Myers v. Carnahan

57 S.E. 134, 61 W. Va. 414, 1907 W. Va. LEXIS 149
CourtWest Virginia Supreme Court
DecidedFebruary 26, 1907
StatusPublished
Cited by31 cases

This text of 57 S.E. 134 (Myers v. Carnahan) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myers v. Carnahan, 57 S.E. 134, 61 W. Va. 414, 1907 W. Va. LEXIS 149 (W. Va. 1907).

Opinion

'SANDERS, PRESIDENT:

On the 12th day of October, 1899, Solomon Myers leased to Oran C. Bradley for oil and gas purposes, a tract of land containing about one hundred and thirty-five acres, situated in Monongalia county. By its terms the lease was to remain in force for a term of five years from its date, and “as much longer as the relit for failure to commence operations is paid, and as long after the commencement of operations as said premises are operated for the production of oil and gas.” It was further provided that “this lease shall become null and void, and all rights hereunder shall cease and determine unless a well shall be completed on the said premises within three months from the date hereof, or unless the lessee shall pay at the rate of $32.15-100 dollars, quarterly in advance, for each additional three months such completion is delayed from the time above specified for fhe. completion of such well, until such well is completed.”' This lease was later assigned to John E. Carnahan, Uriah H. Debendarfer and James F. Gump, Bradley retaining an interest in it. About the 12th day of July, 1904, a location for a well was- made, but nothing further toward development was done at that [416]*416time, ancTon the 14th day of July, following, the following agreement was entered into between the parties and endorsed upon the back of the lease:

“July 14th, 1904.
“In consideration of one dollar ($1.00) in hand paid to us by J. E. C. the receipt of which is hereby acknowledged, we agree to extend the within lease for a period beyond October 12th, 1904, on the following conditions
‘ ‘Parties of the second part agree to commence a well within ten days from date, and prosecute the same with all due diligence until completed; but on account of unavoidable accident, if the wells is not completed within the life of the lease, or October 12th, 1904, we hereby agree to accept a rental of one hundred dollars ($100.00) per month in advance for each month until a well is completed.”

The lessees, after this agreement was made, quit work, and never took any steps toward carrying this agreement into effect. The reason for this, as stated by Carnahan, is that at the time of the making of the second agreement, he thought the lease was in the ordinary form of an oil lease, requiring oil to be produced within the life time of the lease, but that,' after making a careful examination of it, he discovered that it was not in the usual form, and upon taking the advice of his attorney, he was told that in order to maintain his rights under it, it was only necessary that operations should be begun within the time limited in the lease. About the 6th day of October, 1904, the lessees learned that Myers had executed a blanket lease upon the property to third parties, and on the 10th day of October, 1904, two days before the expiration of the five years from the date of the lease, they moved on the premises, erected a rig and began drilling a well, which was completed some time in January, 1905, and which produced both oil and gas in paying quantities.

During all the time after the date of the lease, at or before the beginning of any three months, the rental of thirty-three dollars and seventy-five cents for every three months was either paid to ¡the lessor direct or deposited to his credit as provided in the lease.

Myers filed his bill in equity to obtain an injunction and to [417]*417quiet title to the oil and gas, and later filed an amended bill. The lessees answered both these bills, to which Myers replied generally. Depositions were taken, and on the hearing the court decreed in favor of the plaintiff.' From this decree the defendants have appealed.

The record presents for our consideration the construction of the lease and the agreement subsequently made and endorsed thereon. This lease is unusual in form, and we cannot find that such lease has ever been construed by this or any other court. It is so indefinite and ambiguous that it is very difficult, if not impossible, from its language, to gather the real intention of the parties, and any construction that may be given it, independent of extraneous facts and circumstances, will necessarily be attended with much uncertainty. It should be construed by considering it in its entirety, giving each and every part due weight and meaning, if this can be done. None of the provisions should be ignored, nor should there be anything injected into it which the parties have not seen proper to incorporate therein.' And after applying these tests of construction, if the contract is found so ambiguous and uncertain that the true meaning and intention of the parties cannot be ascertained therefrom, then we maj1-' summon to our aid certain extrinsic facts and circumstances. A provision of this lease being that it shall remain in force for a term of five years from its date, and. as much longer as the rent for failure to commence operations is paid, and as long after the commencement of operations as the premises are operated for the production of oil and gas, and it further providing that it shall become null and void unless a well shall be completed within three months from its date, or unless the lessees shall pay a stipulated sum quarterly in advance for each additional three months such completion is delayed until such well is completed, makes it indefinite and uncertain as to whether or not the lessees should complete a well and actually begin operations by the production of oil and gas, or whether or not the beginning of exploration for oil and gas within the five years, and the payment of the quarter^,rentals extended the life of the lease beyond the limit of five years. The contention of the appellee is that oil must be produced within the five years, while the appellants claim that the work which they did [418]*418preparatory to producing- oil and gas on the 10th day of October, 1904, and the payment of the rentals served to extend the life of the lease. In view of the uncertainty of meaning and ambiguity of the lease, in determining this question we should construe the lease in connection with the agreement subsequently made and endorsed 1;hereon. When this is done, we find that the parties have construed the lease themselves to expire at the end of five years, unless oil or gas be produced within that term. The practical construction put upon a contract, where it is ambiguous in meaning, by the parties thereto, is of great weight, and ordinarily controlling. Clark v. Sayers and Lambert, 55 W. Va. 512; Heatherly v. Bank, 31 W. Va. 70; Page on Contracts, section 1126, In a case decided by the United States Supreme Court, Chicago v. Sheldon, 76 U. S. 54, the Court, in its opinion, says; “In cases where the language used bjr the parties to the contract is indefinite or ambiguous, and, hence, of doubtful construction, the practical interpretation by the parties themselves is entitled to great, if not, controlling, influence.” R. R. Co. v. Trimble, 77 U. S. 367; Topliff v. Topliff, 122 U. S. 121.

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Bluebook (online)
57 S.E. 134, 61 W. Va. 414, 1907 W. Va. LEXIS 149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myers-v-carnahan-wva-1907.