Belgum v. City of Kimball

81 N.W.2d 205, 163 Neb. 774, 62 A.L.R. 2d 1295, 7 Oil & Gas Rep. 1225, 1957 Neb. LEXIS 105
CourtNebraska Supreme Court
DecidedFebruary 22, 1957
Docket34036
StatusPublished
Cited by22 cases

This text of 81 N.W.2d 205 (Belgum v. City of Kimball) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belgum v. City of Kimball, 81 N.W.2d 205, 163 Neb. 774, 62 A.L.R. 2d 1295, 7 Oil & Gas Rep. 1225, 1957 Neb. LEXIS 105 (Neb. 1957).

Opinion

Messmore, J.

This is an action for a declaratory judgment brought by the plaintiff, Carl Belgum, in the district court for Kimball County, against the City of Kimball, a municipal corporation located in Kimball County, Nebraska, defendant. The purpose of the action was to have declared the rights, status, and other legal relations of the plaintiff and the defendant city as to the oil, gas, and other minerals in and under the streets and alleys lying adjacent to real estate owned by the plaintiff and located within said city. The trial court entered judgment finding that the defendant city of Kimball had no interest in the oil and gas which had been produced or which in the future might be produced from the streets and alleys within the defendant city, and that the plaintiff was entitled to the oil and gas produced from under the streets and alley to the center of said streets and alley which lie adjacent to and abut upon his real estate.

The defendant city filed a motion for new trial. From the order overruling the motion for new trial, the defendant city appealed.

The case was tried upon a stipulation of facts agreed to by Carl Belgum, the plaintiff, the city of Kimball, a municipal corporation, defendant, and Lowell J. Williamson who intervened in the case, in substance as fol *777 lows: The plaintiff is the owner, in fee simple, of Lot 14, Block 15, South Park Additio.n to the city of Kimball, Kimball County, Nebraska. The dimensions of the said lot are 40 feet north and south and 140 feet east .and west. Pennsylvania Avenue is a street within the corporate limits of defendant city and is 80 feet in-width: Pine Street, which is also a street within the corporate limits of defendant city, is 80 feet in width. The plaintiff’s lot is bounded on the north by Pennsylvania Avenue, on the west by Pine Street, and on the east by a public alley which is 20 feet in width. The defendant is a municipal corporation incorporated under and by virtue of the laws of the State of Nebraska under the name of the Village of Kimball, Kimball County, Nebraska, on February 18, 1889, and since that time has continued to exist as a municipal corporation. On December 3, 1920, the defendant city became a city of the second class and has remained so ever since. On May 28, 1888, the then fee simple owners of the south half of the northwest quarter of Section 32, Township 15 North, Range 55 West of the 6th Principal Meridian, then Cheyenne County, Nebraska, now Kimball County, Nebraska, did plat said real estate into lots, blocks, and dedicated streets and alleys as provided by law, to be known as South Park Addition to Kimball. All of said South Park Addition to Kimball is included within the corporate limits of defendant city. The streets and alleys of said South Park Addition to Kimball at all times have been, and now are, used by the public as streets and alleys for the purpose of vehicular and foot traffic and for the construction of public utilities therein and thereon. On December 1, 1954, the intervener obtained an oil and gas lease from the plaintiff, together with other property owners in South Park Addition to Kimball, which is in full force and effect. On January 17, 1955, the governing body of defendant city adopted and approved ordinance No. 140 regulating development, drilling, and operations for oil and gas within the corporate *778 limits of the city. The real estate owned by the plaintiff as hereinabove described is located within the boundaries of drilling block E of ordinance No. 140. In accordance with the provisions of ordinance No. 140 the governing body of the city granted to the intervener a permit to drill a test well for oil and gas upon real estate belonging to the plaintiff. On February 3, 1956, the intervener secured an oil and gas lease from the governing body of the city which covered the streets and alleys abutting the plaintiff’s real estate hereinabove described, together with streets and alleys abutting other real estate within South Park Addition. In accordance with the permit so granted, the intervener did drill a test well upon the real estate belonging to the plaintiff as hereinabove described and did establish production of oil from said real estate. Since the establishment of production of oil from said well, oil has been produced and is continuing to be produced from said well which has been placed on the market for sale, and the intervener is ready and willing to make, or cause to be made, in accordance with the provisions of ordinance No. 140, the division of the oil and gas produced from said well to the parties entitled thereto.

It is further stipulated by the parties that exhibit A, attached to the plaintiff’s petition, is a true and correct copy of the plat and dedication of South Park Addition to the city of Kimball; that exhibit B, attached to the plaintiff’s petition, is a true and correct copy of the oil and gas lease obtained by the intervener from the plaintiff; that exhibit C, attached to the plaintiff’s petition, is a true and correct copy of ordinance No. 140 which was, as of date of trial, in full force and effect; and that exhibit A, attached to the intervener’s petition of intervention, is a true and correct copy of the oil and gas lease secured by the intervener from the defendant city.

The dedication shows that the original owners of the land shown in the plat, having theretofore laid out an addition to the town of Kimball in Cheyenne County, *779 Nebraska, named South Park Addition to Kimball, and having caused the same to be surveyed and staked into lots, blocks, streets, and alleys, and a plat thereof to be made with reference to known monuments, accurately describing all the subdivisions of each tract numbering the same by progressive numbers and giving the dimensions and length thereof and the breadth of all the streets and alleys therein, made known that such subdivision was with their free consent and in accordance with the desires of the owners, and the streets and alleys were dedicated perpetually to the public use.

The instrument referred to in the agreed statement of facts, dated December 1, 1954, is titled “Community Oil and Gas Lease” between the lessor, whether one or more, and Lowell J. Williamson, lessee. Besides the plaintiff, there were other parties who entered into this lease. The lease gives the lessee the exclusive right to prospect, explore, or to mine for petroleum products and gas, and in the event of producing oil or gas in paying quantities, then the lessee was to pay royalties as designated in the lease to the respective parties as lessors in their proportionate share, as they agreed in the lease to pool their shares according to the amount of land owned by them as described in the lease.

City ordinance No. 140, referred to in the agreed statement of facts, limits the number and regulates the spacing, drilling, and operation of gas and oil wells and the incidental facilities within the city and, as incident thereto, provides for a fair and just participation in the limited number of wells so drilled and in the production from such wells. The ordinance likewise creates drilling blocks; provides that the lands within the corporate limits of Kimball be divided into drilling blocks designated A to O, of approximately 40 acres; and requires a permit before any drilling operation may be had on any of such drilling blocks.

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Bluebook (online)
81 N.W.2d 205, 163 Neb. 774, 62 A.L.R. 2d 1295, 7 Oil & Gas Rep. 1225, 1957 Neb. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belgum-v-city-of-kimball-neb-1957.