Sinclair Oil & Gas Co. v. Bryan

291 S.W. 692
CourtCourt of Appeals of Texas
DecidedJanuary 26, 1927
DocketNo. 8902. [fn*]
StatusPublished
Cited by9 cases

This text of 291 S.W. 692 (Sinclair Oil & Gas Co. v. Bryan) 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
Sinclair Oil & Gas Co. v. Bryan, 291 S.W. 692 (Tex. Ct. App. 1927).

Opinion

GRAVES, J.

This appeal is from a judgment in appellees’ favor against appellant for ?5,816 as damages for failure to use reasonable diligence and care from September 7, 1920, to August 29,1925, in developing for oil and protecting from drainage by oil wells on adjoining property within 100 feet of it a half-acre tract of land at Damon Mound, Tex., owned by appellees and held by appellant under an oil lease. The lease was a joint one upon four small tracts of land be-, longing to the appellees, two of them, upon each of which there was a producing oil well throughout the period mentioned, being just across a 32-foot roadway from the half acre here involved, while the third one was some 1,500 feet from it; there was also during the same time a paying oil well on adjoining land less than 100 feet away, and a jury, in response to special issues, found that there had been remissness under the terms of the lease as to this half acre in both the respects referred to. The provision of the lease thus found not to have been lived up to was this:

“When oil in paying, quantities is developed and produced upon the land leased hereby by work on said land thereunder, or when the existence of oil thereunder in paying quantities is made apparent by the development and production of oil in paying quantities in well, or wells, on adjoining land and within 100 feet of any line of the land leased hereby, second party shall proceed, by and through the use of reasonable diligence and care, to develop the now leased property for oil as well as to protect it from drainage through wells within 100 feet of same on adjoining property.”

Appellant assails the judgment on these grounds:

(1) The cause of action was barred by the four-year statute of limitation, in that the declaration upon it was not filed until September 7, 1924, whereas the breach by appellant of the obligation upon which it rested was alleged and shown to have occurred January 17,1920.

(2) The court erred in submitting to the jury the issue as to whether or not appellant had used reasonable diligence and care in the matter of developing the property, without therein limiting the inquiry to a period within four years from the filing of the suit.

(3) There was no proof sufficient to go to the jury either that any drainage at all from the half acre had taken place, or, if so, as to the amount thereof.

(4) Reversible error was committed in permitting appellees to impeach and discredit certain ones of appellant’s witnesses by proof of improper or discreditable conduct on their part with reference to matters wholly unrelated to the issues presented on this trial.

Under the facts, none of these contentions, we think, may be sustained. The quoted stipulation of the lease plainly evidences an obligation to continuously, throughout the life of the contract, use reasonable diligence and care in developing and protecting from drainage all parts of the lease, there being no qualification restricting such development and protection to the drilling of wells at any specified time or upon any one of the tracts of land the joint lease embraced, and when the fulfillment of that undertaking as to the half acre was challenged, a fact issue as to it was raised. The trial court therefore properly submitted to a jury the inquiries as to whether or not there had been a breach of the agreement, as alleged. The lease as an entirety was in full force and effect, not only when this suit was both filed and tried, but had so been continuously since its inception in 1916, and, operating under it, appellant and its predecessors had brought in oil wells on the three tracts it covered other than the half acre here involved prior to the year 1920, which, after having each yielded thousands of barrels, were still producing at the time of this trial, and one on the half acre itself in May, 1917, which sanded up and ceased to produce about October 5, 1919, after yielding an aggregate of 302,679 barrels of oil. The well on adjoining land less than 100 feet from this half acre, previously referred to, belonged to appellant and had been producing oil in paying quantities continuously from. February, 1918, until this trial below.

The four-year limitation plea against this action, which was not filed till September 7, 1924, rests upon the assumption that the appellees pleaded, and that all the evidence showed, that appellant had completely and finally abandoned the lease contract — at all events as concerned the half-acre tract — on January 17, 1920, and had thereby then repudiated once for all any further obligation thereunder to ever thereafter either develop or protect from drainage any part of that tract; but we can neither so interpret the pleading nor read the proof. The evident purport of the averments was, merely, that appellant had on that date abandoned the above mentioned well on that tract, which was known as Bryan No. 3, and had ceased *694 to produce in the preceding October, and had not since its abandonment drilled another well or wells “on plaintiffs’ said one-half acre tract of land aforesaid, though often requested by plaintiffs so to do.” There is no charge or intimation that the lease, or contract, had been abandoned or repudiated on that date as to the half acre; on the contrary, the intend' ment is all the other way, because it was elst-where specifically alleged that the lease in its entirety had at all times remained in full force and effect, and that appellant had continuously up to the filing of the trial pleadings held and claimed the right to operate upon all four of the tracts under it.

The evidence likewise fails to support the assumption; indeed, that from appellant’s own successive field superintendents repels it, they each in effect testifying that the half acre was not abandoned in January, 1920, with the intention or purpose of not drilling another well thereon at some future time, should circumstances justify it, but that during their several terms of tenure subsequent to'that date they in fact investigated conditions upon the ground from time to time, as they then found them, for the purpose of determining whether or not to at that' time drill an additional well on the half-acre tract, and as a result of such investigations concluded each time not to do so.

There was no testimony to a different effect, so that, as against the suggestion of a final abandonment of the half acre on January 17, 1920, with contemporaneous repudiation of any further contractual obligation concerning it, the undisputed evidence may be said to show the contrary, thus disclosing a recognition thereafter by appellant of a continuing obligation upon its part to develop'it, if and when changing conditions might require the drilling of an additional well thereon.

That such obligation with respect to the half acre was divisible and severable, that is.

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Bluebook (online)
291 S.W. 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-oil-gas-co-v-bryan-texapp-1927.