Hanover Co., Inc. v. Hines

11 S.W.2d 621, 1928 Tex. App. LEXIS 1108
CourtCourt of Appeals of Texas
DecidedJuly 14, 1928
DocketNo. 11997. [fn*]
StatusPublished
Cited by19 cases

This text of 11 S.W.2d 621 (Hanover Co., Inc. v. Hines) 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
Hanover Co., Inc. v. Hines, 11 S.W.2d 621, 1928 Tex. App. LEXIS 1108 (Tex. Ct. App. 1928).

Opinion

CONNER, C. J.

On March 21, 1919, T. F. Mitchell and wife, Mrs. Su'e Mitchell, executed and delivered to one Dan Cameron an oil and gas lease in the usual form, covering a tract of land consisting of 278 acres. Later, to wit, in 1924, Mrs. Sue Mitchell Hines, her husband having died and she having remarried, and others, instituted suit against the Hanover Company, Incorporated, who in the meantime had succeeded to the rights of Cameron, to cancel the Cameron lease, on the ground, substantially, of a failure to properly develop the land. A trial of that suit, on August 4, 1924, resulted in a judgment canceling the lease on 138 acres of land, and continuing and vesting in the Hanover Company and others the lease on 140 acres of the land; the judgment describing by metes and bounds the 140 acres so vested in the defendants in that suit.

Yet later, to wit, on September 2,1926, Mrs. Sue Hines and others, as owners of the 140 acres of land above referred to, instituted the present suit against the Hanover Company and another to cancel and set aside the rights vested in the Hanover Company and said other person by the judgment of August 4,1924. The ground upon which the cancellation was sought is substantially as in the first suit, to wit, that the defendants had failed to properly develop said 140 acres, and hence had abandoned the lease.

The pleadings are somewhat voluminous, but we think it sufficient as an introduction to further say that the material issues joined and contested on the trial of this case below, and brought for review before us, are indicated by the special issues submitted to the jury impaneled to determine the facts. These issues, together with the answers of the jury, are as follows:

“Special Issue No. 1. Did the defendant, the Hanover Company, Inc., E. P. Bowen, and G. I. Dorranee, prior to September 2, 1926, and subsequent to August 4,1924, use reasonable diligence in developing for oil and gas the 140 acres of land described in plaintiffs’ petition?
“Answer. No.
“Special Issue No. 2. Did the defendants, Hanover Company, Inc., E. P. Sowen, and G. I. Dorranee, prior to September 2, 1926, and subsequent to August 4, 1924, breach the duty of carrying out the essential purposes of the lease on the 140 acres described in plaintiffs’ petition?
“Answer. Yes.
“Special Issue No. 3. Did the defendants, Hanover Company, Inc., E. P. Bowen, and G. I. Dorranee, prior to September 2, 1926, and subsequent to August 4, 1924, abandon the duty of carrying out the essential purposes in question?
“Answer. Yes.”

Upon the verdict so returned, the court rendered judgment for the plaintiffs, Mrs. Sue Hines and others, for the recovery of said 140 acres of land, canceling all evidences of title thereto in the defendants. From the judgment so rendered, the defendants have duly prosecuted this appeal by writ of error.

Among otter things, error is assigned to special issues 2 and 3. They were each objected to before their submission, on substantially the same ground, to wit, that they each left “the question of interpretation and construction of the lease in controversy to the jury, when in fact it is the duty of the court to construe said instruments.” The objections were overruled, and later ignored on the hearing of defendants’ motion for a new trial.

The lease to Cameron recites a consideration of $6,950 cash, and conferred the right upon the lessee of entry, etc., “for the sole and only purpose of mining and operating for oil ánd gas and of laying pipe lines,” etc. By its terms it was made to remain in force for a period of three years from its date, and “as long thereafter as oil or gas, or either of them, is produced from said land by the lessee.” The lessee covenanted to deliver to the credit of the lessors, “free of cost in the pipe lines to which he may connect his wells, an equal one-eighth part of all oil produced and saved from the leased premises. * * * Should the first well drilled on the above-described land be a dry hole, then and in that event, if a second well is not commenced on said land within six months from the expiration of the last rental period, which rental has been paid, this lease shall terminate as to both parties, unless the lessee on or before the expiration of said twelve months shall resume the payments of rentals in the same amount and in the same’ manner as hereinbe-fore provided.”

The lease does not specify the number, location, or depth of the wells to be drilled, nor does it contain any clause of forfeiture, other than as above quoted. The evidence shows that some 14 wells have been drilled by the plaintiffs in error on the 140 acres of land in controversy, to a depth of about 500 feet. Of these 9 or more have been producing wells, at least 5 of which have continued to produce small quantities of ,oil by pumping. From the wells so produced, the defendants in error have been regularly accepting and receiving the specified royalties. The evidence shows that there are some 9 or more deeper sands, several of which in the general field have been oil-bearing in places. At least one of the witnesses referred to the various sands as “treacherous”; that is, substantially that *623 the oil stream or pool follows no direct' or continuous line, and oil is obtainable only when the drill happens to strike the stream or pool.

The evidence further shows that in varying distances on the east, west, north, and south sides of the land in question wells to deeper sands had been drilled without production; the general area, apparently at least, being what is termed a shallow field. In this connection, it may be further stated that the evidence relating to the diligence of the plaintiffs in error to pump and operate the wells, producing oil conflicted; that in behalf of defendants in error was to the effect that several owners and operators of nearby shallow; wells had pumped their wells, some 16 hours, another 18 hours, and another 24 hours, in order to keep the water from the wells, thus producing at one time, at least, as much as 8 barrels a day. That in behalf of plaintiffs in error was to the effect that they employed for the purpose of pumping their wells men that they regarded as reliable and efficient, who, in connection with operating pumps on adjoining wells, pumped the wells in question about 6 hours a day; the method being to simply supply the power with gas, start the pumps, and let them run until the gas was exhausted, and go back the next day and do the same thing over, thus producing at the time of the trial from all five wells about two barrels of oil a day.

Mr. E. P. Bowen, one of the plaintiffs in error, testified: “I can only say that the lease has been handled out there in as workmanlike manner as a lease should be handled, as far, as I have seen it in my visits to the lease. I have never abandoned that lease. My associates in this case have never abandoned that lease. We are still operating it. * * * I have spent possibly $150,000 out there. * * * I saw the judgment that was rendered by the plaintiffs in this case in August, 1924. After that occurrence, after the rendition of that judgment, I believe that there were two wells drilled; one is producing oil now. It was the last time I was on the lease.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rook v. James E. Russell Petroleum, Inc.
658 P.2d 1059 (Court of Appeals of Kansas, 1983)
Cain v. Tennessee-Louisiana Oil Company
382 S.W.2d 794 (Court of Appeals of Texas, 1964)
Hoover v. General Crude Oil Co.
206 S.W.2d 139 (Court of Appeals of Texas, 1947)
Miller v. Whittenburg
144 S.W.2d 381 (Court of Appeals of Texas, 1940)
General Crude Oil Co. v. Harris
101 S.W.2d 1098 (Court of Appeals of Texas, 1937)
Reed v. James
91 S.W.2d 946 (Court of Appeals of Texas, 1936)
Kemper v. Police & Firemen's Ins. Ass'n
48 S.W.2d 254 (Texas Commission of Appeals, 1932)
Byrne v. Williams
45 S.W.2d 336 (Court of Appeals of Texas, 1931)
Lakeside Park, Inc. v. Dr. Pepper Bottling Co.
44 S.W.2d 1023 (Court of Appeals of Texas, 1931)
Wonderful Workers of the World v. Winn
31 S.W.2d 879 (Court of Appeals of Texas, 1930)
Torres v. Brazos Valley Buick Co.
30 S.W.2d 375 (Court of Appeals of Texas, 1930)
Jagoe Const. Co. v. Harrison
28 S.W.2d 232 (Court of Appeals of Texas, 1930)
Spectralite, Inc. v. Segall
25 S.W.2d 927 (Court of Appeals of Texas, 1930)
Hines v. Hanover Co.
23 S.W.2d 289 (Texas Commission of Appeals, 1930)
Arendale v. Arendale
22 S.W.2d 1080 (Court of Appeals of Texas, 1929)
Brammer Wilder v. Limeston County
24 S.W.2d 99 (Court of Appeals of Texas, 1929)

Cite This Page — Counsel Stack

Bluebook (online)
11 S.W.2d 621, 1928 Tex. App. LEXIS 1108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanover-co-inc-v-hines-texapp-1928.