Franks v. Krohn

164 S.W.2d 529, 1942 Tex. App. LEXIS 468
Court of Appeals of Texas·Decided June 25, 1942·No. No. 4010.·Published

Opinion

WALKER, Chief Justice.

Appellant, J. E. Franks, filed his original petition in this suit in the district court of Montgomery county on the 23rd day of July, 1940, naming as defendants P. G. Krohn, Tide Water Associated Oil Company, Normandie Oil Corporation, Guardian Trust Company, Mae Frankel, L. M. Josey, and Betty Ann Moran, hereinafter referred to as appellees. He filed his first amended original petition on the 26th day of September, 1940, identical with his orig- ■ inal petition except he made certain additional parties defendants, whose names are immaterial to the points presented by the appeal.

For cause of action, appellant plead as follows: (1) that he brought his suit under authority of House Bill No. 9, being Chapter 3, Title “Lands Public”, page 465, et seq. of the Acts of the Regular Session of the 46th Legislature of the State of Texas, and particularly subsection (i) and subsection (j) of Section 1 of said Act, Vernon’s Ann.Civ.St. art. 5421c, § 6. (i, j), and for the purpose of litigating the question of the existence of a vacant un-surveyed area of land, as hereinafter described, and also to establish the preference rights of appellant in and to said land, and for the recovery of damages as hereinafter set out; (2) that the State of Texas was and is the owner in fee simple of two tracts of land in Montgomery County, described by metes and bounds and called “First Tract” and “Second Tract,” and is entitled to the possession thereof subject to his rights, and that appellees unlawfully entered upon and dispossessed the State of Texas and him, and now withhold from them the possession of said premises; (3) that said tracts of land constitute an unsurveyed area of school land belonging to the State of Texas; (4) that on or about May 25, 1932, he discovered an unsurveyed area of school land in Montgomery County bounded on the North by the Charles B. Stewart Survey, on the East by the E. P. Brown Survey, on the South by the W. C. C. Lynch Survey, and on the West by the Stephen H. Bryan Survey, and on said date “acting under and by virtue of the second paragraph of Section 8, Chapter 271 of the Acts of the Regular Session of the 42nd Legislature,” he applied to the County Surveyor to have the land surveyed with a view to obtaining a mineral lease from the State; that on July 2, 1932, said area was surveyed by the Deputy Surveyor of said County, whose field notes were approved by the County Surveyor, and filed in the Land Office on July 8, 1932; that corrected field notes made by a Licensed Land Surveyor in March and April, 1933, were filed in the Land Office on April 14, 1933, and covered the area described as “First Tract”; (5) that on or about February 20, 1933, he discovered another unsurveyed area of school land in said county “bounded on the North by a tract of 52.87 acres surveyed for J. E. Franks as State School Land on July 2, 1932, bounded on the East and South by the W. C. C. Lynch Survey,” and on or about said date he applied to the County Surveyor for a survey thereof with a view to obtaining a mineral lease from the State, and on or about April 13, 1933, said area was surveyed by a Licensed State Land Surveyor whose field notes were filed in the Land Office on April 14, 1933, and cover the area described as “Second Tract”; (6) that by virtue of said applications, surveys and filings, he secured a preference right to purchase a mineral lease from the State on each of said tracts at the minimum price fixed by the Land Commissioner; that on June 19, 1940, the Land Commissioner “rejected and refused to grant said applications” and so notified the plaintiff; (7) that such rejection by the Land *531 Commissioner was because he was of the opinion that the land was not vacant, un-surveyed school land; but he alleged that said tracts were in fact unsurveyed areas of school land and that by virtue of the applications, surveys, and filings aforesaid, his preference rights to purchase mineral leases thereon were effective as of the respective dates of his filings in the Land Office; (8) that he has been unable to convince the Land Commissioner that said land is vacant, unsurveyed school land belonging to the Public Free School Fund of Texas, although he has from time to time attempted to do so, and that he is aggrieved at the act of the Land Commissioner in rejecting his applications; that the Land Commissioner not having fixed any minimum price “it has been impossible for him to offer the Land Commissioner any price for the lease thereon as he does not know the amount to offer, since the price to be offered had to be determined by the Land Commissioner,” but he has been and is ready and willing to pay the minimum price when fixed by the proper authority; (9) that he is entitled to a decree that the land is vacant, unsurveyed land, and is also entitled to a preference right to purchase mineral leases thereon by paying to the Land Commissioner for the use and benefit of the Public Free School Fund the amount adjudged by the court to be paid for said leases “and that the decree of the court adjudging said leases to plaintiff shall have the same force and effect as if granted and issued by the Land Commissioner”; that since the Land Commissioner has failed to fix a minimum price “plaintiff is entitled to a decree of this court fixing a minimum price for said leases,” and in this connection he alleged that it is contemplated and customary that a discoverer of a vacant, unsurveyed area of school land is entitled to purchase a mineral lease at a nominal amount per acre as a bonus plus one-eighth royalty to the State, and that such nominal value as a bonus shall not be in excess of the minimum price provided by law for the sale of the surface of the land by the State which was $1.00 per acre at the time of his filings in the Land Office and $2.00 per acre at the time of the filing of the suit, and he alleged that'he was entitled to mineral leases on said land for $1.00 per acre, and in no event more than $2.00 per acre; (10) in the event he was not entitled to a decree fixing the minimum price at which he may purchase mineral leases, he nevertheless claimed to be entitled to a preference right to purchase such leases at the minimum price fixed by the Land Commissioner or by the School Land Board, or by both; (11) that appellees claim some right, title and interest in the two tracts of land described, the exact nature of which is unknown to him, but is inferior to his rights and the rights of the State; said land is owned in fee simple by the State of Texas subject to his preference right to purchase mineral leases thereon; (12) that said lands lie within a proven oil producing area “and are extremely valuable for oil and gas purposes and are now and have been for a number of years producing oil and gas in paying quantities”; he plead that he had been the owner of the oil and gas produced from said tracts since July 8, 1932, as to the first tract, and since April 14, 1933, as to the second tract, and that appellees had produced and converted oil from said tracts to the value of more than $200,000.00, for which they had failed and refused to account to him or to the State of Texas and “the plaintiff and the State of Texas are entitled to and do here demand a strict accounting thereof”; (13) that he did not know the exact amount and value of the oil and gas taken by each of the appellees and demanded of them that they file statements in writing and under oath, stating the facts in that connection; (14) that appellees are still continuing to take oil and gas from said land and are refusing to account to him or the State therefor “all to the irreparable damage and injury of the plaintiff and the State of Texas”; that since he was entitled to mineral leases on said trac

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