Equa Oil Corporation v. Black

1926 OK 121, 244 P. 40, 114 Okla. 107, 1926 Okla. LEXIS 941
CourtSupreme Court of Oklahoma
DecidedFebruary 9, 1926
Docket14400
StatusPublished
Cited by2 cases

This text of 1926 OK 121 (Equa Oil Corporation v. Black) 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
Equa Oil Corporation v. Black, 1926 OK 121, 244 P. 40, 114 Okla. 107, 1926 Okla. LEXIS 941 (Okla. 1926).

Opinion

HARRISON, J.

This action was begun in the court below by defendants in error against plaintiff in error, and one Lee Morrison, for a balance alleged to be due defendants in error for additional drilling done in an oil or gas well on an Osage lease. The said Lee Morrison was made party defendant in the court below, as he was the original lessee and made the original written contract for drilling with defendants in error, but later assigned his lease and said written contract to the Equa Oil Corporation which assumed all obligations, toward the defendants in error.

On the trial of the cause the jury found in favor of said' Lee Morrison, 'but-'against the Equa Oil Corporation, and Morrison is not made a, party to this appeal.

The defendants in error, Black and Crow, were the drillers, and will be referred to as such; plaintiff in error, Equa Oil Corporation, was the employer, and being so designated in some of the pleadings and briefs. will be herein referred to as thé company.

By additional drilling we mean drilling done after • the well had • been drilled to a depth of something over 1,900 feet to a certain sand, under the terms of the written contract. - It- appears that, upon reaching such sand and its giving promise of oil in paying quantities, the company concluded to drill no further ¿nd to take the well over and shoot it, whereupon it was orally agreed between the company and' the drillers that the well be drilled no deeper, that the com *108 pany take over tlie well, that the drillers be paid according to the terms of the written contract for all the work they had done and that the company would shoot the well. These conditions were orally agreed to and assented to by the parties, and the company took charge of the' well and shot it. Alter shooting the well and after some further operations and work done, not material to the questions here presented, the company concluded that this sand contained no paying quantities of oil or gas, and that the well be drilled deeper, whereupon it was orally agreed between the company and the drillers that the well be drilled to a deeper sand, and pursuant to such agreement they drilled to a greater depth, until at the instance of the company the drilling ceased and a portion of what the drillers claimed to be due them was paid by the company, but the drillers claimed a balance of $1 950 to be due them and filed a laborer’s lien for saiu balance, and later brought this suit to foreclose said lien' and recover said balance, and upon trial of the issues obtained a judgment in their favor against the company, and the company appeals from such juug ment.

The point of controversy here is whether the additional drilling was done under the original written contract, which provided for a stated price per foot, or whether it was done under such contract as modified by a subsequent oral agreement after the written contract had been terminated and the drilling done under it settled for. The amount sued for was the difference between what the company claims would have been due under the written contract, at so much per foot, and what the drillers claimed was due under the alleged oral agreement at so much per day. The company contends here, and contended below, that the additional drilling was done under the written contract at so much per foot, and that this action was a straight suit upon the written contract. The drillers contend here, and contended below, that the action and their right of recovery was not based upon the original contract alone, but upon the original contract as modified by the subsequent oral agreement to resume drilling after it had been ■ stopped and the well taken over by the company; and upon such theory offered proof of the customary day rate for additional drilling under the field custom in such circumstances.

The trial court, over the objection of the company, received testimony as to the field custom and day ráte fixed by such custom for additional drilling, and also received testimony on the issue of iact as to whether the additional drilling was done under the original written contract at so much per foot, or done under the field custom for additional drilling at so much per day, and the court, among other things, instructed the jury that if they believed from a preponderance of the testimony that a verbal agreement -was entered into between the parties to resume and continue drilling at the direction of the company, at so much per day according to the custom of the field, and should find by a preponderance of the evidence that pursuant to such agreement the drillers did do the additional drilling under said conditions, the verdict should be iri favor of the drillers and against the company. The company objected and excepted to-such instruction on the ground that it was outside of the issues made by the pleadings, and on the ground that the introduction of testimonv as to "-hether or not there was a verbal agreement, and testimony in regard to the field custom or additional drilling, was a departure from the theory and right of action upon which the drillers, in their petition, based their right to recover, ano that such departure was a surprise to the company and constituted a fatal variance from the issues made by the pleadings. The same contention is made here by the company. plaintiff in error, and that the triaT court erred in instructing the jury on such-issue.

All these contentions may be settled by the record alone. The petition of the drillers contains, among other averments, the following:

“That upon so striking the said showing of oil, the said Equa Oil Corporation, then having charge of the said drilling, decided to abandon further drilling of the said well under the terms of the contract of $2.50 per foot and to shoot said well, which was done, settlement being made between the parties in reference to the amount due. * * * That after the completion of the work by the foot, as hereinbefore stated, and on or about the 28th of .Tune. 1920. that the defendants herein, reaching the conclusion after shooting the said well that they had struck oil in paying quantities and desiring to have same pumped, that the said defendants, Lee Morrison and Equa Oil Corporation. by Lee Morrison, president, and O. Burlingame, sec’y.. and the plaintiff herein by a verbal agreement contracted and agreed with each other that in pumping sa>d well * * * that the defendants would pav the plaintiffs herein the reasonable and cus-tomarv price for the use of plaintiffs’ machinery in so pumping said well and that said reasonable and customary price these plaintiffs allege was the sum of $50 per *109 aay of 12 hours. And that a.ter so pumping the said well for a short time that' the defendants decided to drill the said well deeper and asked that plaintiffs continue said drilling under the terms of the original contract, such work as shown by said contract to be day work at the price of $100 per day of 24 hours, and that the plaintiffs m keeping with said request of defendants, and in keeping with the terms of said written contract, continued to perform labor fo,r', and to drill for, and do other things that were necessary for the further completion of said well, all being done at the special instance and request, and under the supervision of defendants until the 15'li day of October, 1920, at which time the defendants finally abandoned said well.

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Bluebook (online)
1926 OK 121, 244 P. 40, 114 Okla. 107, 1926 Okla. LEXIS 941, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equa-oil-corporation-v-black-okla-1926.