Cromwell v. Lewis

1923 OK 1028, 223 P. 671, 98 Okla. 53, 1923 Okla. LEXIS 937
CourtSupreme Court of Oklahoma
DecidedNovember 27, 1923
Docket14382
StatusPublished
Cited by21 cases

This text of 1923 OK 1028 (Cromwell v. Lewis) 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
Cromwell v. Lewis, 1923 OK 1028, 223 P. 671, 98 Okla. 53, 1923 Okla. LEXIS 937 (Okla. 1923).

Opinion

Opinion by

DICKSON, C.

On the 1st day of July, 1922, the plaintiffs in error, plaintiffs below, filed their suit in the district court of Okfuskee county, against the defendants in error, defendants below, to enforce the specific performance of a contract. For convenience, the parties will be referred to as plaintiffs and defendants, as they were designated in the trial court.

On the 31st day of December, 1921, the defendant Eula M. Lewis executed an oil and gas lease to the plaintiffs upon 80 acres of land owned by her, and delivered said lease to the defendant G. K. Jenkins, to 1»' held by him in escrow, to, as defendant contends, have a test well actually drilling on a certain block of land, described in the pbaintiffs’ petition, on or before the 1st day of Mav. 1922. The lease executed was on what is known as “Producers’ 88 Oil and Gas Lease” form and contained the usual provisions.

At the same time the plaintiffs took a number of other leases from other parties upon lands in the vicinity of the defendant’s land, but the agreement between the plaintiffs and the other lessors, fixing the time when the well should be commenced, was in writing.

It appears that the defendant Lewis did not sign this agreement, for the reason that it provided that the lessors should do certain work at a stipulated price in providing water for drilling purposes; but, as stated, she executed her lease and placed it in escrow with the other leases. It is conceded that all these leases were to be delivered *54 to the plaintiffs in the event they commenced to drill the test well, or were actually drilling, on or before the 1st day of .May, 1922.

it appears that the title to some of the land in the block proved to be defective'. And this necessitated a proceeding in court, and the plaintiffs were unable to secure clear titles and commence the well on or before May’ 1st, as contemplated by said escrow agreement.

On April 12, 1922, an extension agreement was executed by all the lessors, including the defendant Lewis, of which the following is a copy:

“It is hereby agreed that for mutual considerations, the time for beginning a test well as provided for in the contract hereto attached is hereby extended to July 1, 1922.
“Dated this 12th day of April, 1922.”

At the time this agreement was executed the defendant Lewis by agreement withdrew l he 80 acre lease from the escrow holder and substituted the lease involved in this suit, upon one 40 acre tract only. In all other respects the leases were identical. The execution of the last mentioned lease and the extension agreement were one and ihe same transaction. It will be observed ihat the extension agreement recites that "the time for beginning a test well as provided in the contract hereto attached is hereby extended until July 1st, 1922.” The evidence conclusively shows that this extension agreement, the substituted lease, and the original agreement, fixing the time and place when and where said test well should be sunk, were returned to the escrow holder and remained in his possession until July 1, 1922.

The whole case turns upon the meaning of the expression “commence to drill a test well”. The uncontradicted evidence is that on the 1st day of July, 1922, the plaintiffs had located the well, dug the cellar or basement, which is an excavation about 10 feet square and 15 feet deep, and had 15 or 18 loads of timbers on the location, for the purpose of constructing the derrick, that there was other material on the way. And that rhe plaintiffs were moving with all reasonable celerity, in an effort to speedily sink said test well, and that before this case was rried, to wit: December 9, 1922, the plaintiffs had drilled said well to a depth of 8,-400 feet and struck gas in paying quantities.

On July 1, 1922, the plaintiffs demanded (he lease from the escrow holder. The defendant Lewis, on the same .day demanded that the said lease be returned to her. The escrow holder, G. K. Jenkins, refused to comply with either demand. And thereupon the plaintiffs instituted this suit to compel the specific performance of the contract to deliver said lease, and made G. K. Jenkins a defendant as escrow holder.

The petition was in the ordinary form, and the defendant Lewis’ answer was first a general denial, and second, a cross-petition praying that her title to said tract of land be quieted against the claims of the plaintiffs under said lease. The answer of the defendant Jenkins was a general denial.

The case was tried on December 9, 1922, and takén under advisement, and on the 18th day of December, judgment was rendered, denying the prayer of the plaintiffs’ petition, and entering judgment quieting title in the defendant Lewis, as against said plaintiffs. The plaintiffs have perfected their appeal to this court, and assign the following errors:

“(1) The court erred in entering judgment for the defendant in error, Lewis, and in not entering judgment for the plaintiffs in error, said judgment not being supported by the evidence, and being contrary to the weight of the evidence.
•‘(2) There were errors of law occurring on the trial in this: •
“(a) The court erred in admitting evidence on the part of the defendants in error over the objections of the plaintiffs in error.
“(b) The court erred in admitting evidence as to oral statements which was offered for the purpose of contradicting a writing, signed by defendant in error.
“(c) The court erred in overruling' motion by plaintiffs in error to strike out the evidence as to oral statements contradicting statements contained in a written agreement.
“(3) The court erred in overruling motion by plaintiffs in error for a new trial.”

The plaintiffs contended in the trial court, and contend here, that they had fully complied with their part of .the contract and had commenced the test well contemplated by said agreement. The defendant Lewis contended in the court below, and contends here, that the agreement contemplated that the bit should be actually piercing the earth on or before July 1, 1922, and the case turns upon what was meant by “commencing a test well”.

Counsel has called our attention to no Oklahoma case in which this precise question has been considered. In Terry v. Texas Co. (Tex.) 228 S. W. 1019, the court says:

“In the case of McCallister v. Texas Co., 223 S. W. 859, where the lessee selected the location for an oil well, and hauled derrick *55 timbers to the site, and provided a water supply for drilling purposes, it was beld by this court that such actions constituted a ‘beginning of operations for the drilling of an oil well’ within the tornas of the lease requiring such operation to begin within a certain time. One of the definitions given in (lie dictionary of the word ‘commence’ is “to perform the first act of.’ Certainly it was necessary before actually piercing the •ground with the drill, to place the timbers and boiler and other machinery on the ground and to erect a derrick.

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Cite This Page — Counsel Stack

Bluebook (online)
1923 OK 1028, 223 P. 671, 98 Okla. 53, 1923 Okla. LEXIS 937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cromwell-v-lewis-okla-1923.