Great Plains Oil & Gas Co. v. Cox

5 S.W.2d 796, 1928 Tex. App. LEXIS 390
Procedural entryThis page is a short order in Great Plains Oil & Gas Co. v. Cox. Read the opinion of the Court — 2 S.W.2d 567
Court of Appeals of Texas·Decided March 7, 1928·No. No. 3011.·Published

Opinion

JACKSON, J.

The appellant, the Great Plains Oil & Gas Company, instituted this; suit in the district court of Potter county, Tex., to enjoin the appellee, M. H. Cox, from-removing the casing, tubing, rods, tank, and' other equipment out of and from a water well located on the southwest quarter of section No. 13 in block Y-2, Hutchinson county, Tex.

Appellant, in its first amended original petition, alleges that it is the owner of the oil and gas on said land-by virtue of a valid oil, gas, and mineral lease; that on February 1, 1927, it entered into a written contract with appellee, by the terms of which he-agreed to drill and complete on said lease a well for oil, for the consideration of $37,500, which sum was placed in escrow, and to be-paid to appellee when the well was drilled and completed to a depth of 3,200 feet, or to be paid to appellee if oil was discovered in paying quantities and the well completed at: a depth less than 3,200 feet; that appellee-was to furnish all labor, equipment, material, fuel, and water for drilling and completing said well; that in order to drill a well for oil or to operate a well which is producing oil or gas, it is necessary to have a supply of water, and as a part of appellee’s contract, and as a necessary incident to the drilling of the well for oil, he drilled a water well, on said lease adjacent to the well he was drilling for oil, and placed in and used, in connection therewith, the casing, rods, tank, and -equipment involved in this suit; that the water well is between 200 and 300i feet deep, and the removal of the casing, tubing, rods- and other equipment would destroy the well; that in drilling the well for oil,, at the depth of about 3000 feet, a large volume of gas was encountered, and at about said depth appellee lost a string of drilling tools in the-well, which completely obstructed the hole, and he could not drill by them, and failed to-complete the well or to drill it to a depth of 3,200 feet, as provided in the contract, and no test for oil, as contemplated, was had; that on November 12, 1927| after appellee had been, for several months, unsuccessfully fishing for the string of tools he had lost in. *797 the well, lie and the appellants entered into another contract, written toy appellee, in which he recited that the gas in the well was impenetrable, which was untrue and known to appellee to be untrue, as the tools lost in the well and not the gas was the impenetrable substance encountered; that the contract of November 12th provided that, in addition to $10,000 theretofore loaned to appel-lee, the appellants should pay him the sum of $24,000 in full settlement for the material furnished and the labor performed by him on the well for oil; that in compliance with this agreement, appellant paid appellee said sum of $24,000 by check, which he cashed, and on which was written, “For settlement in full and release of contract, and money in escrow released in full and for all bills for equipment”; that in the negotiations culminating in the contract of November 12th, it was expressly agreed that the water well and its equipment was included in the labor, material, and equipment furnished by the appellee, and that the title thereto passed to appellant, and appellee so understood the negotiations and represented to appellant that the written contract covered and' included the water well equipment; that prior to the execution of the contract of November 12th, the appellee furnished appellants with a list of the material and equipment he had furnished, for which he demanded pay, and the water well equipment was nob upon said list, and at the time of the settlement and the payment of the $24,000 no claim was made by him to said water well equipment or pay therefor, but he receipted said list, as payment in full; that if such equipment was not covered and included in the contract of November 12th, they were omitted therefrom toy the mutual mistake of the parties, and if not omitted by mutual mistake, appellee, in the preparation of the contract, committed a fraud on appellant in representing to it that such water well equipment was included in and comprehended by said contract; that after the settlement and the payment of the $24,000, appellee delivered to appellant possession of the lease and of said water well and its equipment, but after he had cashed the check, he then claimed that the water well equipment was not included in nor comprehended by the contract, and gave notice that he intended to remove all of said equipment from said well and lease; that such removal would destroy the water well, necessitate obtaining a water supply from some other source, which is doubtful and uncertain, and irreparably injure appellant, as its destruction could not be compensated in damages, and appellant has no adequate remedy at law; that in the contract of November 12th, a settlement was had between appellee and Lehman, Harris, and Oox relative to a lease on section 91 and the drilling of a well thereon for oil, and it was agreed that the pipe line connected with the water well in controversy, and through which water was supplied for drilling the well on said section 91, should remain on the premises, and appel-lee’s action in threatening to remove the equipment from the water well in controversy and attempting to destroy said well was not done to reclaim such equipment, but was done wrongfully and maliciously for the purpose of interfering with drilling the \yell on said section 91.

Appellant áttaehes to and makes a part of its petition a copy of the contract of date February 1, 1927, and a copy of the contract of date November 12,1927.

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Great Plains Oil & Gas Co. v. Cox, 5 S.W.2d 796, 1928 Tex. App. LEXIS 390 (Tex. Ct. App. 1928).

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