Gypsy Oil Co. v. Lindesmith

1931 OK 618, 5 P.2d 140, 153 Okla. 183, 1931 Okla. LEXIS 376
CourtSupreme Court of Oklahoma
DecidedOctober 20, 1931
Docket19908
StatusPublished
Cited by1 cases

This text of 1931 OK 618 (Gypsy Oil Co. v. Lindesmith) 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. Lindesmith, 1931 OK 618, 5 P.2d 140, 153 Okla. 183, 1931 Okla. LEXIS 376 (Okla. 1931).

Opinion

KORNBGAY, J.

This cause started in the district court of Carter county by the filing by William N. Lindesmith, N. J. Lindesmith, and J. T. Clark, as plaintiffs, of a suit against the Gypsy Oil Company, J. A. Heenan, C. E. Sykes. R. W. Coe, Mrs. C. L. Dittman, and Charles Pfile, defendants, on the 31st day of March, 1927. The original petition sets up the fact that the defendants I-Ieenan, Sykes, Coe, Mrs. D’ttman, and Charles Pfile were tenants in common with the plaintiffs of an undivided 114/lGOth 'interest in the land out of which the gas came, over which the suit was had, and avers that they were made defendants because they would not join after request to join in as plaintiffs. There was an averment that the Gypsy Oil Company was operating the land under a lease made on the 9th of July, 1924, a copy of which was attached to the petition. There were various charges made, and, among others, that a provision in the contract was void as being unilateral. 'There was a further charge that well No. 6, when the lease was made, was producing large quantities of gas, and that on the 7th of May, 1926, it was struck by lightning and destroyed, and that the Gypsy Oil Company had made no effort to replace 'it.

There was a further charge that on the west side only three wells had been used to offset four wells on the Sturm lease. There was a further charge that the oil company had failed to offset a well on the land to the north, which was known as Johnson No. 5. There was a further charge that well No. 2 had been lost, but they did not know how, and in lieu thereof they had drilled gas well No. 8. There was a further charge that the defendants had been selling this gas from No. 8 to the surrounding leases to various p'ersons, unknown to the plaintiffs, and without accounting to the plaintiffs for the proceeds, and there was a charge as follows:

“* * * Said amount of gas wasted and disposed of by the Gypsy Oil Company amounted to thousands and thousands of dollars.”

There was a further charge of negligence in handling well No. 7, and allowing water to get into the sand and forcing its abandonment, and there was a prayer for the cancellation of the lease.

There was a second count divided into several sections, and the first one was based on No. 6 well being permitted to be lost and destroyed, and not being replaced, and that if the defendant had not been guilty of negligence, the plaintiffs would have realized $25,000 from it, and they wanted $25,000 on that account. There was a third subdivision with reference to well No. 7 being ruined, and the failure of the oil company to replace it, and the damages were laid at $20,000 for that. There was another claim for failure to offset the Sturm lease with four wells instead of three, and there was a $20,000 damage alleged for that.

There was an allegation that the Gypsy Oil Company had damaged the plaintiff $2,-000 for failure to offset the W. B. Johnson well. There was a further allegation with reference to well No. 8, the gas well which took the place of No. 2, to the effect that a line was run therefrom to supply the residents of Pruitt City, Ratcliff, and various places unknown to the plaintiffs, in which the charge is made that the plaintiffs did not know the amount due, and an accounting was demanded with prayer that the plaintiffs have judgment for $25,000 on this account, and there was a general prayer for $92,000 on count No. 2.

As a third cause of action, it was claimed that the conduct, negligence, and carelessness, complained of in counts Nos. 1 and 2, was done With the wrongful and intentional purposes of damaging the plaintiffs, and was done with a willful, wanton and malicious purpose of injuring and damaging the plaintiffs, and there was $25,000 punitive damages asked for. By amendment it was sought 0 cancel the lease, but this appears to have be n stricken. The lease was set out that was complained of as being unilateral, which was an ordinary oil and gas lease with some additional covenants and clauses, the fourth paragraph of which is as follows :

“Lessee shall pay lessor as royalty for ah gas sold, including casinghead gas. a sum equal to one-eighth (l/8th) of the proceeds of such sale, and iu case the lessee shall use or utilize such gas otherwise than in operating- the premises, to pay lessor as royalty a sum equal to one-eighth (l/8th) of the value of such gas, * * * settlement to be made every three months for the gas sold ov utilized during the preceding three months.”

*185 Well No. 2 was to be deepened to the depth of the sand from which well No. 5 on the Johnson lease was producing gas, which was approximately 2,415 feet. There was a further agreement that as soon as this was done, the premises were fully developed for oil and gas, and casinghead gas, and the following:

“That thereafter the lessee shall have the exclusive right to determine the nature and extent of the development of the leased premises for oil, gas, and casinghead gas to the depth of such sands.”

There was a clause to protect the property as against offsetting wells on adjoining premises producing oil or gas in paying quantities, if the costs and expenses of drilling such well justified the lessee in drilling same. There was a clause permitting the lessee to use, free of cost, gas and oil for operations on the premises. There was a clause forbidding the forfeiture or cancellation for failure to perform in whole or in part any of the lease’s implied covenants, conditions, or stipulations until it shall have first been finally judicially determined that such failure exists, and after such final determination lessee is given a reasonable time therefrom • to comply with any such covenants, conditions, or stipulations.

The filing of this petition was followed by summons, and the usual motions and demurrers, and an amended petition was filed, and an amendment thereto was added on November 10, 1927, the amendment taking the place of paragraph 5 of the amended petition and containing allegations as to injury of. well No. 7, and claiming $20,000 damage.

The Gypsy Oil Company answered on the 22nd of November, 1927, and denied liability, and set up a settlement had in July, 1924, and also the proceedings in a former lawsuit. No. 10179. The defendants Sykes, Heenan, Coe, and Pfile filed demurrers and seem to have passed out and to 'have taken no further part in the litigation. Reply was filed by way of general denial. The case came on for trial, and there is a motion for judgment on the pleadings made by the defendant oil company and overruled on the 13th of March, 1928, and on the 4th of May, 1928, t'he trial began.

The plaintiff Clark testified, and at the beginning of his examination the Gypsy Oil Company objected to his testimony on account of the pleadings not showing a cause of action. Plat of the property was introduced and proof made that the plaintiffs owned 53 acres out of the 166 acres, a little less than one-third. A large part of his testimony was addressed to the proposition of the failure to offset and also the abandonment of some of the wells. He claimed in the spring of 1927 he noticed in No. 8 a 2-'inch line directly into the well and that he traced it out, and one line of it went out to the Johnson and Sturms and one line forked, and went on down to the Morris, and that his boundary line was 300 feet from No. 8, and that Hugh Sturm was pumping off of It.

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Bluebook (online)
1931 OK 618, 5 P.2d 140, 153 Okla. 183, 1931 Okla. LEXIS 376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gypsy-oil-co-v-lindesmith-okla-1931.