Cosden Oil & Gas Co. v. Hendrickson

1923 OK 174, 221 P. 86, 96 Okla. 206, 1923 Okla. LEXIS 265
CourtSupreme Court of Oklahoma
DecidedMarch 27, 1923
Docket13518
StatusPublished
Cited by16 cases

This text of 1923 OK 174 (Cosden Oil & Gas Co. v. Hendrickson) 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
Cosden Oil & Gas Co. v. Hendrickson, 1923 OK 174, 221 P. 86, 96 Okla. 206, 1923 Okla. LEXIS 265 (Okla. 1923).

Opinion

KENNAMER, J.

This case was tried by the court below without a jury, and the court’s findings of fact are as follows:

“1st. That the land covered by the oil and gas lease in controversy is the allotment of the defendant Thomas Hendrick-son, who is a duly enrolled Creek Indian citizen .of 1-16 blood.
“2nd. That on the 20th day of March, 1916, James Hendrickson, as the guardian of said Thomas Hendrickson, then a minor, made, executed and delivered to the General Investment Company an oil and gas mining lease, in due form, for a period of five years from that date, on said -land; that thereafter, to wit, on the 7th day of May, 1916, the General Investment Company duly assigned said lease to the plaintiff, Cosden Oil & Gas Company.
“3rd. That on the 18th day of March, 1921, said, plaintiff was the true and lawful owner and holder, by said assignment, of said oil and gas lease, and upon said date, to wit, the 18th day of March, 1921, Eliza Fugate, as the legal guardian of the defendant Thomas Hendrickson, then a min- or, made, executed and delivered unto the plaintiff the extension agreement involved in this controversy, whereby said lease was attempted to be extended for a period of five years from the 20th day of March, 1921, in consideration of $7,000 which consideration was at the time actually paid by the plaintiff to the said Eliza Fugate as said guardian. That in the making of said extension agreement rule 9 of the Supreme Court rules, adopted June 15. 1914, was not observed, but that all papers relating to said extension ■agreement and the said extension agreement itself were all executed on the same day, to wit, March 18, 1921.
“4th. That on the 5th day of September, 1921, said Thomas Hendrickson arrived at the age of 21 years. That subsequent to the receipt of said $7,000 consideration by said guardian and prior to the arrival at age, of Thomas Hendrickson, a large part of said $7,000 consideration had been expended by said guardian for the use and benefit of said ward, and that on September 5, 1921, said guardian had on hand approximately $3,218 of said consideration unexpended, and that subsequent to tbe 5tb day of September, 1921, all of said unexpended' balance of said proceeds were paid over to said Thomas Hendrickson by said guardian and that at all tintes (he said Thomas Hendrickson had full knowledge of said extension agreement, and that ,be used that portion of the proceeds of the consideration for said extension agreement so delivered to him by said guardian, with full knowledge of its source and the circumstances under which it had been received.
“5th. That on the 6th day of January. 1922, the said Thomas Hendrickson, being then of full age, executed and delivered in proper form his general warranty deed to the defendant, Eliza Eugate, covering the land covered by said extension agreement: that in the face of said deed and immediately preceding the words ‘signed and delivered,’ etc., and immediately following the habendum clause, appears a separate paragraph reading as follows: ‘Subject to a valid existing oil and gas mining lease,’ and that on said date theré was no other lease upon said land other than the oil and gas mining lease of the plaintiff as extended by tbe extension agreement plead in this cause.
“6th. That on February 2S, 1922, tfie defendant Thomas Hendrickson executed and *208 íi'eliyer'ed unto tlie said Eliza Fugate as Ms former .‘guardian his receipt fqr ‘ the full amount,! of .the consideration fp'r said extension agreement, to wit, $7,000." . ' .
“7'tV- That there had been no drilling options! under the lease iof 1916 prior fto November, 1920, but that in the month of - November, 19201 tlhe plaito'tiff began the drilling of a well upon said premises; and at the time of the execution of the extension agreement, to wit, on March 18, 1921, said •well >had., been drilled to the approximate ' depth *6f 2,740 feét. That after the execution 'of said extension agreement of March 18, 1921, the1 drilling of said well continued to the depth of 3,f>30 feet, by the plaintiff, 'but without finding oil or gas in paying quantities; and in August, 1921, -said well -was'-plugged and no other well -lias ever been commenced on said'premises: sancLu'p¿n the'plugging of said well the plaintiff removed from said premises the drilling equipment. That during the time of such • drilling operations upon said premises said • premises were in what was known as wildcat - territory. ' The court further finds, however, -‘that- it'/was not the intention of the plaintiff :{b"aband0n said lease by ceasing their drilling operations in the mannei' above set out ..and. removing their equipment therefrom.
¡ i“§th. The court finds that no part of the . .$7,000 consideration-for said extension agree'.ment'has ever' been refunded or tendered back-.to. the plaintiff in this case.
’• “9fh.. The' .court finds lbat out of said . $7,000 - extension agreement - consideration, hiliza' Engate; as guardian of said ward, ipaid ,'to1 the defendant James S. Fugate the sum ‘of $450 on April 4, 1921, for the board and maintenanc-e of said minor prior to said date.' '
“10th.. That on March 1, 1922, said Fliiza -Fugate, former guardian of- the defendant Thomas Hendrickson, paid to the said Thom-_ as Hendrickson the sum of $2,605 out of said $7,000 consideration for said extension agree-ment; although on a preceding date, to wit, -February 28, 1922, said Thomas Hendrickson had executed his formal receipt to Eliza Fugate as former guardian, covering the full amount of said $7,000 consideration; and that after the receipt by tile said Thomas Hendrickson of said $2,605 from said Eliza Fugate, the said Thomas Hendrick-son de- . Iivered the said amount of $2,605 to the said Eliza Fugate, his mother. The court is unable to state from any evidence in this case what has ever become of said $2.605 thereafter.”

The plaintiff in error originated the action Below to have the court declare it to be the absolute owner of the aforesaid oil and gas lease; that the court adjudge said lease to be in full force and effect: that its leasehold title be quieted and that it be awarded possession of the real estate; that the defendants be enjoined and restrained from disposing of the $7,000 consideration for the extension agreement; and that if the court found the lease to be void, 'then to decree the return of the $7,000 consideration. To this, the defendants answered and prayed for cancellation of the lease on the grounds of violation of the said rule No. 9 of this court (47 'Okla. xvil. Soon after, the plaintiff amended its petition and added the basis for a claim that the defendants were estopped from asserting the invalidity of the lease, due to their inequitable position. It may readily be seen, therefore, that both parties were claiming injury and the right to equitable relief. Both were approaching the court of conscience to obtain an adjustment of the controversy.

Primarily, the position of the plaintiff in error is not a meritorious one. The case of Winona Oil Co. v. Barnes, 83 Okla. 218, 200 Pac. 981, and the case of Carlile et al. v. National Oil & Development Co. et al., 83 Okla. 217, 201 Pac.

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Cite This Page — Counsel Stack

Bluebook (online)
1923 OK 174, 221 P. 86, 96 Okla. 206, 1923 Okla. LEXIS 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cosden-oil-gas-co-v-hendrickson-okla-1923.