Marnett Oil & Gas Co. v. Munsey

232 S.W. 867, 1921 Tex. App. LEXIS 517
CourtCourt of Appeals of Texas
DecidedMay 23, 1921
DocketNo. 2379.
StatusPublished
Cited by5 cases

This text of 232 S.W. 867 (Marnett Oil & Gas Co. v. Munsey) 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
Marnett Oil & Gas Co. v. Munsey, 232 S.W. 867, 1921 Tex. App. LEXIS 517 (Tex. Ct. App. 1921).

Opinions

This suit was originally filed by the appellees against the appellant in 1913. Its purpose was to cancel two oil contracts and to recover damages for the failure of the appellant to operate certain oil wells on the leased premises for two years or more. By amendment the plaintiffs asked for the value of oil taken from the wells by the appellant since some time in 1914. In 1898 the owners of what is called in the record the Robbins and the Polk tracts of land, situated in Navarro county, by written contracts leased them to the parties under whom the appellant now claims. In due course of trade the appellees acquired the titles of Robbins and Polk, the lessors, and the appellant acquired all the rights of the lessees. The conditions requiring the sinking of wells within the time stipulated were complied with, and about 21 producing wells were sunk on the premises between the time the leases took effect and 1911. In the fall of 1911 Staley and the appellant, who had acquired the rights of the other lessees, ceased to operate the wells, but did not remove their machinery from the premises. This suit followed at the time mentioned, and the cancellation of the contracts was sought upon the ground that they had been abandoned by the lessees. A trial before a jury resulted in favor of the defendants below. On appeal to the Court of Civil Appeals of the Fifth District that judgment was reversed, mainly because of an erroneous charge. See Munsey v. Marnett Oil Gas Co., 199 S.W. 687. In a second trial the plaintiffs, appellees here, recovered a judgment canceling the lease contracts and for the damages claimed. The cancellation was based upon a finding by the jury that the lessee had abandoned the contracts and all the rights originally conveyed. This appeal is from that judgment.

The first proposition urged is that the lease contracts were in effect conveyances of the legal title to the minerals in the soil, and that the grantees thereby acquired an interest which could not be lost by mere abandonment. The second is that the evidence is insufficient to sustain the finding of the jury that the lessees had abandoned their contracts. There are numerous other rulings complained of by the appellant which we think is unnecessary to discuss. Taking those questions in the order above stated, it becomes necessary to consider the terms of the contracts with a view of ascertaining the extent and character of the interests which the grantors intended to convey. Since those instruments were made by different grantors, are couched in different language, and relate to different tracts of land, they must be separately considered.

The material portions of the Robbins lease is as follows:

"That I, Mary B. Robbins, of Kingston, Mass., the party of the first part, in consideration of the sum of $5.00 paid by W. H. Staley, of Pennsylvania, party of the second part, the receipt of which is hereby acknowledged, and the further consideration hereinafter mentioned, have granted, bargained, sold, and conveyed, and do by these presents grant, bargain, sell, and convey, unto the said parties of the second part, their heirs, assigns, all of the oil, gas, and coal and other minerals in and under the following described land, together with the rights of ingress and egress at all times for the purpose of drilling, mining, and operating for minerals, and to conduct all operations and *Page 869 lay all pipe necessary for the production, mining, and transportation of the oil, gas, water, or other minerals, reserving, however, to the party of the first part the equal one-eighth of all oil produced and saved upon said premises, to be delivered in the pipe line to the credit of the party of the first part free of charge. If coal is found, the parties of the second part agree to pay the first party four cents per ton for every ton of the same that is mined and marketed, payable monthly. If gas or other minerals are found, second party agrees to _____ first party one-tenth of the net produce each year, payable monthly for the product of each well, while the same is being used off the premises. Said land being of the following description to wit: [Here follows description.] To have and to hold the above-described premises unto the said parties of the second part, their heirs and assigns, upon the following conditions: In case operation for either the drilling of a well for oil, mining, or other minerals is not begun and prosecuted with due diligence within thirty days from this date, then this grant shall immediately become null and void as to both parties.

"In case the parties of the second part should bore or discover either water, oil, or other minerals within the time above prescribed, then and in that event this lease, incumbrance, or conveyance shall be in full force for twenty years from the time of the discovery of said product, or as long as oil can be produced in paying quantities.

"Whenever sales are being made of the product produced on the land above described, a settlement therefor shall be made at the end of each quarter.

"This lease is not intended as a mere franchise, but is intended as a conveyance of the property above described for the purposes herein mentioned, and it is so understood by both parties to this contract.

"It is understood between the parties of this agreement that all conditions between the parties hereto shall extend to their heirs, executors, administrators, and assigns.

"And the said Staley hereby agrees to bore not less than six wells within one year from the making of this lease, provided paying wells can be found on said tract, and will also bore six wells during the next year thereafter should paying wells justify such expenditures.

"It is further agreed that, in case the said Staley is unwilling to bore said wells, the said party of the first part shall have the right to bore same, provided there shall be preserved to each well then bored by said Staley a surrounding territory of not less than seven acres of land."

That the owner of land may, if he sees proper, convey an indefeasible legal title to the minerals under the soil separate and distinct from the surface rights, is now well settled. Texas Co. v. Daugherty, 107 Tex. 226,176 S.W. 717, L.R.A. 1917F, 989. Minerals, being tangible substances, may be treated in law as corporeal property, and, until separated from the soil, are part of the realty within which they lie. It is also true that, when minerals are conveyed in that manner, the title cannot be lost by abandonment alone so as to reinvest the grantor with his original ownership. The tenure in such cases does not depend for its continued vitality upon any form of use or enjoyment of the rights granted, any more than does the tenure by which the surface rights are held under similar grants. The granting clause of this contract undoubtedly uses language indicative of an intent to sell and convey the minerals as they exist under the surface; and, apparently to make that purpose still clearer, the following language is used:

"This lease is not intended as a mere franchise, but is intended as a conveyance of the property above described for the purposes herein mentioned, and it is so understood by both parties to this contract."

While the cash consideration mentioned in the contract is only nominal, there is a clause which binds the grantee to sink a designated number of wells within a stipulated time. That obligation would seem to furnish a sufficient consideration for a sale and purchase of the minerals mentioned.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cannon Ball Motor Freight Lines v. Grasso
59 S.W.2d 337 (Court of Appeals of Texas, 1933)
Frick-Reid Supply Corp. v. Meers
52 S.W.2d 115 (Court of Appeals of Texas, 1932)
Wisconsin-Texas Oil Co. v. Clutter
268 S.W. 921 (Texas Commission of Appeals, 1925)
Munsey v. Marnet Oil Gas Company
254 S.W. 311 (Texas Supreme Court, 1923)
Hynson v. Gulf Production Co.
232 S.W. 873 (Court of Appeals of Texas, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
232 S.W. 867, 1921 Tex. App. LEXIS 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marnett-oil-gas-co-v-munsey-texapp-1921.