Campbell v. Lynch

94 S.E. 739, 81 W. Va. 374, 1917 W. Va. LEXIS 217
CourtWest Virginia Supreme Court
DecidedNovember 20, 1917
StatusPublished
Cited by27 cases

This text of 94 S.E. 739 (Campbell v. Lynch) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campbell v. Lynch, 94 S.E. 739, 81 W. Va. 374, 1917 W. Va. LEXIS 217 (W. Va. 1917).

Opinions

POFEENBARGER, JUDGE:

The complaint on this appeal goes to the dismissal of • a bill in equity, praying discovery and an accounting as to oil and gas obtained from two tracts of land, under leases thereof on several demurrers interposed thereto.

The two tracts of land were owned by Edward Lewis, now deceased, and were leased by him to the South Penn Oil' Company, by separate leases, in his lifetime. In each lease, there is a reservation of the usual oil royalty, one-eighth, and', a covenant to pay $200.00 annually for the gas from each gas well. In June, 1902, Lewis died, leaving him surviving-his wife and six children, two sons and four daughters. One of the daughters, Prudentia Campbell, died in 1905, leaving-six children and her husband surviving her. In 1906, the two tracts of land; subject to 'the leases, were partitioned by judicial proceedings, and assignments made as follows: Lot No; 1, containing 200 acres to the widow, Mary M. Lewis, as a.nd for her dower; Lot No. 2, containing 60 acres, to Lucy J. [376]*376Lynch;'Lot No. 3, containing 74 acres, to James McC. Lewis; Lot No. 4, containing 80 acres, to Fannie M. Simpson; Lot No. 5, containing 95 acres, to Mae L. Goad; Lot No. 6, consisting of two parcels, 52 acres and 30 acres, total 82 acres, to the husband and heirs of Prudentia Campbell, deceased; and Lot No. 7, containing 90 acres to John E. Lewis and F. W. Abney, his grantee.

Meantime, the leases had been kept alive by payment of delay rentals, but no wells had been drilled under them. After the. partition was consummated, operations under the leases were commenced, and, at the date of the filing of the bill, numerous producing wells had been drilled, one or more on each of the lots except No. 6 assigned to the Campbell heirs. On it, no well had been drilled. The purpose of the bill filed by W. C. Campbell, life tenant of said Lot No. 6, and his six children, the reversioners, three of them infants suing by him as their next friend, is to obtain shares of the oil royalties and gas rentals from the wells on the other lots, on the’ theory of right to apportionment thereof, without reference to the lots on which the wells are located.

Demurrers were interposed by the lessee, the South Penn Oil Company, the United Fuel Gas Company, its assignee of the gas right under the leases, the Eureka Pipe Line Company, into whose lines the oil deliveries are made, the widow, the living children of Edward Lewis, save John E. Lewis, and F. W. Abney, grantee of John E. Lewis, all of which were sustained and the bill dismissed.

Postponement of consideration of the rights of the life tenants, particularly that of the widow, until after disposition of the conflicting claims of the heirs, will tend to simplify the questions at issue and free from complication the reasoning by Avhich the conclusion as to the .principal right involved is reached. As to the heirs holding by partition, separate and distinct parts of a tract of land on which oil and gas wells have been drilled under a lease executed by their ancestor, after his death and the partition, the controlling question is whether the royalty from each well goes, by operation of law,- or by virtue of the decree of partition, to the owner of the lot on which the well yielding it happens to be.

[377]*377The argument submitted for the negative of this question proceeds largely upon the view that the lease effected a severance of the oil and gas in the land from the surface and vested title thereto in the lessee, wherefore it could not have been partitioned and was not. Though there are several judicial declarations that such a lease constitutes a virtual sale of the oil and gas, there are, perhaps, just as many or more to the effect that it does not pass any title, legal or equitable, to the oil and gas in place. All agree that, after discovery of the minerals, it vests a conditional estate in the lessee, but it is not title to the minerals in place. It is an incorporeal right to mine, the exercise of which may exhaust the minerals. This right, of course, is beyond the control of the lessor, his heirs or assigns, as long as the conditions upon which it depends are complied with, wherefore it binds the lands in the hands of the lessor and all persons holding under him. At the same time, if productive, it yields royalties which this court and others say are, in legal effect, rents. Notwithstanding the high character of the right vested by discovery of minerals, the lessor and lessee are everywhere held to be landlord and tenant, wherefore the former must be deemed the owner of the mines and the latter the tenant. A scientific or abstractly judicial view of the subject might reveal inaccuracies in all of these definitions. To call the lessee a tenant, is amply sufficient for some purposes, but he may have a right in addition to that of tenancy. The lessor may be an owner and yet have only a limited, qualified or encumbered estate. So a right may produce ultimately some of the results of a sale of the minerals and yet not be a sale. Whatever the right of the lessee may be, when accurately defined, he is not the owner of the oil and gas in place, and the lease does not sever the minerals from the surface. As to that, the decisions in every jurisdiction are uniform, even though some apparently inconsistent expressions may be found in them. However, the lease vests an estate, potential until discovery of minerals and actual 'afterwards, and that estate carries right to exhaust the minerals.

On the death of the ancestor, the land descended to-the heirs, burdened by this right in the lessee. It was complete [378]*378master of the situation quo ad the oil and gas, having right to drill where it.would on each of the two tracts, and the partition in no way affected its right or liberty in that respect. Taking the land in this condition, the heirs had right of partition thereof and a proper demand for it by one of them could not have been defeated by the others. Partition was made upon pleadings and by a decree which are wholly silent as to the leases and the rights created by them, just as lands subject to such leases are often divided by deeds silent as to the leases. . On the one hand, it is contended that the oil and gas were not divided because they had been severed from the land by the leases, and, on the other, that they were divided because there had been no such severance. Though there had been no actual severance in law or fact, there may have been a potential one sufficient in law to preclude, right of partition, but whether there was or not, is an academic, rather than a practical, question, determination whereof is unnecessary. If there was a division of the minerals in respect of the title, it does not necessarily follow that the royalties go with the ownership of the minerals, in the manner claimed.

That the lease on a single tract of land broken up into several sub-divisions by a partition or by conveyances, is not segregated and converted into as many distinct leases as there are sub-divisions, is conceded. That could be done only with the consent and co-operation of _ the lessee. As to him, the lease and its subject, the tract of land, are entireties. After as well as before the division, there is one lease of one tract, yielding, when productive, one royalty or rental in the aggregate. The subject of the lease is divisible, just as a tract of land subject to any other lease is, and so is the royalty or rent, in the manner in which other rents are apportionable. The rent is an entire thing arising out of the whole tract of land.

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Bluebook (online)
94 S.E. 739, 81 W. Va. 374, 1917 W. Va. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-lynch-wva-1917.