Scarborough v. New Domain Oil & Gas Co.

276 S.W. 331, 1925 Tex. App. LEXIS 813
CourtCourt of Appeals of Texas
DecidedJune 18, 1925
DocketNo. 1728. [fn*]
StatusPublished
Cited by20 cases

This text of 276 S.W. 331 (Scarborough v. New Domain Oil & Gas Co.) 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
Scarborough v. New Domain Oil & Gas Co., 276 S.W. 331, 1925 Tex. App. LEXIS 813 (Tex. Ct. App. 1925).

Opinion

WALTHALL, J.

Willie L. Scarborough. Jess, Scarborough, Moliere Scarborough, Chunk Scarborough, George E. Wallace, F. G. Morris and J. R. Stubblefield, appellants, filed this suit against E. J. Ward, New Domain Oil & Gas Company, a private corporation, T. R. Simmons, Robert F. Gilman, the copartnership of Gilman & Simmons, A. A. Cunningham, J. W. Leonard, Leonard Petroleum Company, a private corporation, Cosden Oil & Gas Company, a private corporation, Vortex Petroleum Company, a private corporation, Humble Oil & Refining Company, a private corporation, -the Texas Company, a private corporation, appellees, to recover possession of certain lands described, consisting of some 2,840 acres of land in Eastland county, and all mineral rights therein named in a certain lease contract or sale to Herbert Lane, of date December 9, 1914, and for the value of the oil, gas, and gasoline taken from said land, or the prices at which same may have been sold by certain of appellees.

Appellants, in the alternative, should they not be allowed recovery for all of the oil taken from said land, sue to recover the value of one-half of the one-eighth royalty to which they may be entitled under said lease contract, if said lease contract remained in force; said mineral lease is pleaded by appellants, upon the express terms of which appellants base their right of recovery.

Appellants allege that the lessee, Herbert Lane, by reason of said mineral lease, acquired the title to said minerals named in the lease, subject to termination of such title or right to take said minerals after five years stated in .the lease contract should expire, should the lessee, of those holding under him, fail to produce any of the minerals named in paying quantities.

Appellants allege, in substance, that on or about December 9.1919, there was brought *332 in on said land a gas well which produced gas in paying quantities until March 23, 1920; that at that time said well ceased to produce gas; and that thereafter, until the 2d day of July, 1920, there was no production of any of the minerals named in said mineral lease; that on the 2d day of July a producing oil well was brought in on said land. Appellants allege that by reason of the above provision of said mineral contract and the failure of production oii said land of oil, or gas, or any of said minerals, said mineral lease by its terms ceased and terminated.

Appellants further allege that the New Domain Oil & Gas Company had extracted large quantities of oil from said land, and that said oil had been appropriated by the Humble Oil & Gas Company.

E.-J. Ward pleaded not guilty, general denial, and special answer, setting up the execution as above of the said mineral lease; alleged a transfer of a mineral lease covering segregated portions of said land to various persons; that the Big Sandy Oil & Gas Company, an assignee of Herbert Lane, completed a well to a depth stated, by reason of which Herbert Lane and his assignees held a valid mineral lease on the land described to December 9, 1919; alleged a conveyance of the land in controversy by Willie L. Scarborough to him, E. J. Ward, with a reservation of one-half the royalty to the grantors, so long as oil or gas was produced under the said mineral lease; that on February 25, 1915, he, E. J. Ward, purchased from Willie L. Scarborough and others one-half of one-eighth royalty, which was reserved by said Scarboroughs in the making of the deed originally.

Ward also alleges that on December 9, 1919, a gas well was produced on said land, and that he was tendered $100 as an annual rental on the land; that he was the owner and holder of one-half of one-eighth royalty provided for under the said mineral lease between appellants Scarboroughs and others, and Herbert Lane, and that he is entitled to receive one-half of all royalties from oil and gas produced from said land, and that the lease is in force and effect.

Ward further alleged that appellants, during the month of 'January, 1920, gave notice to appellees that appellants regarded the mineral lease as no longer in force and effect.

The New Domain Oil & Gas Company alleged a misjoinder of parties; urged a general demurrer; pleaded not guilty, general denial; pleaded the making of said mineral lease sought to be canceled; alleged the bringing in of a gas well on December 6, 1919; pleaded the cessation of said gas well to produce gas during March, 1920; and alleged the efforts made to restore said gas well as a producing well; alleged the drilling of á well on said land by the New Domain Oil & Gas Company, in which oil was discovered; that said well produced some oil prior to July 2, 1920; that on July 2, 1920, the New Domain Oil & Gas Company shot said well, and "thereby developed a well producing oil, and that said well is still producing oil; alleged the expenditure by it of large sums of money in its effort to produce oil on said land; alleged that on January 3, 1920, and on May 20, 1920, appellants, by E. G. Morris, gave notice to appellee that appellants contended that said mineral lease by its terms had expired.

The New Domain Oil & Gas Company further alleged that it was common knowledge in the oil business that no attention is paid to the definite terms of an oil lease when the work of production is once under way, and that it is frequently the case that a single well which was producing on a lease beyond the definite term of said lease must be shut down, and the work of production of oil cease while necessary repairs to the rig are made; that by reason of said usage appel-lees had the right, even after the expiration of said mineral lease, under the terms' of same, not only to repair and try to restore a well which had ceased to produce, but to drill a second well in the vicinity of the first.

The Humble Oil & Refining Company alleged substantially the same facts as did the New Domain Oil & Gas Company, and, in addition, alleged the purchase from the New Domain Oil & Gas Company oil of the aggregate value of $53,011.87; the payment to Ward of one-half of one-eighth of same, aggregating the total sum of $3,291.04, and has now in its possession $3,311.43, the value of one-half of one-eighth of the oil taken by it from the said land, and that it is ready, able, and willing to make payment to such party as may be determined to be the owner, and made tender thereof, and it filed a cross-action against the New Domain Gas & Oil Company.

The other appellees, without specially setting out their several pleadings, adopted the pleadings, and, where not adopted, alleged, substantially, the same facts as did the New Domain Oil & Gas Company. They all denied that the lease had terminated, but insist that it was valid and subsisting; that they owned said lease, in so far as it affected certain portions of said land; and pleaded in detail reasons why said lease had not terminated, all similar in legal effect to the pleadings of appellees above set out.

The facts, disclosed by the" record as .applied to each of appellees will be stated in the findings of fact, as far as we deem it necessary to state them.

The cause was tried to a jury, and the court peremptorily instructed the verdict in favor of appellees, and on which verdict judgment" was rendered refusing to cancel said lease.

*333

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Bluebook (online)
276 S.W. 331, 1925 Tex. App. LEXIS 813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scarborough-v-new-domain-oil-gas-co-texapp-1925.