Kothmann v. Boley

301 S.W.2d 235, 7 Oil & Gas Rep. 850, 1957 Tex. App. LEXIS 1717
CourtCourt of Appeals of Texas
DecidedMarch 29, 1957
DocketNo. 15799
StatusPublished
Cited by2 cases

This text of 301 S.W.2d 235 (Kothmann v. Boley) 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
Kothmann v. Boley, 301 S.W.2d 235, 7 Oil & Gas Rep. 850, 1957 Tex. App. LEXIS 1717 (Tex. Ct. App. 1957).

Opinions

BOYD, Justice.

This is an appeal from a judgment canceling five oil and gas leases executed by appellees L. E. Boley and wife, Christine Boley, R. E. Boley and wife, Dalpha Boley, and J. V. Boley to appellant Wesley Koth-mann, interests in which leases being later assigned to appellants William E. Thoma-[236]*236son, J. C. Culpepper, and Caprock Producing Company.

The leases were executed on August 3, 1954. One covered 164 acres, described as Block 22, Henderson County School Land Survey. A provision in that lease reads as follows: “Unless a well is commenced within sixty days from this date the lease shall terminate, and when commenced, said well to be’ drilled to the Ellen-burger lime unless oil and/or gas is encountered at a lesser depth.” Another provision is: “Subject to the other provisions herein contained, this lease shall be for a term of 1 year from this date (called ‘primary term’) and as long thereafter as oil, gas or other mineral is produced from said land hereunder.”

The other four leases covered tracts of varying sizes, and all contained the provision that “Unless a well is commenced within sixty days from this date” on Block No. 22, then the “lease shall terminate as to both parties”; and the further provision that “Subject to the other provisions herein contained, this lease shall be for a term of 1 year from this date (called ‘primary term’) and as long thereafter as oil, gas or other mineral is produced from said land hereunder.”

By correction instruments it was shown that the property covered by the lease first herein mentioned, and referred to in the other leases, was erroneously described as Block 22, Henderson County School Land Survey, and it was intended by all parties that the lease should cover Lot 22, in Block 1, in said Survey.

Three wells had previously been drilled by other parties on Lot 22, and all had been abandoned as dry holes. Appellants did not commence a well at a new location, and ap-pellees insist that the leases terminated, and they say that appellants’ operations consisted of nothing more than redrilling ■or reworking the old holes. Appellants ■contend that they complied with the obligation in the leases.

On August 31, 1954, appellants filed with the Oil and Gas Division of the Railroad Commission an application containing the following:

“Application to Drill, Deepen or Plug Back
“Is This an Application to Drill, Deepen or Plug Back? Re-Drill
“ * * * * * *
“Depth to which you propose to drill. 6144 feet.
“This well was plugged and abandoned as a dry hole Feb. 28, 1943 and was drilled to total depth of 6144 ft. It is intention of this applicant to re-drill this hole and attempt completion.”
On September 7, 1954, appellants filed another application with the Oil and Gas Division of the Railroad Commission containing the following provisions:
“Application to Drill, Deepen or Plug Back
“Is This an Application to Drill, Deepen or Plug Back ? Re-Drill
“Depth to which you propose to drill. 3000 feet.
“Date work will start deepening. At Once.
“This well was drilled September, 1954 and was abandoned by operator as a dry hole. It is the intention of this applicant to re-drill said well and attempt completion.”

The three abandoned wells were referred to in the testimony as the south well, the middle well, and the north well. Appellants first set a drilling rig over the south hole, but at about 160 feet it started caving and they moved the rig to the north well and set it over that hole. Shortly after beginning operations there, the rig was replaced by a larger one. This well had been previously drilled to 3,000 feet. Appellant Kothmann testified, “We drilled [237]*237down to 3000 feet and then we had to start putting on new bits, and we used four rock hits to drill from 3000 to 3400.” Pipe was set at 3,000 feet and the well was perforated and “sand fracted.” Gas in paying quantities was found in this well. Then appellants set the rig over the middle hole, which had been previously drilled to 6,144 feet. Kothmann testified that the first hole here was a five inch hole, and that appellants drilled a five and one-half inch hole from the surface to 3,100 feet, where pipe was set. This well was also perforated and “sand fracted,” and it produced gas.

Kothmann testified that the north and middle wells had been filled or had caved in, and that appellants “drilled” all the way from the surface. Appellee L. E. Boley testified that appellants did not drill a larger hole at the middle well, but only ■“cleaned it out” to about 3,000 feet. He denied that appellants did any “drilling,” he said, “They just set up over the old holes and reworked them.” He referred to appellants’ operations as “clean out jobs.” It was not denied, however, that appellants deepened the north hole 400 feet. Their operations were begun within the sixty day period.

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Related

Hondo Oil & Gas Co. v. Pan American Petroleum Corp.
387 P.2d 342 (New Mexico Supreme Court, 1963)
Kothmann v. Boley
308 S.W.2d 1 (Texas Supreme Court, 1957)

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Bluebook (online)
301 S.W.2d 235, 7 Oil & Gas Rep. 850, 1957 Tex. App. LEXIS 1717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kothmann-v-boley-texapp-1957.