Cummings v. Midstates Oil Corp.

9 So. 2d 648, 193 Miss. 675, 1942 Miss. LEXIS 119
CourtMississippi Supreme Court
DecidedSeptember 28, 1942
DocketNo. 35020.
StatusPublished
Cited by17 cases

This text of 9 So. 2d 648 (Cummings v. Midstates Oil Corp.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cummings v. Midstates Oil Corp., 9 So. 2d 648, 193 Miss. 675, 1942 Miss. LEXIS 119 (Mich. 1942).

Opinion

Roberds, J.,

delivered the opinion of the court.

The main question for decision herein is whether, as between the parties to this litigation, a tract of ten acres of land located in Yazoo County, Mississippi, is included within an oil, gas and mineral lease executed by W. F. Cummings and wife to J. H. Pendleton August 31, 1939. Jones, Gaskey and Midstates Oil Corporation, appellees, claim under that lease; appellants contend the ten acres are not covered by that lease. Cummings and wife, by bill, and the other appellants by admissions in answers and by cross-bills, sought in this suit to cancel, as a cloud on their titles, the leasehold claims of appellees. The description expressly excepted the ten acres but was followed by the usual intention, or cover-all, clause contained in such leases. The chancellor, after hearing oral proof of the circumstances surrounding the parties-and the execution of the lease, held (1) that the cover-all clause contained words of conveyance and was more than a mere expression of intention and (2) the general intention clause controlléd over the express exception, and that, therefore, the lease included the ten acres. We affirm the conclusion of the chancellor, but we do so on the ground that appellants, by their conduct and the acts and events hereinafter set out, have adopted a practical construction of, and ratified and confirmed, the Pendleton *692 lease as including said ten acres of land, and are estopped to assert otherwise. We do not pass upon either question decided by the chancellor.

The description in the Pendleton lease reads: ‘ Southeast Quarter of the Southwest Quarter, and the Northeast Quarter of Southwest Quarter, and West half of Southeast Quarter, and the Southwest Quarter of the Southwest Quarter less Ten (10) acres off of West side of the Southwest Quarter of the Southwest Quarter, also Seven (7) acres- off of South end of Northwest Quarter, all in Section 31, Township 10, Range 2 West. It is the intention that this lease shall also include all land owned or claimed by Lessor adjacent or contiguous to the land particularly described above, whether the same be in said survey or surveys or in adjacent surveys.”

It is the usual oil, gas and mineral lease. It grants, leases and lets unto the lessee the described lands for the purpose of prospecting and producing, treating and preserving thereon, and transporting and marketing therefrom, etc., oil, gas and minerals, with the right to lay pipes, construct tanks, stations, etc., and do all things necessary to accomplish such purposes, for a period of ten years and as long thereafter as oil, gas or other minerals may be produced therefrom. It provides that if drilling operations are not commenced within one year the lease shall terminate, but lessee may keep it alive by paying a yearly renewal rental of one dollar per acre on the basis of 155 acres. There are other rights of lessee not necessary to set out.

The consideration to Cummings for the lease was (1) four hundred dollars cash, (2) one-eighth of the oil and gas sold and used, and if not sold or used, fifty dollars per gas well per year, and one-tenth of other minerals, which might be produced on the lands, and (3) the cash renewal rentals. Lessor has other rights not necessary to be set out. Lessor warrants and agrees to defend the title to the property conveyed, and lessee has the right *693 to discharge liens and encumbrances on the lands, using rents and royalties for that purpose.

Immediately after executing the Pendleton lease, Cummings began to sell and convey designated percentages of mineral rights in his land and in his royalty and rents under that lease, his grantees, in turn, conveying to others, some twenty-six in all, Cummings owning, when suit was filed, a small interest therein. These grantees were all parties to this suit. He conveyed these rights by three conveyances — one each to D. L. Staples and J. L. Britt, both dated September 1, 1939, conveying to each one-fourth of the minerals in place and of his royalty and rents, and the other to one W. J. Lutz, dated September 29, 1939, conveying one-half thereof. This' should have been one-fourth, and on January 9,1941, Lutz reconveyed to Cummings a one-fourth. F. H. Parker, the appellant mainly interested in this appeal, was half interested with Lutz. The Staples-Britt instruments are called ‘ ‘ Royalty Conveyances;” the one to Lutz is designated “Mineral Right and Royalty Transfer.”-

The Staples conveyance grants, sells, conveys, assigns and delivers unto the grantee one-fourth interest in and to all of the oil, gas and other minerals in and under, and that may be produced from, the “Southwest Quarter of Southwest Quarter and the East half of Southwest Quarter, Less 25 acres off the North end, and West half of the Southeast Quarter less 25 acres off the North end, All located in Section 31, Township 10, Range 2 West, containing 155 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.”

Then follow these provisions:

“Said land being now under an oil and gas lease executed in favor of J. H. Pendleton it is understood and agreed that this sale is made subject to the terms of said lease, but covers and includes lith One Fourth of all the *694 oil royalty, and gas rental or royalty due and to be paid under the terms of said lease, provided, however, the original term of said oil and gas lease shall not be extended without the written consent of the grantee first having been obtained.
“It is understood and agreed that One-Fourth 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 canceled or forfeited then and in that event an undivided One Fourth 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 said Grantee, D. L. Staples, owning one-Fourth of all oil, gas and other minerals in and under said lands, together with One-Fourth of all oil, gas and other minerals in and under said lands, together with One-Fourth interest in all future events. ’ ’

Then follows a general warranty clause, in which grantors agree to warrant and defend ‘ ‘ the said property” against the claims of all persons, further granting unto the grantee the right to redeem the land from all liens and encumbrances and be subrogated to the rights of the holder thereof.

It will be seen that this instrument includes the southwest quarter of the southwest quarter of Section 31, without excepting the ten acres, and estimates the total acreage described at 155 acres. It then stipulates that said lands are under the Pendleton lease.

The Britt and Staples conveyances are alike except as to grantees.

The description in the Lutz instrument reads: ‘ ‘

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Bluebook (online)
9 So. 2d 648, 193 Miss. 675, 1942 Miss. LEXIS 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cummings-v-midstates-oil-corp-miss-1942.