McCurdy v. Phillips Petroleum Co.

209 S.W.2d 955, 1948 Tex. App. LEXIS 1107
CourtCourt of Appeals of Texas
DecidedMarch 18, 1948
DocketNo. 4546.
StatusPublished

This text of 209 S.W.2d 955 (McCurdy v. Phillips Petroleum Co.) 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
McCurdy v. Phillips Petroleum Co., 209 S.W.2d 955, 1948 Tex. App. LEXIS 1107 (Tex. Ct. App. 1948).

Opinion

SUTTON, Justice.

This is a boundary suit and the appeal comes from the 83rd District Court of Pecos County. The suit involves the location on the ground of a 40-acre tract described as the Southeast one-fourth (SEJ4) of the Northeast one-fourth (NEJ4) of Section 24 in Block 194 G. C. & S. F. Ry. Co. in Pecos County and a 20-acre tract described as the East one-half (£½) of the Southwest one-fourth (SW%) of the Northeast one-fourth (NEJ4) of said Section and the common line between the two tracts.

Phillips Petroleum Company sued E. J. McCurdy, Jr., and other named defendants to recover the oil and gas leasehold as a claimed part of the first described tract, the last tract above mentioned, together with five oil wells located thereon and the value of certain of the oil produced from said wells. A trial was had to the Court and a jury, but at the conclusion of the testimony each party filed a motion for an instructed verdict. Plaintiff’s motion was sustained and a verdict directed in its favor and judgment followed *956 accordingly, from which ■ this appeal is prosecuted.

Among other things the defendants assign as error the failure of the Court to instruct in their favor and because of the instruction in favor of the plaintiff, and in the alternative the failure to submit the case to the jury. There is presented here the opportunity to make some nice distinctions, but to do so would add nothing to the decision of the case, nor alter its simple, basic facts. We have reached the conclusion the first point of error must be sustained.

It was stated on -oral argument there is no dispute about the facts and that is fully borne out by the record. The differences arise on the application of the facts. The question presented is, shall the two tracts remain under the facts in the position from which the five wells in controversy, and the wells belonging to the plaintiff east thereof, were located, or shall the position be shifted west in accordance with what has become known as the Turner method of location and thereby include the 20-acre tract above mentioned and the five wells thereon within the first' tract? Plaintiff contends for the latter and defendants for the former location.

: H. P. Nichols is the common source of "title. On December 14, 1927, Nichols owned the oil and gas lease on the tracts above described. On that date he assigned the lease on the 20-acre tract to E. R. Cosby, defendants’ predecessor in title, and on March IS, 1928, Nichols assigned the 40-acre tract to John W. McGee. On the same date McGee assigned to the Matador Oil Corporation of which he was president, which concern in turn assigned to the plaintiff on May 9, 1929.

Block 194 was an, office survey and no ground locations were originally made. Commencing in 1916, Capt.. R. S. Dod, a State Surveyor, under the direction of the Commissioner of the General Land Office, undertook to construct and locate on the ground Block 194. This construction and location became known as the Dod Method, and is, as is the .Turner theory, fully explained in Turner v. Smith, 122 Tex. 338, 61 S.W.2d 792. Briefly, the Dod method constructs Block 194 by giving effect to the east line of Block Z and to the calls for adjoinders with corners of sections in Block 178 to the South and .others east, which method gives excessive lengths to the North and South lines of sections in Block 194, as well as the' east and west lines, whereas the Turner method disregards the calls for the adjoinders just noted and allows no excess to the east and west lines but locates the several sections according to the calls for course and distance.

Prior to the Nichols assignments of the tracts here involved the Yates Oil Field had become a highly productive field, ranking among the greatest. The California Company owned valuable holdings in the area. It caused its engineer, Taylor, to-survey its property with the view of giving it ground locations. The so-called Dod method was adopted and sought to be duplicated. As a part of this undertaking the common corners of Sections 24 and 23 to the east, Block 194, were marked with one and one-half inch galvanized pipes on the tops of which was stenciled “The California Company”, and the section corners-indicated. At the time of the Nichols assignments these were the only ground markings in the area purporting to locate section lines and boundaries. After the assignment by Nichols to Cosby, Nichols told Cosby how to locate his lease from the California pipes, and declined to incur the expense to survey it, saying it could be thus located. Prior to the sale and assignment to McGee, Nichols told McGee the lease could be located from the California pipes or corner, and a few days thereafter showed him the pipe. McGee’s Company, Matador Oil Corporation, located and drilled the first well. Cosby completed his a little-later. Each of these wells were located with respect to lines run from the California corner. All subsequent locations on both tracts were likewise made from the corner and in all applications for permits and in all other dealings with the Railroad Commission all wells were represented as so located. Indeed, the Dod location and survey was the only recognized location at such times *957 until the final determination of the Turner-Smith case. In fact the plaintiff asserts in its brief the Dod location was the only-recognized location until the final decision in Federal Royalty Company v. State, 128 Tex. 324, 98 S.W.2d 993, November 25, 1936. In June or July 1929, plaintiff’s engineer, Mr. W. P. Moore, staked its No. 3 well from the California pipes shown him by Taylor, who did the work for the California Company. In fact, all wells were thus located on both tracts and have been continuously produced and are today, by plaintiff and defendants.

■ It is true the Turner case had been filed at the dates the Nichols assignments were made wherein it was sought to locate Block 194 according to the Turner method, which did ultimately move all eastern boundaries west. Plaintiff asserts in its brief the defendants knew at'the time they acquired the Cosby lease litigation then pending would determine its boundaries. Doubtless everybody knew from the'date the Turner case originated it would affect all boundaries in Block 194. The very purpose of the suit was to construct the block differently from the Dod construction. That fact might have well influenced Nichols to point out specifically to McGee his 40 acres was located from the California corners.. .The sale had from necessity to be made with respect to some location. As heretofore pointed out- the Dod construction was the only recognized one at the time and the California locations were the only ground locations in existence then.

Notwithstanding the earnest and forceful arguments made by plaintiff we have reached the conclusion the principles enounced in Bond v. Middleton, 137 Tex. 550, 155 S.W.2d 789, and the cases there referred to, and the subsequent cases cited by the defendants, Crump v. Humble Oil & Refining Co., Tex.Civ.App., 164 S.W.2d ,786, and Harrison v. Manvel Oil Co., 142 Tex. 669, 180 S.W.2d 909

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Related

Harrison v. Manvel Oil Co.
180 S.W.2d 909 (Texas Supreme Court, 1944)
Kimberlin v. Westerman
12 S.W. 978 (Court of Appeals of Texas, 1889)
Turner v. Smith
61 S.W.2d 792 (Texas Supreme Court, 1933)
Federal Royalty Co. v. State
98 S.W.2d 993 (Texas Supreme Court, 1936)
Bond v. Middleton
155 S.W.2d 789 (Texas Supreme Court, 1941)

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Bluebook (online)
209 S.W.2d 955, 1948 Tex. App. LEXIS 1107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccurdy-v-phillips-petroleum-co-texapp-1948.