McCaskey v. Schrock

225 S.W. 418, 1920 Tex. App. LEXIS 1038
CourtCourt of Appeals of Texas
DecidedNovember 18, 1920
DocketNo. 1136.
StatusPublished
Cited by8 cases

This text of 225 S.W. 418 (McCaskey v. Schrock) 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
McCaskey v. Schrock, 225 S.W. 418, 1920 Tex. App. LEXIS 1038 (Tex. Ct. App. 1920).

Opinion

HIGGINS, J.

On June 25, 1918, appel-lees, Schrock and wife, signed, acknowledged, and delivered to the appellant the following instrument:

“Agreement made and entered into the 25th day of June, 1918, by and between W. M. Schrock and wife, Mrs. Lillie Schroek, of Midland county, Texas, party of the first part, hereinafter called le'ssor (whether one or more), and J. G. MeCaskey, party of the second part, hereinafter called lessee, witnesseth:
“That the said lessor, for and in consideration of one dollar, cash in hand paid, the receipt of which- is hereby acknowledged, and of the covenants and agreements hereinafter contained on the part of lessees to he paid, kept and performed, has granted, demised, leased and let, and, by these presents, does grant, demise, lease and let unto said lessees, for the sole purpose of prospecting, drilling, mining and otherwise operating for oil, gas and other minerals of every kind and description, and laying pipelines and building tanks, power stations and structures thereon to produce, save and take care of said products, all that certain tract of land situated in the county of Midland, state of Texas, described as follows, to wit:
“All of sections 22, 23, 2S and 34, block 37, township four (4), south, T. & P. Ry. Co., containing 2,560 acres, more or less, being * * *
“It is agreed that this lease shall remain in force for a term of five years from this date, and as long thereafter as oil, gas or other minerals are produced from the said land by the lessees.
“In consideration of the- premises, the said lessees covenant and agree:”

First. (This paragraph provides for a one-eighth royalty to the lessors of all oil produced.)

Second. (This paragraph provides for the payment of $100 per year to the lessors for gas produced from wells producing gas only.)

Third. (This paragraph provides for the payment of $25 annually to the lessors for gas produced from any oil well.)

^ Fourth. (This paragraph provides" for the payment to the lessors of 25 cents per ton for all coal mined and marketed.)

Fifth. “If no well be commenced on said land within two years from, the date above written, this lease shall terminate as to both parties, unless the lessees, on or before the expiration of that time, shall pay or tender to the lessor, or to the lessor’s credit, in the Midland National Bank of Midland, Texas, or its successors, which shall continue as the depository, regardless of changes in the ownership of said land, the sum of ten (10) cents for each acre of land hereby leased, which shall operate as a rental and cover the privilege of deferring the commencement of a well for twelve months; in like manner or upon like payments or tenders the commencement of a well may be further deferred for like periods of the same number of months successively, and it is understood and agreed that the consideration herein recited cover not only the privilege granted to the date when said first rental is payable as aforesaid, but also the lessees’ option of extending that period as aforesaid, and any and all other rights conferred.

Sixth. “Should the first well drilled on the above-described land be á dry hole, then and in that event if a second well is not commenced on said land within twelve months from the expiration of the last rental period, which rental has been paid, this lease shall terminate as to both parties, unless the lessees, on or before the expiration of the said twelve months shall resume the payment of rentals in the same amount and same manner as hereinbefore provided; and it is agreed that upon the resumption of payment of rentals, as above provided, that the last preceding paragraph hereof, governing the payment of rentals and the effect thereof, shall continue just as though there had been no interruption in the rental payments.” Other provisions of this paragraph are unimportant.

Seventh. (The provisions of this paragraph are unimportant in so far as concerns this appeal.)

Eighth. “It is especially understood and agreed by and between the parties to this contract that the primary object hereof is to aggregate a large body of land in the same vicinity of sufficient acreage to permit development and prospecting for the production of oil, gas and other minerals; and it is further understood and agreed that this contract is one of a number of similar contracts executed by the several owners of land in said vicinity with said lessees, and that the consideration moving to each lessor is the general development of the section embraced within the scope of these leases, and the benefit which each lessor will derive from the exploration and prospecting of' said land in said vicinity for oil, gas and other minerals.

“And as a further and additional consideration moving to each of the several lessors (including’ the lessor in this contract) is the agreement and contract on the part of said lessees within one year to begin drilling and to prose *420 cute with all reasonable diligence a well within the area of the block of land hereinbefore mentioned, testing the said block of land for oil gas and other minerals.
“And it is further especially understood and agreed that a failure on the part of the lessees to commence said well within said time above stated shall operate as a forfeiture of this lease contract and all rights thereunder; and the lessees bind and obligate themselves, at their own expense, to execute and deliver to the several lessors good and sufficient releases and acquittances to said land in the event of said forfeiture.”

This suit was brought by Schrock and wife against McCaskey, J. M. Jemison, W. J. Moran, and Charles E. Sinclair, to cancel and annul the foregoing lease contract upon the ground that it was unilateral. Jemison, Moran, and Sinclair filed disclaimers. The case was submitted to a jury upon special issues as follows:

“First. Was the consideration of $1.00 stated in the lease contract ever paid?
“Second. Will the production of oil in paying quantities at what is known as the Bryant well materially enhance the value of the mineral rights in plaintiffs’ lands?”

The first question was answered in the negative and the second in the affirmative. Judgment was rendered in favor of Schrock and wife. The judgment recites that the court was of the opinion that the contract was unilateral and void for want of mutuality and consideration, and upon that theory rendered judgment in favor of Schrock and wife.

The plaintiff Schrock testified that—

His negotiations were with the defendant Moran, and that he desired McOaskey and his associates to develop that section where his land was situated for oil. “Tes, I desired them to develop this section of the country. I wanted them to dig a well. My idea was that, in any event, a well should be commenced within one year from the time I signed my contract with them, and the idea of getting a well dug was really the motive and purpose that actuated me in my dealings; it was to get down an oil well. I still own other lands not covered by my lease to Mr.

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Bluebook (online)
225 S.W. 418, 1920 Tex. App. LEXIS 1038, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccaskey-v-schrock-texapp-1920.