Hermann v. Thomas

143 S.W. 195, 1911 Tex. App. LEXIS 767
Court of Appeals of Texas·Decided December 12, 1911·Published·Cited by 24 cases

Opinion

PLEASANTS, C. J.

The petition in this case, filed by the appellees, Wm. W.' Thomas and others, and upon which the judgment appealed from was rendered, alleges, in substance: That plaintiffs are the owners in fee simple of a tract of land on the John Brown Jones survey in Harris county, which is fully described in the petition; that, on January 8, 1910, prior to the filing of this suit on February 21, 1910, in a suit brought by the defendant, George H. Hermann, against these plaintiffs to recover title of said land, said suit being cause No. 35,021, in the district court of Harris county, judgment was rendered against said defendants and in favor of these plaintiffs for the title and possession of said land; that defendant, Hermann, is the owner of and in possession of a tract south of and adjoining that involved in this suit, and has for some years, through himself and lessees, been developing and operating for oil and gas on his said land, and has drilled a large number of wells, six of which are within a very short distance of the boundary, and which, plaintiffs allege, are producing several hundred barrels of oil per day; that said wells are so near said line that in all human probability a large part of the oil drawn by means of said wells is taken from under the land of plaintiffs; that defendant is vigorously prosecuting the work of extracting said oil, and is not accounting to plaintiffs therefor; that the land of plaintiffs is, they are informed and believe, valuable for purpose of oil development, and that if the title were free from complications a lease on advantageous terms, usual in the Humble oil field, where said land is situated, could be made, and plaintiffs realize an income of one-sixth of the product, which they believe would amount to many thousand dollars per year; that Hermann has given notice and is actively preparing an appeal from the judgment in said case 35,021; that plaintiffs *196 believe that a final judgment on said appeal can be obtained only at tbe expiration of about a year or more, and that they believe, in the meantime, defendant will have taken many barrels of oil from their land; that, unless wells are drilled and operated on plaintiffs’ land at once, the oil will, they are informed and believe, be drawn by Hermann’s wells, and their lands rendered almost valueless; that said land was adjudged to plaintiffs on the 8th day of January, 1910, and that at a former term another jury awarded to defendants therein all the land then claimed by them, being all of the land herein described, except several acres at the south end; that, owing to Hermann’s assertion of title and his appeal, plaintiffs are unable to make a lease of said land for oil or gas development, and have no remedy at law known to them, and that, unless a receiver be appointed, they will suffer irreparable loss and damage; that they are advised that they have no right to require defendant to account to them for any oil taken at the surface of his land, although the same may be shown to have been dx-awn from plaintiffs’ land; that a sequestration or injunction would be unavailable, because it would merely place the plaintiffs in possession, and operators would still be deterred from making contracts for development on account of the condition of the title and their apprehensions that they would have to account to defendant for all of said oil. Wherefore plaintiffs pray that a receiver be appointed, with power to take possession and control of the land, and to make a lease contract or contracts for the development of oil and gas therefrom reserving a royalty, to be fixed by the court, and under such restrictions as to the court may seem right, and to hold the royalty until it may be determined who is entitled to the same, and for such other orders as may be necessary, etc. The defendant answered by general demurrer and various special exceptions, and by general denial as to some of the allegations in the petition, and by special pleas, the nature of which it is not necessary to set out here.

Upon a hearing in the court below, defendant’s general demurrer and special exceptions to plaintiffs’ petition were overruled, and upon consideration of the evidence the trial judge rendered judgment in favor of the plaintiffs, and ordered that “the receivership prayed for be granted.” E. S. Wood was appointed receiver, and given “full power and authority to take possession and control” of the land described in plaintiffs’ petition. The bond of the receiver was fixed at $1,000, and the receiver was directed, upon the execution and approval of the bond and his taking the oath of office, to enter upon the discharge of his duties as such receiver. The powers and duties of the receiver are thus set out in the judgment:

“The said receiver shall, under the control of the court, have all of the powers conferred upon receivers by statute, and shall have power and authority to possess and control the said land until further orders of this court, and to make a lease contract or contracts upon said land for the development of oil or gas therefrom, reserving to said receiver a royalty interest in the product, and upon such other and further terms and conditions, and under such restrictions, as to the court may seem right and proper for the protection of the interests of the parties, and to hold the royalty share of such product until it may be determined who is entitled to the same, and subject to such orders from time to time, as may be necessary and proper for the protection and conservation of the interests and rights of whomsoever may ultimately be determined to be the owner of said land, said receiver’s powers in relation to the making of said contract to be subject in all respects to the approval of this court; and said receiver shall, as soon qs practicable after qualifying herein, obtain proposals from oil drillers for the development of said lands and the production of oil, or gas, or both, therefrom, and shall report the same as soon as practicable, having due regard for the interest of all parties, to the court for its action thereon; and it shall be the duty of said receiver to consider no proposal of lease, unless the same shall contain a provision requiring the driller or contractor to drill an offsetting well (directly opposite and across the line) from each producing well which may be drilled by him under said contract within 500 feet of a line established as follows: [Here follows the description of the alleged south line of the land in controversy.] The parties, plaintiffs, interveners, and defendants, herein shall also have the right to obtain proposals from parties wishing to enter into contract for the production of oil or gas on said tract, subject to the above terms and restrictions, and to report the same to said receiver, who in turn shall report said proposals to this court for its action.”

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Hermann v. Thomas, 143 S.W. 195, 1911 Tex. App. LEXIS 767 (Tex. Ct. App. 1911).

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