Reserve Gas Co. v. Carbon Black Manufacturing Co.

79 S.E. 1002, 72 W. Va. 757, 1913 W. Va. LEXIS 125
CourtWest Virginia Supreme Court
DecidedSeptember 30, 1913
StatusPublished
Cited by9 cases

This text of 79 S.E. 1002 (Reserve Gas Co. v. Carbon Black Manufacturing Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reserve Gas Co. v. Carbon Black Manufacturing Co., 79 S.E. 1002, 72 W. Va. 757, 1913 W. Va. LEXIS 125 (W. Va. 1913).

Opinion

POEEENBARGER, PRESIDENT :

Upon the bill of the Beserve Gas Company, praying cancellation of a lease, for oil and gas purposes, upon a small area of land, containing one acre, three roods and one-half a pole, executed by Charles Butcher and wife to the Carbon Black Manufacturing Company, a. corporation, and an injunction to restrain the defendants from operating or drilling upon said tract of land for oil and gas or from taking or removing any oil or gas therefrom, the circuit court of Lewis county decreed cancellation of the lease and perpetually enjoined operations thereunder; and from this decree the Carbon Black Manufacturing Company has appealed.

The conflicting claims set forth in the pleadings and the issues made arise out of the following facts: Owning two parcels or lots carved out of a tract of land formerly belonging to Thomas Butcher, one containing 25.5 acres and the other 11 acres, according to the specifications of quantity in the deeds, Granville A. Butcher, on September 13, 1889, executed to one' Fretts an oil and gas lease thereon, representing the combined area to be 49 acres. This lease for a term of 20 years was after[759]*759ward assigned to one Ira DeWitt, of Pittsburg’. On tbe 23d day of November, 1893, Granville A. JButclier, by a deed from Louis Bennett, Special Commissioner, obtained another small portion of the Thomas Butcher land, which had been conveyed by Thomas Butcher to Emmanuel Butcher. Between what he had previously owned, and the lot obtained by the Bennett deed, containing one acre ,three roods and one-half a pole, there was a edunty road, the small lot lying north of it, and the large tract south. On the northeast of the larger tract, the one included in the Fretts lease, ran the West Fork River, and on the southeast it was bounded for the most part, by a tract of land owned by Elizabeth Ervin. On the southwest lay lands 'of C. D. De-Adnney and C. A. Peters and on the west and northwest were lands of H. B. Butcher and M. E. Butcher. The small tract acquired by the Bennett deed was bounded on the north and the west by a tract of land containing 21.98 acres which had been conveyed by Thomas Butcher to Wm. E. Arnold, who devised it to Wilson A. Arnold, by his will probated July 23, 1890. Gran-ville A. Butcher, did not own the one acre, three roods and one-half a pole tract at the date of the Fretts lease, but he did own it on the 8th day of August, 1900, the date of the oil and gas lease to the South Penn Oil Company for a term of ten years or as long as oil or gas or either of them should be produced from the land, and describing the premises as “bounded substantially as follows: On the north by the.lands of Wm. A. Arnold and others. On the east by lands of A. W. Woodford and others. On the south by lands of M. Ervin and others. On the west by lands of C. D. Devinney and others. Containing 49 acres more or less.” The Frett’s lease gives the boundaries as follows: “On the north by West Fork River. On the east by lands of M. Ervin. On the south by lands of 'C. Flesher & 0. Devinney. On the wrest -by lands of Wm. Arnold & others,” containing 49 acres more or less. On the 4th day of June, 1897, Granville Butcher leased the small lot north of the road to E. W. Boyd for oil and gas purposes for a term of five years, and, on the first day of June, 1899, to the Eastern Oil Company for like purposes for a term" of ten years. On January 1, 1907, he conveyed the land by deed ■ to" his son, Charles Butcher. The Eastern Oil Company’s1 lease'having expired, Charles Butcher, on July 12, 1909, [760]*760executed a new lease on ibis lot, to the Carbon Black Manufacturing Company, which company began a well on the premises March 16, 1910, and. completed the same April 20, 1910.

Though there is no proof of the assignment of the Fretts lease to the South Penn Oil Company, John Butcher, a son of the lessor, says Thos. H. ICemper, one of the agents of the South Penn Oil Company, who took the lease of August 8, 1900, said, on the occasion, he had come to re-lease the property at one dollar an acre instead of ten cents an acre, the rental provided for in the Fretts lease, and further that Kemper had the Fretts lease with him at the time. John Butcher further testified that Kemper was informed on that occasion by the lessor, Granville A. Butcher, that the-small tract of land in question was already under a lease to the Eastern Oil Company. Practically all of this testimony is denied b}' Kemper.

As recorded, the lease of August 8, 1900, contains this clause, relating to the payment of rentals or delay money: “Such payments may be made direct to the lessor or deposited to-credit in -r-The original lease, put in evidence along with a certified copy of it as recorded,-contains this clause: “Such payments may be made direct to the lessors or deposited to their credit in the National Exchange Bank of 'Weston, W. Y&.” The rentals were paid regularly but not always to the lessor in pferson. Sometime before this controversy arose, the lessor died, and, after his death, some of the rentals were paid into the bank to the credit of. his heirs.

The oil and gas rights vested in the South Penn Oil Company by its lease were assigned to the Hope Natural Gas Company in April, 1902, and by it to the Eeserve Gas Company November 1, 1902.

In February, 1910, the Eeserve Gas Company, having discovered preparations by the Carbon Black Company for drilling on the small tract of land in question, gave notice of its adverse claim under the South Penn Oil Company lease and advised that any operations by the Carbon Black Company under its lease would be at its own peril. At this time, the Carbon Black Company had done .very little towards the development of the property. .Later, it expended about $6,0-00.00 in the drilling and equipment of the well, which produced about 4,000,000 feet of [761]*761gas a day, and about $30,000.00 in the erection of its plant on the lot. Process was issued in this cause on May 3, 1910, and the bill was filed at June Kules, 1910.

Alleged ambiguity in the description of the leased land is relied upon in argument as justification for consideration of the ■surrounding and attendant facts and circumstances within the knowledge of the parties as showing their intention and authorizing rejection of the call for the Arnold tract of land as the northern boundary. .If that call is to be respected and applied literally, the lease includes the small tract north of the county road, the one on which the Carbon Black Manufacturing Company has its lease and upon which it has drilled a producing gas well, for, if that tract is omitted, the Arnold tract does not touch nor bound the property at any point. It lies directly north of the remaining land owned by Granville A. Butcher at the date of the lease, but the small tract purchased at the judicial sale, ■conveyed by Bennett, Special Commissioner, lies between them. Though the call is for the lands of Wm. A. Arnold and others, and there are no lands of others lying directly north, except the Charles Butcher lot, the Arnold land is called for as a boundary with others, and, if the Charles Butcher lot is. excluded from the lease, the Arnold land is not a boundary at all. ' As there is a definite and positive call for that land as a boundary, we are unable to perceive how it can be rejected on the ground of uncertainty or indefiniteness. The western boundary line is irregular, the general course being northeast and southwest, wherefore it may be reasonably said the call for the Arnold land and others is intended to include lands of II. B.

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Bluebook (online)
79 S.E. 1002, 72 W. Va. 757, 1913 W. Va. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reserve-gas-co-v-carbon-black-manufacturing-co-wva-1913.