Empire Gas & Fuel Co. v. State

47 S.W.2d 265
Procedural entryThis page is a short order in Empire Gas & Fuel Co. v. State. Read the opinion of the Court — 121 Tex. 138
Texas Supreme Court·Decided February 24, 1932·No. No. 5663·Published

Opinion

SHARP, C.

The Court of Civil Appeals in its opinion states the nature of t.he case as follows: “The state of Texas recovered a joint and several judgment against J. II. Tippett, individually and as community survivor of the estate of his deceased wife, and Empire Gas & Fuel Company, a Maine corporation, for one-half of the $16,800 cash bonus and one-half of the $1 per acre rental remaining after deducting the 10 cents per acre paid the state, stipulated in an oil and gas lease executed by Tippett, in the capacity sued and as owner of the soil and agent for the state in virtue of the so-called Relinquishment Act (articles 5367 and 5368, Rev. St. 1925 [Acts 2d Called Sess. 1919, p. 249, c. 81, and Acts 1st Called Sess. 1921, p. 112, c. 38]), ¡to the Empire Gas & Fuel Company on 480 acres of sold school land with mineral classification or reservation, out of survey 4, block 194, Gulf, Colorado & Santa Fe Railway Company lands in Pecos county. By way of cross-action the Empire Gas. & Fuel Company recovered judgment for a like amount over against Tippett in the capacity sued, it having paid Tippett the entire bonus and rental stipulated, save the 10 cents per acre paid the state.”

Both Tippett and the Empire Gas & Fuel Company appealed to the Court of Civil Appeals for the Third Supreme Judicial District and the judgment of the trial court was affirmed. 21 S.W.(2d) 376. Owing to the importance of the caée, the Supreme Court granted a writ of error.

J. H. Tippett contends that the court erred in overruling his plea of privilege to be sued in Tom Green county. The' record shows that the suit was instituted by the state against the Empire Gas & Fuel Company and J. H. Tippett for the recovery of $16,800, the amount of cash bonus, and one-half of the $1 per acre rental remaining aft-ter deducting the 10 cents per acre paid the state, as stipulated in the oil and gas lease executed by Tippett. The Empire Gas & Fuel Company is a Maine corporation,' with an agent in Travis county. Article 5381, R. S. 1925, reads as follows: “All payments shall be in the form of cash, bank draft on some State or National bank in Texas, post-office or. express money order, or such other form as the law may prescribe for making remittances to the State Treasury, and shall be due and payable to the Commissioner at Austin.”

It is a rule in this state that, where contract is made, like the one under consideration, with reference to the performance of certain acts prescribed by statute, the contract and statute will be considered together, and, in view of the language of the statute [267]*267that all sums of money owing the state “shall he due and payable to the Commissioner at Austin,” is considered to be a contract in writing to perform an obligation in Trayis county, Tex. Under subdivision 5 of article 1995, .the Empire Gas & Fuel Company was properly sued in Travis county. Tippett was a proper and necessary party to the suit under the allegations and proof that he wrongfully received the bonus due the state under the lease contract which he had executed as the agent of the state under the terms of the Relinquishment Act and upon proper demand therefor had refused to pay same to the state. The Empire Gas & Fuel Company is a foreign corporation with an agent in Travis county, Tex., and it was properly sued in Travis county under subdivision 27 of article 1995, which in part says that a foreign corporation “may be sued in any county * * * where such company may have an agency or representative.” Subdivision 29a of article 1995, Rev. St. 1925, as added by Acts 40th Leg. (1927), 1st Called Sess. c. 72, § 2, Vernon’s Ann. Civ. St. art. 1995, subd. 29a, also provides: “Whenever there are two or more defendants in any suit brought in any county in this State and such suit is lawfully maintainable therein under the provisions of Article 1995 as to any of such defendants, then such suit may be maintained in such, county against any and all necessary parties thereto.” Therefore it appears that Tippett was a necessary party, and, the suit being properly brought in Travis county against the Empire Gas & Fuel Company, suit could also be maintained against any and all necessary parties. This point has been expressly decided against the contentions made by Tippett. Pittsburg Water Heater Co. v. Sullivan, 115 Tex. 417, 282 S. W. 576.

It is further contended that the Court of Civil Appeals erred in its holding that one-half of the bonus to be paid and paid ■by the lessee Empire Gas & Fuel Company to Tippett, as lessor, in the oil and gas mining lease involved herein, belonged to the state of Texas, and that the state was entitled to recover the same under the so-called Relinquishment Act dated July 31, 1919 i and amendments thereto, now known as articles 5367 and 5368, R. S. 1925. They read as follows:

“Ant. 5367. School and asylum lands.— The State hereby constitutes the owner of the soil its agent for the purposes herein named, and in consideration therefor, relinquishes and vests in the owner of the soil an undivided fifteen-sixteenths of all oil and gas which has been undeveloped and the value of the same that may be upon and within the surveyed and unsurveyed public free school land and asylum lands and portions of such surveys sold with a mineral classification or mineral reservation, subject to the terms of this law. The remaining undivided portion of said oil and gas and its value is her.eby reserved for the use of and benefit of the public school fund and the several asylum funds.
“Art. 5368. Sale and lease by agent. — The owner of said land is hereby authorized to sell or lease to any person, firm or corporation the oil and gas that may be .thereon or therein upon such terms and conditions as such owner may deem best, subject only to the provisions hereof, and he may have a second lien thereon to secure the payment of any sum due him. All leases and sales so made shall be assignable. No oil or gas rights shall be sold or leased hereunder formless than ten cents per acre per year plus royalty,- and the lessee or purchaser shall in every case pay the State ten cents per acre per year of sales and rentals; and in case of production shall pay the State the undivided one--sixteenth of the value of the oil and gas reserved herein, and like amounts to the owner of the soil.”

Plaintiffs in error further contend that the Relinquishment Act provided that out of the royalties and delay rentals in the lease to be paid to the lessor, the lessee should pay to the state ¾6 °f the production and 10 cents per acre per annum, the bonus belonged to the lessor, and that the state is not entitled to recover any part of the bonus nor delay rentals other than 10 cents per acre per annum, and that the judgment awarding the state the recovery of the one-half bonus and delay rentals-was erroneous and contrary to the law.

The lease involved herein was executed June 21,1927, by J. H. Tippett for himself and as survivor in community of .the estate of Laura Tippett, deceased, as lessor, and as agent of the state of Texas, to the Empire Gas & Fuel Company, as lessee, and recited a consideration of $16,800 cash, paid by lessee to lessor, and for the payment of royalties, to wit, ⅛ of the oil and gas produced and saved by -lessee, and stipulated for a forfeiture if no well be commenced or delay rentals paid at the rate of $1 per acre per annum, payable annually, during the primary term' of the lease, and further stipulated that, out of the royalties and rentals to be paid the lessor, the lessee shall pay ¾6 of the production to the state, as well as 10 cents per acre per annum.

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Empire Gas & Fuel Co. v. State, 47 S.W.2d 265 (Tex. 1932).

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