Humble Oil & Refining Co. v. L. & G. OIL CO.

259 S.W.2d 933, 2 Oil & Gas Rep. 1429, 1953 Tex. App. LEXIS 1904
CourtCourt of Appeals of Texas
DecidedJune 10, 1953
Docket10161
StatusPublished
Cited by17 cases

This text of 259 S.W.2d 933 (Humble Oil & Refining Co. v. L. & G. OIL CO.) 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
Humble Oil & Refining Co. v. L. & G. OIL CO., 259 S.W.2d 933, 2 Oil & Gas Rep. 1429, 1953 Tex. App. LEXIS 1904 (Tex. Ct. App. 1953).

Opinions

GRAY, Justice.

Appellant sued named parties' to cancel and declare void permits' granted by the Railroad Commission to appellees, Magee and Massad, to drill two directionally deviated oil wells in the Plawkins Field in Wood County. A temporary injunction against all parties except the- Commission was sought to restrain the further drilling or the production of oil from the two directionally deviated wells.

This appeal is from the order denying the temporary’injunction prayed for.

Appellant’s pleadings allege that the permits are void and should be cancelled because the Commission was without authority to issue them. In the alternative, as against all parties other than the Commission, appellant alleged that the entry on a one acre tract of land under the permits is a violation of its vested property and legal rights, it being the owner of an oil, gas and mineral leasehold estate on lands inclusive of said one acre tract, and further alleged that all of the lands “are underlain by a blanket sand and a common pool of oil and gas, and if defendants, other than.the Commission, complete and produce said substitute wells, as they have formed the purpose and intention of doing and will do unless restrained and enjoined, it will reduce by a large and inestimable amount the quantity of oil and gas which will be produced by wells of plaintiff on its Henry lease and other leases in the vicinity, to plaintiff’s great and irreparable damage, the exact extent of which is incapable of accurate determination, and for which it has no adequate remedy at law.”

It is our opinion that the first pleading of appellant seeking injunctive relief against the action of the Commission must be tested by the rules of law applicable in appeals from its orders, and that the alternative pleading must be tested by the law applicable to appellant’s -rights as the owner of the leasehold estate on the one acre tract.

On April 9, 1952, the Commission granted to appellee, P. F. Magee, a permit to drill well No. 1 on the J. M. Henry .72 acre tract. The well location under this permit was on the Texas and Pacific Railroad right of way, 12 feet south from the north line of the right of way, 38- feet north from the center line of the main tract of said railroad, and midway between the east and west lines of said .72 acre tract.

On May 16, 1952, the Commission granted to appellee, Ralph Massad, a permit to drill well No. 1 on the H. S. Cobb 2.59 acre tract. The well location under this permit was on the Texas and Pacific Railroad right of way, 12 feet south from the north line of said right of way, 38½ feet north from the center line of the main tract of said railroad, and midway between the east and west line of said 2.59 acre tract.

Promptly after each of the above permits were granted appellant filed separate suits in the district court of Travis County to have said permits cancelled. Those suits were filed prior to the granting of the two permits in question here, they are now pending for trial, and will later be referred to as Rule 37 cases.

Appellees, Magee and Massad, desired to drill the wells authorized by their permits but were unable to secure from the railroad permission to move on the right of way. They acquired the fee title to a one acre tract of land to the north of said right of way and separated from it by U. S. Highway 80. They also secured special permission from the Highway Department [935]*935to cross under said highway in the directional drilling of their wells to their permit locations.

Appellant was and now is the owner of the oil, gas and mineral leasehold estate on the one acre tract which is known as a part of appellant’s J. M. Henry lease.

On February 17,1953, Magee and Massad applied, under the Commission’s Rule 54, for permits to directionally deviate the drilling of their wells. The applications state the well locations under the Rule 37 permits, state that the Railroad Company has not consented to the drilling of the. wells on its right of way, and that the one acre tract has been purchased upon which to drill and operate the wells. The two applications are substantially the same. We quote from the application of appellee Ma-gee:

“This application is sought under the provision's of Rule 54, under subdivision G-2 and G-4. Applicant would show that the conditions on the surface of the ground prevent or unduly complicate the drilling of a well at the regular location .prescribed by applicant’s permit, in that the railway company is insisting that the surface location will interfere with its operation of trains. Applicant would also show that the telephone wires and railroad signal wires, consisting of' some 32 separate wires, are now maintained on the railroad right of way in such position as to unduly restrict the drilling at the -regular surface location of applicant’s permit and that this will also be obviated by the directional drilling here sought.
“Applicant would further show that adjacent to his lease is the Ralph Massad — -H. S. Cobb Heirs lease on the North half of the Texas and Pacific Railway right of way through the H. F. Robinson Survey, and that a similar application is' being made by Ralph Massad to directionally drill such Cobb well, and that the • two wells will be drilled from the common surface location, and- it will be advantageous from the standpoint of mechanical operation to drill both wells from the same surface location, * * * to reach the productive horizon at essentially the same position as would be reached if the two wells were normally drilled from the' permit locations.
“Applicant has secured special permission from the State Highway Department to cross under U. S. Highway-No. 80, in the directional drilling of the well to the permit location, all as is shown by plat submitted to the State Highway Department, and upon which basis permit was -issued on January 12, 1953. Applicant further submits plat showing applicant’s surface location and permit location and the course deviation necessary to drill such well, and, in this connection, applicant asks for permit for the directional drilling from the surface location shown South 64° 23' West 454.5 feet to the permit location, or to a point on applicant’s lease within 25 feet of such permit location.
“In view of the fact that applicant is now prepared for immediate drilling operations, applicant asks that this application be acted upon immediately.
“Upon completion, applicant will file a complete angular deviation and directional survey of the finished hole, made at the expense of applicant, and applicant will notify the Railroad Commission and field representatives of offset operators at least 48 hours before such directional drilling has been completed and the survey thereof run, in order to afford all parties an opportunity to be present and witness the running of the completed survey.”

On February 19, 1953, the Commission, without notice, granted the applications.

Appellant presents three points:

“I. The Commission was without jurisdiction to issue the permits in suit because the subject matter of these permits already was involved in litigation in the District Court.
“II. The permits in suit were issued without notice and hearing and, therefore, are void.
[936]*936“III.

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Humble Oil & Refining Co. v. L. & G. OIL CO.
259 S.W.2d 933 (Court of Appeals of Texas, 1953)

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Bluebook (online)
259 S.W.2d 933, 2 Oil & Gas Rep. 1429, 1953 Tex. App. LEXIS 1904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humble-oil-refining-co-v-l-g-oil-co-texapp-1953.