Magnolia Petroleum Co. v. Ball

1949 OK 4, 223 P.2d 136, 203 Okla. 514, 1949 Okla. LEXIS 567
CourtSupreme Court of Oklahoma
DecidedJanuary 4, 1949
DocketNo. 33098
StatusPublished
Cited by6 cases

This text of 1949 OK 4 (Magnolia Petroleum Co. v. Ball) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Magnolia Petroleum Co. v. Ball, 1949 OK 4, 223 P.2d 136, 203 Okla. 514, 1949 Okla. LEXIS 567 (Okla. 1949).

Opinion

GIBSON, J.

Defendant in error, Ball, plaintiff below, claiming ownership under resale tax deed and possession of land in Grady county, brought this action to quiet title thereto against plaintiffs in error, and others, as defendants. Trial to court resulted in judgment for plaintiff from which this appeal is taken.

The lands were allotted to Stella Mae Trammell and at her death descended to John H. Goins, her husband, and John H. Goins, Jr., her minor son. Prior to her death in 1926 the allottee and her husband executed deeds conveying all interest in oil, gas and other minerals under the lands.

After allottee’s death the lands became liable for taxation, and beginning with 1927 were assessed for taxes. No taxes were paid. In 1930 the county treasurer issued a tax sale certificate covering taxes for years 1927 and 1928. At the May 1938 resale the lands were sold for all delinquencies up to April 18, 1938, and plaintiff purchased same for his daughter, Thelma Wood, to whom the lands were conveyed by resale tax deed recorded July 30, 1938. Thereafter, on April 8, 1944, the grantee conveyed same to the plaintiff. Plaintiff’s action was instituted December 18, 1944.

At the dates of the tax sale and the recording of the tax deed the owners of the land, exclusive of the mineral rights, and in possession thereof, were John H. Goins, Jr., a one-half interest, Reford Bond, Jr., and Jim Hatcher, owners of the other one-half interest as grantees of John H. Goins, Sr., under unrecorded conveyance. At that time the mineral interests were owned by Magnolia Petroleum Company a one-half interest, Transwestern Oil Company a one-fourth interest, and Walter H. Gant a one-fourth interest. All of the owners of the land except Bond and Hatcher but including John H. Goins, Sr., their grantor, and the owners of the mineral interests were made defendants to plaintiff’s action. Goins, Sr., and Gant did not appear and were adjudged to be in default. John H. Goins, Jr., for whom guardian ad litem was appointed, attained his majority during 1945 and thereafter, during pendency of the action, conveyed his interest in the lands to the plaintiff. The trial was had upon the issues between the plaintiff and the defendant oil companies. Each of the latter filed answer and cross-petition wherein there is a denial of plaintiff’s title and possession, a plea of the statute of limitation against plaintiff’s claim of title and, averring its title in the mineral interest, each asks that same be quieted against claims of the plaintiff. And in each a tender is made to plaintiff of all taxes, penalties, costs and interest. Of the issues made [516]*516we deem it necessary to consider only those involving plaintiff’s alleged possession which is denied and defendants’ plea of the statute of limitations which is denied.

It is urged by plaintiffs in error that at the time of instituting his action Ball was not in possession of the premises and that neither he nor Thelma Wood, his grantor, had been in possession thereof, and that more than two years having elapsed since the date of the recording of the tax deed, without action to recover the land, the right to assert title to the land thereunder is barred by Tit. 12 O. S. 1941 §93(3). Defendant in error contends that the evidence is sufficient to support the court’s finding that he was in possession. And he contends, further, that even if he were not in possession of the minerals no one was, and therefore, as holder of title thereto under the tax deed, he was entitled to quiet title thereto as in case of vacant lands.

The contention that plaintiff, without possession, was entitled to maintain his action to quiet title, is not sound. To sustain the contention there are cited from other states numerous decisions to the effect that where there has been a severance between the surface and the mineral estate in lands which are held by distinct titles the possession of one is not possession of the other. And, as committing this court to a similar construction of oil and gas mineral grants, there are cited champerty cases which are declared to hold that possession of the surface after severance is not possession of the mineral estate so as to make a conveyance thereof champertous. And, as decisive of the question, there is quoted from Barker v. Campbell-Ratcliff Land Co., 64 Okla. 249, 167 P. 468, the following:

• “The possession of the surface by plaintiff for the purpose of cultivation gave him no possession of the oil and gas under the surface, and did not exclude the defendants from the right to go upon the land and prospect for the same.”

In the cases cited the question involved was the effect of a conveyance alleged to be champertous. And, in Vernor v. Poorman, 59 Okla. 105, 158 P. 615 (cited and relied on), it is held:

“A conveyance of land made in contravention of the provisions of sec. 2260, Rev. Laws 1910, by the rightful owner, is utterly void as against the person holding adversely claiming to be the owner thereof under color of title, but as between the parties and all the rest of the world it is good, and passes the grantor’s title.”

From this it will be noted that the determinative question is not the fact of possession alone but possession plus claim of title to the subject of the conveyance. And it is in the light of the real question in issue that the language quoted from the Barker case is to be construed. The holding therein is reflected in the syllabus as follows:

“In order to make a holding adverse to one who has reserved all mineral rights and the right to enter thereon for the purpose of extracting the same, there must appear to have been some denial of his right, or some assertion of a claim inconsistent with his right, which does not necessarily appear where a person uses the land merely for agricultural purposes, as such use is entirely consistent with the right of another to prospect for oil and gas under the soil.
“Held, possession of the plaintiff for tillage was not adverse as to oil and gas, and the right to enter and explore for same, as against defendant Hoskins, who entered under a lease from defendant land company, and the lease therefore not champertous.”

There is nothing in the holding to justify the conclusion that in this jurisdiction with the grant of the mineral interest there is a severance in kind of parts of the land or that with such grant the mineral interest granted is vacant and unoccupied until development operations have begun. In fact, the reverse is true in each instance. Oil and gas while in the earth are not the subject of absolute ownership in kind until [517]*517reduced to possession, but the owner of land as incident of such ownership has the exclusive property right to reduce to possession the minerals thereunder and this right is a proper subject of conveyance. Wright v. Carter Oil Co., 97 Okla. 46, 223 P. 835; Sunray Oil Co. v. Cortez Oil Co., 188 Okla. 690, 112 P. 2d 792. And there being no severance in kind of estates in land, there is no exception to the rule that the possession of the owner of the fee extends to the entire estate in the land but that same is not adverse to the right of the owner of the mineral interest to enter and explore. Thornton, Oil and Gas, vol. 2, §464 et seq. Hence the possession of the landowner, being subservient to the right of the owner of the minerals, is in legal effect the constructive possession of the owner of the mineral interest, because the landowner is a trustee to the extent his estate is burdened with the outstanding mineral rights.

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Bluebook (online)
1949 OK 4, 223 P.2d 136, 203 Okla. 514, 1949 Okla. LEXIS 567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magnolia-petroleum-co-v-ball-okla-1949.