Miller Et Ux. v. Dierken

33 A.2d 804, 153 Pa. Super. 389, 1943 Pa. Super. LEXIS 82
CourtSuperior Court of Pennsylvania
DecidedApril 19, 1943
DocketAppeal, 88
StatusPublished
Cited by7 cases

This text of 33 A.2d 804 (Miller Et Ux. v. Dierken) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller Et Ux. v. Dierken, 33 A.2d 804, 153 Pa. Super. 389, 1943 Pa. Super. LEXIS 82 (Pa. Ct. App. 1943).

Opinion

Opinion by

Rhodes, J.,

In this action of ejectment plaintiffs seek the forfeiture of an oil and gas lease because of the nonpayment of the royalty provided by the lease. Plaintiffs claim title to the fee. Defendants deny that plaintiffs are the parties entitled to the royalty; they contend that they are not only assignees of the lessee, by interim assignments, but also assignees of the royalty interest, and that they are therefore entitled to indeterminate possession as long as the wells on the land produce oil or gas according to the provisions of the lease.

The pleadings consisted of a statement of claim and abstract of title on the part of plaintiffs, and a plea and answer, abstract of title, and amended abstract of title on the part of defendants. At the trial the trial judge directed a verdict for defendants. Plaintiffs’ motion for judgment n.o.v. was refused. This appeal by plaintiffs is from the judgment entered on the verdict.

The parties agree that the fee of the land in question was conveyed to Samuel C. T. Dodd, Trustee, on August 1, 1878, and by him to the Union Oil Company on April 2, 1880; also that on July 15, 1880, the Union Oil Company granted surface rights to Stephen F. Schultz “expressly excepting and reserving nevertheless to the said The Union Oil Company, its successors and assigns, all oil or gas wells now being operated on said premises ...... Also all the petroleum or rock oil and gas that is or may be now stored on said premises or that is under, in or appurtenant to the above described and granted tract of land ......” On October 20, 1884, the Union Oil Company leased to A. L. Frazier oil and mineral rights reserved from Schultz with provisions for forfeiture, in return, inter alia, for an oil royalty to the lessor, its successors or assigns, to be delivered to “such accessible Pipe Line Company as shall be designated and approved by” the lessor, its successors or assigns.

Plaintiffs established separate chains of title by which *391 both the surface rights of Schultz and the reversionaryoil and mineral rights of the Union Oil Company, out of which the Frazier lease was carved, became vested in the plaintiffs. We assume, without deciding, that the Union Oil Company had a reversionary interest in the oil and minerals. 1 On the plaintiffs’ own pleading there can be no doubt that it was to the reversionary interest in the oil and minerals that they succeeded, since the immediate grant from the Union Oil Company to the Forrest Oil Company, November 29, 1890, pleaded as a link in plaintiffs’ title, and all the mesne grants thence into plaintiffs were made expressly subject to this lease. But in each of these grants there is also language to correspond with the following which appears in that from the Union Oil Company to the Forrest Oil Company:

“All said lands, oil rights and premises are conveyed subject to all sales of wells thereon and to any leases or sales of parts of said lands and premises or of interests therein heretofore made by The Union Oil Company or any of the former owners of same whether hereinbefore specifically mentioned or not, but any and all royalty or other interest in same reserved to or belonging to said The Union Oil Company or to which it *392 is or may be in any manner entitled is hereby granted, released, conveyed and confirmed unto the said The Forrest Oil Company, its successors and assigns forever.”

Defendants likewise showed a chain of assignments of the right of the original lessee, Frazier, by which they became entitled to the entirety of this working interest. They also alleged that the royalty interest had, by virtue of an assignment antedating the lease, passed from the Union Oil Company to a partnership known as H. L. Taylor & Company, from which, by mesne assignments, it descended to defendants, and effected in them a merger of the working interest and the royalty interest, seven-eighths and one-eighth, respectively, of the oil produced.

The controversy would thus seem to present a question whether plaintiffs or defendants were the persons entitled to the royalty. The evidence reveals a number of circumstances which have some relevancy to this issue, and indicates, in the present obscurity of transactions which occurred sixty years ago, that defendants in possession under the Frazier lease by their own admission had succeeded, not to the royalty under that lease, but rather to a royalty out of earlier wells which were drilled under previous leases to other lessees. The Frazier lease from the Union Oil Company, dated October 20, 1884, was made subject to previous leases then in force; it refers to wells then in existence; and it provides that Frazier shall drill others. The first conveyance of the reversionary interest — Union Oil Company to Forrest Oil Company, November 29, 1890— Was made subject to two grants. One was described as “the sale of McAllister wells 2, 3, and 4, as made to S. B. Gould and George Markart by The Union Oil Company, September 1, 1880,” and the other was described as the Frazier lease. Defendants’ claim to the royalty is pleaded as resting on an assignment by Union Oil Company to the Taylor partnership, which was prior to the Frazier lease creating the royalty. The date of the assignment as given in defendants’ abstract *393 of title is April 1, 1880. In defendants’ answer, paragraph Y (f), it is alleged that the royalty interest in the Frazier lease was transferred to H. L. Taylor & Company on June 16, 1881. Both dates are in advance of .the instrument creating the royalty — October 20, 1881. Even if it could be said that the royalty was one carried over from a lease which had run its term to a new lease, it seems unlikely that the new lease would make it payable to the Union Oil Company, if already assigned, without at least referring to the assignment. However, it is significant that the actual evidence of the assignment offered by defendants was a “division order” or notice of change of ownership of oil as given to the pipe line carrier, National Transit Company, and entered upon its books, dated April 1, 1881, and that such order related specifically, to McAllister wells Nos. 3 and 1. This was offered as defendants’ proof of ownership of the royalty under the Frazier lease.

On the other hand, there is plaintiffs’ admission that the South Penn Oil Company, their immediate predecessor in title to the reversionary oil and minerals, and ostensible assignee of the Frazier royalty under the language of that series of grants of the reversionary interest, received no royalty during its period of ownership between April 1, 1892, and September 29, 1938. There was also testimony by defendants that the royalty had been paid to the Taylor partnership without exception to 1936 when defendants purchased the royalty interest. It is possible that defendants have been, in possession of the working interest under one lease and have owned the royalty under another. It may have been this possibility that led defendants to plead title by adverse possession to both the working interest and the royalty in dispute. 2 We are of the opinion that *394 this position is untenable as to the working interest in the face of repeated admissions that defendants held it by grant.

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Cite This Page — Counsel Stack

Bluebook (online)
33 A.2d 804, 153 Pa. Super. 389, 1943 Pa. Super. LEXIS 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-et-ux-v-dierken-pasuperct-1943.