Campbell v. Smith

101 N.E. 89, 180 Ind. 159, 1913 Ind. LEXIS 102
CourtIndiana Supreme Court
DecidedMarch 13, 1913
DocketNo. 21,993
StatusPublished
Cited by17 cases

This text of 101 N.E. 89 (Campbell v. Smith) is published on Counsel Stack Legal Research, covering Indiana 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. Smith, 101 N.E. 89, 180 Ind. 159, 1913 Ind. LEXIS 102 (Ind. 1913).

Opinion

Myers, C. J.

Appellant was on May 20, 1897, the owner in fee simple of 120 acres of land in Delaware County, Indiana. On that date, she and her husband executed a lease on the real estate to the Rock Oil Company “for the purpose and with the exclusive right of drilling and operating for gas and petroleum”. The lease among other things provided that “the party of the second part is to have and to hold the said premises for and during the term of five years from the date hereof, and as much longer as oil or gas are found in paying quantities, or the rental paid thereon.” It was further provided that the Rock Oil Company “shall complete a well on the above described premises within one year from the date above, or in default thereof, pay to the parties of the first part for such delay, a yearly rental of $60 on the said premises from the time for completing such well as above specified, until such well shall be completed,” and the Rock Oil Company “agree to drill an oil or gas well within one year from the above date, or forfeit to the parties of the first part Fifty Dollars.” The lease also provided for furnishing gas free of cost for household use on [161]*161the premises, so long as the lease is in force. The lease was recorded in Delaware County, June 4, 1897.

This action was instituted by the Eock Oil Company and certain individuals who had by assignment acquired a half interest in the first lease, to recover alleged damages for the invasion of their alleged exclusive right of a grant to enter and possess the oil in the leased field. The defendants were Mrs. Campbell, the Lily Oil Company, and the Indiana Pipe Line Company. There was judgment against the two former and ancillary proceedings in attachment were sustained. This appeal is by Mrs. Campbell alone.

1.

The complaint is in two paragraphs, one counting upon an alleged invasion of appellee’s common-law rights, without counting on the contract, and the second paragraph counting upon the written contract. The sufficiency of each paragraph was unsuccessfully challenged by demurrers for want of facts to constitute causes of action, and error is here predicated on those rulings. The facts, upon proper request, were found specially by the court, and conelusions of law stated, but as the findings closely follow the allegations of the complaint, and the determination of the question as to the findings and conclusions necessarily determine the sufficiency of the complaint, it will not be necessary to consider the complaint. Marion State Bank v. Gossett (1911), 175 Ind. 211, 213, 93 N. E. 996; Goodwine v. Cadwallader (1902), 158 Ind. 202, 61 N. E. 939.

The material findings are, the execution and recording of the lease; that payments were made as rentals under the lease in the sum of $60 per annum annually up to and including April 13,1903, and a payment of $50, June 17, 1898, by way of forfeiture under the terms of the lease; that on March 26, 1904, appellant served a written notice on the Eock Oil Company to the effect “that the lease for gas, and oil, made by the undersigned to the Eock Oil Company bearing [162]*162date May 20, 1897 on [the described property] will not be extended beyond the period for which extension has been made, and assented to, to wit: May 20, 1904, or delay in operation on said premises be delayed beyond such period; nor will a money consideration be received and accepted for further extension or delay in operation thereon. You are hereby notified and required, to proceed with all reasonable promptness and dispatch to operate for oil and gas on said premises, under penalty of forfeiture of all rights and privileges under said instrument of lease.”

No well was drilled for oil or gas by the Rock Oil Company or anyone else, until the middle or latter part of April, 1904, at which time, the plaintiffs caused a derrick and drilling machinery to be placed on said real estate, and proceeded to drill a well which was shot with nitroglycerine on May 18, 1904; and no pipes or pipe lines were placed on said real estate, and no oil or gas was produced or saved therefrom prior to May 18, 1904; that gas for household purposes was never delivered to Julia E. Campbell or her tenant or tenants on said real estate, and no request was made therefor other than that contained in the ¡notice of March 26, 1904; that no gas was produced from said well which was shot on May 18, 1904, and the only oil produced therefrom was run into the lines of The Indiana Pipe Line Company, as follows: On June 24, 1904, 158.89 barrels; on August 6, 1904, 167.37 barrels; on May 19, 1904, the well was cleaned out and tubed, and a small quantity of oil pumped from it on May 20, 1904; on May 19, 1904, the well produced only water when pumped, and thereafter when it produced oil it produced it in small quantities and suddenly stopped and produced large quantities of salt water, with the result that the salt water smothered the oil, and prevented the well from producing the oil; that immediately after the well was completed, shot and started to pumping, the plaintiffs provided at said well sufficient machinery of proper character for pumping and operating the well, and erected tanks for [163]*163the reception of oil from the well before the well was completed; after it had started to pump the well it was continuously pumped night and day, until some time during the month of August, 1904, and that during all the time plaintiffs made a good-faith effort to procure oil from the well, and operated the same in a skilful manner to endeavor either to make the same a paying well, or ascertain whether the well was a paying well, or not a paying well. That the well so drilled was drilled to a depth of 1240.5 feet and said depth was a proper depth for finding oil in the deep pay, in that territory, as shown by the successful deep pay wells theretofore and thereafter drilled in that territory. That the plaintiffs paid out and expended in and about the work of drilling and completing the well on and before May 20, 1904, the sum of $1,677.25, and after May 20, 1904, they expended for machinery and other equipment for operating the well, and completing the same, and in operating the same, $3,704.89; but, of the machinery so purchased, they removed from the premises, after the same had been placed on said premises, machinery of the value of $1,551.22; the amount expended by the plaintiffs in drilling the well and equipping the same for operation and in operating the same was the sum of $3,830.92. While the plaintiffs were drilling the well, defendants had full knowledge that plaintiffs were drilling said well and expending money therefor, and made no objection to the drilling of said well by the plaintiffs, and had knowledge that the plaintiffs were running and operating said well after it was so completed, for the purpose of procuring oil, and made no objection to plaintiffs’ operating said well, and made no objection prior to June 10, 1904, when appellant filed her complaint in the Circuit Court of the United States for the District of Indiana, against the plaintiffs, to cancel said lease, to quiet title against the plaintiffs who were claiming an interest by virtue of said lease and the improvements thereon. That the suit so filed by appellant was tried and determined, and [164]*164a judgment rendered in favor of the plaintiffs in this action, dismissing the bill of complaint so filed by appellant and rendering judgment against her for costs. Appellant appealed from the judgment which was affirmed by the Circuit Court of Appeals for the Seventh Circuit, January 2, 1907. Campbell v.

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Cite This Page — Counsel Stack

Bluebook (online)
101 N.E. 89, 180 Ind. 159, 1913 Ind. LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-smith-ind-1913.