Powell v. Forest Oil Corporation

392 S.W.2d 549
CourtCourt of Appeals of Texas
DecidedJune 22, 1965
Docket7667
StatusPublished
Cited by18 cases

This text of 392 S.W.2d 549 (Powell v. Forest Oil Corporation) 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
Powell v. Forest Oil Corporation, 392 S.W.2d 549 (Tex. Ct. App. 1965).

Opinion

FANNING, Justice.

A venue case. Forest Oil Corporation joined by other co-owners of a “Snider” lease in Wood County, Texas, brought suit against L. W. Powell and a number of other named defendants alleging, among other things, to the effect that a deviated or “slant hole” oil well was drilled and completed in 1954 (by Powell and other defendants) which was surfaced on the “Burgin” lease of Powell and certain named defendants in Wood County, Texas, but which was bottomed under the “Snider” lease of plaintiffs, and that from August 13, 1954, to August 6th, 1962, such well surfaced on the “Burgin” lease but bottomed under plaintiffs’ “Snider” lease, produced oil from plaintiffs’ “Snider” lease, and constituted a conversion of plaintiffs’ *551 oil to plaintiffs’ damages in the sum of $720,994.00.

L. W. Powell and certain other defendants filed pleas of privilege to be sued in the counties of their respective residences. None of the defendants reside in Wood County, Texas, where the suit was filed. Plaintiffs controverted the pleas of privilege. The original controverting pleas were not properly sworn to but the amended controverting plea was properly sworn to. Plaintiffs contended in their amended controverting plea that venue of the suit was maintainable in Wood County, Texas, under subdivisions 9 and 7 of Art. 1995, Vernon’s Ann.Civ.St. Appellants levelled' certain special exceptions to the original and amended controverting pleas, which exceptions were overruled by the trial court. The trial court after hearing the evidence adduced, including certain stipulations, overruled the pleas of privileges of Powell and certain other named defendants, and appellants have appealed.

Plaintiffs-appellees alleged in their amended petition that defendants-appellants were mining partners. This was not denied under oath by any of the appellants. Appellants must be considered as mining partners under the record in this cause. See Rules 93 and 86, Texas Rules of Civil Procedure, and Harrington v. State, Tex.Civ.App., 385 S.W.2d 411 (1964).

The well in question and the “Snider” and “Burgin” leases were all located in Wood County, Texas.

As hereinafter indicated it is our view and holding that there was sufficient pleading and proof to maintain venue of this suit in Wood County, Texas, under the “trespass” portion of Art. 1995, V.A.C.S., by reason of conversion of plaintiffs’ oil by appellants, and for this reason we do not discuss other contentions relied on by appellees to sustain venue in Wood County, Texas.

Section 9 of Art. 1995, V.A.C.S., reads as follows:

“9. Crime or trespass. — A suit based upon a crime, offense or trespass may be brought in the county where such crime, offense, or trespass was committed by the defendant, or by his agent or representative, or in the county where the defendant has his domicile. This subdivision shall not apply to any suit based upon negligence per se, negligence at common law or any form of negligence, active or passive.”

There was ample proof that the well in question was a deviated or “slant hole” oil well which surfaced on appellants’ “Burgin” lease and bottomed under appellees’ “Snider” lease. The Sperry-Sun survey, properly made in 1962, showed that the well was bottomed under plaintiffs’ lease at a point 1400.3 feet south 35 deg. E. 56 min. W. from the surface location. Also when the well was directionally surveyed by the Railroad Commission on August 6, 1962, the measured depth was found to be 5050 feet, which was contrary to the figure of 4874 feet given by L. W. Powell as the depth of said well in the well completion report signed by Powell, as operator. On August 8th, 1962, the pipe line connection to the well was severed. Application to plug the well was made and the well was plugged.

There was ample proof that each of the appellants signed division orders and transfer orders selling the production from the oil well in question to Humble Oil & Refining Company, and that pursuant to the terms of the division orders the oil was delivered at the stock tanks on the “Burgin” lease into the Humble Pipe Line Company, in Wood County, Texas, and the proceeds were paid to the defendants in the respective amounts assigned to their purported interests.

It is generally held that an unlawful conversion is a “trespass” within the meaning of Subd. 9 of the venue statute. *552 Thus, venue of an action for conversion may be laid in the county where the tort was committed, although the defendant has his domicile elsewhere. And in order to sustain venue in such a case, it is not necessary on the hearing of a plea of privilege to prove the fact of conversion with that degree of conclusiveness required in a trial on the merits; only a substantial controversy need be shown. See 14 Tex.Jur.2d, Conversion, Sec. 43, p. 43-45, and the numerous authorities therein cited.

Appellants contend that they did not have any knowledge that the well was a deviated or “slant hole” well. Some of the appellants acquired their interests after the well was completed and' they contend that they could not have had any knowledge of the well being deviated or being a “slant hole” well. All appellants thus contend that because they had no knowledge of the well being deviated that they could not be convertors of plaintiffs’ oil.

To constitute conversion, there must be an intent on the part of the defendant to assert some right in the property. Wrongful intention is not essential, however; nor is it material, except as to the question of damages, that the defendant acted in good faith or under a mistaken belief as to his rights. 14 Tex.Jur.2d, Sec. 3, p. 11.

In Harrington v. Texaco, Inc., 5th Circuit, 339 F.2d 814, a “slant hole” oil well case decided in 1964, it was stated:

“The fact that no effort was made to establish that Harrington had wil-fully deviated the well is not relevant to the joint liability issue since such intent is not required to make out conversion. 14 Tex.Jur.2d Conversion § 3. * * *
“Under Texas law,, these defendants were guilty of conversion of personal property,15 and under the general rule the measure of damages is the value of the converted property, 14 Tex.Jur.2d Conversion §§ 1, 3, 9, 24 — in this case, the value of the oil at the surface.”
(Footnote 15 of said opinion reads as follows: “In Texas, oil and gas is regarded as realty when in place but as personalty when severed. W. B. Johnson Drilling Co. v. Lacy, Tex.Civ.App. no writ history, 1960, 336 S.W.2d 230; 14 Tex.Jur.2d Conversion § 9.”

In Pan American Petroleum Corporation v. Long, 5th Circuit, 340 F.2d 211 (1964), Southwestern Life Insurance Company, a mortgagor of Long, the operator of a deviated or “slant hole” oil well, was held liable for conversion of oil and gas.

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Bluebook (online)
392 S.W.2d 549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-forest-oil-corporation-texapp-1965.