Shell Petroleum Corporation v. Hollow

70 F.2d 811, 1934 U.S. App. LEXIS 4321
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 11, 1934
Docket929
StatusPublished
Cited by19 cases

This text of 70 F.2d 811 (Shell Petroleum Corporation v. Hollow) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shell Petroleum Corporation v. Hollow, 70 F.2d 811, 1934 U.S. App. LEXIS 4321 (10th Cir. 1934).

Opinion

BRATTON, Circuit Judge.

, „. .. This controversy involves conflicting claims to the mineral rights m one acre of land situated in the northeast comer of a described quarter section m Harvey county, Kan. Jacob H. Ediger. owner of the quarter section jomed by his wife, executed a deed in 1901 coni eying the acre, being ree-tangular in shape and 10 rods by 16 rods m dimension to School District No. 29. The deed contained tne following provision: “Said real estate is deeded by this convey-anee for and as a site for a public sehool building and grounds, and in case same shall cease to be so used and shall be abandoned as a site for a public sehool building and grounds, then this deed and conveyance shall be and become null and void, and the title to said real estate shall immediately revert to and said real estate shall at once become and remain the .property of said grantors, their heirs and assigns ”

. ., A school building was erected on the site and a school conducted there until shortly before this suit was instituted, at which time the building was removed and use o± the . premises for the dedicated purpose ceased. * v v

Ediger and wife conveyed the quarter section to A. M. Martens in 1903. The eon-veyanee contained a covenant of warranty and made no reference to the area previously conveyed to the sehool district. In 1924 Martens and wife executed a deed with covenant of warranty, conveying a part of the land, that is, about forty acres, to Peter B. Martens; the land thus conveyed being described as follows: “Commencing at the NE comer of the SE % of Section 19, Township 22 South, Range 3 West, thence South 67 rods, thence West 61% rods, thence South 46% rods, .thence West 21% rods, thence North 113% rods, thence East 83 rods to the place of beginning.” The traet so described included the sehool area and the conveyance contained this provision of exception or ex-elusion: “Excepting, however, and not in-eluded in this grant, one aere to the extreme NE comer of the SEV4 which has been deeded to Sehool District No. 29.”

„ , . .„ In 1929 Peter B. Martens and wife executed an oil and gas lease with covenant of warranty to C. E. Kayser, in which the land embraeed was described to the same language, with an exception or exclusion couched to identical phraseology as that contained in the deed just described. The lease, purporting to convey the oil aild 8'as leasehold rights for a Penod of ten years, has through subsequent conveyances become the property of Shell Company.

. „ . . . A. M. Martens died. His sole heirs at j eonceiving that the mineral rights to the aere traet were vested in thenl) executed two QÜ and leases to H_ Hall some join. j in one and the remainder in the other. Both were dated ApriI 30) 1932, and contained covenants o£ warranty. They purported to conve the mineral leasehold for a period of ten The several instruments were dul flled for reeord in H County.

. Shell Company entered into a contract "with Mabee under which he began drilling a we^ on ^alld covered by the lease from Pe^er D- Martens and wife to Kayser, the well apparently being near the line of the school s^e- Hollow began preparations to drill a wel1 on the seh°o1 traet under the leases from ^e h®1® of A. M. Martens. Plaintiffs thereupon instituted this suit m equity, alleging the execution of the several instruments and contending that they have and own the exelusive right to explore for and produce oil and °to . , , . gas on the aere traet; that the leases to deg . , __ n .x ¿a ¿ «. ¿ -a fendant Hollow are without effect; that it . . . , . ... ,, ,, .. to , he is permitted to drill the threatened well it ... « .. will result m large quantities of oil worth ... .b „to ,, , . . . . several thousands of dollars being drained from undei. the premises covered by their estate. Other facts are alleged. They relate to a contract between Shell Company and t]le sehool district, made long prior to the abandonment of the premises for sehool p-gxposes, but in view of the conclusion reached vrith respect to the decisive questions in the ease, it is unnecessary to state or discuss them.

Plaintiffs prayed that the cloud on their ^ title, created by the execution ^d recordation o£ leases to defendant Hollow, be removed; that Hollow be enjoined from drilling on the premises; and for an accounting, Defendants interposed a joint and separate motion to dismiss in the nature of a demurer, on the ground that the bill disclosed on its face ^at it Presented no equity and that Plaintiffs were not entitled to the relief sought. The motion was sustained and a defendant entered the bill. The case is here on appeal.

The deed from Ediger and wife to the sehool district was in the nature of a dedieation for the specified purpose, with provision for reversion upon termination of that use. *813 It created an easement. School Dist. v. Barnes, 110 Kan. 25, 202 P. 849; School Dist. v. Fleak, 120 Kan. 570, 245 P. 150.

Counsel discuss at length and interestingly whether the instrument created a fee-simple estate on condition subsequent with the possibility of reverter, or an estate in determinable fee. It is unnecessary to determine that question because the common-law rule that the possibility of reverter is neither an alienable, assignable, or descendable estate has been abrogated by statute in Kansas.

“The term ‘heirs,’ or other words of inheritance, shall not be necessary to create or convey an estate in fee simple; and every conveyance of real estate shall pass all the estate of the grantor therein, unless the intent to pass a less estate shall expressly appear or be necessarily implied in the terms of the grant.” Section 67—-202, Revised Statutes Kansas 1923.
“Any person claiming title to real estate may, notwithstanding there may be an adverse possession thereof, sell and convey his interest therein, in the same manner and with like effeet as if he was in the actual possession thereof.” Section 67—208, Id.
“In the construction of the statutes of this state the following rules shall be observed, unless such construction would be inconsistent with the manifest intent of the legislature or repugnant to the context of the statute: * * «
“Eighth. The word land,’ and the phrases ‘real estate1 and ‘real property,’ include lands, tenements and hereditaments, and all rights thereto and interest therein, equitable as well as legal.” Section 77—201, Id.

It is settled law in the state of Kansas that these statutes constitute a liberal system under which any interest in land may be conveyed by deed. In Miller v. Miller, 91 Kan. 1, 136 P. 953, 954, L. R. A. 1915A, 671, Ann. Cas. 1917A, 918, it was said:

“The words ‘conveyances of land’ mean, of course, the land itself in fee simple absolute. The words ‘any other estate or interest therein’ include estates of freehold and less than freehold, of inheritance and not of inheritance, absolute and limited, present and future, vested and contingent, and any other kind a grantor may choose to invest consistent, of course, with public policy. * * *

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Bluebook (online)
70 F.2d 811, 1934 U.S. App. LEXIS 4321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-petroleum-corporation-v-hollow-ca10-1934.