Kokomo Natural Gas & Oil Co. v. Albright

47 N.E. 682, 18 Ind. App. 151, 1897 Ind. App. LEXIS 181
CourtIndiana Court of Appeals
DecidedSeptember 16, 1897
DocketNo. 2,223
StatusPublished
Cited by3 cases

This text of 47 N.E. 682 (Kokomo Natural Gas & Oil Co. v. Albright) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kokomo Natural Gas & Oil Co. v. Albright, 47 N.E. 682, 18 Ind. App. 151, 1897 Ind. App. LEXIS 181 (Ind. Ct. App. 1897).

Opinion

Black, J. —

The appellees, John Albright and Anna E. Albright, his wife, sued the appellant upon a contract, by the terms of which the appellees agreed with the appellant, on the 6th of June, 1890, that said company might have the exclusive right to drill and operate a well or wells for water, oil, or natural gas upon a plat of ground to be mutually agreed upon, twenty feet square, upon certain described land in Howard county, together with the further exclusive right to lay pipe lines over the same-or along the highways adjacent thereto, and construct telegráph and telephone lines when the same might be necessary in the transaction of the business of said company, and to remove all its machinery and fixtures. The appellant agreed that it would furnish, free of charge, during the continuance of the contract, natural gas for lighting and heating four residences, to be delivered at the nearest practicable point on the company’s mains in use or at its wells, as long as gas should be there obtained in paying quantities for piping, according to the judgment of the appellant, and to pay at the rate of $200.00 per year on each well completed. It was further agreed that, until the appellant should complete' a well on the premises described, it would pay the appellees yearly in advance on demand at the office of the company, in the city of Kokomo, a rental of--dollars on said premises, and that a failure to pay said rental should render the contract null and void; that if oil or water should be procured, the appellees were to have one-eighth of the oil product at the well, and all the water except as should be necessary for the company’s use on the place; that the com[153]*153pany would further pay all damages done by it to timber, crops, or improvements. It was provided that the contract should be in force for the term of five years, and that the company should have the right at the expiration of said time, at its option, to continue the same for three additional successive terms on the same conditions, said option to be exercised by the company at the end of each term. The appellees were to have the right at any time to drill a well for their own use. It was further provided as follows: “Said parties hereby agree that the gas furnished shall be an equivalent of one hundred dollars in cash annually, and shall be so applied towards the payment of above well rental, and that the balance of one hundred dollars shall be paid annually in advance in cash, beginning with the 1st day of September, 1890, whether a gas well is drilled or not. The gas payment above named begins with this date. It is further agreed that Amos HammilVs residence in Kokomo, Indiana, shall be one of the four named, and that Anna E. Albright shall receive one-half the annual cash rental paid. All payments under this contract to be made upon demand and without relief from valuation or appraisement laws.”

In the appellant’s brief a copy of the contract, exhibited with the complaint, is inserted (to the correctness of which the appellees assent), from which it appears that a printed blank was used, and that the provisions above mentioned were in printing, except the amount of rental, the duration of the term, and the portion in italics above quoted, which parts were in writing.

It was alleged in the complaint that in pursuance of this contract, the appellant, immediately after its execution, entered upon said premises and put in and constructed its pipe lines, in, upon, and over said premises, and had ever since maintained the same [154]*154thereon, and paid the appellees “the annual rentals due thereon annually, and the installments due and payable on the 1st day of September, 1890, 1891, by paying plaintiffs $100.00, each installment, in cash, and furnishing gas according to the terms of said contract for four residences, as in said contract described, up to and until the 1st day of September, 1893, at which time said cash installment was due and payable for the year commencing with the 1st day of September, 1893; that on said date, and ever since, the defendant has failed and refused to pay said installments maturing on the first days of September, 1893 and 1894, or to furnish gas for said residences, as provided for in said lease, though plaintiffs often requested it so to do.” It was also alleged that the appellant had never drilled a well for gas, oil, or water upon said premises, nor had it notified the appellees at any time that it was ready to agree upon and fix a location with the appellees for such well, though the appellees had been at all times in readiness, and were then ready and willing to'join the appellant in the selection of a location for such well upon said premises, in accordance with the terms of said contract. The appellees, by their complaint, sought the recovery of the amount of two annual installments of rent falling due September 1, 1893 and 1894, which sums were alleged to be due and wholly unpaid.

A demurrer to the complaint for want of sufficient facts was overruled. The appellant answered in seven paragraphs, the first being a general denial, and the second an answer of payment. In the third paragraph, by way of partial answer and by way of set off, the appellant alleged that it furnished and delivered to the appellees at their request before the commencement of the action, natural gas for fuel, and lights for four residences in Center township, Howard county, [155]*155Indiana, from the 1st day of September, 1893, to the — day of October, 1894, at and for the agreed price of $100.00 per year, or $8.33 per month, which was due and unpaid. A demurrer to each of the other paragraphs of answer was sustained.

The cause having progressed thus far in the Howard Circuit Court, the venue was changed to the Clinton Circuit Court, where, upon trial by the court, there was a finding for the appellees in the sum of $298.00. A motion of the appellant for a new trial having been overruled, judgment was rendered upon the finding.

There is some contention as to the sufficiency of the complaint. Counsel for appellant suggest that there should have been averments that gas was obtained, or could have been obtained, on the premises described in the- contract, in paying quantities for piping; that the appellees offered to agree upon and fix a location with the appellant for the drilling of a well; that they demanded of the appellant the drilling of a well; and that they demanded of the appellant the unpaid gas rent.

There is some want of consistency in the provisions of the contract, the portions in writing modifying to some extent the preceding portions in print. The obligation of the appellant to pay rent was to exist whether a well was drilled upon the premises or not. By one portion of the terms of the .contract the appellant agreed to pay at the rate of $200.00 per year on each well completed, and also to furnish free of charge during the continuance of the contract, natural gas for four residences, to be delivered at, etc., “as long as gas is there obtained,” etc. In a subsequent part of the instrument it was agreed that the gas furnished should be an equivalent of $100.00 in cash annually, and should be so applied towards the payment of the “above well rental,” and that the balance of $100.00 [156]*156should be paid annually in advance in cash, beginning at a date specified, whether a gas well were drilled or not, and that “the gas payment above named begins with this date.”

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Cite This Page — Counsel Stack

Bluebook (online)
47 N.E. 682, 18 Ind. App. 151, 1897 Ind. App. LEXIS 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kokomo-natural-gas-oil-co-v-albright-indctapp-1897.