Plains Petroleum Corp. v. Fine

1935 OK 825, 51 P.2d 284, 174 Okla. 570, 1935 Okla. LEXIS 1314
CourtSupreme Court of Oklahoma
DecidedSeptember 17, 1935
DocketNo. 25656.
StatusPublished
Cited by14 cases

This text of 1935 OK 825 (Plains Petroleum Corp. v. Fine) 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
Plains Petroleum Corp. v. Fine, 1935 OK 825, 51 P.2d 284, 174 Okla. 570, 1935 Okla. LEXIS 1314 (Okla. 1935).

Opinion

RILEY, J.

Mildred Fine, subsequently joined by Leverett Edwards and T. Murray Robinson, brought this action for damages against Plains Petroleum Corporation, a corporation, (B. G. Patton, John Luttes, E. P. Humphrey, R. G. Alexander, and Giles A. Kelly, individuals.

She alleged that she owned an undivided two-sixths Interest in the oil, gas, and other minerals under lots 15 and 16, block 7, Reno avenue addition to Oklahoma City. Prior to the acquisition of plaintiff’s interest these lots had been leased apart from other land for oil and gas development purposes to R. G. Alexander. Similarly Dan Traywick and wife, owners of adjoining lots, leased lots 13 and 14 of the same block and addition to R. G. Alexander. None of the lots were within the corporate limits of Oklahoma City, nor were any of them subject to zoning ordinances or existing statutes by which the separate tracts of land without consent of the owners could he unitized or “commun-itized” for drilling.

The plaintiffs never acquired any interest in iots 13 and 14.

Alexander, owner of the two separate leases, negotiated with John Luttes for their sale. The price agreed upon was $4,000. Luttes agreed to sell the leases to E. R. Henson for $4,500, plus 1/32 overriding royalty interest in lots 13 and 14. Henson arranged a sale to B. G. Patton. The Plains Petroleum Corporation not then being organized. Patton bought the leases, and an assignment as to lots 13 and 14 was made to, him. The assignment covering lots 15 and 16 was *571 made to Giles Kelly. Thereafter Plains' Petroleum Corporation was organized and it acquired both leases, but record title to the lease on lots 15 and 16 was permitted to remain in the name of Giles Kelly.

In the meantime Edwards and Robinson acquired, through LaRue McQuire, from the owners of the fee (Simon Stone and Belle Stone) a mineral deed to one-half interest in lots 15 and 10. The plaintiff, Mildred Pine, acquired her two-sixths interest from Edwards and Robinson, and a one-sixth interest in the mineral remained in the name of LaRue McQuire.

In the meantime P. R. Henson purchased the fee title to lots 15 and 16.

The result was, as to the ownership of minerals in lots 15 and 16, plaintiffs owned two-sixths, McGuire one-sixth, Henson three-sixteenths, and a lease stood in the name of Giles Kelly, who held record title for the benefit of Plains Petroleum Corporation.

It is further alleged that Patton acquired a surface lease from Henson covering lots 15 and 16, and a one-lialf interest in the royalty thereto.

Plains Petroleum Corporation completed a well on lots 13 and 14, December 11, 1930, and on that date Giles Kelly, at the request of Plains Petroleum Corporation, released of record the oil and gas lease to lots 15 and 16.

This action for damages is predicated upon the allegation that plaintiffs’ interest in lots 15 and 16 has been injured by the drilling of said well “without any manner of protecting the owners of the royalty on lots 15 and 16 from drainage, and without in any manner attempting- to deal equitably or fairly as to lessors on lots 15 and 16.”

It is pleaded that after the said release was filed plaintiffs have been unable to secure any person or firm to drill a well on their land, and that it is impractical and unprofitable to drill an oil and gas well upon a tract of land the size of lots 15 and 16, and that there are no other lands which might be used together with lots 15 and 16 for drilling purposes; that as a consequence the royalty of plaintiffs is now valueless and has never been of any value since the completion of the well on lots 13 and 14.

There were allegations of a conspiracy and resultant damage to plaintiffs, but the verdict of the jury in the sum of $10,000' against Plains Petroleum Corporation, alone and without cross-appeal, negatived these allegations. Moreover, on page 20 of the answer brief it is said, “We concede that conspiracy was not found; however, conspiracy was not an essential element of the cause of action against plaintiff in error.” Again it is said: “Speaking in a strict sense, we are inclined to agree with the Plains Petroleum Corporation did not violate any legal duty toward defendants in error. We believe that they violated the principles of equity in holding the lease for the purpose for which they held it while drilling the adjoining lease.” The trial court treated the cause as one in equity, but adopted the verdict of the jury and rendered judgment accordingly. Plains Petroleum Corporation appeals.

This undoubtedly constituted harmless error.

The decision in the cited case of Ward v. Mid-West & Gulf Co., 97 Okla. 252, 223 P. 170, did not sustain the award of a money judgment by a court of equity.

The cited decision in Mid-Continent Life Ins. Co. v. Sharrock, 162 Okla. 127, 20, P. (2d) 154, concerned a primary cause of reinstatement or establishment of a life insurance policy, and as an incident thereto a money judgment, whereas in the ease at bar the sole object of the suit is a money judgment. There was no purpose or object for which a court • of equity could obtain jurisdiction subsequently to retain jurisdiction for the purpose of administering complete relief McKay v. Kelly, 130 Okla. 62, 264 P. 814.

This was an action at law and one sounding in tort. 21 C. J. 59; Trimble v. Minnesota Thresher Mfg. Co., 10 Okla. 578, 64 P. 8; Whitham v. Lehmer, 22 Okla. 627, 98 P. 351.

The defendants in error seek to support the judgment rendered under the statement that:

“Where the same lessee holds under two adjoining lessors he may not fraudulently or evasively so drill his wells as to drain the property of one to the detriment of the other.” Barnard v. Monongahela Nat. Gas. Co., 216 Pa. 362, 65 Atl. 801; Culbertson v. Iola Port. Cement Co., 87 Kan. 529, 125 P. 81; J. M. Guffey Pet. Co. v. Jeff Chaison Townsite Co. (Tex. Civ. App.) 107 S. W. 609; Powers v. Bridgeport Oil Co., 238 Ill. 397, 87 N. E. 381; Lamp v. Locke, 89 W. Va. 138 108 S. E. 889; Blair v. Clear Creek Oil & Gas Co., 148 Ark. 301, 230 S. W. 286; Dillard v. United Fuel & Gas Co. (W. Va.) 173 S. E. 573.

The premise is based upon the doctrine stated in Thornton, Oil & Gas (5th Ed.) sec. 298:

*572 “A lessee cannot hold the leased premises and drain them by sinking wells on adjoining premises; and if he persist in such conduct he will forfeit his lease. In an instance of this character, or at least where there was danger that the leased premises would be drained of its oil by wells operated on adjoining premises by the lessee, it was held to he the duty of the lessee to open as many wells on the leased premises as was necessary to secure the common advantage of the lessor and himself. * * *”

It is notable that in the case at bar there was no attempt to hold-the lease on lots IB and 16 after completion of a well on lots 13 and 14.

Defendants in error say in their brief:

* * Under ordinary circumstances * * * the remedy of a landowner whose land is being drained is to secure a well to he drilled on his own land.” (P. 4)

And:

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Bluebook (online)
1935 OK 825, 51 P.2d 284, 174 Okla. 570, 1935 Okla. LEXIS 1314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plains-petroleum-corp-v-fine-okla-1935.