Crocker v. Humble Oil & Refining Company

419 P.2d 265
CourtSupreme Court of Oklahoma
DecidedOctober 24, 1966
Docket40613
StatusPublished
Cited by4 cases

This text of 419 P.2d 265 (Crocker v. Humble Oil & Refining Company) 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
Crocker v. Humble Oil & Refining Company, 419 P.2d 265 (Okla. 1966).

Opinion

HODGES, Justice.

This is an appeal and cross appeal from the district court of Carter County, Oklahoma, involving a judgment cancelling an oil and gas lease in part and issuing an alternative decree of cancellation in part.

On July 15, 1919, the oil and gas lease in question was executed covering ninety acres. The lease was subsequently divided into two parts — one part, containing forty acres, hereinafter referred to as the Humble-Bennett tract, was assigned to the defendant, Humble Oil & Refining Co., and the remaining fifty acres, hereinafter referred to as Carter-Bennett tract, was assigned to the Carter Oil Company. The lease had a primary term of five years. The lease was separately developed until 1929 when Humble assigned its interest in the lease to Carter Oil Company. Shortly prior to the filing of this action the Carter Oil Company and Humble Oil & Refining Company were acquired by the Standard Oil Company of New Jersey and merged into the present defendant, Humble Oil & Refining Company.

*267 This action was commenced by Earl Q. Gray as plaintiff below, now a plaintiff in error, who is owner of one-half of the royalty under the Humble-Bennett tract and one-quarter of the royalty under the Carter-Bennett. The different royalty owners were made parties defendants as to each tract. All royalty owners under the Humble-Bennett appeared and joined in the plaintiff’s prayer. All but two of the royalty owners under the Carter-Bennett appeared and joined in the plaintiff’s prayer. Defendants, Raymond Mc-Collom and Maxine Noonan Cross, did not appear, though served with process.

We will herein refer to all royalty owners as plaintiffs, and to the Humble as the defendant.

The relief sought by the plaintiffs was cancellation of the oil and gas lease of the defendant in respect to each ten acre tract covered by the lease on which a presently producing well was not located. The trial court entered judgment in two parts as follows:

“First: That the oil and gas lease held by the defendant be and the same is hereby can-celled insofar as the same covers or affects the following described land:
Wi/¿ of WJ4 of NWj4 of Section 16, Township 4 south, Range 2 West, Carter County, Oklahoma,
save and except as to the royalty owners Raymond Mc-Collom and Maxine Noonan Cross, who have not appeared herein or applied for any relief.
“Second: That insofar as said lease in question covers the NWj4 of NE14 of NW14 of Section 16, Township 4 South, Range 2 West, Carter County, Oklahoma,
the same shall be cancelled as to all royalty owners, unless the defendant within sixty days from the date the judgment herein becomes final shall commence the drilling of a well thereon to a sufficient depth to test the Second Hewitt Sand.”

The plaintiffs have appealed from that portion of judgment designated therein as “Second” above quoted. The defendant has appealed from that portion of the judgment designated as “First.”

The history of the development of the ease shows the following: That the defendant has drilled a total of six wells on the lease in question, four of which are presently producing oil in paying quantities. One well, the C. E. Bennett No. 1, was drilled at the center of the SW14 NW14 NWj4 of Section 16 in 1921, and completed as a dry hole. The other well not now producing was drilled in the center of the NW}4 NEJ4 NW¡4 of Section 16 known as the Humble-Bennett No. 2, and was completed as an oil well in the First Hewitt sand. It produced from the First Hewitt sand until 1922, when it was deepened to the Second Hewitt sand. It produced from the Second Hewitt sand until 1936, at which time it was plugged because it no longer produced in paying quantities. No well has ever been drilled on the NWJ4 NW}4 NWj4 of said Section 16, or on the Wv£ SWj4 NW14 of said Section 16. The trial court further found that at the time of the filing of this action the period of time that had elapsed since the drilling of the last well on the lease was 37½ years, and that the period of time that had elapsed since the last drilling of a well deeper on the lease was 36 years.

As to the Northeast 10 acres of the Humble-Bennett tract, which is the acreage affected by the trial court’s alternative decree, no oil has been produced from the First Hewitt since September, 1922, or from the Second Hewitt since 1936.

*268 The defendant’s first drilling on the lease was in 1920 when the Humble-Bennett No. 1, as shown by the plat thereof, was completed and is presently produc *269 ing from the First Hewitt sand. In 1921 the defendant drilled the Carter-Bennett No. 2 and the Carter-Bennett No. 3 to the First Hewitt and in 1922 to the Second Hewitt, and said wells are currently producing from the First Hewitt sand.

*268

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Feely v. Davis
1989 OK 163 (Supreme Court of Oklahoma, 1989)
Dixon v. Anadarko Production Company
1972 OK 165 (Supreme Court of Oklahoma, 1973)
Carter v. United States Smelting, Refining & Mining Co.
1971 OK 67 (Supreme Court of Oklahoma, 1971)
Vickers v. Vining
1969 OK 66 (Supreme Court of Oklahoma, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
419 P.2d 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crocker-v-humble-oil-refining-company-okla-1966.