Pan American Petroleum Corp. v. Cain

340 S.W.2d 93, 13 Oil & Gas Rep. 678, 1960 Tex. App. LEXIS 1735
CourtCourt of Appeals of Texas
DecidedOctober 17, 1960
DocketNo. 6977
StatusPublished
Cited by2 cases

This text of 340 S.W.2d 93 (Pan American Petroleum Corp. v. Cain) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pan American Petroleum Corp. v. Cain, 340 S.W.2d 93, 13 Oil & Gas Rep. 678, 1960 Tex. App. LEXIS 1735 (Tex. Ct. App. 1960).

Opinion

DENTON, Chief Justice.

This suit was brought by appellee, H. L. Cain, for recovery of title and possession of an undivided one-eighth interest in the oil and gas and other minerals in 160 acres of land situated in Yoakum County, Texas. The trial court granted a summary judgment awarding appellee title and possession of the undivided 20 acres of minerals in the Northeast ¼ of Section 640, Block D, John H. Gibson Survey, Yoakum County, Texas. The trial court further declared the oil and gas leases dated May 24, 1955 executed by the heirs of James Kiser, to be null and void and of no force and effect as they purported to include the interest [94]*94of Cain. All defendants in the trial court also filed motions for summary judgment. Upon the overruling of these motions and the granting of appellee’s motion for summary judgment, all defendants duly perfected this appeal.

Prior to May, 1937, James Kiser owned the fee-simple title to both the surface and minerals of Section 640, Block D, referred to above. On May 17, 1937, Kiser executed a mineral deed to Mrs. Mae Johnston conveying an undivided ¼ of the minerals in the Northeast ¼ of Section 640. This mineral deed being duly recorded contained the following typewritten paragraph :

“It is also agreed and understood that the Grantor herein (Kiser) reserves the right to lease said land without the joinder of the grantee, he at all times using his best efforts to obtain the highest lease possible and shall never execute a lease wherein less than the regular one-eighth (⅜&) royalty is reserved. Grantee’s part of the rentals on such lease ü> be deposited to his credit at the Bank designated as a depository under any such lease, until he shall have some other bank designated as a depository for his rentals.”

In addition the deed contained several printed paragraphs, one of which read as follows:

“This sale is made subject to any rights now existing to any lessee or assigns under any valid and subsisting oil and gas lease heretofore executed and now of legal record; it being understood and agreed that said grantee shall have, receive and enjoy the herein granted undivided interest in and to all bonuses, rents, royalties and other benefits which may accrue thereunder from and after the date hereof, precisely as if the grantee herein had been at the date of the making of said lease the owner of a similar undivided interest in and to the lands above described and none other and grantee one of the lessors herein.”

At the time this mineral deed was executed the land in question was under a regular oil and gas lease to Herbert E. Clift who later assigned it to Skelly Oil Company. This lease held by Skelly Oil Company expired on December 24, 1937. On September 11, 1937, at a time when the Skelly Oil Company lease was in force and effect, Mrs. Mae Johnston executed a mineral deed to appellee H. L. Cain conveying an undivided ⅛ interest in the Northeast ¼ of Section 640. The deed from Mrs. Johnston to Cain contained the following provisions:

“Said land being now under an oil and gas lease executed in favor of Skelly Oil Co., it is understood and agreed that this sale is made subject to the terms of Said Lease and/or any other valid lease covering same, but covers and includes One Eighth of all of the oil royalty and gas rental or royalty due and to be paid under the terms of Said Lease, in so far as it covers the above described land.”

On November 30, 1937, Cain executed a mineral deed to W. T. Halbert conveying an undivided ¾sth in the Northeast ⅛ of Section 640 but on July 12, 1951, the widow of W. T. Halbert re-conveyed this same interest back to Cain. At the time of the trial Cain was therefore the owner of an undivided ⅛ interest in the minerals under the Northeast ¼ of Section 640.

On June 7, 1945, after the original Clift lease and a subsequent lease to D. P. Carter had expired, Kiser executed a 10-year oil and gas lease to John W. Murchison covering the whole of Section 640. This lease was later assigned by Murchison to one of the appellants, Leland Fikes. Kiser died intestate on February 19, 1948, and was survived by four daughters: Mabel Kiser Leach, wife of Earl Leach; Mary Kiser Jarman, wife of Clifford Jarman; Edith Kiser Moreland, wife of Lee C. Moreland; [95]*95and Ruth Kiser Franks, wife of Eldon Franks, who were all defendants below and appellants here. Prior to the termination of the June 7, 1945 lease these four daughters of James Kiser, joined by their husbands, executed individual identical leases to Leland Fikes on May 24, 1955, for a term of two years covering all of Section 640. None of the other mineral owners of Section 640, including Cain, joined in these leases, however all mineral owners except Cain subsequently ratified these leases.

Appellant Fikes, along with appellant Pan American Petroleum Corporation, an as-signee of Fikes as to the South 80 acres of the Northeast ¼, claim under these leases of May 24, 1955, executed by the Kiser heirs. Prior to the termination of the primary term of these leases, drilling operations were begun by Pan American Petroleum Corporation and a producing oil well was subsequently completed. Fikes has since completed two producing oil wells on the North 80 acres of the quarter section in question. It is undisputed that the leases of May 24, 1955 are therefore still in force and effect by reason of the producing oil wells except as they may affect the interest of Cain.

From January, 1937 to the date of the trial it is also undisputed that James Kiser or his lawful heirs have owned an undivided interest in the minerals under Section 640. The record reveals that the Kiser heirs were the owners of an undivided 90 acres of minerals in the Northeast ¼ of Section 640 at the time of the trial.

Three separate briefs in addition to supplemental briefs have been submitted by the various appellants. Differently worded points of error are brought forward by the several appellants but their positions are substantially identical. We shall therefore discuss the general positions taken by all appellants in which they seek to uphold the validity of the leases of May 24, 1955.

As we understand the basic position of appellants, they are contending the power to lease reserved by James Kiser in the deed of May 17, 1937, to Mae Johnston was a power coupled with an interest, therefore such power was irrevocable and did not terminate with the death of James Kiser. Appellee concedes, and we think rightly so, that Kiser reserved a power that was coupled with an interest. We are of the opinion the law is well settled that a power coupled with an interest is a power accompanied by or connected with an interest in the property subject to the power. Superior Oil Co. v. Stanolind Oil & Gas Co., Tex.Civ.App., 230 S.W.2d 346, affirmed by Supreme Court in 150 Tex. 317, 240 S.W.2d 281; Allison v. Smith, Tex.Civ.App., 278 S.W.2d 940; Jones v. Guy, Tex.Civ.App., 71 S.W.2d 913.

It is the contention of Cain that the power to lease reserved by Kiser terminated at his death, and that the leases executed by the Kiser heirs on May 24, 1955 are null and void and of no force and effect as to Cain’s interest.

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Related

Pan American Petroleum Corp. v. Cain
355 S.W.2d 506 (Texas Supreme Court, 1962)

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Bluebook (online)
340 S.W.2d 93, 13 Oil & Gas Rep. 678, 1960 Tex. App. LEXIS 1735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pan-american-petroleum-corp-v-cain-texapp-1960.