Gypsy Oil Co. v. Escoe

1927 OK 68, 258 P. 906, 126 Okla. 3, 1927 Okla. LEXIS 60
CourtSupreme Court of Oklahoma
DecidedMarch 22, 1927
Docket16111
StatusPublished
Cited by6 cases

This text of 1927 OK 68 (Gypsy Oil Co. v. Escoe) 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
Gypsy Oil Co. v. Escoe, 1927 OK 68, 258 P. 906, 126 Okla. 3, 1927 Okla. LEXIS 60 (Okla. 1927).

Opinion

PHELPS, J.

The defendant in error, Leo Bennett Escoe, was a minor Creek Indian of one-eighth degree of Indian Wood, and there was allotted to him as a part of his surplus allotment th'e lands located in Creek *4 county, a part of which constitutes the subject-matter of this controversy.

On May. 15, 1906, his duly appointed guardian executed to the New York Oil Company an oil and gas mining lease on the regular depar: mental form for a term of 15 years, which lease was duly approved by both the United .States Court for the Western District of the Indian Territory and the Secretary of i he Interior.

The .lease contract contained the following clause:

“And it is mutually understood and agreed that no sublease, assignment, or transfer of this lease or of any interest therein or thereunder can be directly or indirectly made without the written consent thereto of the lessor and the Secretary of the Interior first obtained, and that any such assignment or transfer made or attempted to be mad’e without such consent shall be void.”

On December 18, 1909, this ltase was assigned by the New York Oil Company to the Gipsy Oil Company, plaintiff in error here. The guardian of the minor, as shown at page 139 of the case-made, consented to the assignment of the lease by the execution of an instrument, in full as follows:

“Consent of Guardian.
“I, Charles J. Escoe, guardian of Leo Bennett Escoe, a minor, hereby consent that the New York Oil Company may transfer and assign an oil and gas mining lease, dated May 15, 1906, and approved by Jesse'e E. Wilson, Asst. Secretary of the Interior. November 1, 1906, to the Gypsy Oil Company; in so far as a said lease covers o.r affects the east half of the southwest quarter of the southeast quarter, and the east half of the west half of southwest quarter of southeast quarter, all in section 8, township 17 north, range 12 east, and containing 30 acres more or less.
“Charles J. Escoe, Guardian.”

The execution and delivery of this instrument seems to be the only effort made to comply with the above-quoted provision of the lease!. The lands covered by the lease produced oil and gas.

On January 13. 1914, the guardian of said minor, with the approval of the county court, executed to the Gypsy Oil Company a contract selling to it th'e casing-head gas produced from the premises. On October 17, 1916, before the expiration of the lease by its terms on May 15, 1921, the guardian of said minor, through the county .court, sold to the Gypsy Oil Company a lease covering these lands for the sum of $2,250, said lease beginning at the expiration of the original lease and continuing as long as oil or gas in paying quantities is produced thereon. The royalties from the production Were paid to the guardian for the benefit of the minor.

On April 12, 1923, the minor, through his guardian, filed suit in the district court of Creek county, praying for judgment and decree canceling the l'ease covering the lands in question, and for accounting. Before the trial of the cause, however, the minor attained his majority and continued the prosecution of his claim, resulting in a judgment in his behalf canceling the instruments in question and for a money judgment on accounting of $64,175, to reverse which this appeal is prosecuted.

The trial court held that the assignment of the (leas'e by ’the New York Oil Company to the Gypsy Oil Company was void and ineffectual to transfer or convey any interest in the lease, for the reason that the assignment was without the approval of the S'ecretary of the Interior and the county court having jurisdiction of the minor’s estate.

It is first contended by plaintiff in error that the court erred in holding the lease void, contending that the lease in question was at no time subject to departmental supervision and control and that the conditions contained therein requiring its approval by the Secretary of the Interior and the consent of the Secretary of the Interior to any assignment thereof were void ab initio, citing section 20 of the Act of Congree approved April 26, 1906, the perunent part of which reads as follows:

“* * * provided, that allotments of minors and incompetents may be rented or leased under order of the proper court. * * *”

Supporting this contention counsel cite Morrison v. Burnette, 154 Fed. 617, and in their brief say:

“* * * Leases of allotments of Indian minors approved by trial courts of the Indian Territory after April 26. 1906, were not subject to the approval or disapproval of the Secretary of the Interior and that the United States States courts for the Indian Territory had full and complete jurisdiction to sell and approve leases of this character.”

They also cite Cowles v. Lee, 35 Okla. 159, 128 Pac. 688, in which this court said;

“The restrictions against alienation having been removed from said minor’s allotment by virtue of the Act of April 26. 1906 (34 U. S. Stat., p. 137, c. 1876), after said date leases of allotments of minors in the Five Civilized Tribes, approved by the trial courts in that jurisdiction, are not subject *5 to the approval or disapproval of the Secretary of the Interior; but the orders of the court approving them are final.” (Citing authorities.)

They also» cite Wellsville Oil Co. v. Miller, 44 Okla. 492, 145 Pac. 344 (again reported in 48 Okla. 386, 150 Pac. 186), which case was finally decided by the United States Supreme Court, 61 L. Ed. 559.

We have carefully examined these author-» ities, and, in our judgment, they do not support plaintiff in -error’s contention. They do hold, and we -take it the law therein announced is well -settled, that after the passage and approval' of the Act of April 26, 1906. the execution or assignment ctf leases such as was involved in the instant case did not require the approval of the Secretary of the Interior to make them valid. However, in the authorities above cited the question involved was not whether the provision in the contract requiring the approval of the Secretary of the Interior was a valid contractual requirement, but the question involved was whether such requirement was necessary to make the lease valid and binding.

As we see it, the provision in th'e lease in question requiring the written consent of the Secretary of the Interior to the assignment of any infrarest therein was a provision well within the authority of the county court and the interested parties to make and. though not required by law, the provision having been inserted in the lease, it is binding as a condition precedent to a va’id assignment of the same.

There is another provision in the original lease contract reading as follows:

“And the said party of the second part expressly agrees that should it or its sub-lessees. heirs, executors, administrators, successors or assigns violate any of the covenants, stipulations or provisions of this lease or fail for the period' of sixty (60) days to pay the stipulated monthly royalty provided for herein, then the party of th'e first part shall be at liberty in his discretion, to avoid this indenture of lease anil cause the

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Bluebook (online)
1927 OK 68, 258 P. 906, 126 Okla. 3, 1927 Okla. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gypsy-oil-co-v-escoe-okla-1927.