Andretta v. West

402 S.W.2d 543, 25 Oil & Gas Rep. 54, 1966 Tex. App. LEXIS 2109
CourtCourt of Appeals of Texas
DecidedApril 28, 1966
DocketNo. 167
StatusPublished
Cited by3 cases

This text of 402 S.W.2d 543 (Andretta v. West) 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
Andretta v. West, 402 S.W.2d 543, 25 Oil & Gas Rep. 54, 1966 Tex. App. LEXIS 2109 (Tex. Ct. App. 1966).

Opinion

DUNAGAN, Chief Justice.

The appellant originally instituted this suit against the Superior Oil Company and W. E. West and wife in the 114th District Court of Smith County, Texas, alleging that he was the owner of a one-fourth non-participating royalty interest in a 100 acre tract owned by the Wests, which was then under an oil, gas and mineral lease to Superior Oil Company; and that by virtue of a lieu royalty agreement entered into' between Superior and West, Superior had paid West certain monies as royalty and that appellees and Superior were jointly and severally liable to him for one-fourth proportionate part of said monies.

This action was brought in the nature of a suit for debt as a result of the monies paid to the Wests by Superior by virtue of the West-Superior agreement.

The Wests filed their pleas of privilege to be sued in Van Zandt County, the county of their residence. The Wests’ pleas of privilege were sustained and such judgment on appeal was affirmed. Andretta v. West, 318 S.W.2d 768, (Tex.Civ.App.) 1958, writ refused, n. r. e. After transfer to Van Zandt County, the court entered an interlocutory decree in favor of Superior Oil Company, following the opinion of the Court of Civil Appeals in the case of An-dretta v. West, supra, that plaintiff could not recover against Superior since he had failed to notify Superior of his royalty interest in accordance with the terms of the original lease under which he purchased.

W. E. West and wife owned 100 acres of land in fee. In 1942, they made an oil and gas lease for a ten-year primary term, which Superior later acquired. Subsequent to the lease, the Wests sold a one-fourth non-participating royalty interest in 1943 and appellant later acquired this non-participating interest.

Trial of this case was before the court without the aid of a jury. Judgment was rendered for appellees in which the interlocutory decree theretofore entered on behalf of Superior was made a part of the final judgment.

Appellant, who was plaintiff below, sued W. E. West and wife, Mrs. Willie B. West, and the Superior Oil Company to recover one-fourth of certain payments made by Superior to the Wests in accordance with the West-Superior agreement. Appellant in his brief states that: “(In view of the holding in the earlier appeal of this case involving venue, Andretta v. West, 318 S.W.2d 768, Tex.Civ.App., 1958, writ ref., n. r. e. on the question of Superior’s liability, Appellant hereby abandons his suit against The Superior Oil Company. * * * ” Accordingly, the reference in this opinion to “ap-pellees” means only the Wests. The trial court held (1) that the payments in question did not constitute royalty, and (2) that even if such payments were royalty, appellant’s claim is barred by the two-year statute of limitation.

All proceedings in this cause have been timely and regular, and this appeal is properly before this court for review.

Pursuant to appellant’s request therefor, the trial court made and filed his findings of fact and conclusions of law. The facts in this case are undisputed, therefore it would serve no useful purpose to include said findings of fact and conclusions of law in this opinion.

Appellant, as grounds for his appeal, presents four Points of Error:

“POINT 1.
“The trial court erroneously held that Appellant, the owner of a ¼⅛ interest in the royalty in the West 100 acre tract, [545]*545was not entitled to recover from Appel-lees, the Wests, of the payments made by The Superior Oil Company to the Wests under the West-Superior Agreement.
“POINT 2.
“The trial court erroneously held that the payments by The Superior Oil Company to Appellees, the Wests, under the West-Superior Agreement did not constitute royalty.
“POINT 3.
“The trial court erroneously held that the payments by The Superior Oil Company to Appellees, the Wests, under the West-Superior Agreement were in the nature of delay rentals and not royalties.
“POINT 4.
“The trial court erroneously held that Appellant’s cause of action against Ap-pellees, the Wests, is barred by the two-year statute of limitation.”

Appellees, owners of fee simple title to the IDO acre tract of land, on September 4, 1942, executed to George W. Lack an oil, gas and mineral lease thereon. This lease, drawn in routine form, provided for a ten-year primary term and a one-eighth royalty interest. The lease was assigned to Superior Oil Company on September 18, 1942, and will herein be referred to as the “Superior lease.”

In answer to requests for admissions, ap-pellees admitted that the Superior lease continued in full force and effect from its date of execution until released by Superior in July of 1957.

No oil or gas has been produced from the 100 acres and there is nothing in the record to indicate that it was capable of producing either oil or gas.

On August 31, 1944, during the primary term of the lease, W. E. West and the Superior entered into an agreement which is the subject of this suit. Appellant was not a party to the agreement, although he had, as shown by the admissions, demanded of Superior that some action be taken under the lease for development and he was advised by Superior that it contemplated no action and offered to farm out the lease to him. It is shown by the testimony of the appellant that he had been engaged in the oil business since 1922 and was thoroughly familiar with the oil business.

The agreement between West and Superior, which we will hereafter refer to as the “West-Superior agreement” made August 31, 1944, was recorded in the deed records of Van Zandt County, Texas, on September 16,1944, and contains the following provisions:

«I
“That said Lessee (Superior) will pay lessor (Appellees) a lieu royalty in cash equivalent to one-eighth (⅛⅛) of the proceeds from the sale of all oil produced and sold from said Groves Well #1 (located on the adjoining tract), beginning with production on and after August 1, 1944, said payments to be based upon actual runs of oil from said well and paid to Lessor herein on or before the 20th day of the calendar month following the production thereof.
“II
“The said payments to Lessor shall be construed to be royalty payments made to Lessor under the terms of said lease.
“HI
“That in the event said Lessee shall begin operations for the drilling of a well for oil upon the lands herein above described and thereafter diligently prosecute drilling operations thereon, such operations shall be full performance of the terms of said lease and shall relieve Superior of the necessity of paying said lieu royalty to Lessor, based upon oil produced from said Groves well #1 on and after [546]*546the first day on which such operations for drilling shall have been commenced by said Lessee upon the land above described.
“IV

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Related

Atlantic Refining Company v. Noel
443 S.W.2d 35 (Texas Supreme Court, 1969)
Andretta v. West
415 S.W.2d 638 (Texas Supreme Court, 1967)

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Bluebook (online)
402 S.W.2d 543, 25 Oil & Gas Rep. 54, 1966 Tex. App. LEXIS 2109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andretta-v-west-texapp-1966.