Browne v. Sabine MacHine & Supply Co.

253 S.W.2d 713, 2 Oil & Gas Rep. 268, 1952 Tex. App. LEXIS 1896
CourtCourt of Appeals of Texas
DecidedDecember 5, 1952
Docket15390
StatusPublished
Cited by2 cases

This text of 253 S.W.2d 713 (Browne v. Sabine MacHine & Supply Co.) 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
Browne v. Sabine MacHine & Supply Co., 253 S.W.2d 713, 2 Oil & Gas Rep. 268, 1952 Tex. App. LEXIS 1896 (Tex. Ct. App. 1952).

Opinion

RENFRO, Justice.

The appellees, Sabine Machine & Supply Company, Halliburton Oil Well Cementing Company and Schlumberger Well Surveying Corporation, brought suit against Calvert Corporation and Homer Erowne, appellant, for materials, supplies and labor furnished defendants for use in equipping and completion of oil wells upon three described tracts of land, alleging *714 that on the dates the indebtednesses were incurred the defendants were mining partners. Defendant Calvert Corporation filed no answer. Defendant Browne, under oath, denied partnership with Calvert and pleaded that Calvert Corporation was the agent of plaintiff Sabine Machine & Supply Company.

Trial was to the court without a jury and judgment was rendered for appellees against Browne and Calvert Corporation, jointly and severally.

Appellant Browne contends there was no evidence and the evidence was insufficient to support a finding of mining partnership.

It is the claim of appellees that completion of the wells, that is, Schlumberger survey, casing, cement and cementing, tanks, tubing, testing, etc., was a mining partnership undertaking. The court limited recovery to materials, services and supplies furnished after the completion of •the footage drilling contract.

The burden was on appellees to prove that Calvert Corporation and Browne were mining partners. Bolding v. Camp, Tex.Com.App., 6 S.W.2d 94; 58 C.J.S., Mines and Minerals, § 245, p. 686.

Since the case was tried before the court without a jury, we must view the evidence and the inferences drawn therefrom in the light most favorable to the trial court’s judgment.

Appellant Browne owned the Shafer lease. Calvert Corporation owned the Long and Bush leases. Calvert Corporation was operating a drilling rig. Through negotiations with Spear, of Calvert Corporation, written contracts were executed by Browne and Calvert Corporation, whereby wells were to be drilled on each lease. Calvert Corporation was to furnish labor, rig and tools. Browne obligated himself to pay, after completion or abandonment, $1.50. per foot on two of the wells and $2 per foot on the -third well. The “going price" of drilling in the vicinity was $3 per foot. In the event of swabbing or bailing, Browne and Calvert “shall jointly stand expense”; also expense of treating with acid, shooting and cleaning out after shooting was to be paid in equal parts. Browne was required to furnish one-half the cost of casing, cement, cementing operations, Schlumberger electrical logs and cores. The above was in addition to the $1.50 and $2 per foot costs.

Calvert Corporation conveyed a one-half interest in the Long and Bush leases to Browne and Browne conveyed a one-half interest in the Shafer lease to Calvert Corporation.

After the drilling was completed, Spear kept Browne advised of all developments. The first well produced oil for several weeks.

Browne agreed to suggestions of Spear. Browne admitted he was obligated to bear his cost of completing the well if it looked good. Efforts were made to complete all three wells, but the last two were dry. According to Spear, Browne was to give the Calvert Corporation half of any supplies or materials put into the well.

After the first well was drilled and the Schlumberger test was run, Browne agreed for Calvert Corporation to set casing. Browne testified that he was owner of the wells to the extent of fifty per cent. He admitted that “If we didn’t want to set casing, certainly we should not.” Spear called Browne to the Shafer well for Schlumberger test so that Browne could pass judgment on it. Browne objected to the price of casing being used at one time and furnished his own half. Upon abandonment of the Shafer well, the salvaged equipment was divided equally between Calvert Corporation and Browne. Spear testified that after production was obtained in the Shafer well, he, with the consent of Browne, operated same for both Browne and the Calvert Corporation. Appellant also testified in substance that the Calvert Corporation did operate the well during its production with his consent. All the materials and equipment for which recovery was allowed were used after drilling was completed.

Browne admitted he would have had one-half the profits if the wells had produced in paying quantities.

In Wagner Supply Co. v. Bateman, 118 Tex. 498, 18 S.W.2d 1052, 1055, the Su *715 preme Court said: “There is present here not only a joint ownership of the lease * * * but joint operation, sharing of profits, community of interests, and the mutual agency of Roberts representing the partnership in the management of the lease and exploration for oil. * * * The rule is that a mining partnership arises by operation of law where co-owners work a mine. * * * ” and “The plain facts are that the partnership was engaged in a mining enterprise, and Bateman became the purchaser of a one-fourth interest therein, paying for the same, however, in labor. As such he became a mining partner, subject to the liabilities and entitled to the rights and privileges of such relationship.” See also Shell Petroleum Corp. v. Caudle, 5 Cir., 63 F. 296.

In Rucks v. Burch, 138 Tex. 79, 156 S.W.2d 975, 976, Judge Critz said: “It is settled as a law of this State that in order to constitute a mining partnership arising by operation of law there must not be only joint interest in the mining property but joint operation thereof as well. Joint ownership without joint operation merely constitutes cotenancy. To constitute a mining partnership it is essential that there be an actual working of the mine by the partnership.”

It was held in Dunigan Tool & Supply Co. v. Carroll, Tex.Civ.App., 60 S.W.2d 296, writ refused, that mining partnership is defined as relationship arising from joint operation and sharing of profits.

Munsey v. Mills & Garitty, 115 Tex. 469, 283 S.W. 754, 759, adopted by Supreme Court, recognizes the following rules for mining partnership:

“ ‘A mining partnership arises by operation of law where co-owners work a mine. * * * It is not essential to ■ the creation of a mining partnership that the partners shall expressly agree .to become partners, or that there be an express agreement to share the profits and losses, as that is an incident in the prosecution of the general business. * * * In a mining partnership, the mine is owned by the partners as tenants in common. * * * Where joint owners of an oil lease unite in operating the .premises without any special agreement as to their relation, they constitute a mining partnership. * * * Mining partnerships are applicable to oil and gas ventures.’ ”

A mining partnership may, of course, be created by express contract, and it may be created, without express contract, by joint operation of mineral interests. Templeton v. Wolverton, 142 Tex. 422, 179 S.W.2d 252.

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253 S.W.2d 713, 2 Oil & Gas Rep. 268, 1952 Tex. App. LEXIS 1896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/browne-v-sabine-machine-supply-co-texapp-1952.