Brown v. Lundell

344 S.W.2d 863, 162 Tex. 84, 4 Tex. Sup. Ct. J. 311, 14 Oil & Gas Rep. 611, 1961 Tex. LEXIS 696
CourtTexas Supreme Court
DecidedFebruary 22, 1961
DocketA-7870
StatusPublished
Cited by88 cases

This text of 344 S.W.2d 863 (Brown v. Lundell) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Lundell, 344 S.W.2d 863, 162 Tex. 84, 4 Tex. Sup. Ct. J. 311, 14 Oil & Gas Rep. 611, 1961 Tex. LEXIS 696 (Tex. 1961).

Opinions

MR. JUSTICE CULVER

delivered the opinion of the Court.

The petitioners, James G. Brown et al., are the owners and operators of a producing oil and gas lease on lands owned by the respondent-lessor, Martha Lundell. The respondents in this suit allege that Brown disposed of the salt water produced from their well into an open pit and negligently allowed the same to percolate and seep into the subsurface stratum so as to pollute the underground water supply, thus permanently impairing the value of the land.

The jury found that Brown was negligent in permitting the salt water to escape from the disposal pit and in failing to protect the fresh water stratum and that such negligence was the proximate cause of the pollution complained of. The jury further found that the pollution is permanent. Judgment on the verdict was rendered in favor of lessor in the amount of the difference between the before and after values. The Court of Civil Appeals has affirmed. 334 S.W. 2d 616. We conclude that this judgment should not be disturbed.

It is Brown's position that the owner and operator of an oil and gas lease has the right to use so much of the premises and in such manner as is reasonably necessary to comply with the terms and purposes of the lease; that the use made of the premises was so confined and thus he had breached no duty to the lessor. Brown insists (1) that he had the right to produce and necessarily separate the oil from the water and dispose of the salt water in the earthen pit without incurring the burdensome expense of furnishing and using steel tanks or drilling a deep imput well; (2) that he had specially bought from the respondent landowner the right to use the land for the main[86]*86tenance of the pit into which the salt water was deposited; and lessor had consented to let the premises for that use and was therefore precluded from recovering damages; (3) that he had disposed of the salt water in accordance with the uniform custom in that field and there was no proof that the custom itself was negligence; (4) that there was no proof of negligence or foreseeability.

First of all Brown complains that the Court of Civil Appeals sustained the judgment of the trial court on the theory that he was guilty of wanton conduct in the disposal of the salt water and the resultant damage.

While that court does attempt to differentiate between intentional and wilful on the one hand and wanton acts on the other and seems to predicate liability on that character of conduct, actually the case was pleaded and founded on negligence and not on the theory that the conduct of Brown was intentional, wilful or wanton. The jury found that Brown was negligent in the disposal of the salt water and judgment was rendered accordingly. The effect of the decision of the Court of Civil Appeals, regardless of what was said in the opinion, could only be an affirmance of the judgment rendered below predicated on negligent conduct.

We agree that the owner-operator of the lease has the right to use so much of the land, both surface and subsurface, as is reasonably necessary to comply with the terms of the lease contract and to carry out the purposes and intentions of the parties. Warren Petroleum Corp. v. Monzingo, 157 Texas 479, 304 S.W. 2d 362, 65 A.L.R. 2d 1352. It does not follow, however, that the operator may use either the surface or the subsurface in a negligent manner so as to damage the landowner. The lessor does not here seek to be paid for the use of more land than was necessary but rather her claim is predicated on the negligent use of the land.

While we did say in Warren Petroleum Corp. v. Martin, 153 Texas 465, 271 S.W. 2d 410, at 412, that the only duty owed by the lessee to the lessor was not to intentionally, wilfully or wantony injure his cattle, that rule is not applicable to the facts in the case before us. Some oil had escaped from the oil-well pump and accumuated in two small pools within five feet of the well. Lessor’s cattle died as a result of drinking the oil. We said in that case that, “the mere fact that petitioner permitted oil [87]*87to escape and [collect on the ground within a few] feet of the well, without any showing as to the manner in which the lease was being operated at the time, could not form the basis for a legal inference that such conduct constituted negligence.”

We further held that since the lessee was the owner of the dominant estate he had the right to use so much of the premises as was reasonably necessary to the exclusion of the lessor in order to carry out the purposes of the mineral grant, but even so that right must be reasonably exercised with due regard to the rights of the owner of the surface.

Hence the decision in Warren v. Martin was based on two theories, (1) there was no proof of negligence; (2) the lessee was under no duty to exclude the cattle from the vicinity of the well and therefore the lessee owed no duty to the lessor except to refrain from intentional or wanton injury to his livestock. This case cannot be construed to hold that the operator is not liable for negligence in the disposal of salt water or that he is only liable for wilful and wanton pollution.

The right of the lessee in exploring for and producing oil and gas embraces only the doing of those things expressly granted or necessarily implied in the lease as necessarily incidental thereto. All property rights not granted are reserved in the lessor. The rights of the lessor and lessee are reciprocal and distinct. If either party exceeds those rights he becomes a trespasser. Gregg v. Caldwell-Guadalupe Pick Up Stations, Tex. Comm. App., 286 S.W. 1083. Thus, if the lessee negligently and unnecessarily damages the lessor’s land, either surface or subsurface, his liability to the lessor is no different from what it would be under the same circumstances to an adjoining landowner. The jury impliedly found that by taking reasonable precautions to dispose of the salt water that was accumulated as a necessary incident to the production of oil the operator could have avoided the pollution of the water. The operator did not obtain the right to permit the salt to drain and seep down into the subsoil and the resultant damage. The use of the lessor’s land is limited. In other words the lessor has granted and leased to the lessee only so much of his land as will be reasonably necessary to effectuate the purpose of the lease, and to be used in a non-negligent manner.

Brown cites other cases such as Sinclair Prairie Oil Co. v. Perry, Tex. Civ. App., 191 S.W. 2d 484, and Trinity Produce Co. [88]*88v. Bennett, Tex. Civ. App., 258 S.W. 2d 160,1 where damages were sought for the loss of cattle resulting from drinking oily water around the oil well. Each of these cases hold that the operator is under no legal duty to fence off the well area where the oil and water had accumulated and that, so long as he uses the premises in the usual and customary manner consistent with the purposes and provisions of the lease, he would not be liable in damages merely because he failed to prevent the entry of the livestock on the premises. The import of those decisions is that even though the operator negligently allowed oil to accumulate on the ground around the well, he would not be liable in such a ease.

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Cite This Page — Counsel Stack

Bluebook (online)
344 S.W.2d 863, 162 Tex. 84, 4 Tex. Sup. Ct. J. 311, 14 Oil & Gas Rep. 611, 1961 Tex. LEXIS 696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-lundell-tex-1961.