McFarlane v. Gulf Production Co.

204 S.W. 460, 1918 Tex. App. LEXIS 640
CourtCourt of Appeals of Texas
DecidedMay 31, 1918
DocketNo. 7683.
StatusPublished
Cited by1 cases

This text of 204 S.W. 460 (McFarlane v. Gulf Production 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
McFarlane v. Gulf Production Co., 204 S.W. 460, 1918 Tex. App. LEXIS 640 (Tex. Ct. App. 1918).

Opinion

GRAVES, J.

Under a lease contract of date April 11, 1907, Mrs. Anna Allen Wright sold to Patillo Higgins all the oil, gas, sul-phur, and other minerals in and under about 75 acres of land in what is now the Goose Creek oil field in Harris county, Tex., upon a portion of which her home was then located. The lease, in which Mrs. Wright was termed first party and Mr. Higgins second party, after providing for the right of ingress and egress, of laying pipe lines, maintaining tanks, constructing and operating refineries, of using such water, soil, and other adjuncts of the land as were necessary in drilling thereon and handling the products, contained these recitations:

“It is especially understood ,that the party of the second part shall have the right to convey all of thjs lease contract, or any part thereof, to individuals or corporations whom he may desire.
“It is further understood, agreed and stipulated that the party of the first part in executing this instrument intends the same as a conveyance of all the oil, gas, sulphur and other minerals in and under the land described in this instrument as herein set out, and that all the conditions herein mentioned shall extend to the heirs, executors, administrators and assigns of both parties herein named.
“It is understood by both parties hereto that no wells shall be drilled within 300 feet of the residence now on said land herein described unless with the consent of both parties hereto, their heirs and assigns.”

Higgins then subdivided and platted the 75 acres, conveying his rights in different parcels of it according to the plat to various purchasers, among whom were the parties to this litigation, appellants having acquired lot 10 of the plat, embracing about 3.58 acres, and upon which the 300 foot zone, or “Reserve” around Mrs. Wright’s residence impinged to the extent of Vioo of an acre, the entire “Reserve” Inclosing 7½ acres; while the appellee acquired adjoining lot 11 of this subdivision, which contained about 15 acres, and included within it all of the “Reserve,” except the small portion so extending over into lot 10. In other words, the barred zone, or the “Reserve,” was a circle described from Mrs. Wright’s residence as its center, upon a radius of 300 feet, and inclosed within its circumference 7 ½ acres of land, the whole of which lay within lot 11 belonging to the appel-lee, except a small segment containing Vioo of one acre, which bit into lot 10, owned by the appellants.

'Both parties were assignees under Higgins as to the tracts so respectively held by them, and accordingly were in the same manner entitled to just such rights, benefits, and privileges, and likewise subject to such burdens, as were given to or imposed upon them, respectively, as his assignees by virtue of the terms of Higgins’ lease from Mrs. Wright; both were further in possession of and producing oil, respectively, from portions of the two tracts in which they owned the rights described, except that neither had ever drilled or attempted to drill a well within the 300-foot circle before the preparations of the appellee to do so, next herein referred to.

With the parties sustaining the relations toward the property and each other as outlined, and upon them as a basis, appellants sued the appellee in the court below seeking judicial construction of this Higgins’ lease, and, in the event the court should hold that its terms forbade the drilling for oil in any part of the “Reserve” without their consent, as was their contention, asking that the appellee be perpetually enjoined from so doing. Pending final disposition of the case, a temporary injunction to the same end was prayed for, upon further allegations that the appellee was then about to begin the drilling of one or more wells upon that part of the “Reserve” lying immediately between their leasehold and Mrs. Wright’s residence, and within about 40 feet of their line; that appellee had recently obtained the consent of Mrs. Wright to so drill, but neither had nor could obtain their consent, because of the damage it would do them; and that the contemplated drilling would so peculiarly and irreparably injure them and their property rights as to make any other remedy than complete prohibition of it by the writ of injunction wholly inadequate, in that the oil would thereby be drained from under their land, entailing loss of revenue, depreciation in the value and sala-bility of their holdings, etc.

The court conducted a hearing to deter-, mine whether or not the temporary injunction asked for should issue, at which the appellee appeared and answered, submitting its general demurrer to the petition *461 of appellants for injunction, and with the latters’ consent, also presenting a new and more recent lease direct to it from Mrs. Wright, covering the 2½ acres in the north ■end of lot 31 which adjoined appellants’ south line, and purporting to grant it the right to drill thereon the wells the court was ashed to enjoin. Holding that their petition failed to disclose such facts as made appellants’ consent necessary before the ap-pellee could drill upon the “Reserve,” as contemplated by it, the court sustained its demurrer, and refused the temporary injunction. Prom that action this appeal is prosecuted.

The order appealed from, after reciting that the question raised by the demurrer was the proper construction of the Higgins lease, particularly paragraph 16 thereof, and that the obvious intention of the parties thereto was not only to pass to Higgins the title to all the oil, gas, sulphur, and other minerals within the 300 foot zone, but also to protect the residence then located thereon from fire, smoke, noise, etc., thus concludes:

“Such zone and the agreement of the parties relative thereto was for the protection of such residence and for the benefit of the person or persons owning such residence, and only the parties to such conveyance, claiming- some interest in such residence or some person, holding under the parties to said lease and claiming .some interest in said residence, would be entitled to restrain the owner of the oil and other minerals on, in, and under said zone from drilling a well within said zone.
“Plaintiffs by their application do not bring themselves within that class of persons, and for such reason are not entitled to restrain the ■drilling of oil wells within such zone. Upon such ground, the defendant’s demurrer is sustained, and the temporary injunction prayed for by plaintiffs is therefore refused.”

We find no fault with this conclusion of the trial court, and an order affirming its judgment has been entered.

It was also correctly held that the rights •of the parties were to be determined by •the proper construction of the Higgins lease. In accord with the facts previously mentioned, the court had found that the appel-lee, at the time of obtaining the new lease •direct from Mrs. Wright, already owned, as the assignee of Higgins, all the rights in the land it covered that the latter had acquired by virtue of his original lease from Mrs. Wright, which lease was then in full force and effect, so that she had nothing further to convey and it acquired nothing additional under the new lease.

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Bluebook (online)
204 S.W. 460, 1918 Tex. App. LEXIS 640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcfarlane-v-gulf-production-co-texapp-1918.