Link v. State's Oil Corporation

229 S.W. 693, 1921 Tex. App. LEXIS 103
CourtCourt of Appeals of Texas
DecidedMarch 10, 1921
DocketNo. 1197.
StatusPublished
Cited by1 cases

This text of 229 S.W. 693 (Link v. State's Oil Corporation) 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
Link v. State's Oil Corporation, 229 S.W. 693, 1921 Tex. App. LEXIS 103 (Tex. Ct. App. 1921).

Opinion

WALTHALL, J.

This suit was originally brought by appellants, L. C. Link and wife, Ada Link, E. B. Richie, and J. H. Barton, in the district court of Stephens county, against appellee, State’s Oil Corporation, to cancel an oil-and gas lease upon a tract of land, a part of the Salvador Flores Survey in Stephens county. The suit was thereafter, by agreement, removed to and tried in the district court of Callahan county.

The material facts alleged by plaintiffs are, substantially: That on the 29th day of May, 1917, Link and wife executed to Joseph M. Weaver, assignor of State’s Oil Corporation, a mineral lease upon the land in question for a period of five years; that the lease, among other provisions, provides that if ho well was commenced upon the land on or before May 29, 1918, the lease should terminate as to both parties, but further provides that the lessee might defer the period for the beginning of such well for a period of three months from the 29th day of May, 1918, by paying or tendering to the lessor; or to the lessor’s credit in the First National Bank at Strawn, Tex., as the depository, the sum of $36, which sum should operate as a rental and cover the privilege of deferring the commencement of a well for three months from said date. That in like manner and upon like payments or tenders the commencement of a well may be further deferred for like periods of the same number of months successively; that no well had been commenced on the leased premises pri- or to the 29th of May, 1918, or at any other time, and that defendant had not paid or tendered to the lessors the sum of $36 for a three-month extension of the lease, or any other sum, and has never at any time paid or tendered a like sum for any other quarterly extension, and that said lease, if ever valid, terminated as to both parties on the 29th of May, 1918.

That the principal consideration to the lessors for the instrument was the agreement of the lessee to properly and with reasonable dispatch and within the period fixed by the lease develop the premises and produce oil and gas therefrom and the resulting royalties that would be payable to lessors. That Weaver took the lease for speculative purposes, and with the intention not to develop the same, and that same has not been developed. That the purpose of the provision authorizing the lessee to procure extensions of time within which to commence a well was to entitle lessee to such *694 extensions only in tlie event he was nnabíe sooner to commence the drilling of such well for good cause or reasons beyond his control, but not to give the right to indefinitely delay the development of the premises without cause, or for speculative purposes. Plaintiff alleged demand for development and refusal. A copy of the lease was attached to the petition. State’s Oil Corporation answered by general demurrer, general denial, and plea of not guilty. A jury was waived. The trial court made and filed the following findings of fact and .conclusions of law:

“(1) The court finds that on May 29, 1917, the plaintiff L. C. Link and wife executed to the State’s Oil Corporation oil and gas lease for a down consideration of $242, and providing that if no well was commenced on the land in controversy within a year that the privilege of extending the time for beginning such well should be by the payment óf quarterly rentals, on or before the beginning of each quarter. '
“(2) The court finds that said lease was for a term of five years.
“(3) The court further finds that the quarterly rentals were $36, and that prior to May 29, 1918, the State’s Oil Corporation tendered to and deposited in the depository named in said lease four quarterly payments, to wit, $144, and that said tender and deposit was also made on or before May 29, 1919; that said payments were made in lump sums of $144 each, and was intended by the defendant to cover four quarterly payments in each instance, and that the rentals were paid by said two deposits in annual advance payments, instead of quarterly advance payments, which payments plaintiff refused to accept.
“ [Findings four and five are not copied, as they have reference to issues not raised by any of the assignments.]
“(6) The court finds that the land in controversy is about 4y2 miles northwest of Ranger, in Stephens county, Tex., and in what might be termed ‘proven oil territory,’ with producing wells within one-half and three-quarters of a mile from said land, but no operations for drilling has commenced on the land in controversy.
“(7) The court finds that a well was drilled by the defendant, the State’s Oil Corporation, about 600 yards from the land in controversy, and oil was discovered, but not in paying quantities.”
“Conclusions of Law.
“The Court concludes as a matter of law that the State’s .Oil Corporation has complied, in all respects, with the requirements of the contract or lease, and that the plaintiffs ought not to prevail in this suit.”

In addition to the findings, as above, the attorneys for plaintiffs and defendant agreed to the following:

“It was agreed by and between the attorneys for both plaintiffs and defendant:
“(1) That on May 29, 1917, plaintiffs L. C. Link and wife, Ada Link, executed and delivered to Joseph M. Weaver a mineral lease on the p/operty described in plaintiff’s petition, a correct copy of which lease contract is attached to plaintiff’s first amended original petition, as Exhibit A, and which is here referred to for full statement of the provisions of same, for a cash consideration of $214.50.
“(2) That said lease contract was properly executed, and privily acknowledged by the said Ada Link in regular and proper form.
“(3) That thereafter, on or about January 31, 1918, the said Joseph M. Weaver transferred and assigned to defendant, State’s Oil Corporation, all rights acquired by him under the-terms of the said lease contract.
“(4) That on the 23d day of March, 1918,. defendant tendered to plaintiffs, L. C. Link and Ada Link, through the First National Bank of' Strawn, Tex., named as depository in said lease contract, the sum of $144 in payment of one year’s rental on the said premises, which tender was by said plaintiffs refused. That on the 7th day of May, 1919, defendant made a tender to. said plaintiffs in like manner and of like amount, in payment of rental for an additional 12' months, which tender was by said plaintiffs refused, and said tenders have been kept good.
“(5) That defendant has not at any time made to said plaintiffs any payments or tenders of rentals, other than as last above set out.
“(6) That by assignment from L. O. Link and wife, Ada Link, plaintiffs Barton and Richie acquired undivided interests in said property, and all plaintiffs are joint owners of the minerals underlying the said land,, subject to-the aforesaid lease to Joseph M. Weaver, now owned by State’s Oil Corporation.”

The court rendered judgment for appellee.

The first two assignments are presented under three propositions.

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Related

Standard Oil Company of Texas v. Clark
133 F. Supp. 346 (E.D. Texas, 1955)

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Bluebook (online)
229 S.W. 693, 1921 Tex. App. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/link-v-states-oil-corporation-texapp-1921.