Funk v. Haldeman

53 Pa. 229, 1867 Pa. LEXIS 6
CourtSupreme Court of Pennsylvania
DecidedJanuary 7, 1867
StatusPublished
Cited by53 cases

This text of 53 Pa. 229 (Funk v. Haldeman) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Funk v. Haldeman, 53 Pa. 229, 1867 Pa. LEXIS 6 (Pa. 1867).

Opinion

The opinion of the court was delivered, by

Woodward, C. J.

These cases are a bill in equity and a cross-bill, which are founded upon the respective titles of the parties to valuable oil lands on Oil creek, in Venango county.

The first remarkable feature of the case (for the two bills constitute, essentially, but one case) is the magnitude of the conveyancing that has taken place. Not less than twenty deeds and agreements are presented in our paper-books as bearing more or less directly upon the questions discussed, all of which have been made since 1859, when the right of the present parties first attached. It probably will not be necessary to notice particularly all of these conveyances, but several of them must be carefully analyzed and their legal effect fully stated, for in them the rights of the respective parties are rooted. And the principles of law appropriate to the case, and the mode of their application, are to be discovered only by a patient examination and comparison of the contents of several deeds.

On and before the 8th day of October 1859, David McElheny was the owner and occupier of two lots or tracts of land, one lying on both sides of Oil creek, in Oornplanter township, Venango county, containing 100 acres; the other lying on the north side of Oil creek in Cherry Tree township in said county, containing 85 acres, and the two together constituting his farm, though they touched each other only at one corner. To this latter lot in Cherry Tree, McElheny had then only an equitable title, but he obtained the legal title on the 27th of the succeeding February.

On the 8th day of October 1859, McElheny and wife entered into an instrument of writing with A. B. Funk, which is called an agreement, but is in form and substance a deed of conveyance,, with mutual covenants. In consideration of $200, the receipt whereof from Funk is acknowledged, McElheny and wife grant, bargain and sell unto the said Funk, his heirs and assigns, “ the free and uninterrupted use, privilege and liberty to go on to any part of the 200 acres now owned, occupied and in possession of the party of the first part, it being in the north part of Corn-planter township aforesaid, and lying each side of Oil creek, for the purpose of prospecting, digging, excavating and boring, and erecting thereon frames, vats, engines, or anything necessary for the prospecting, experimenting or searching to find any ore, oil, salt, coal or other mineral, and of taking the same out of the earth; also, we, the said party of the first part, do hereby grant unto the said party of the second part, the right, privilege and exclusive use of one acre of land at and around each well or pit, where [238]*238the indications are such as will justify in operating or experimenting ; and also, the said party of the second part, his heirs and assigns, are to have free ingress, egress and regress on and over said land by himself, hands and teams, tenants and undertenants, occupiers or possessors of the said springs, mines, ore or coal-beds, in common with the said party of the first part, their heirs and assigns.”

Then follow the covenants of Funk that he will use no more land for roads or ways than shall be absolutely necessary; that he will commence operating the next spring, and will, during the spring and summer, put in operation a steam-engine on said land, and will energetically and diligently use all reasonable efforts to obtain the oils, ore or minerals sought for; and if he succeed in finding or procuring any oil, ore, salt, coal or other minerals, then in addition to the $200 paid, he agrees to give the one-third part of all that is taken out of the earth on the premises, in barrels to be furnished by McElheny at the pit’s mouth. Should the prospecting and ejiperimenting prove a failure and the enterprise be abandoned, Funk was to have the privilege of removing all engines, vats and fixtures of every kind, and the premises to revert back to McElheny, whose right of tillage was in any event to be uninterrupted, except as to the one acre about each pit.

On the same day a supplemental covenant was made, that in case of a failure of the enterprise, Funk was to fill in all the wells or pits he may have opened, “ and in no case shall the said Funk be permitted to occupy any land within 100 yards of his (McElheny’s) buildings.”

Some question was made in the argument as to the territorial extent of Funk’s rights under this deed; — whether they extended to that part of the farm that lay in Cherry Tree township, or were limited to the part in Cornplanter township. Whatever might be the construction óf the deed, if taken by itself, and subject to the rule that deeds are to be construed most strongly against grantors, we entertain no doubt that the deed, when taken in connection with subsequent conveyances hereafter to be noticed, is to be limited in its operation to that part of the McElheny farm that lay in Cornplanter township, and can have no effect on the 85 acres in Cherry Tree.

Such was the original grant out of which this controversy sprang, but before pausing to notice its legal effect, it is necessary to bring several other conveyances into view.

On the 2d day of December 1859, McElheny and wife entered into another “agreement” with John H. Dalzell and Thomas Donnelly, which began by fully reciting the prior agreement of 8th October with Funk, and then went on in the form of an indenture to grant, bargain and sell to Dalzell and Donnelly “ the one-half of the oil, salt, coal or other minerals which may be [239]*239taken from the said lands in accordance with the agreement of McElheny and Funk aforesaidand in case Funk should abandon his rights, Dalzell and Donnelly were to succeed them, and for the rights hereby conveyed to them they were to pay McElheny $800. A subsequent clause defined that he was to convey only the one-half of the portion of the oil, salt or coal which he should receive from Eunk. Such undoubtedly would have been the legal construction of the deed without the explanatory clause. It left in McElheny one-sixth of what is called the royalty that Eunk was to pay, and transferred the other one-sixth to Dalzell and Donnelly, their heirs and assigns.

On the 28th of January 1860, McElheny sold and conveyed to William H. Ewing, in consideration of $595, one-twelfth of the royalty he was to receive from Eunk, together with a right of succession to all Funk’s rights in case he abandoned the enterprise, and Dalzell and Donnelly also elected not to take his place.

McElheny now retained to himself whatever interest in the freehold he had not conveyed to Funk, together with a right to one-twelfth of all the oil, salt or ore Funk should take out of the earth. Then, on the 22d March 1860, he and his wife in consideration of $20,000, conveyed by indenture to Joseph Gr. PIussey, William D. McBride and Levi Haldeman, all of the state of Ohio, both of the tracts of land before mentioned, particularly describing them by metes and bounds, the one in Cornplanter, the other in Cherry Tree township, and subject only to the three before-mentioned agreements, the first with Funk, the second with Dalzell and Donnelly, and the third with Ewing.

Four days after this deed had invested them with McElheny’s proprietorship, to wit, on the 27th March 1860, Hussey, McBride and Haldeman, with their wives, entered into agreement with Funk, that requires particular attention.

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Cite This Page — Counsel Stack

Bluebook (online)
53 Pa. 229, 1867 Pa. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/funk-v-haldeman-pa-1867.