Nabors v. Producers' Oil Co.

74 So. 527, 140 La. 985, 1917 La. LEXIS 1456
CourtSupreme Court of Louisiana
DecidedFebruary 12, 1917
DocketNo. 21639
StatusPublished
Cited by41 cases

This text of 74 So. 527 (Nabors v. Producers' Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nabors v. Producers' Oil Co., 74 So. 527, 140 La. 985, 1917 La. LEXIS 1456 (La. 1917).

Opinion

O’NIELL, J.

The defendant appeals from 1 a judgment annulling a contract purporting to be a mining lease of certain lands to the defendant. The plaintiffs, who were the grantors, have answered the appeal and pray that the judgment be amended by allowing their demand for damages for the alleged violation of the contract, on which demand for damages the district court rendered a judgment of nonsuit.

The following is a copy of the contract, viz.:

“This oil and mineral lease and contract, between J. M. Na'bors (a married man, whose wife is Mary Lee), W. A. Nabors (a married man, whose wife is Robena Fuqua), J. B. Nabors, a single man, Mrs. Sallie Mag Nabors, widow of E. A. Nabors, individually and as tutrix for the minors, Sarah, Susan, Eugene, Louise, Margaret and Wilfred A., heirs of E. A. Nabors, deceased, all residents of De Soto parish, Louisiana, and Grand Bayou Planting Company, a corporation organized under the laws of Louisiana, with its domicile at Mansfield, La., herein represented by its president, J. M. Nabors, duly authorized by its board of directors (hereinafter styled grantor, whether one or more), and Producers’ Oil Company,- a corporation organized under the laws of Texas, and domiciled at Houston, Harris county, Texas (hereinafter styled grantee),
“Witnesseth: That said grantor does hereby grant, bargain, sell and convey unto the said grantee all <5f the oil; gas, coal and other minerals in and under the lands herein described, together with the exclusive right of ingress and egress at all times for the purpose of drilling, mining, and operating for oil, gas, coal and other minerals, and for conducting all operations and the erection of appliances and structures in regard thereto, and for laying all pipe lines necessary for the production, mining, storing and transportation of oil, gas and other minerals, with privilege of renewing and removing all such structures at will, reserving and securing to the grantor, however, the royalties, payments and other benefits and advantages hereinafter provided for.
“It is agreed that the grantee shall have free use of oil, gas, water and wood from said lands for all developments and operations thereon; said lands being described as follows:
“In De Soto and Red River parishes, state of Louisiana, and being Frac. S. E. % of S. E. %: Frac. S. W. % of S. E. Frac. N. B. % of S. E. %; Frac. N. W. % of S. E, %.; Frac. S. % of N. EX % ; Frac. E. % of N. W. % and Frac. N. W. % of N. W. % I Frac. N. W. % of N. EX % and Frac. S. W. % of N. W. of Sec. 29, Frac. N. E. % of N. B. of Sec. 39, containing'231.33 acres of land, more or less, and [989]*989being land patented from the state of Louisiana, and lying east of Bayou Pierre, all in T. 13 R. 11, Red River parish, Louisiana. Also Lots 1, 2, 3, and 4 in section 25, T. 13 R. 12 containing 416.5 acres of land more or less and being patented from the state of Louisiana, being in De Soto parish. Also west half of S. W. of S. E. %, Sec. 11 and S. W. % of N. E. Yi, Sec. 15, and N. E. % of N. W. % of Sec. 26, and the S. E. of Sec. 26, being 260 acres of land all in T. 12 R. 12 De Soto parish, Louisiana. Making a grand total of 907.83 acres of land, more or less in De Soto and Red River parish, state of Louisiana.
“Grantor here warrants and defends the title to the above-described lands unto the said grantee and the successors and assigns of such, and obligate themselves to hold said grantee harmless from all damages by reason of any defect in title.
“To have and to hold all and singular the above-described premises, rights, properties and privileges, and all such as are hereinafter specified, unto the said grantee, and the heirs, successors and assigns of such, forever, upon the following terms:
“1. The considerations of this contract are as follows: (a) The sum of twenty-two thousand six hundred and ninety-four and 75/100 dollars, payment whereof by the grantor is hereby acknowledged ; (b) such other payments by _ the grantee, if any, as may be hereinafter provided for; (c) the royalties hereinafter specified; and (d) the expenditure by the grantee of such sums of money as may have been or may hereafter be made upon the above premises or upon neighboring lands, for the development of mineral resources in such locality; and the payment and expenditures made or that may be made by grantor are considerations; not only for the minerals in the lands aforesaid; but for all the other privileges granted herein.
“2. The royalty above mentioned as to oil shall be a quantity equal to one-eighth (%) of all produced and saved upon the premises, the same to be delivered at the well, free of charge to the grantor, or to his credit, in the pipe line to which such wells may be connected.
“3. The royalty for coal shall be four cents for every ton of same that is mined and marketed, payable monthly.
“4. The royalty for gas shall be $300 per annum for each well from which gas is used off the premises, the grantor to have the privilege at his own risk and cost to make connections and use gas free of charge for one dwelling on the premises.
“5. The royalty for any other minerals discovered shall be one-tenth of the net proceeds arising therefrom while the same are being used off the premises.
“6. Under penalty of forfeiture of the rights and estate hereby granted, operations for the drilling of a well for oil or gas shall be begun within one year from the time of final execution and delivery of this contract, and if so forfeited the rights and liabilities of both parties shall thereupon be ended. Eorfeiture may, however, he saved by the grantee, and the vitality hereof be continued and maintained, notwithstanding _ operations be not begun within the proper time limit, provided only that, for the privilege of delay in such beginning, from time to time, the grantee may pay, as hereinafter provided, $22,694.75 per year for a period not exceeding three years from delivery hereof.
“Operations upon a well begun shall be prosecuted with diligence, unavoidable accidents and contingencies only excepted, and, when a well is begun, it shall be sunk to a depth of-feet, unless oil or gas be sooner developed in paying quantities, but a well which may be lost or spoiled may be continued at another location, and to be considered the same as the original.
“After a well is begun, no further payments in respect to delivery shall be due, and, for every well drilled, there shall in all events be secure from forfeiture an area of 200 feet square, with the well in the center, together with 40 acres of land adjoining, said acreage to be precisely designated by the grantee, if grantor so demands.
“7. Any payments due or to become due hereunder shall be deemed complete if made or tendered to the grantor or if deposited or tendered for deposit to the credit of the grantor in the People’s Bank at Mansfield, La.
“8.

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Bluebook (online)
74 So. 527, 140 La. 985, 1917 La. LEXIS 1456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nabors-v-producers-oil-co-la-1917.