Elliott, Jones & Co. v. Waurika Oil Ass'n

253 S.W. 601, 1923 Tex. App. LEXIS 382
CourtCourt of Appeals of Texas
DecidedMay 23, 1923
DocketNo. 2152.
StatusPublished
Cited by3 cases

This text of 253 S.W. 601 (Elliott, Jones & Co. v. Waurika Oil Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elliott, Jones & Co. v. Waurika Oil Ass'n, 253 S.W. 601, 1923 Tex. App. LEXIS 382 (Tex. Ct. App. 1923).

Opinions

BOYCE, J.

E. E. Elsea was the owner of a one-eighth royalty interest in the oil produced from a well operated by the Waurika Oil Asséciation. The lessee was, under the terms of the lease contract, required to deliver such «oil to the credit of Elsea in the pipe line connected with the lease. From September 5, 1919, to November 1, 1919, the oil runs from the lease were delivered to a pipe line operated by Elliott, Jones & Co., and Elsea’s one-eighth interest therein, for which he was not paid, amounted to 9,076% barrels. Elsea brought this suit against Elliott, Jones & Co., alleging that the said defendant was obligated by contract to. pay him for said oil at the rate of $1.75 per barrel. Plaintiff, in the alternative, asked- for judgment against Elliott, Jones & Co., the Waurika Oil Association, and other defendants for conversion of said oil. The facts to sustain the plaintiff’s recovery on the agreement alleged are as follows:

Elliott, Jones & Co., prior to July 28, 1919, had been taking the oil runs from the lease referred to and paying plaintiff therefor at the rate of $2.25 per barrel. On July 28th it notified Elsea by wire that from such date its “purchase price on oil run from leases” in which he was interested would be [602]*602$1.75 per barrel. Elsea went to see an agent of Elliott, Jones & Oo. at Wichita Falls, who referred the matter to its San Antonio office, and on August 15, 1919, Elliott, Jones & Oo. wrote to Elsea the letter which furnishes the basis of Elsea’s claim of contract. The letter is lengthy. Most of it is devoted to an argument to sustain Elliott, Jones & Co.’s, position that $1.75 per barrel was under the circumstances a fair price for the oil. We quote only the following passages therefrom as being directly pertinent to this discussion:

“You realize that when we offer you $1:75 for your oil that it does not mean an indefinite offer. AYhen the market tightens, and we can secure more for the oil we sell, we will gladly and voluntarily offer you more. * * * We are inclosing division, orders covering leases that you own a royalty on and from which we are running some oil. We would appreciate your signing these division orders at price named until further notice, either by you or us. We will then send you check in full for your oil run to date. If you will not do this, we are ready to deliver your oil back to you immediately, and will ask what disposition you wish made of same, as we do not have the storage room to carry it for you. * * * Your immediate reply is requested, and if you don’t wish to entertain this offer, kindly let us know what disposition to make of this oil, as we cannot store it for you any longer.”

To this letter Elsea replied by letter of August 18th as follows:

“I am this date returning signed division order mailed me by the Waurika Oil Company of Fort Worth, Texas. In reply to your letter of August 15th, will say that I will sign division orders at present, with the understanding that you people are treating me right in this matter, as I am not, on the ground and do not know just what is just right at present, but will be down later and will investigate matters. I do know that the listed price is $2.25, and I told your people at Wichita Falls that, if you people were taking the advantage of me while things were congested, you would be remembered when things did get normal. I am 'going to have quite a good deal of oil to run on 88. and the ones that treat me right now are the ones that will be remembered after a while. I also told your people that I did not want any pipe line on my place that could not run my oil and treat me right. So you people know what is the market for my oil, and if you will you can be of quite a help 'to me in running my oil at the price, and I can be of help to you in furnishing you oil, and please let me hear from you along this line.”

The division order referred to was dated July 26,1919, and was signed by the Waurika Oil Association and by Elsea. It is addressed to Elliott, Jones & Oo., and is in part as follows:

“The undersigned certify and guarantee that they are the legal owners of Waurika Oil Association Company No. 1, Wells No. 1, on the E. E. Elsea farm, located on Block 88-in-cluding the royalty, interest and until further notice you will give credit for oil received from said well as per directions below.

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Related

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121 S.W.2d 494 (Court of Appeals of Texas, 1938)
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Bluebook (online)
253 S.W. 601, 1923 Tex. App. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elliott-jones-co-v-waurika-oil-assn-texapp-1923.