Crews v. Burke

1957 OK 48, 309 P.2d 291, 7 Oil & Gas Rep. 585, 1957 Okla. LEXIS 391
CourtSupreme Court of Oklahoma
DecidedMarch 5, 1957
Docket37331
StatusPublished
Cited by3 cases

This text of 1957 OK 48 (Crews v. Burke) 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
Crews v. Burke, 1957 OK 48, 309 P.2d 291, 7 Oil & Gas Rep. 585, 1957 Okla. LEXIS 391 (Okla. 1957).

Opinion

BLACKBIRD, Justice.

This appeal involves the distribution of the proceeds of oil and gas production on a 240-acre tract of land in Kay County,

Plaintiffs in error, hereinafter referred to as plaintiffs, were originally the owners of the entire fee in said tract. Before the land was leased for oil and gas exploration, plaintiffs, as grantors, executed and delivered to John Patrick Burke and his wife, Margaret M. Burke, as grantees, an instrument of conveyance entitled “Sale Of Oil And Gas Royalty.” Said instrument provided, among other things, that “no part” of future oil and gas lease bonuses or rentals should be owned by the grantees; but it also purported to grant them the right of ingress and egress for oil and gas drilling purposes.

Champlin Refining Company leased said land for such purposes from plaintiffs on May S, 1950, and thereafter required Mr. and Mrs. Burke to execute a written ratification of the lease under date of November 13, 1952.

Mrs. Burke died in 1953, and her interest was inherited equally by defendants in error, who are her surviving husband, two sons, and a daughter, hereafter referred to as defendants.

After discovery of oil and gas on the land a dispute arose between the plaintiffs and defendants as to what proportionate part of the proceeds thereof each was entitled. *293 Thereupon, the ordinary landowners’ ⅛⅛ part thereof was impounded, until the issue could be resolved by court action.

In instituting the quiet title action, out of which this appeal arose, plaintiffs took the position that, by the above-mentioned “Sale Of Oil And Gas Royalty”, they conveyed to Mr. and Mrs. Burke only an undivided ¾6th interest in the minerals under said land for a specified term; and, that consequently they are entitled to %6ths of the impounded funds, while defendants are entitled to only ½6⅛ thereof. Defendants, on the other hand, contended that, by said conveyance, they acquired, for the term specified therein, an undivided Vieth. of the full %ths of the minerals under said land; and consequently they are entitled to ½ of the Ysth impounded production proceeds.

At the trial, the parties, by stipulation, submitted the cause to the court without introduction of any evidence, except the conveyance and lease-ratification instruments hereinbefore referred to. The “Sale Of Oil And Gas Royalty” is in words and figures as follows:

“Know All Men by These Presents, That Ralph W. Crews and Beryl C. Crews, husband and wife at all times since acquiring the hereinafter described property, of Kay County, State of Oklahoma for and in consideration of the sum of Ten and more - - - Dollars ($10. & more) cash in hand paid by Margaret M. Burke and John Patrick Burke hereinafter called Grantee, the receipt of which is hereby acknowledged, have granted, sold, conveyed, assigned and delivered, and by these presents do grant, sell, convey, assign and deliver unto said Grantee an undivided One sixteenth (%eth) interest in and to all of the oil, gas and other minerals in and under, and that may be produced from the following described land situated in Kay County, State of Oklahoma to-wit:
The East Half of the Southwest Quarter and the Southeast Quarter of . . . of Section 31 Township 25 N Range 2 West containing 240 acres more or less, together with the right of ingress and egress at all times for the purpose of mining, drilling and exploring said lands for oil, gas and other minerals and removing the same therefrom, with the right at any time to remove any or all equipment in connection therewith.
“Sa44 tend being sew under as eS asd gas tease executed ⅛ daver ed it is understood and agreed that this sale is made subject to the terms of said lease insofar as it covers the land described above, but covers and includes one sixteenth (¾6⅛) of all the oil royalty, and gas rental or royalty due and to be paid under the terms of said lease.
“It is understood and agreed that none of the money rentals which may be paid to extend the term within which a well may be begun under the terms of said lease is to be paid to the said Grantee and in the event that the above described lease for any reason becomes cancelled or forfeited then in that event an undivided no part of the lease interests and all future rentals and bonuses on said land for oil, gas and other mineral privileges shall be owned by the Grantee owning one sixteenth (¾6⅛) of all oil, gas and other minerals in and under said lands.
“To Have and to Hold the above described property, together with all and singular the rights, appurtenances thereto in anywise belonging unto said Grantee, herein, their heirs and assigns for a terror of fifteen years from July 3, 1946 and as long thereafter as oil and/or gas is produced from these premises or the property is being developed or operated for oil, gas or other minerals and they do hereby bind themselves & their heirs, executors and administrators to warrant and forever defend all and singular the said property unto said Grantee herein their heirs and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, and agree that the Grantee shall have *294 the right at any time to redeem for Grantors by payment, any mortgage, taxes or other liens on the above described lands, in the event of default of payment by Grantors, and be subro-gated to the rights of the holder thereof.
“Witness our hands this 3rd day of July, 1946.”
(Omitting signatures and acknowledgment.)

In its judgment, the trial court found the issues in favor of defendants, decreeing specifically that, under the above-quoted conveyance, they own collectively a ½6⅛ of the total production of said land for a period of 15 years from July 3, 1946, and so long thereafter as oil and gas, or either of them, is produced therefrom or it is being developed or operated for oil, gas or other minerals. In said judgment, the court, by specifically finding that it was “mere surplusage”, made it plain that, in construing said instrument, he wholly disregarded the portion thereof which reads as follows:

“ * * * It is understood and agreed that this sale is made subject to the terms of said lease insofar as it covers .the land described above, but covers and includes one sixteenth (Vieth) of all the oil royalty, and gas rental or royalty due and to be paid under the terms of said lease.”

In urging reversal of said judgment in the present appeal, plaintiffs contend that the trial court’s interpretation of the above-quoted instrument is erroneous and clearly contrary to the intention of the parties as expressed therein. They argue that when the import of said instrument is gathered from its four corners, and upon consideration of all of its provisions, including the last above quoted one, which they say the trial judge erred in disregarding, it is obvious that its purpose was to convey to Mr. and Mrs. Burke only a Visth interest in the ⅛⅛, or “landowners’ royalty” portion of the minerals under said land, rather than a ¼sth part of all production therefrom.

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Bluebook (online)
1957 OK 48, 309 P.2d 291, 7 Oil & Gas Rep. 585, 1957 Okla. LEXIS 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crews-v-burke-okla-1957.