State Line Oil & Gas Co. v. Thomas

35 S.W.2d 746
CourtCourt of Appeals of Texas
DecidedJanuary 26, 1931
DocketNo. 3943.
StatusPublished
Cited by10 cases

This text of 35 S.W.2d 746 (State Line Oil & Gas Co. v. Thomas) 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
State Line Oil & Gas Co. v. Thomas, 35 S.W.2d 746 (Tex. Ct. App. 1931).

Opinion

SELLERS, J.

Appellees brought this suit against appellant in district court of Harrison county on June 7, 1929, to recover damages for the failure of appellant to use due diligence in drilling offset wells to those on adjacent lands to prevent drainage from the premises of ap-pellees then held by appellant under a certain mineral lease. The case was tried to a jury *747 upon special issues, and upon the verdict judgment was entered for appellees for the sum of $760, and appellant brings this appeal.

It is well-settled law in Texas, that, to establish a cause of action such as here relied on, it must affirmatively appear both from the pleadings and evidence (1) that appellant could have drilled a well or wells on the land in controversy, producing gas at a profit to itself. At the time alleged, that is, after deducting the cost of drilling such a well, maintaining the same, and marketing the gas therefrom, the appellant would have received a reasonable profit; (2) that appellant, in the exercise of ordinary care, should have drilled a well or wells on said land at the time alleged with reasonable expectation of receiving a reasonable profit from the gas produced after deducting the expenses incident to the drilling, development, and marketing of the products.

Under various assignments, it is insisted that the preponderance of evidence was in favor of the defendant, and that such evidence was insufficient to authorize the court to submit the case to the jury, and that the court erred in refusing to give the appellant’s requested charge to return a verdict in favor of the defendant.

The evidence in this case discloses that the Azzie Thomas tract of land, which is covered by the mineral lease in question, is located in Harrison county, Tex., in or near what is known as the “Waskon Gas Field.” It is shown from the evidence that the first well in this field was discovered some time in 1923 or 1924, and that the field was practically depleted about the first of 1928. There were four sands in this field from which gas was drawn, namely, the Nacatoeh sand, which was a shallow sand discovered at about 1,000 feet; the Blossom sand, which was discovered at about 1,900 feet; another sand was at 2,300 feet; and still another at around 2,800 feet. The great majority of the wells of this field were drilled to the Nacatoeh and the Blossom sands. The average cost of drilling a well to the Nacatoeh sand was shown to be about $4,000 and to the Blossom sand around $8,000.

The record discloses there were never any wells drilled in this field south of the Azzie Thomas tract of land, and that there were never any wells drilled to the east of said tract, except one which was drilled some mile and one-half to the east, and which proved to be a “dry hole.” The main body of the wells drilled in this field lies to the north,' northwest, and west of the Azzie Thomas tract. The closest well in proximity to the Azzie Thomas tract is what is known as the Ferguson-Abney well No. 1, which is about 900 feet from the northwest corner of the Az-zie Thomas tract, and never did produce sufficient gas to pay for the drilling of same. The next nearest well is just west of the Ferguson-Abney well, and is known as the Ferguson-Abercrombie No. 1. This well is about 1,400 feet from the Azzie Thomas tract, and is now “dead,” and never did produce sufficient gas to pay for the drilling. There is another well just south of the two wells above mentioned known as the Morris-Abercrombie well, which is about 1,500 feet from the Thomas tract; this well is nqw “dead,” and never did pay for the cost of drilling. There is a well that is known as the H. C. Morris-O. B. Hickman No. 1, exact distance of which. is not disclosed by the record, but is farther from the Thomas tract than any of the wells mentioned, and is located northwest of the northwest corner of said Thomas tract. This well barely paid the cost of drilling. Immediately north of the northeast corner of the Thomas tract, and about the same distance as the H. O. Morris-O. B. Hickman No. 1, are two wells known as the A. C. Scott-Stringfellow No. 1, and the A. G. Scott-Stringfellow No. 2. Neither of these wells ever paid for the cost of drilling.

The first witness offered by appelles was E. O. Easter, who testified that he drilled the wells in closest proximity to the Thomas tract. He stated that he was a driller and not a geologist, and would not undertake to say which way the course of the structure was taking in that part of the field; that practically all he knew about the structure in the two wells he drilled near the Azzie Thomas property was they did not pay out. Another witness called by the appellees, W. F. Parker, testified that he did not know much about the structure in that part of the field in the vicinity of the Azzie Thomas tract, as he did not operate in that part of the field. This witness was not a geologist, but one who had had drilling experience in the Waskom oil field. The witness D. Gorden, who testified for appellant, appears to be the only geologist who testified at all in the ease. He testified that he knew where the Azzie Thomas tract of land was located in the Waskom field, that he had made a study of that particular area in the immediate vicinity of the Azzie Thomas tract, and that it was his opinion as a geologist that that tract, if it had been drilled at any time during the history of the field, would not have produced a sufficient amount of gas to pay the expenses of the drilling.

In Steele v. American Oil Development Co., 80 W. Va. 206, 92 S. E. 410, 411, L. R. A. 1917, p. 975, the Supreme Court of West Virginia states the rule applicable to this character of cases to be:

This suit was instituted to recover damages for injuries claimed by the plaintiffs because of the failure of .the defendant to drill oil wells on lands of the plaintiffs so as to prevent wells drilled on adjacent lands from draining the oil from plaintiffs’ lands and thereby depriving the plaintiffs of the royalties thereon. * * * It ..can *748 not be doubted that in order to the recovery of damages from a lessee in such a case as this it must appear from the evidence that it is rea'sonably certain that oil from plaintiffs’ lands had been, or is being, drained by ■ wells drilled on other lands. Of course, from the nature of the subject-matter it is impossible to prove this with absolute certainty, , but it is not impossible, nor is it difficult, to ¡prove such a state of circumstances, if they I exist, as would reasonably lead to the conclusion that such was the fact. It would be, not only possible, but easy, to show the character of the sands in which the oil was found on the adjoining lands. It could also be easily shown what wells had been drilled on adjoining lands, how far they were from the lands of the plaintiffs, and how much oil had ■ been produced therefrom. It could also be sbown what area would probably be drained of the oil by a well drilled in the particular sand in which the wells were drilled on the adjoining land, and if such area so probably drained included a part of plaintiffs’ land, it might then be reasonably assumed that those wells on adjoining lands were draining oil from plaintiffs’ lands.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Seagull Energy E & P, Inc. v. Railroad Commission
226 S.W.3d 383 (Texas Supreme Court, 2007)
Phillips Petroleum Co. v. Millette
72 So. 2d 176 (Mississippi Supreme Court, 1954)
Tide Water Associated Oil Co. v. Stott
159 F.2d 174 (Fifth Circuit, 1946)
Myers v. Shell Petroleum Corp.
110 P.2d 810 (Supreme Court of Kansas, 1941)
Magnolia Petroleum Co. v. Page
141 S.W.2d 691 (Court of Appeals of Texas, 1940)
Corr v. Continental Oil Co.
64 P.2d 30 (Supreme Court of Kansas, 1937)
Rhoads Drilling Co. v. Allred
70 S.W.2d 576 (Texas Supreme Court, 1934)
Stanolind Oil & Gas Co. v. Christian
64 S.W.2d 363 (Court of Appeals of Texas, 1933)
Cosden Oil Co. v. Scarborough
55 F.2d 634 (Fifth Circuit, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
35 S.W.2d 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-line-oil-gas-co-v-thomas-texapp-1931.