Dale v. Winters Oil Co.

1924 OK 1126, 243 P. 200, 115 Okla. 252, 1924 Okla. LEXIS 726
CourtSupreme Court of Oklahoma
DecidedDecember 16, 1924
Docket13816
StatusPublished
Cited by1 cases

This text of 1924 OK 1126 (Dale v. Winters Oil Co.) 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
Dale v. Winters Oil Co., 1924 OK 1126, 243 P. 200, 115 Okla. 252, 1924 Okla. LEXIS 726 (Okla. 1924).

Opinion

Opinion by

The parties occupy the same position in this court that they occupied in the court below, and will be referred to as plaintiff and defendant.

The plaintiff sued the defendant in ejectment for the recovery of certain premises upon which the defendant claimed to be the holder of a valid and subsisting oil and gas mining lease. The issue in the case was the validity of defendant’s lease; the plaintiff contending that said lease expired 15 years after the date of execution thereof, and the defendant contending that said lease was in force and effect for a term of 15 years, and as long thereafter as oil or gas was produced in paying quantities. The cause was tried to a jury, a verdict was rendered in favor of defendant, and from a judgment thereon the plaintiff appeals.

The plaintiff is the owner of the premises in dispute as an allottee of the Cherokee Nation. The defendant holds,' by assignment, an oil and gas mining lease on departmental form. The original lease was executed by the plaintiff as lessor to the Oriental Oil & Gas Company, as lessee; was duly approved by the Secretary of the Interior; was thereafter duly assigned by assignment on departmental form duly approved by the Secretary of the Interior. Said lease was executed on December 20, 1904, for a term of 15 years on its face, and it is the contention of the plaintiff that the lease expired by limitation on December 20, 1919.

It was the theory of the defendant that under the terms of the lease) the rules and regulations of the Secretary of the Interior, the terms of the assignment of said lease, the provisions of tlhe approval thereof, and under the acts and conduct of the parties that the said lease became at the time of its acquisition by the defendant a lease for a term of 15 years, and as long thereafter as oil or gas is found in paying quantities.

It appears that when the assignment of said lease was made that the same was ap-' proved by the Secretary of the Interior un-. der a form of approval which required an increase in royalty from ten per cent, to twelve and one-half per cent, and a valid obligation on the part of the lessee to pay the same; and it further appears under said form of approval by the Secretary that the consideration for the said increase in royalty was the extension of the term of the lease for a term of Í5 years, and as long thereafter as oil or gas was found in paying quantities.

It is claimed that under the rules and regulations of the Secretary under which the original lease was made, under the provisions of the original lease, and under the rules and regulations promulgated after the execution of the original lease, all of which were relied on to change the terms of said lease, that this order of approval was valid, was accepted by both lessor and lessee, and that in view of said acts and conduct of the parties and the actual payment of the increased royalty over a long term of years, that the new contract for the increased term' of the lease must be deemed to have been agreed upon by the parties.

It is said that the plaintiff is bound by the terms of such new contract, either by an, adoption, a ratification, or an estoppel. This was the theory under which the trial court submitted the cause to the jury, and the principal contention here and tihe only one which requires discussion is that this theory is wholly erroneous as a matter of law, and that the trial court should have 'held, as a) matter of law, that the lease terminated 15 years from the date of its execution, and that the retention of the premises after said date by the oil and gas lessee was illegal and unjustifiable, and that a verdict should have been rendered for the plaintiff.

It is necessary in order to determine this controversy to examine as briefly as possible the history of the leasing of lands of Indian citizens under the'sanction and guardianship of the government of the United States exercised through its Executive Department and committed to the Secretary of the Interior.

In the case of Cherokee Nation v. Hitchcock, 187 U. S. 295, 47 L. Ed. 183, the Supreme Court of the United States, in construing the Act of June 28, 1898 (30 Stat. at L. 495, chap. 517), held as follows:

*254 "3. The action taken by the Secretary of the Interior upon applications for leases for mining purposes of tribal lands in the Indian Territory under the Act of June 28, 1898 (30 Stat. at L. 495, chap. 517), authorizing him to execute such leases, is a matter of administration, cognizable solely by the executive department.

“4. The Gherokee Nation was not so vested by the Treaty of 1835 (7 Stat. at. h. 478), and the patent based thereon, with the sole control over the lands thus ceded to it as to preclude Congress, under its plenary power of control over the Indian tribes in the Indian Territory, from enacting those provisions of the Act of June 28, 1898, 30 Stat. at L. 495, chap. 517), which authorize the Secretary of the Interior to prescribe regulations for the leasing of minerals in its tribal lands for the purpose of making them productive and of securing therefrom an income for the benefit of the tribe.”

It will be observed that under the foregoing decision the power of the Secretary, when duly authorized thereto by the act of Congress, was so broadened that he was permitted to make leases direct and initiate the contract himself. Thereafter, under the provisions of the Act of July 1, Í902 (32 Stat. 716-726), being the Cherokee Allotment Agreement, Cherokee citizens were authorized to rent their allotments for mineral purposes, with the approval of the Secretary of the Interior, and not otherwise.

The lease in controversy was made under the authority of that act and was duly approved by the Secretary of the Interior. The lease contains the following material provision :

“And the party of the second part agrees that this indenture or lease shall in all respects be subject to the rules and regula-' tions heretofore or that may be hereafter lawfully prescribed by .the Secretary of the Interior relative to oil and gas leases; in the Cherokee Nation.”

It should also be kept in mind that this lease provides for a term of 15 years from date of execution thereof, and provides for a royalty of ten per cent, or one-tenth of the gross oil.

The assignment under which the defendant in this case holds and the order) of approval thereof by the Secretary of the Interior are as follows (omitting acknowledgment of corporation) :

“Assignment of Oil and Gas Lease.
“Whereas, the Secretary of the Interior has heretofore approved an oil and gas mining lease dated December 20th, 1904, entered into by and between Oriental Oil &' Gas Company of Pheonix, Arizona, and Willella Myers, of Goody® Bluff, Indian Territory, covering the following described land in the Cherokee Nation, Indian Territory: N½ of NE¼ section 12 twp. 25, N., R. 16 E., containing 80 acres.

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Related

Clinton v. Twin State Oil Co.
34 F.2d 948 (N.D. Oklahoma, 1929)

Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 1126, 243 P. 200, 115 Okla. 252, 1924 Okla. LEXIS 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dale-v-winters-oil-co-okla-1924.