Petitt v. Double-O Oil Co.

1921 OK 179, 198 P. 616, 82 Okla. 13, 1921 Okla. LEXIS 167
CourtSupreme Court of Oklahoma
DecidedMay 17, 1921
Docket10101
StatusPublished
Cited by3 cases

This text of 1921 OK 179 (Petitt v. Double-O Oil 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
Petitt v. Double-O Oil Co., 1921 OK 179, 198 P. 616, 82 Okla. 13, 1921 Okla. LEXIS 167 (Okla. 1921).

Opinion

JOHNSON, J.

This is an appeal from the district court of Okmulgee county; Hon. Mark L. Bozarth, Judge.

This action was commenced on February 27, 1917, by Millie Petitt and J. C. Petitt, as owners, and Spencer Adams, as holder of an oil and gas lease on the following described real estate situated in Ok-mulgee county, Oklahoma, to wit, the northeast quarter of section 9, in township 14 north, range 14 east of the Indian base and meridian — to set aside a certain oil and gas lease to Doublte-O Oil Company, dated October 17, 1912.

The cause was tried to the court, and the court made no separate findings of fact, but made a general finding in favor of the defendants, rendering a judgment in their favor, from which judgment the plaintiffs have appealed to this court.

The plaintiff in error, Millie Petitt, as a Creek freedwoman, was allotted the above described real estate. Immediately upon becoming of age, Millie Petitt, then Millie Stephens, deeded this land to her mother, Ella Hadley, September 28, 1912. On October 17, 1912, Ella Hadley executed to Double-O Oil Company an oil and gas lease covering the Millie Petitt allotment, above described, and also the north half of the northwest quarter of section 16, township 14 north, range 14 east, being a 'part of the Ella Hadley allotment. On December 10, 1912, Ella Hadley and Wm. Hadley, her husband, reconveyed to Millie Petitt, nee Stephens, the Millie Petitt allotment.

The land- herein involved, as hereinbe-fore stated, the N. E. ¼ of sec. 9, Twp. 14 N., R. 14 E., was allotted to Millie Petitt, nee Stephens, and the S. E. ¼ of the same section was allotted to her brother, Willie Stephens, and the N. ½ of the N. E. ¼ of section 16, which joined the Willie Stephens *14 allotment on the south, was allotted to the mother of the parties, Mrs. Ella Hadley.

On October 17, 1912, Ella Hadley, joined 'by her husband, ffm. Hadley, executed an oil and gas lease to the defendant, Double-O Oil Company, covering the Millie Petitt tract and the Ella Hadley tract, but did not cover the Willie Stephens tract. The lease recited the consideration of $1.00 and other good and valuable considerations, and of the covenants and agreements hereinafter contained, and contained a further provision as follows:

“It is further agreed and understood that the party of the second part is to commence operations in connection with the drilling of a well for oil and gas upon the southeast quarter of section nine, in township fourteen north, range fourteen east, within 30 days from the date of this lease, and to pursue said operation to completion without unnecessary delay, unavoidable accidents and water conditions to be at all times considered; that if oil or gas be found in paying quantities in the well hereinabove provided for, then the party of the second part agrees to prospect and develop the premises herein leased as soon as practicable, and to protect all lands from waste by other drilling operations. A failure to commence and complete said first or test well on said southeast quarter of section nine, shall render this lease absolutely null and void, but the drilling of such well and the finding of oil or gas therein in paying quantities, and the development of the premises herein leased shall operate as full payment of all rentals under this lease saving to the lessor as herein provided, the one-eighth part of all the oil production and the $250.00 per year for each gas well.”

It will be observed that a test well was to be drilled upon the Willie Stephens land, which lay between the two tracts included in the lease. No well was commenced upon the Willie Stephens allotment until in January, 1913, and a small amount of gas being found on this land, no further development was made and the premises were abandoned.

The record discloses- without dispute that one H. E. P. Stanford was the organizer and president of the Double-O Oil Company, and that he was the party who prepared the Millie Petitt deed to her mother, and he was the party who prepared and managed the execution of the gas lease from Ella Hadley to the Double-O Oil Company, and also in December prepared and attended to the execution of the deed from Ella Hadley to Millie Petitt, and he is the sole manager of the Double-O Oil Company, and that company drilled the well on the Willie Stephens allotment. That well was not commenced until some 30 days after the time specified in the lease. He testified that he secured from Ella Hadley an acknowledgment that the well was commenced within the time, but that the written acknowledgment could not be found at the time of the trial.

After the execution thereof, assignments were made by the Double-O Oil Company' to numerous parties of interest in said lease. Stanford testified that the Double-O Oil Company and its several assignees were partners in the lease, and that thereafter the Double-O Oil Company entered into a written extension agreement with Millie Petitt on December 30, 1913, which agreement was as follows:

“Whereas, on the 17th day of October, 1912, Ella Hadley joined by her husband, William Hadley, made and executed to the Double-O Oil Company a certain oil and gas lease, covering the following described lands, to wit: The northeast quarter of section nine, township fourteen north, range fourteen east (amongst other lands) in Okmulgee county, Oklahoma.
“Whereas, since the execution of said lease the above described tract of land has been by the said Ella Hadley and William Hadley deeded in fee to the undersigned.
“Now, therefore, Know all men by these presents, That we, Millie Petitt and T. J. Petitt, her husband, for and in consideration of the sum of One Dollar, and other valuable considerations, the receipt of all of which is hereby acknowledged, hereby ratify and confirm said oil and gas lease, -and agree that same may be extended for a period of sixty days from this date upon the following condition: that the said Double-O Oil and Gas Company, its successors or assigns, shall within thirty days from this date commence the drilling of a well for oil or gas upon the land and premises herein described and shall complete the same within sixty days from this date, and failing to find oil or gas in paying quantities shall within six months thereafter surrender said lease and shall deliver to the said Millie Petitt and T. J. Petitt a good and sufficient release of said oil and gas lease.
“The Double-O Oil Company further agrees to furnish releases to the said Millie Petitt and T. J. Petitt from any parties to whom they may have assigned any interest in and to the above mentioned lease should thev fail to develop oil and gas in the time mentioned above.
“Witness our hands and seals this 30th day of December, 1913.
“Millie Petitt.
“C. J. Petitt.
“(Corporate Seal.)
“Double-O Oil and Gas Co.
“By H. E. Stanford, Pres.
*15 Attest: Harry O. Devmna, Secretary.”

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Bluebook (online)
1921 OK 179, 198 P. 616, 82 Okla. 13, 1921 Okla. LEXIS 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petitt-v-double-o-oil-co-okla-1921.