in tbe rental payments.”

The parties agreed that the Amarillo Oil Company had by assignment conveyed to the panadian River Gas Company the gas rights and to the Parconis Oil & Gas Company the pil rights on said 600 acres of land described in' the lease, and that the Equitable Trust Company of New York had a mortgage on the seven-eighths of the oil and gas conveyed to the Amarillo Oil Company in the original lease. The consideration of $6,000 was paid to Dave N. McBride, and the annual delay rentals of $800 were paid to him according to the terms of the lease until his death. Pie died on June 25, 1928, prior to the drilling of á well on any of the acreage covered by the lease.

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67 S.W.2d 1098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amarillo-oil-co-v-mcbride-texapp-1934.