Harper v. Ford

1957 OK 262, 317 P.2d 210, 8 Oil & Gas Rep. 610, 1957 Okla. LEXIS 559
CourtSupreme Court of Oklahoma
DecidedOctober 29, 1957
Docket37580
StatusPublished
Cited by8 cases

This text of 1957 OK 262 (Harper v. Ford) 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
Harper v. Ford, 1957 OK 262, 317 P.2d 210, 8 Oil & Gas Rep. 610, 1957 Okla. LEXIS 559 (Okla. 1957).

Opinion

HALLEY, Justice.

This is a partition action by R. W. Ford and others, co-partners doing business as C & L Drilling Company, against F. E. Harper Cornell Oil Company, and Sunray, Mid-Continent Oil Company (corporate name later changed to D-X Sunray Oil Company) filed in the District Court of Pontotoc County September 27, 1955. Judgment was rendered for the plaintiffs on May 25, 1956, and defendants have appealed. We shall refer to the parties as plaintiffs and defendants as they appeared in the trial court.

Plaintiffs alleged that they were the owners of and in possession of an oil and gas lease covering a fáths undivided interest, covering all horizons down to and including the Cromwell sand formation, found in that area at about 2,600 feet, subject to a %6ths of %ths overriding royalty interest, and covering a ten-acre tract of *212 land in Pontotoc County, and described as the NWi/½ SE14 of NE14 of Section 34-5N-7E. The lease of the plaintiffs was dated November 23, 1954, and was for a term ■of twenty days.

That the defendants were the owners of a ¼⅛ undivided interest in an oil and gas leasehold estate covering the same tract above described dated March 6, 1952, for a term of five years, and also subject to a Viath of piths overriding royalty. They further alleged that plaintiffs and defendants were co-tenants in said oil and gas leasehold estate and each entitled to possession and operation thereof.

That on December 7, 1954, plaintiffs drilled a producing well on the land described, equipped and connected with the pipe line of D-X Sunray Oil Company, which purchased the production. That plaintiffs paid all the cost of drilling, equipping and operating this well at a total -cost of $13,436.46, plus costs for subsequent months of operation; that defendants’ share of costs is ¼⅛ or $3,638.94.

That defendants were obligated, as co-tenants, to pay their proportionate share •of drilling, equipping and operating the well; that they were advised of their share •of such costs, but that defendants had failed and refused to pay their share of ■such costs, and that the purchaser of the ■oil produced had and continued to hold in suspense defendants’ share of the oil produced and run from the lease.

That defendants agreed that the parties hereto were co-tenants and that each co-tenant should pay their proportionate share of the costs of drilling, equipping and operating the producing well, but had failed and refused to do so, and that plaintiffs are being forced to operate the lease for the benefit of themselves and the defendants to protect their interest.

Plaintiffs alleged that the oil and gas leasehold can be partitioned in kind, but if this cannot be done that it be appraised and sold and the proceeds divided as their interests appear, but that the share of defendants in the oil runs now being held in suspense should be first applied on defendants’ indebtedness to plaintiffs before defendants are entitled to receive any sum whatever.

Plaintiffs prayed for judgment confirming their ownership of an undivided ¾⅛ working interest in the oil and gas leasehold estate above described and that defendants own an undivided ¼⅛ interest therein, both subject to an override of ¾6⅛ of %ths; that commissioners be appointed to partition said oil and gas leasehold estate, and if it cannot be partitioned in kind, that it be appraised and sold and the proceeds divided between the owners in proportion to their respective shares, but that ¼⅛ of the costs of drilling, equipping and operating the well drilled by plaintiffs be deducted from the proceeds due defendants, and paid to plaintiffs.

Defendants demurred to the evidence of plaintiffs, moved for judgment denying partition on the ground that the interests of the parties were not in the same property, the plaintiffs owning a %ths interest in the leasehold estate to a certain depth, while defendants owned a interest not only to and including the Cromwell sand but to a greater depth, and that the parties were not joint tenants; defendants also moved to make additional parties and that the action be dismissed, and filed a general demurrer. All motions and demurrers were overruled.

The court rendered judgment for the plaintiffs for $3,859.61 against defendants, granting partition and appointed commissioners to appraise the property, and if not capable of partition in kind, that it be appraised and sold and the proceeds divided between the parties as their interest appear, after applying to the credit of plaintiffs such sums as have and will accrue to cover costs of drilling, equipping and operating the producing well drilled by the plaintiffs.

Before considering the propositions submitted by defendants, we call attention to the stipulations of the parties that they owned interests in the leasehold estates as above, set out and that either had a right to drill a well to any formation to and in- *213 •eluding the Cromwell sand. Only that portion of the leasehold estate is here involved.

Defendants submit three propositions. The first is as follows:

“Partition of an oil and gas lease is an equitable proceeding. Facts must be pleaded and proven which show loss in the value of the property, mismanagement, irreconcilable differences as to the disposition or control of property, or other peculiar circumstances which justify equitable relief.”

We agree that partition of an oil and gas lease is an equitable proceeding. We cannot agree that facts must be pleaded and proven which show loss in the value of the property, mismanagement, differences as to disposition or control of the property, but we think that where one co-tenant pleads that it has drilled a producing well, equipped and operated it and notified the other co-tenant of his share of the costs of such operation, and the other co-tenant refuses to pay his proportionate share of such costs, for reasons not disclosed, such facts are sufficient to warrant equitable relief.

In support of this proposition defendants cite the case of Clark v. Mercer Oil Co., 139 Okl. 48, 281 P. 283, wherein the rule announced by defendants is found in the third paragraph of the syllabus. They also point out that our statutes on partition were taken from the State of Kansas, and cite the Kansas case of Beardsley v. Kansas Natural Gas Co., 78 Kan. 571, 96 P. 859, and wherein the Supreme Court of Kansas announced and approved the rule as to the necessity of pleading and proving certain facts to entitle one to partition.

In the case of Wolfe v. Stanford, 179 Okl. 27, 64 P.2d 335, 339, this Court overruled the rule of pleading as announced in the case of Clark v. Mercer Oil Co., supra, which had to do with what plaintiffs’ petition must contain to justify partition. In the body of the Wolfe opinion it is said:

“Do these views then justify the questionable rule of pleading announced in the Mercer Case? We think not. Presumably a complaining party invokes a remedy for a justifiable end. Fraud or oppression in the use of the remedy is not to be presumed. If the action is to be defeated upon that ground, the matter is one of defense to be pleaded and proved as such. The rule of pleading as announced in Clark v. Mercer Oil Co., supra, is overruled.”

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
1957 OK 262, 317 P.2d 210, 8 Oil & Gas Rep. 610, 1957 Okla. LEXIS 559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harper-v-ford-okla-1957.