Paschall v. Royalties, Inc.

1947 OK 87, 181 P.2d 558, 198 Okla. 646, 1947 Okla. LEXIS 543
CourtSupreme Court of Oklahoma
DecidedMarch 18, 1947
DocketNo. 32557
StatusPublished
Cited by4 cases

This text of 1947 OK 87 (Paschall v. Royalties, Inc.) 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
Paschall v. Royalties, Inc., 1947 OK 87, 181 P.2d 558, 198 Okla. 646, 1947 Okla. LEXIS 543 (Okla. 1947).

Opinion

RILEY, J.

Prior to November 14, 1925, Clifford Trumbly and Addie May Trumbly were husband and wife. The title to the land here involved was in Clifford Trumbly. On that day, the wife was granted a divorce. The land here involved was then leased for oil and gas purposes. The land was awarded to the husband, Clifford Trumbly, except that the wife, Addie May Trumbly, was decreed an undivided 14 interest in all royalties paid from the production or extraction of minerals, oil, or gas, in and under said land, as her separate property. A deed conveying that interest to her was later executed by Clifford' Trumbly.

After the divorce, Clifford Trumbly gave a deed conveying said land to Katherine Jones. The deed from Clifford Trumbly to Katherine Jones did not, in the granting clause, reserve any interest in the oil and gas rights, but in the habendum clause he reserved an undivided % interest in and to the oil and gas rights.

It appeared that this was not the true intent of the parties unless it be said that Clifford was reserving to himself a 14 interest and also reserving the % interest which had theretofore been decreed to his former wife. To correct this apparent ambiguity, Clifford Trumbly later gave Katharine Jones what was termed a correction deed. Therein, Clifford Trumbly reserved to himself, and his heirs, an undivided 14 interest in and to the oil, gas and minerals produced, found, or saved from said land, expressly stating that he was to have no part in the lease money paid under the existing lease or any other oil and gas lease. That made it clear that Clifford Trumbly was reserving to himself only a 14 interest and this was to be a non-participating interest, and it was recited therein that this deed was given to correct the error in the former deed. The warranty clause excepted the undivided 14 royalty interest previously decreed to Addie May Trumbly.

On April 20, 1935, Katharine Jones conveyed the land to John N. Paschall except an undivided 14 interest in the oil and gas thereunder, theretofore sold to J. C. Miller, and except the undivided % interest in the royalties to be paid from any oil and gas produced from said land, with, full right to lease the land and receive and retain any bonus or rental money.

On October 19, 1927, Clifford Trum-bly conveyed to Fred P. Branson an undivided 14 interest in and to the oil, gas, and other minerals in and under said land. This deed purported to give the right to the grantee, Branson, to receive 14 of any money paid for the renewal of the then existing lease and 14 of any future bonus money or rentals. (This rental or bonus rights, however, were not reserved by Clifford Trumbly in his correction deed to Katharine Jones.)

On October 26, 1927, Addie May Trumbly sold and conveyed to Fred P. Branson an undivided 14 interest in and to all the oil, gas, and other minerals in and under said land. This grant was also made subject to the then existing oil and gas lease covering the land, but it purported to convey to the grantee the further right to be paid 14 of all money paid to extend the term of the existing lease and 14 of all future rentals or bonus money paid under any new lease.

On January 20, 1928, Fred P. Bran-[648]*648son eonveyed to W. R. Shirley an undivided 14 interest in and to the oil, gas, and other minerals in and under said land, subject to the existing oil and gas lease, with the right to receive Vs of the rental paid to extend said lease and in the event that lease should expire, then the right to receive Vs of the lease interest and future rental for oil and gas purposes.

On March 8, 1930, W. R. Shirley conveyed to Royalties, Incorporated, an undivided y8 interest in and to the oil, gas, and other minerals in and under said land, subject to any existing oil and gas lease, with right to receive Vs of any money paid for the extension' of said lease and Vs of any bonus or rentals paid for any new oil and gas lease.

This action was commenced by John N. Paschall to quiet title to said tract of land. Plaintiff alleged that he was the owner in fee simple of said tract of land, except the Vi interest sold to J. C. Miller and except a Vi interest in the royalties to be paid from any oil and gas produced from said land, but with full right to lease the same for oil and gas purposes and to receive all bonuses, rentals, etc., as to the % interest in said land. He then alleged the defendants, Royalties, Incorporated, W. R. Shirley, and Fred P. Branson claimed some right, title, or interest in said land but that said interests claimed adversely to plaintiff are without merit.

Defendants Royalties, Incorporated, W. R. Shirley, and Fred P. Branson answered claiming that they were the owners of a Vi participating interest in the oil and gas rights and a Vi nonparticipating royalty interest .in the premises, alleging that they acquired their respective interest from Addie May Trumbly and Clifford Trumbly.

Whatever oil and gas rights Addie May Trumbly got under the decree of divorce and the deed made pursuant thereto are now owned by defendants, Royalties, Incorporated, W. R. Shirley, and Fred P. Branson. Her rights were defined by the divorce decree and the deed from Clifford Trumbly to her, which deed is found in the record at pages 82 to 85. Whatever interest Clifford Trumbly reserved to himself in conveying to Katharine Jones is also now owned by defendants, Royalties, Incorporated, W. R. Shirley, and Fred P. Branson. That interest is defined in the correction deed from Clifford Trumbly to Katharine Jones.

The trial court held and decreed that plaintiff, John' N. Paschall, owns the. land in fee simple except an undivided Vi interest in the oil and gas rights which had been sold to and is now owned by J. C. Miller, and except a Vz nonparticipating royalty interest in all oil, gas, and other minerals in and under said land, with sole right in plaintiff to lease said land for oil and gas purposes and receive and retain all bonuses, rentals, delay rentals, etc., paid for the extension of or under the terms of any lease.

The court also decreed that the interest of defendants Royalties, Incorporated, and Fred P. Branson is an undivided Vz interest in the landlord’s royalty to be paid from any oil, gas, or other minerals produced from said lease, without the right to participate in any bonus paid for any oil or gas lease and without right to have or receive any rentals or delay rentals under such lease.

Plaintiff Paschall appeals, asserting error in awarding defendants a nonparticipating Vz landlord’s royalty interest in the land. Defendants filed a cross-petition in error, but said cross-petition has been dismissed by this court.

The evidence is almost entirely documentary; the various instruments speak for themselves. It is clear from the record that Clifford Trumbly was the owner of the land; that in the decree of divorce his wife, Addie May Trumbly, was awarded an undivided Vi of all royalties paid from the production or extraction of minerals, oil, or gas from said premises, as her sep[649]*649arate property. From the decree, it appears that this was not intended as a “participating” interest. After this decree was entered, Clifford Trumbly was the owner of all the surface rights and % of all mineral rights in and to said land, and his former wife was the owner of the interest decreed to her, effective November 19, 1925.

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Related

McVey v. Hines
1963 OK 190 (Supreme Court of Oklahoma, 1963)
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1952 OK 62 (Supreme Court of Oklahoma, 1952)

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Bluebook (online)
1947 OK 87, 181 P.2d 558, 198 Okla. 646, 1947 Okla. LEXIS 543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paschall-v-royalties-inc-okla-1947.