Rupel v. Ohio Oil Co.

95 N.E. 225, 176 Ind. 4, 1911 Ind. LEXIS 92
CourtIndiana Supreme Court
DecidedMay 23, 1911
DocketNo. 21,873
StatusPublished
Cited by15 cases

This text of 95 N.E. 225 (Rupel v. Ohio Oil Co.) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rupel v. Ohio Oil Co., 95 N.E. 225, 176 Ind. 4, 1911 Ind. LEXIS 92 (Ind. 1911).

Opinion

Cox, J.

Appellants Martin L. Rupel, Isaac Rupel, Jacob Rupel and Sarah Fields are, together with appellees James Rupel and Rachel Artwine, severally the owners of the remainder in fee simple, as tenants in common of a one-sixth interest in certain lands in Jay county. Appellee Mary Rupel, the mother, is the owner in possession of the life estate in these lands. As such life tenant in possession she, without the joining therein of the remaindermen sought to grant to the assignor of the appellee Ohio Oil Company, by contract in writing executed January 20, 1891, the exclusive right to enter upon these lands and explore for, and to re[6]*6move therefrom, the oil and gas found. The contract contained the usual stipulations for cash payments and for royalties to he paid by the explorer to Mary Rupel, as to the right to lay pipes for oil and gas lines, the obligation to bury them and to pay damages for injuries to timber and crops, to leave the fences and drains in as good condition as found, and as to locating wells so as to protect buildings on the premises.

Appellee Ohio Oil Company, as the assignee of this contract, entered upon the lands January 1, 1902, and drilled wells, and had removed large quantities of oil up to the time this action was brought, September 5, 1905'.

Appellants brought this action by complaint in two paragraphs against said appellee to recover damages in the nature of waste of their inheritance. They joined Mary Rupel, the life tenant, and James Rupel and Rachel Artwine, their cotenants, as defendants, to answer as to their interests, if any, in and to the oil removed, or to the proceeds from the sale of it. The first paragraph set out in substance the source of appellant’s title, the status of Mary Rupel as life tenant and that of James Rupel and Rachel Artwine as that of cotenants of plaintiffs, the execution of the contract by the life tenant, granting the right to one Wolf to explore the lands for oil and gas, the assignment of the contract to the Ohio Oil Company, the knowledge of the oil company of the status of Mary Rupel and of appellants when the contract was executed, and at the time of their entry, the entry upon the premises by the oil company, the drilling of wells thereon, and the removal by it of many thousands of barrels of oil. It alleged that the execution of the contract, the assignment to and the entry by the oil company, and the removal of the oil were without the knowledge or consent of appellants; that the oil company had not accounted to nor paid appellants for the oil, or any part of it, but had converted and appropriated it; that by reason of the wrongful taking of the oil from the land the reversion [7]*7of appellants was greatly injured and reduced in value, and great waste thereof was committed by the oil company. There was, in conclusion, a demand for judgment against the oil company in the sum of $100,000.

The second paragraph was similar in its allegations of facts, escept that the source of title was not set out in full, nor was the contract, and the conclusion was that appellants had demanded an accounting, settlement and payment from the oil company, for the oil so taken, before bringing the action, which was refused; and that by reason of the appropriation of the oil, as alleged, appellants had been damaged by the oil company, and by reason thereof it was indebted to appellants in the sum of $100,000, for which judgment was demanded.

A separate demurrer for want of facts by the oil company was sustained to each paragraph of the complaint, as were joint demurrers for the same cause by the other three .defendants, and upon plaintiffs’ refusing to plead further’, judgment was thereupon rendered against them. Errors are properly assigned on the rulings of the trial court on these demurrers.

1. Appellants’ counsel have not stated in their brief any proposition or point, or cited authority, in support of their assignment of error, that the court erred in sustaining the demurrers of Mary Rupel, James Rupel and Rachel Artwine, and therefore, under the rules and decisions of this court, this assignment is deemed waived, and will not be considered.

2. [8]*83. [7]*7It remains only to determine whether the complaint, or either paragraph thereof, stated a cause of action against the Ohio Oil Company. It is the contention of counsel for appellees that it is within the rights of a life tenant to make a valid contract to permit the search of the substance of the estate for oil, and to profit there from when found. This contention is based on what seems to be the settled rule in this State, that oil and gas, under[8]*8neath the surface of the real estate, do not become the absolute property of the owner of the land until he has discovered them by exploring and mining his land, and reduced them to his dominion. This is so because of their supposed wandering and vagrant character. But this rule of property does not in any way modify the general common law, that the ownership of the fee of the surface of the earth carries with it the right to the minerals beneath, and the consequent right to extract them. This right is exclusive in the owner of the fee. The life tenant in possession has no. such right, and not having it he cannot of course grant it to another. 16 Cyc. 625; Ohio Oil Co. v. Indiana (1900), 177 U. S. 190, 20 Sup. Ct. 576, 44 L. Ed. 729.

4. 5. Where oil underlies the surface of land, it cannot be denied that for the time it is physically a part of it. To recover it from the earth requires an assault on the integrity of the estate like, if different in degree, taking other minerals, and when recovered from the earth it is as much property as any other mineral in, on, or underlying the land, and when severed from its physical connection with the earth it becomes personal property as other minerals do. The owner of the fee, or one to whom he has granted the right, may invade the substance of the inheritance to take one as well as the other. Tie may prevent one not entitled thereto from taking one from the estate as well as the other, or where the waste or trespass has been committed he has his remedy in the one case as well as in the other. 27 Cyc. 629, 630.

In Richmond Nat. Gas Co. v. Davenport (1905), 37 Ind. App. 25, it was held that the owner of the fee might enjoin the life tenant in possession and her lessee from drilling for and removing oil and gas from the estate as waste. In that case it was said: “It is settled by numerous decisions that the natural gas or the petroleum which may be under the surface and not reduced to the [9]*9actual possession of any person, constitutes a part of the land, and belongs to the owner thereof in such a sense that he has the exclusive right by operations upon his land to reduce such mineral substance to possession and use and enjoyment and to grant the privilege of doing so to other persons, though until so reduced to possession the mineral substance is subject to be taken by any other person, by proper operations upon his own land, and that a person in possession who has such exclusive right in particular land, as owner of the land or as lessee or grantee with the privilege of extracting such minerals, may by injunction prevent operations for such purpose by others who have not rightfully acquired the privilege from the owner of the land in fee.

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Cite This Page — Counsel Stack

Bluebook (online)
95 N.E. 225, 176 Ind. 4, 1911 Ind. LEXIS 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rupel-v-ohio-oil-co-ind-1911.