Keller v. Ely

391 P.2d 132, 192 Kan. 698, 21 Oil & Gas Rep. 135, 1964 Kan. LEXIS 303
CourtSupreme Court of Kansas
DecidedApril 11, 1964
Docket43,526
StatusPublished
Cited by11 cases

This text of 391 P.2d 132 (Keller v. Ely) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keller v. Ely, 391 P.2d 132, 192 Kan. 698, 21 Oil & Gas Rep. 135, 1964 Kan. LEXIS 303 (kan 1964).

Opinion

The opinion of the court was delivered by

Price, J.:

This action was brought in order to obtain a judicial construction of a “mineral” reservation contained in a deed to a 320-acre tract of land in Rarber county.

The specific question presented is whether the reservation in question includes gypsum.

*699 The trial court held that it does not, and the appeal is from that ruling.

The facts are not in dispute.

On March 8, 1917, defendant, James E. Ely, acquired title to the tract of land in question. Shortly thereafter he executed a deed to one Lytle to an undivided one-half interest in the property.

On May 2,1921, Lytle executed a deed to a bank to the undivided one-half interest owned by him. This deed contained an exception and reservation as follows:

“Except all gas, oil and mineral rights which parties of the first part reserve and the right to enter upon said premises for the sole and only purpose of mining and operating for oil and gas, laying pipelines, building tanks, power stations, and structures thereon to produce, save and take care of said products.”

On July 5, 1923, the bank deeded its interest in the property to one Trekell. This deed contained no exception or reservation.

Later, Trekell deeded his undivided one-half interest in the land to James E. Ely — he being the one who, in 1917, had deeded the undivided one-half interest to Lytle. This deed from Trekell to Ely contained no exception or reservation.

On July 29, 1943, James E. Ely, being then the owner of the entire interest in the property, subject to the exception and reservation contained in the deed from Lytle to the bank, executed a deed to all of the property to Ryron Smith. This deed contained the following reservation:

“As a most important part of the consideration for the purchase of this land, party of the first part hereby reserves, all of the oil, gas, casing-head gas and other liquid semi-solid and solid minerals in and under and that may be produced from the above described lands, together with the rights of ingress, egress and regress to and from the said premises for the purpose of mining, exploring, operating, producing, storing and removing therefrom, all of the oil, gas, casing-head gas and other liquids semi-solid and solid minerals including all of the lease interests and future rentals on said lands for said minerals. And all of the mineral rights and all other rights hereinbefore set out, are hereby as fully retained by first party, and are to be as full and free as though this deed had not been executed.”

The foregoing reservation is the subject of this lawsuit, and the question is — does it include gypsum?

In 1951 Ryron Smith deeded the property in question to plaintiffs A. J. Keller and wife, subject to the exceptions and reservations above noted. Plaintiffs later sought to sell the land to the National Gypsum Company for the purpose of mining and removing the *700 gypsum therefrom. A dispute arose as to the ownership of the gypsum — hence this lawsuit to determine whether gysum is included in the reservation in the 1943 deed from Ely to Smith, set out above.

In deciding the question the trial court filed a memorandum opinion setting forth its reasons for holding that the reservation in question does not include gypsum, and we quote material portions of its decision:

“The issues to be determined herein:
“(1) Is the exception and reservation made in the Lytle deed to the Security Trust and Savings Bank a legal and valid reservation of oil, gas and mineral rights and does said reservation include gypsum?
“(2) Does the reservation in the James E. Ely deed to Byron Smith reserve and retain in the grantor gypsum in addition to the oil, gas and other minerals?
“Considering first the number (1) issue and the Lytle deed, I have heretofore overruled the demurrer of the defendant, Ely, to the Lytle cross petition. I shall now have to hold that the Lytle deed contains a valid reservation binding upon all of the parties herein. Does this reservation include gypsum? I think not. I think the doctrine of ejusdem generis applies in this case. I think further that the words, ‘with the right to enter upon said premises for the sole and only purpose of mining and operating for oil and gas, etc.,’ are words of limitation upon the preceding phrase, ‘all gas, oil and mineral rights.’ Therefore, I shall hold that the Lytle deed does reserve one-half of all oil and gas in and under the land described but does not include any gypsum in or under the premises in question.”

With respect to the reservation in the deed from Ely to Smith, and which is the crux of this lawsuit, the court held:

“Now, as to the Ely reservation in the deed recorded in Volume 57, at page 202, in the office of the register of Deeds of Barber County, Kansas. This deed was made in July, 1943, when both grantor and grantee should have been fully cognizant of the fast-developing oil and gas fields in Barber County. They also must have known of the gypsum mining and/or quarrying in the area. According to the map and bulletin of the State Geological Survey, they could perhaps have seen the gypsum outcropping on the land in question. The reservation is quite specific and inclusive as to oil and gas and kindred minerals such as axle grease and carbons which probably are semi-solids or solid minerals. If the grantor had intended to reserve gypsum, how easy it would have been to insert the one word ‘gypsum’ in the reservation. Sand is also a mineral. It is a well-known fact that much sand is found in Kansas soil. Even quartz for the manufacture of glass is a suspect in the area. We have all seen land tracts with sand and gravel pits that became as worthless appearing as the exhausted coal-mining areas in Southeast Kansas. Did the grantee particularly intend that the grantor was reserving sand and gravel under the term ‘minerals?’ From the meager evidence I can only assume that the gypsum might be taken either through mining or quarrying. If the *701 latter, could either of the parties have intended that little or much of the surface of the land in question under the reservation was subject to being laid waste by the taking of the gypsum and/or sand and gravel? If the grantee acquired this property for a song, perhaps ‘yes;’ if for a valuable consideration, certainly ‘no.’
“In 58 C. J. S. 17, supported by the case of In re Estate of Trester, 172 Kan. 478, appears one of the rules which should be determinative of this case.
“ ‘In determining its meaning in a particular case, regard must be had not only to the language of the instrument in which it occurs, but also to the relative position of the parties interested, and to the substance of the transaction which the instrument embodies.’
“Considering such evidence as appears of record herein and the general knowledge of people of the area, I think the rule of ejusdem generis is most applicable to this reservation.

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Cite This Page — Counsel Stack

Bluebook (online)
391 P.2d 132, 192 Kan. 698, 21 Oil & Gas Rep. 135, 1964 Kan. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keller-v-ely-kan-1964.