Midland Oil Co. v. Thigpen

4 F.2d 85, 53 A.L.R. 311, 1924 U.S. App. LEXIS 2348
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 9, 1924
Docket6469
StatusPublished
Cited by14 cases

This text of 4 F.2d 85 (Midland Oil Co. v. Thigpen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midland Oil Co. v. Thigpen, 4 F.2d 85, 53 A.L.R. 311, 1924 U.S. App. LEXIS 2348 (8th Cir. 1924).

Opinions

PHILLIPS) District Judge.

A. J. Thigpen and A. J. Thigpen, Jr., members of a copartnership, hereinafter called plaintiffs, brought this action against Midland Qil Company, 'hereinafter called Midland Company, and Fred 0. Davis, to recover 'damages for alleged injuries to cattle owned by the copartnership.

The Midland Coinpany was the owner of a departmental oil and gas lease dated January 24, 1916, running from the Osage Tribe of Indians to the Midland Company, and covering the N. E. % of section 17, township 24 N., range 9 E‘.

Paragraphs 16, 19, and 20 of the lease read as follows:

“16. This lease is subject to the regulations now or hereafter prescribed by the Secretary of the Interior, relative to such leases, all of which are made a part of this lease: Provided, that no regulations made after the approval of this lease' shall operate to affect the term of lease; rate of royalty, rental or acreage, unless agreed to by both parties.”
“19. Assignment of this lease or any interest therein may be. made with the approval of the Secretary of the Interior and not otherwise.
“20. Each and every clause and covenant of this indenture shall extend to the heirs, executors, . administrators, successors, and lawful assigns of the parties hereto.?'
, Sections 21 and 61 of the Regulations of the Secretary of Interior, approved August 26, 1915, read as follows:
“21. Approved leases or any interest therein may be sublet, transferred, or assigned with the consent and approved of the Secretary of the Interior, and not otherwise. Subleases, transfers, or assignments, when so approved, shall be subject to the terms and conditions of the original leases and the regulations under which such leases were approved, as well as to such additional requirements as the Secretary of the Interior may prescribe. The sublessee, transferee, or assignee shall furnish with his sublease, transfer, or assignment a satisfactory bond as hereinbéfore prescribed in connection with leases.
“Any attempt to sublease, transfer, or assign an approved lease or any interest therein without the consent and approval of the Secretary of the Interior shall be absolutely void and shall subject the original lease to cancellation in the discretion of such Secretary.”
' “61. All B-S or water from tanks or wells shall b.e drained off into proper receptacles located at a safe distánee from tanks, wells, or buildings, to the end that same may be disposed of by being burned or transported from the premises.
“Where it is impossible to burn the B-S; or where it is necessary to pump salt water in such quantities as would damage the surface of the leased land or adjoining property, or pollute any fresh water, the lessee [87]*87shall notify the superintendent who shall give instructions in each instance as to the disposition of such B-S or salt water.”

Section 45 of the Regulations of the Secretary of Interior approved August 26, 1915, as amended May 13, 1919, reads as follows:

“45, as amended May 13, 1919. — Lessee shall provide two properly prepared slush pits, into one of which he must deposit sand pumpings and other materials extracted from the well during the process of drilling, but other material as is suitable for the mudding of a well shall be run into the other pit. The construction of such pits shall be subject to the approval of the inspector. Sand pumpings and such materials shall not be allowed to .run over the surface of the land.”

The plaintiffs were the owners of three agricultural leases, running from members, of the Osage Tribe to'the plaintiffs, covering lands located in sections 17, 18, and 19, township 24 N., range 9 E., and lying adjacent to the tract of land covered by the oil and gas lease.

The oil and gas lease required the Midland Company to drill a well on the leased premises to the Mississippi lime unless oil or gas should be found in commercial quantities at a Ifesser depth.

On November 28, 1919, the Midland Company entered into a contract with its eodefendant, Davis. This contract described the above-mentioned oil and gas lease, and recited that the Midland Company was the owner of mining leases covering adjoining lands, and was desirous of having the same tested for oil production, and provided:

“That for and in consideration of the sum of one ($1.00) dollar by the second party (Midland Company) to the first party (Davis) paid, the receipt of which is hereby acknowledged, and of the terms, covenants, agreements and conditions hereof, the party of the first part agrees to drill a well on the land hereinbefore specifically described at a proper location offsetting land held under lease by second party adjoining the same, in a proper manner and with due diligence, at his own costs and expenses, with proper tools and equipment, furnishing all the labor, tools, material, fuel, water and equipment, and to commence the drilling thereof within thirty (30) days from the delivery of the parts hereof, duly approved by the Secretary of the Interior, and to prosecute the drilling thereof with due diligence to a depth of 'three [ ] (300) feet in'-the Mississippi lime, unless the drilling thereof is ordered stopped at a lesser depth by the superintendent of the Osage Indian Agency or other proper representative of the Interior Department of the United States, and to fully comply with the terms, covenants and provisions of said lease in so doing and with the requirements of the rules and regulations heretofore promulgated by the Secretary of the Interior, now in force, governing drilling operations in the Osage Indian Reservation and those that may hereafter be promulgated by said Secretary, and with the rules and reglations heretofore or hereafter promulgated by the Corporation Commission of the state of Oklahoma. * * *
“The party of the second part, in' consideration of said drilling, agrees to execute and deliver to thé party of the first part, upon the completion of said well, as aforesaid, an assignment of said lease hereinbefore specifically described. * * * ”

It further provided: That Midland Company should pay the rentals on the oil and gas lease falling due prior to the completion of the well and that Davis should reimburse it therefor on the execution and delivery of the assignment'; that upon the failure of Davis either to commence the well within the time fixed by the contract ,or to prosecute the drilling thereof with due diligence, his rights under the contract should terminate; and that Davis should not acquire any interest in the lease until the assignment above referred to had been executed and delivered with the approval of the Secretary of the Interior.

This contract was approved by S. G. Hopkins, Assistant Secretary of the Interior.

Davis entered into a contract with one Martin, a drilling contractor, to drill the oil well. This contract provided that Davis should construct the derrick, rig, and slush ponds, and that Martin should furnish the tools and other equipment and drill the well at a certain price per foot. Davis constructed the derrick, rig, and one slush pond.

On February 10, 1920, Martin began the drilling of an oil well on the lease.

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Midland Oil Co. v. Thigpen
4 F.2d 85 (Eighth Circuit, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
4 F.2d 85, 53 A.L.R. 311, 1924 U.S. App. LEXIS 2348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midland-oil-co-v-thigpen-ca8-1924.