Arnold v. Adams

1930 OK 567, 294 P. 142, 147 Okla. 57, 1930 Okla. LEXIS 359
CourtSupreme Court of Oklahoma
DecidedDecember 16, 1930
Docket19805
StatusPublished
Cited by4 cases

This text of 1930 OK 567 (Arnold v. Adams) 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
Arnold v. Adams, 1930 OK 567, 294 P. 142, 147 Okla. 57, 1930 Okla. LEXIS 359 (Okla. 1930).

Opinion

DIFFENDAFFER, C.

This is ah action brought originally by R. R. Kirchner and the Ghamplin Refining Company against, all the parties involved in this appeal, to fore; close lien against an oil and gas lease, etc. Judgment was rendered (for the amount claimed and foreclosing- the lien. From this part of the judgment, no app'eal is prosecuted.

Plaintiff in error will be referred to as *58 Arnold.- Defendant in error Adams, as Adams; and defendants in error Brooker, Powell, Warren, and Carmichael as Brooker et al.

. The controversy arose over the drilling of a well for oil and gas on the land belonging to Adams. It appears that Adams is .the owner of 80 acres in Creek county. On March 25, 1920, Arnold and Adams entered into a written agreement whereby Adams agreed to secure for Arnold oil- and gas leases, or assignment of oil and gas leases, on some 320 acres of land, including the 80 acres owned by Adams. The leases and assignments were to be placed in the bank in ■escrow, and Arnold agreed that:

“If he takes the said leases and assignments from escrow in the said bank, that he will drill or cause to be drilled a test well located on the E. 2 of the N. W. 4 of sec. 2-17-10, said well to be drilled with due diligence to the horizon of the Wilcox sand, unless said well is a commercial producer of oil or gas at lesser depth, in which •pase all obligations of second party under this contract shall be considered fulfilled; second party further agrees that in case the Red Fork sand shows when drilled as a possible producer, that it shall be tested and shot.”

At the same time they entered into a second agreement, to which a copy of the first was' attached, in which Adams was designated as first party, and Arnold as second party, which provided:

“Second party agrees that provided the drilling contract, a copy of which is .attached hereto, executed by and between the parties hereto as. of this date, is consummated, then second party shall assign to first, party an undivided one-fourth interest to the lease covering the E. 2 of the N. W. 4 of sec. 2, Twp. 17 N. R. 10 E., Greek county, Okla., and that second party shall drill and complete the said well at his own expense into the tanks if the' said well is a producer; the said one-fourth interest of first party to bear its proper proportion of the operating expense of the lease after the said well is c.onnected to the tanks and producing oil or gas ; should the said well be a dry hole, then all material and equipment' used in the drilling of same shall remain the property of second party.”

The leases and assignments, or a substantial part thereof, apparently satisfactory to Arnold, were secured by Adams and placed in the bank. Thereafter Arnold and Brooker et al. entered into a written agreement, in ■which Arnold was designated as first party and Brooker et al. as second parties, the material parts of which are:- ■

“First party will furnish rig, pipé, fuel, and water for the drilling of said well.
. “Second, parties will furnish tools and Will perform the necessary labor to drill and complete the said > well; said’ well to be drilled to the horizon of the Wilcox sand, found at the depth of approximately 3,000 •feet, unless it is a producing well at lesser depth. Second parties to furnish said necessary tools and labor, and to receive in full compensation therefor, an assignment of lease covering one of the 40 — acre tracts offsetting said well, as described above, and an assignment of an undivided one-fourth interest in - the 80-acre lease covering the tract on which said well is. to be drilled, namely, the E._2 of the N. W. 4 of sec. 2, twp. 17 N. R. 10E., said assignments to be delivered to -second parties when said well is spudded, labor as specified, includes running pipes. * * *
“If said well is dry, each respective interest shall bear its proper proportion of the cost of pulling pipe and plugging same; said cost to be at the rate of $40 per day plus casing crew.”

Arnold also entered into an. agreement with-one Ireland, whereby he agreed to give Ireland a Ya interest in the well and 80-acre lease to furnish the gas for drilling the well. Ireland appears to have furnished the gas and after • receiving his assignment of the Ya interest assigned same to Adams.

Brooker et al. commenced drilling the well sometime about July, 1926, and drilled same to near the Red Fork sand about October 30th. Adams appears to have done a great deal of work in and about the well, such as digging slush pits, making roads, hauling pipe, etc., and also bought and paid for certain 12” and 10” casing that -was used in the well, and also bought and paid for certain material which he claims Arnold should have furnished, and paid certain labor bills’ which he also claims-,Arnold should have paid. It is out of this' work and labor, casing material, etc., as well as pumping the well for several months, that the controversy 'between Adams and Arnold arose.

The Red Fork sand was found at about 1993 feet, and the well was" “shot” at little below that depth. Brooker et al. put in some 14 days time in cleaning out the well, and thereafter, it was “shot” a second time, and Brooker et'al. put in about 39 days cleaning- out after the second shot before the tubing was run and the well put on the pump. Considerable oil, however, was produced by natural flow and swabbing after the well was drilled into the sand and before it was put on the pump. It is out of this “clean out time” and the furnishing of certain material, supplies, etc., that the principal controversy between Arnold and Brooker et al. arose.

Adams claimed as against Arnold for 758 *59 feet of ten-inch easing for the well of the value of $1,137, also a shoe for said easing of the value of $4S, and for a shoe for the six-inch casing of the value of $20, and for water for the drilling of said well for a period of 39 days of the value of $5 per day, and alleged that there" was due him the total sum of $1,490.50, and prayed for an" accounting, etc.

Brooker et al., in their cross-petition against Arnold and Adams, after pleading their written contract with Arnold, alleged, in substance, that they had fully performed all their part of said agreement, and that upon the completion of the well-Arnold and Adams orally agreed that they, Brooker et al., should proceed with the cleaning out of said well at the rate of $'40 per day, and that pursuant thereto they cleaned out said well for a period of 53 days, amounting in all to $2,120; admitted that they were liable for their portion of equipment on the lease furnished by the other parties in the sum of $698.57, leaving a balance as they claimed due them of $1,066.06. They prayed for judgment against Arnold and Adams for $533.03 each, or a total of $lj066.06. They also prayed for an accounting for and on account of the oil produced from said well, of which they claimed one-fourth.

Arnold, in his answer to the cross-petition of Adams, admits the execution of the two contracts pleaded by Adams, but alleges they were not the agreements under which the drilling operations were conducted.

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1930 OK 567, 294 P. 142, 147 Okla. 57, 1930 Okla. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arnold-v-adams-okla-1930.