Colpitt v. Tull

1950 OK 199, 228 P.2d 1000, 204 Okla. 289, 1950 Okla. LEXIS 585
CourtSupreme Court of Oklahoma
DecidedJuly 18, 1950
Docket33632
StatusPublished
Cited by15 cases

This text of 1950 OK 199 (Colpitt v. Tull) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colpitt v. Tull, 1950 OK 199, 228 P.2d 1000, 204 Okla. 289, 1950 Okla. LEXIS 585 (Okla. 1950).

Opinions

O’NEAL, J.

This is an appeal from a decree canceling, in part, an oil and gas lease covering lots 4 and 5 of the northwest quarter of section 6, township 19 north, range 7 east of the I.M., in Creek county. The decree cancels the oil and gas lease as to all the land, except ten acres (40 rods square) in the northwest corner of said 80-acre tract.

Vida M. Tull and I. A. Tull, wife and husband, are the owners of the surface rights in and to said 80-acre tract of land and an undivided one-half of the oil, gas and other minerals therein, and Mable Dale Potts and Dr. J. R. Potts, wife and husband, are the owners of the other undivided one-half of the mineral rights. C. R. Colpitt was the owner of an oil and gas lease covering said 80-acre tract.

The record shows that on March 2, 1926, Vida M. Tull and I. A. Tull, wife and husband, and George Harlow and Lula Harlow, the then owners of said land and the mineral rights therein, executed and delivered an oil and gas lease to John H. Markham, Jr., covering said land; that Mable Dale Potts and Dr. J. R. Potts thereafter became the owners of the interest of George and Lula Harlow; that through various, intermediate assignments, defendant C. R. Colpitt became the owner of said oil and gas lease. Said lease is on the ordinary 88 form and by its terms was to extend for a period of three years from the 2nd day of March, 1926, and as long thereafter as oil, or gas, or either of them, is produced from said land by lessee, his successor or assigns.

Petition of plaintiffs alleges that defendant forfeited his right to said lease for three reasons:

[290]*290“(a) The said term of three (3) years from the 2nd day of March, 1926, for which the said lease was to extend unless oil and gas or either of them were produced has expired.
“(b) That during- all of the time from the 2nd day of March, 1926, to and including the 20th day of December, 1946, a period of more than twenty (20) years, only one well has been drilled on said land to a shallow sand found at approximately the depth of 2800 feet to what is known as the Bar-tlesville Sand, and that said well has produced during the entire twenty years period and has paid for itself many times over but that the defendant has failed, refused and neglectd to drill any other or further wells on said eighty acres tract.
“(c) That the defendant has failed, neglected and refused to diligently develop and operate the said lease; that plaintiffs were reasonably entitled to have additional wells drilled on said lease during the time intervening from-the execution of the lease to the present time and also to have deeper sands explored, as well as to have the lines protected by offsetting wells.”

The petition further alleges:

“That the plaintiffs for the reasons above stated have verbally notified the defendant that a forfeiture of the said oil and gas mining lease had been declared.”

Defendant answered admitting that he was the owner of the oil and gas lease and neither admitting nor denying that plaintiffs were the owners of the land and mineral rights as alleged. The answer further alleged that there have been no offset wells drilled which would drain the land; that there has been and is now production from said lease and there has been such production from the time of the drilling of the first well within the primary term ■of the lease, and that plaintiffs have been receiving their royalty payments therefrom; that there is no implied obligation to drill any further wells than the one already on the land until it has been shown that there is drainage, or that there are commercial quantities Of oil in the present producing horizon, or others, which have not been explored; that in this connection, from all the scientific and geological data available, there has been no probable belief among oil men that any other well of con sequence could be drilled which would be profitable to defendant from a commercial standpoint, and therefore should have been drilled. The answer then specifically denies that defendant has neglected and refused to diligently operate the said lease, or develop same, and denies that under the circumstances plaintiffs are entitled to additional wells on said lease.

The answer further alleges:

“ . . . But in that connection this defendant shows the Court that if this Honorable Court, after hearing the evidence in this case, finds that there should be additional development on this lease, that this defendant is entitled to reasonable time within which to commence such development, before having his lease or any part thereof canceled. And, in that connection shows the Court that this is an 80-acre lease. There is a well on 10 acres that has been producing ever since shortly after the giving of this lease' and the royalty has been paid, and that under any circumstances this defendant is entitled to retain said well site and location, with his valid and subsisting oil and gas well thereon, and that if the Court should believe that additional development should be had, before canceling said lease that a reasonable chance and opportunity should be granted to this defendant to further develop said lease, so as to keep this contract in full force and effect before any forfeiture be worked or declared against this defendant.”

Reply was by general denial. Trial to the court resulted in a decree as above stated, and defendant appeals.

Defendant in his answer prays that in the event the trial court, after hearing the evidence, should find there should be additional development on the lease, he be granted “a reasonable chance and opportunity” to further develop the lease. In his testimony he [291]*291stated that it was his desire to and that he was willing to drill another well on the lease; that some time back he had considered drilling another well on the lease and had talked to a contractor about it. But that is as far as defendant’s evidence goes in that regard.

The defendant does not urge consideration of that alleged right either in his original brief or reply brief. He rests his case on the proposition that plaintiff failed to show any right to cancellation, or partial cancellation, either alternatively or peremptorily. Therefore, having failed to urge the proposition in his brief, he waived it and it need not be considered.

There are nine assignments of error presented under three propositions. The first proposition is:

“Although there is an implied covenant to drill such wells as are reasonably necessary it must be affirmatively shown that the drilling of additional wells will be profitable.”

The case cited and relied upon by defendant is Hudspeth et al. v. Schmelzer, 182 Okla. 416, 77 P. 2d 1123, wherein it is held:

“The essential requisite of abandonment of an oil and gas mining lease is an intention on the part of the lessee to relinquish his interest in the premises, and the intention is to be determined from the facts and circumstances surrounding each particular case.”

That case has no application here for the reason that plaintiffs are not relying upon abandonment for cancellation of the lease. The allegation of the petition upon which the decree is based was that the defendant has failed, neglected and refused to diligently develop and operate said lease.

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Colpitt v. Tull
1950 OK 199 (Supreme Court of Oklahoma, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
1950 OK 199, 228 P.2d 1000, 204 Okla. 289, 1950 Okla. LEXIS 585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colpitt-v-tull-okla-1950.