Mussellem v. Magnolia Petroleum Co.

1924 OK 297, 231 P. 526, 107 Okla. 183, 1924 Okla. LEXIS 662
CourtSupreme Court of Oklahoma
DecidedMarch 11, 1924
Docket13962
StatusPublished
Cited by34 cases

This text of 1924 OK 297 (Mussellem v. Magnolia Petroleum 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
Mussellem v. Magnolia Petroleum Co., 1924 OK 297, 231 P. 526, 107 Okla. 183, 1924 Okla. LEXIS 662 (Okla. 1924).

Opinion

BRANSON, J.

The plaintiffs herein, Sophia Mussellem and M. S. Mussellem, sued the defendants, Magnolia Petroleum Company, McMann Oil .Company, and National Products Company, for a large sum of money. The trial court sustained a demurrer to the plaintiffs’ evidence, rendered judgment in favor of the defendants, dismissing plaintiffs’ petition, and they have appealed to this court. The parties appear' in this appeal as they appeared in the court below, and they will be referred to herein as they appeared in that court.

Stating merely the important part, in substance, of the lengthy pleadings, we find that on June 24, 1921, plaintiffs sued the defendants in the district court of Oklahoma county for damages, sounding in conversion, for the alleged taking and appropriation by the defendants of certain cas-inghead gas and gasoline without the consent of the plaintiffs. Plaintiffs assert that they owned in fee a certain tract of land located in Creek county, Okla., on which they executed, February 3, 1913, to C. G. Kiskaddon, an oil and gas mining lease, the material parts of which will 'be set out later. That said Kiskaddon had sold and assigned said lease to the defendant the McMann Oil Company, which had in turn sold and assigned the same to the defendant the Magnolia Petroleum Company, which last named company had made a contract with the defendant the National Products Company to use the casinghead gas arising from the oil wells drilled upon the land to make gasoline : that there were 25 oil wells drilled on the property; that the casinghead gas coming from said wells had, without plaintiffs’ consent and without any right thereto, been taken by the defendants and each of them, and manufactured into gasoline for commercial use, sold, and the proceeds thereof appropriated by the defendants without paying to the plaintiffs the amount due them therefor, and that the appropriation of said casinghead gas and conversion of the same into gasoline had covered a period of approximately seven years.

Plaintiffs further charge that the defendant, the National Products Company, under a contract, the exact nature of which plaintiffs do not plead, as they allege, for want, of knowledge, was manufacturing and had manufactured large quantities of gasoline from the casinghead gas taken from the wells located on said property, and that it should be held jointly liable with the other defendants therefor.

To this petition the defendants pleaded separately, denying the allegations of the plaintiffs’ petition, except as to those matters specifically admitted. The defendant the Magnolia Petroleum Company, pleaded that prior to -November 30, 1916, it had no interest in said oil and gas lease, but that on said last named date it became the owner thereof, but that it had fully complied with each and every provision of the loase, and strictly conformed to all of its terms, and paid all royalties thereon provided to be paid to the plaintiffs, and had paid for the casinghead gas referred to, and that plaintiffs had accepted such payments, covering a period of seven years, with full knowledge of all the facts as to the conduct of this defendant touching the premises.

The answer of the other defendants was in effect the same. It was further pleaded by the defendants that the plaintiffs knew of the intended sale before its consummation, toy the McMann Oil Company, to the Magnolia Petroleum Company, of the oil and gas lease covering the land, and were thoroughly conversant with the nature of the operations upon said lease, and the fact that the casinghead gas coming from the oil wells on said lease was being manufactured toy the National Products Company into gasoline, and that the plaintiffs had accepted, under clause “Third” of the said lease, $50 per year as royalty, as per the contract of said lease, and that the said plaintiffs were estopped from claiming damages sought to be recovered.

The defendant Magnolia Petroleum Company, pleaded the statute of limitations as a bar, in addition to its other defense, for a period of two years before the filing of the suit.

For reversal, the plaintiffs assigned sev *185 eral errors in addition to the formal assignment that the trial court committed error in sustaining the demurrers of the defendants, and rendering judgment in their favor dismissing plaintiffs’ cause of action, all of which, important to the determination of this cause, may he summarized in the allegation, first, that the trial court erred in holding that paragraph 3 of the lease contract in question conveyed to the defendants casinghead gas and gasoline manufactured therefrom; and, second, in not holding that casinghead gas and gasoline manufactured therefrom were not in the minds of the contracting parties, and were not taken into consideration in the execution of the oil and gas lease in question; and, third, that the court should have held that casinghead gas and gasoline manufactured therefrom was neither oil nor gas in the ordinary acceptation of those terms and that casinghead gas partook of both oí the ingredients of gas and oil.

The plaintiffs further state:

“These three propositions are virtually controlled by the same rules of law, and are likewise based upon practically the same state of facts, and will thus be argued together.”

The pertinent part of the oil and gas lease, the provisions of which are the basis of this litigation, is as follows:

“In consideration of the premises, the said party of the second part (Kiskaddon and his assignees) covenants and agrees:
“Eirst. To deliver to the credit of the parties of the first part ('the plaintiffs herein), their heirs or assigns, free of cost, in the pipe line to which it may connect his well, the equal one-eighth part of all oil produced and saved from the lease premises.
“Second. To pay to the parties of the first part $300 each year m advance for the gas from each well, where gas only is found, while the same is being used oJffi the premises, and the parties of the first part to have gas free of cost from any such well, for four stoves, and all inside lights in ilie principal dwelling house on said land, during the same time, by making his own connections with the well
“Third. To pay the parties of the first part for gas produced iron, an oil well, and used off the premises, at the rate of $50 per year, for the time during which such gas shall be so used, said payments to be made each three months in advance.
“The party of the second part shall have the right to use free of cost gas, oil and water produced on said land, for its operation thereon, except water from the wells of first party.”

The last three above mentioned clauses, creating the obligations of lessees to lessors, will be referred to herein as the “first obligation,” the “second obligation,” and the “third obligation.”

This suit does not draw in question the failure of either of the assignee defendants to fully comply with the first and the second obligations, but the fight rages around the third obligations, which is, to repeat, that lessee agrees “To pay the parties of the first part for gas produced from an oil well, and used off the premises, at the rate of $50 per year, for the time during which such gas shall be so used.”

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Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 297, 231 P. 526, 107 Okla. 183, 1924 Okla. LEXIS 662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mussellem-v-magnolia-petroleum-co-okla-1924.