Roussel v. Russell

1959 OK 84, 339 P.2d 522, 10 Oil & Gas Rep. 1090, 1959 Okla. LEXIS 434
CourtSupreme Court of Oklahoma
DecidedMay 12, 1959
Docket38264
StatusPublished
Cited by8 cases

This text of 1959 OK 84 (Roussel v. Russell) 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
Roussel v. Russell, 1959 OK 84, 339 P.2d 522, 10 Oil & Gas Rep. 1090, 1959 Okla. LEXIS 434 (Okla. 1959).

Opinion

BLACKBIRD, Justice.

The present appeal involves an oral agreement, under which plaintiff in error, hereinafter referred to as defendant, was to pay defendant in error, hereinafter referred to as plaintiff, his costs in procuring for defendant an oil and gas lease, or leases, on the undivided interests of persons in various branches of the Quigley Family, referred to as the “Quigley Heirs”, comprising a 96 or 98-acre part of “the: Northeast Quarter of Section Thirty (30), Township Ten (10) North, Range Twenty (20) W. I. M.”, in Washita County, and said to be “on the edge” of the Elk City Pool or Field. On September 25, 1955, when the agreement was entered into, defendant,, an oil and real estate operator of New Orleans, Louisiana, was about to complete a producing well in Section 30’s Northwest Quarter, on land owned by a family named “Nutley.” On the day in question, T. W. or “Spec” Cooper, who then lived in Oklahoma City, was making one of his frequent visits to the Nutley well (which had been drilled to a depth of some 9 or 10 thousand feet) to watch a drill stem test of said well. After Cooper’s visit to the well, there was a long distance telephone conversation between him and the defendant, in the presence of Ervin J. Roussel, defendant’s brother and drilling superintendent on the Nutley well, in which the possibility of defendant’s obtaining an oil and gas lease on the Quigley Heirs’ tract was discussed, and defendant told Cooper that if he could obtain it, defendant wanted a one-year lease on said tract with the idea of using the same rig being used on the Nutley tract, to drill an exploratory well on the quarter section containing the Quigley tract. Plaintiff then had a lease on the Quigley Heirs’ interests that was about to expire. The arrangement, which, in the course of •time was agreed upon between plaintiff, and Cooper, acting as defendant’s agent, was that plaintiff would obtain the various Quigley Heirs’ execution of a new one-year lease, or leases, to him, as lessee, paying them a bonus therefor of $10 per acre; *524 then he would assign these leases to defendant, reserving to himself a one-sixteenth overriding royalty interest (½ of which plaintiff would later assign to Cooper) for which leases defendant would pay him the cost thereof (the bonus plaintiff had paid for the leases, plus his expense in obtaining them) in an amount in the neighborhood of $1,000 or $1,200. During the course of plaintiff’s endeavors to obtain leases from all of the Quigley Heirs, one of them, Neal Quigley, was killed in an auto accident. Plaintiff did not obtain all of the other heirs’ signatures and acknowledgments on leases of their interests until the early part of the year 1956. On March 12, 1956, plaintiff wrote defendant, at New Orleans, the following letter:

“Pursuant to our understanding and agreement with Mr. T. W. Cooper of Oklahoma City, Oklahoma, we have at your direction secured commercial oil and gas leases dated September 30, 1955, for a term of one year covering 91.8 acres interest in the above tract. This includes all of the Quigley heirs, except Neil Quigley, who died and his estate is in the process of administration. We can acquire this interest, but it will cost an additional $100.00 as attorney fees over and above the lease cost to acquire it.
“The rest of the sixty (60) acre interest is scattered out to individual royalty owners in the State of Texas, who have indicated in letters to us, that they will execute oil and gas leases on this interest upon the firm commitment of an oil and gas well being drilled on the property.
“We have expended the sum of $10.-00 an acre or $918.00 for these leases, together with abstract bill of $44.00, making a total expenditure of $962.00.
“Under our agreement we are to assign you these leases for the actual consideration paid out by us, together with the reservation of Vie of J^ths of all oil and gas produced from the premises, free and clear of costs into the pipe line and we are ready to make this assignment at any time that you desire.
“We will further endeavor to obtain the balance of the oil and gas leases for you when you and your associates are ready to issue commitment for the drilling of the well and assign such leases to you on the same basis.”

Plaintiff received no direct answer, or reply, to said letter, and on June 14, 1956, he wrote defendant again, this time inclosing the leases he had obtained — some of them approximately eight months previously— from seven of the Quigley heirs, covering their interests in 91.8 acres, together with an assignment of same from plaintiff to defendant, and asking that defendant remit the $962 necessary to reimburse him for the above mentioned bonus and abstract expenses. Plaintiff received no reply of any kind to this letter, and thereafter, on September 10, 1956, commenced the present action to recover from defendant the $962, with interest.

To plaintiff’s petition alleging many of the above delineated facts, and others unnecessary here to mention, defendant filed a general demurrer, and, when that was overruled, an answer in the form of a general denial, together with a special denial that either his brother, Ervin, or T. W., Cooper, was authorized to, or had acted as, his agent or representative in the contract plaintiff alleged, and sued upon. When the cause came on for trial before a jury, defendant objected to the introduction of any evidence on the ground that such alleged contract was unenforceable by reason of being indefinite, uncertain, and within the Statute of Frauds. This objection was overruled, and, at the trial which ensued, defendant testified that Cooper had never been in his employ. He further testified that the Nutley well was completed as a producer at a depth of 10,-600 feet, on October 15, 1955. He admitted that he had a telephone conversation with Cooper “one day” when Cooper was in the Elk City area (though he testified *525 that Cooper, rather than the witness himself had placed the call, as Cooper testified), and that, in said conversation, Cooper said Russell could get the Quigley lease “for a ½6⅛ override and approximately $1,000.00 of expenses * * * and he and Russell would submit * * * ” the overriding interest. Defendant further testified:

“I told him that if they could do that before the rig was released on the Nutley, that I would take the deal under those conditions. The reason why I stressed the point that before the rig was released was because when that rig would finish drilling the well that it was drilling for me, they were going to move it away and to move another rig in there would cost a lot of money as drilling at Elk City was just about completed; the field had been drilled up.”

Defendant opined that the above mentioned telephone conversation occurred in the latter part of September, 1955. When asked if he authorized Cooper, or his brother and drilling superintendent, to employ, or hire, Russell to get the Quigley leases, defendant testified:

“I didn’t care if it was Joe Blow, if he could deliver the lease before we finished drilling the Nutley well and he could deliver a full %hs, less ½6⅛, and for not more than $1000.00 of expenses, it wouldn’t have mattered if it would be Russell or Joe Blow, I would have taken the lease.”

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Bluebook (online)
1959 OK 84, 339 P.2d 522, 10 Oil & Gas Rep. 1090, 1959 Okla. LEXIS 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roussel-v-russell-okla-1959.