Bolin Oil Company v. Staples

496 S.W.2d 167, 46 Oil & Gas Rep. 218, 1973 Tex. App. LEXIS 2149
CourtCourt of Appeals of Texas
DecidedMay 25, 1973
Docket17378
StatusPublished
Cited by15 cases

This text of 496 S.W.2d 167 (Bolin Oil Company v. Staples) 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
Bolin Oil Company v. Staples, 496 S.W.2d 167, 46 Oil & Gas Rep. 218, 1973 Tex. App. LEXIS 2149 (Tex. Ct. App. 1973).

Opinion

OPINION

BREWSTER, Justice.

The trial court rendered judgment denying the plaintiff any recovery against the defendants and the plaintiff has brought this appeal.

The suit was instituted by Bolin Oil Company (a partnership) plaintiff, against *170 M. W. Staples, Staples Oil Company (a corporation) and T. A. Hester, Inc. (a corporation) defendants, to recover under a written operating agreement the defendants’ pro rata part of the expense of drilling an oil well in Wilbarger County on a lease owned by the parties jointly.

In the defendants’ trial pleading they answered that the plaintiff had breached the operating agreement under which plaintiff was drilling the well for defendants in that plaintiff failed to conduct the drilling operations in a good and workmanlike manner and that as a result of such failure the well was lost and defendants and the other well owners were thereby damaged in an amount of more than $45,000.00. Defendants also alleged that the tubing was dropped into the well hole through negligence in the manner in which the tubing was being lowered into the well and that plaintiff was responsible to defendants for the loss caused thereby under the terms of the operating agreement.

In defendants’ trial amendment they alleged :

“Plaintiff failed to conduct its operations in a good and workmanlike manner and with due diligence as follows:

“a. Plaintiff used equipment, to-wit, elevators, which Plaintiff knew, or in' the exercise of ordinary care should hav'e known, were unfit for such use;

“b. Plaintiff permitted equipment, to-wit, elevators, to be used on such well when Plaintiff knew, or in the exercise of ordinary care should have known, that such equipment was unfit;

“c. Plaintiff, through its agents, servants, and/or employees, failed to close the elevators from which the string of tubing was suspended; . . . .”

The defendants then prayed that the damages sustained by them be offset against the amount that plaintiff was herein suing defendants for and that plaintiff be denied any recovery against defendants.

When the case came on for trial, defendants admitted that they were liable to plaintiff for their proportionate part of the cost of drilling the well, as had been alleged in plaintiff’s petition, ’but contended that they were entitled to an offset against such sums of the damages caused by plaintiff as referred to above.

The trial was before a jury which answered the three special issues submitted to it in favor of the defendants.

Upon receipt of this verdict the trial court rendered the judgment appealed from denying plaintiff a recovery.

It was undisputed that the plaintiff and defendants jointly owned certain oil and gas leases and that the well involved was located on one of those leases. Prior to the occasion in question the parties had entered into a written agreement, which they designated “Operating Agreement,” pertaining to the operation and development of their jointly owned oil and gas leases which contained, among others, the following provisions:

“Section 1. Operator

“The First Party (Bolin Oil Company) is to be the Operator of said leases, subject to the conditions hereinafter set forth.

“Section 2. Costs to be Shared

“All expense of development and operation of said leases shall be borne and paid by the parties hereto in proportion to the interest owned by each in said leases, as shown above. .

“Section 3. Further Drilling

“First Party shall have the right to drill all wells on the above described leases . First Party shall conduct the drilling operations, if any, as Independent Contractor. By ‘Independent Contractor’ is meant that First Party acts in two capacities — he acts as joint owner with Second Parties and also as drilling contractor. As drilling contractor, he agrees to conduct such drilling operations, if any, in a good *171 and workmanlike manner and with due diligence. As such contractor, he shall furnish all machinery, equipment, labor, water, fuel and rotary rig.

“Section 4. Duties of Operator

“Subject to the terms hereof, First Party, as Operator, shall have the following duties:

“(a) Operator, in behalf of the parties hereto and subject to the provisions hereof, shall have the sole and exclusive charge of all drilling, development, and production operations on leases covered hereby. Such operation shall be conducted in an economical, skillful and workmanlike manner

This operating agreement is the basis of the claims of both plaintiff and defendants.

All of the joint owners mutually agreed to the drilling of the oil well in question. Bolin Oil Company had undertaken to and was on the occasion in question engaged in drilling the well as drilling contractor pursuant to the terms of the Operating Agreement above referred to.

At plaintiff’s request H. C. Leach Construction Company, Inc., furnished the equipment and the crew that performed the completion operation on the well. Plaintiff’s production superintendent, W. R. Hopkins, was present during all of this completion operation and he testified that at all times the members of the Leach crew were under his supervision and control. While the well was being completed the Leach crew dropped the tubing into the hole and the well was thereby caused to be lost.

Plaintiff’s first two points of error are that the court erred in submitting Issue No. 2 to the jury (1) because there was no evidence to raise the issue, and (2) because the evidence was insufficient to raise the issue.

We overrule these two points.

Issue No. 2 was: “Do you find from a preponderance of the evidence that in dropping the tubing in the hole that the same amounted to a failure to conduct such operation in a skillful and workmanlike manner?” The jury’s answer was: “We do.”

In connection with that issue the court gave the following instruction: “You are instructed that by the term ‘skillful and workmanlike manner’ is meant the manner in which an ordinary and prudent person, in the exercise of ordinary care, would have performed the particular work under the same or similar circumstances.”

The principle evidence that defendants rely on as support for the jury’s answer to this Issue No. 2 consists of alleged admissions by plaintiff (Bolin Oil Company) contained in: (1) an answer and, cross-action that it filed in another lawsuit that was filed against Bolin Oil Company by Leach Construction Company seeking to recover the latter’s charges for services it rendered Bolin Oil 'Company on the occasion when the tubing was dropped; (2) the affidavit of W. R. Hopkins, plaintiff’s production superintendent, which affidavit plaintiff had filed in the other case in support of its contentions at a hearing of a motion for summary judgment filed in that other case; and (3) a letter dated May 5, 1969, written for Bolin Oil Company by Phil Bolin, the managing partner in that partnership, to Leach Construction Company, stating their contentions as to the transaction in question.

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Bluebook (online)
496 S.W.2d 167, 46 Oil & Gas Rep. 218, 1973 Tex. App. LEXIS 2149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bolin-oil-company-v-staples-texapp-1973.