Gulf Production Co. v. Oldham

274 S.W. 238, 1925 Tex. App. LEXIS 589
CourtCourt of Appeals of Texas
DecidedJune 3, 1925
DocketNo. 2302.
StatusPublished

This text of 274 S.W. 238 (Gulf Production Co. v. Oldham) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf Production Co. v. Oldham, 274 S.W. 238, 1925 Tex. App. LEXIS 589 (Tex. Ct. App. 1925).

Opinion

RANDOLPH, J.

This suit was filed orig-' inally on May 23, 1923, by J. B. Oldham, as plaintiff, against the Gulf Production Company and the Republic Production Company, as defendants, to cancel an oil and gas lease. By their first amended original petition filed on January 9, 1924, J. B. Oldham was joined as plaintiff by J. W. Rowland individually and as guardian of Jack W. Rowland, Catherine Rowland, and Adrian E. Rowland, minors, against the same defendants. On trial in the district court in Olay county before-the court without the intervention of a jury-judgment was rendered for plaintiffs against the Gulf Production Company, and that plaintiffs take nothing against the Republic-Production Company, and from such judgment the Gulf Production Company has appealed to this court.

J. B. Oldham owned a life estate in the-land in controversy, and J. W. Rowland and the above-named minors owned the estate in. remainder.

On the 24th day of April, 1922, J. W. Rowland, as guardian for above-named minors, leased to D. 0. Heydrick the lands in controversy -for a consideration of $1,700 cash> in hand paid, and also, among other considerations, this lease stipulated:

“If operations for the drilling of a well are-not commenced on said land on or before the-24th day of April, 1923, this lease shall terminate as to both parties, unless the lessee on or before that date shall pay or tender the lessor the sum of $200, in the manner hereinafter provided, which payment or tender shall operate as a rental for twelve months from and. after the last above-stated date, and the same shall cover the rights and privileges in the lessee to defer the commencing of said well drilling a certain period of months. In like manner and upon like payments or tenders the commencement of a well may be further deferred for like periods of the same number of months successively during the entire five yeas term of this lease. Lessor expressly declares that the down payment or bonus received by him for this lease at the time of the execution thereof is a good, valid, and substantial consideration, and sufficient in all respects to-support each and every covenant contained herein, including specifically the option granted the lessee from time to- time during the fiVe year term thereof upon the payment or tender-of the rentals hereinbefore provided for. * * *»

On the 18th day of March, 1922, J. W. Rowland and wife, Lucy Rowland, and J. B. *239 Oldham and wife, Nora Oldham, executed to said Heydriek a lease to the same land, which lease contained a like provision as to the payment of $200 annual rental as quoted .above from the guardian’s lease.

On the 17th day of August, 1922, Heydriek assigned a part of the land leased to the Gulf Production Company, and on the 15th day of December, 1922, he assigned the balance to the Republic Production Company.

Subsequent to the assignment of the leases by Heydriek to the two companies, the Gulf Production Company prepared and sent to Heydriek for execution by plaintiffs an instrument which we will hereinafter designate the “correction agreement,’’ which is in words as follows:

“The State of Texas, County of Montague.
“Know all men by these presents that by instrument dated the ISth day of March, 1922, J. W. Rowland and wife, Lucy Rowland, and J. B. Oldham and wife, Nora Oldham, as lessors, made, executed, and delivered unto L. 0. Heydriek, as lessee, a mineral lease covering said lessor’s life estate in and to the lands hereinafter described; and by instrument dated April 24, 1922, J. W. Rowland, as guardian of Katherine Rowland, Jack W. Rowland, and Adrian E. Rowland, minors, acting under orders of the probate court as lessor, made, executed, and delivered unto the said L. C. Hey-drick, as lessee, a mineral lease covering the said minors’ interest in the estate in remainder, vested in' said minors under the terms of that certain deed from J. T. Rowland and wife, to J. W. Rowland, dated July 16, 1907, and recorded in volume 61 at page 368 of the Montague County Deed Records; said leases referred to covering the north one hundred (100) acres of the south three hundred (300) acres of a certain 428½ acre tract in the John Chambliss survey and the west one hundred (100) acres of a certain 245 acre tract in the Elijah Votaw survey in Montague county, Texas, and which leases are duly recorded in the Deed Records of Montague county, Texas, to which reference is here made for all purposes; and
“Whereas, the lease dated March 18, 1922, first above referred to, inadvertently provides for the payment to lessors of an annual rental or delay payment of two hundred ($200.00) dollars,' payable on the 18th day of March of each year during the stated term of said lease;
“Now, therefore, for the purpose of correcting said lease dated March 18, 1922, above referred to, insofar as concerns such rental or delay payment provision, it is hereby expressly agreed and understood that the initial consideration paid by said lessee for the execution of said lease covering lessor’s life estate in and to said premises, together with the obligation assumed and undertaken by said lessee under the terms of the lease from J. W. Rowland, guardian, dated April 24, 1922, and above referred to, was intended to support the lease covering said life interest for the full term of said lease without any requirement whatsoever on the part of lessee to pay or tender rental or delay monies to continue said lease in force and said mineral lease dated March 18, 1922, is by this instrument amended by striking out said rental payment provision; the undersigned expressly agreeing that the lease as to such life interest shall be continued in force for the stated five (5) years term thereof and as long thereafter as. oil, or either of them shall be produced from said land in paying quantities provided the terms of such guardian’s lease are fully carried out and performed.
“In all other respects said lease dated March 18, 1922, shall continue and remain in full force and effect and unimpaired by the execution of this instrument; and provided further that the execution of this instrument shall not be construed as altering the terms of said guardian’s lease in any manner whatsoever.
“Executed this 29th day of September, A. D. 1922
“J. W. Rowland.
“Lucy M. Rowland.
“J. B. Oldham.
“Nora Oldham.
“J. W. Rowland, as Guardian.”

As stated, the Gulf Production Company sent this correction agreement to Heydriek with the request that he would have the lessors execute it. It appears from the evidence that it reached the hands of the parties for whom it was intended, and that they declined to sign it and return it to Heydriek. Heydriek then inclosed it to them with the following letter:

“L. C. Heydriek, Oil & Gas. Wichita Palls, Texas.
“September 15, 1922.
“Mr. J. B. Oldham, Nocona, Tex. — Dear Sir: I am inclosing you herewith agreement prepared by the Gulf Production Company, to whom I have transferred a portion of the Old-ham lease, which is self-explanatory.

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Bluebook (online)
274 S.W. 238, 1925 Tex. App. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-production-co-v-oldham-texapp-1925.