Melish Consolidated Placer Oil Mining Ass'n v. Burk-Senator Oil Co.

1933 OK 216, 20 P.2d 879, 163 Okla. 20, 1933 Okla. LEXIS 605
CourtSupreme Court of Oklahoma
DecidedApril 4, 1933
Docket22821
StatusPublished
Cited by2 cases

This text of 1933 OK 216 (Melish Consolidated Placer Oil Mining Ass'n v. Burk-Senator Oil Co.) 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
Melish Consolidated Placer Oil Mining Ass'n v. Burk-Senator Oil Co., 1933 OK 216, 20 P.2d 879, 163 Okla. 20, 1933 Okla. LEXIS 605 (Okla. 1933).

Opinion

*21 OSBORN, J.

This is an appeal from the district court of Tillman county, Okla., by the Melish Consolidated Placer Oil Mining Association in Red River, a voluntary association, as plaintiff in error, against Burk-Senator Oil Company, a voluntary association, the Natchesdotckes Oil Company, a voluntary association, the Burk Bet Oil Company, a voluntary association, W■ E. Quay, H. D. Hardstein, Tom Testerman, and Burk Allied iOil Company, a voluntary association, as defendants in error, involving certain orders made by the trial court in overruling motions to revoke ■ and set aside the levy of certain executions upon the property of plaintiff in error to satisfy a judgment in favor of defendant in error, and in confirming the sale thereof.

This appeal grows out of considerable litigation which has heretofore been before this court under the style of Testerman v. Burt, 143 Okla. 220, 289 P. 315.

The cause originated as an action by .T. A. Burt against Tom Testerman and numerous other defendants to determine the interest of unit holders in the Melish Consolidated Oil Mining Association and to distribute its assets. Other defendants who claimed an interest in the assets of the association were made parties, and they asked that their rights be adjudicated. Upon a final hearing, the court refused to dissolve the association, entered a judgment against Tom Testerman, and determined the rights and interests of several parties in the association and its property. The final judgment of the trial court was rendered on May 0, 1927, and was appealed to this court. On September 3, 1927, the Burk-Senator Oil Company filed in the trial court a motion for judgment in its favor against the Melish Association. The Melish Association filed an answer thereto and the Burk-Senator Oil Company filed a reply. It appears from the briefs that the court refused to act on this motion for judgment while the appeal was pending, but when the mandate of this court had been filed in the district court, the hearing was had on the issues thus raised, resulting in a judgment in favor of the Burk-Senator Oil Company in the sum of $20.853.93. No appeal was taken from said judgment, which was rendered on September 25, 1930. A motion for a new trial was overruled on October 4, 1930, and on March 13, 1931, an execution was issued against the Melish Association to collect a balance due on the judgment of $11,120.12. The execution was levied upon certain oil leases, tools, and equipment, and also upon a judgment in favor of the Melish Association against Tom Testerman recovered in the original action above mentioned, in the sum of approximately $66,000. The property, including the judgment, was appraised and sold by the sheriff over the protest of the Melish Association, which filed motions to withdraw the execution and also objections to the confirmation of the sale, all of which were overruled by the court, and this appeal is taken from said orders.

A complete history of the litigation would be lengthy, but a brief resume thereof may be desirable in presenting the issues raised on this appeal.

The Melish Association staked claims in the bed of Red river, and thereafter made a contract with the Burk-Senator Oil Company to develop said claims for oil, the Melish Association to receive one-sixth of the oil produced. A well was drilled, now known as “Well No. 139,” resulting' in the production of oil. Innumerable disputes arose between various parties, including the United States, the state of Oklahoma, and the state of Texas, the resulting litigation culminating in a decision by the Supreme Court of the United States, in effect, holding that the United States alone owned said lands and the oil thereunder. The Burk-Senator Oil Company, and other persons, had expended large sums of. money in discovering and producing oil on the various claims staked in the bed of Red river, and during the litigation above mentioned a federal receiver had been appointed to take charge and operate all of said property. Thereafter Congress passed a relief measure (42 Stat. 1448, 30 USOA, sections 230-236) authorizing the Secretary of the Interior to award leases to parties who had expended money or effort in good faith in the development of said lands for oil and gas. The Melish Association applied for and secured a lease covering the property herein involved, but the Secretary of the Interior made the rights of the Melish Association subject to the prior contract existing between the Melish Association and Burk-Senator Oil Company. In the meantime the federal receiver had been in possession of said lands, and had been producing said property, and had approximately $52,000 in his hands for distribution to the parties properly entitled thereto.

During this time internal strife developed *22 in the affairs of the Melish Association, which strife was culminated by the litigation decided by this court in the case of Testerman y. Burt, supra. The district court of Tillman county appointed a receiver, who took charge of all the properties and monies, including the $52,000 in the hands of the federal receiver, which money belonged to the Burk-Senator Oil Company. The Burk-Senator Oil Company did not claim all of the lands in which the Melish Association had rights, but the final judgment of the district court determined that the Burk-Senator Oil Company (and other companies in similar situation) had a leasehold or contractual rights “on so much of the territory covered by the leases and permits granted to the Melish Association as is embraced within the tracts of land so contracted or leased to said contraetees.”

The receiver had been using the monies in his hands, and thereafter received from the sale of oil and gas, in drilling wells on the property in his hands, and in properly developing the same without regard to the actual boundary lines of the lands belonging to the various contraetees. It was thereafter determined by actual survey that wells numbered 1, 3, 5, and 139 were upon the Burk-Senator properties and wells numbered 2 and 4 were upon the property belonging to other persons, but the receiver had used the monies of the Burk-Senator Oil Company with which to drill wells 2 and 4.

After the mandate of this court had been received by the trial court, said court proceeded to take an accounting as between all of the parties to said action, as to the funds coming into the hands of the receiver and expended by him. It appears, however, that there was a judgment against the Melish Association for $3,446,84, which judgment had been declared to be a first or prior lien upon all the property of the Melish Association. This judgment was'later purchased by the Burk-Senator Oil Company, and execution issued thereon, same being one of the executions sought to be recalled in this cause.

The .material parts of the judgment are as follows:

“The court further finds that the funds now in the hands of the receiver, amounting to $9,637.90, is the property of the Burk-Senator Oil Company and should be paid forthwith to said company, to which all the other parties to this proceeding except, and exceptions are allowed, jointly and-severally.

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Bluebook (online)
1933 OK 216, 20 P.2d 879, 163 Okla. 20, 1933 Okla. LEXIS 605, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melish-consolidated-placer-oil-mining-assn-v-burk-senator-oil-co-okla-1933.