Sunshine Oil Corp. v. Randals

226 S.W. 1090, 1921 Tex. App. LEXIS 547
CourtCourt of Appeals of Texas
DecidedJanuary 6, 1921
DocketNo. 1149.
StatusPublished
Cited by3 cases

This text of 226 S.W. 1090 (Sunshine Oil Corp. v. Randals) 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
Sunshine Oil Corp. v. Randals, 226 S.W. 1090, 1921 Tex. App. LEXIS 547 (Tex. Ct. App. 1921).

Opinion

WALTHALL, J.

Appellee, Ben Randals, instituted this suit against appellant, Sunshine Oil Corporation, „to cancel an oil lease contract.

The contract is, substantially, as follows:

“The State of Texas, County of Reeves.
“Know all men by these presents:
“Thát this indenture' entered into by and between Ben Randals of Reeves county, Texas, party of the first part, hereinafter referred to as the lessor, Jno. B. Howard and Alfred Tinally, of Reeves county, Texas, parties of the second part, hereinafter, referred to as the lessees, witnesseth:
“That the lessor, for and in consideration of the sum of one dollar ($1.00) in hand paid by the lessees, the receipt of which is hereby acknowledged, of the promises of the lessees hereinafter contained and of the royalties to be paid and covenants to be kept hereunder, has granted, bargained, sold and conveyed, and does by these presents .grant, bargain, sell and convey unto the lessees, all the oil, gas, coal and other minerals of every kind and description, in and under the hereinafter described land, together with the exclusive right of ingress and egress at all times for the purpose of prospecting, drilling, mining and otherwise operating the same, and to erect, maintain and remove all structures and ' appliances in connection therewith, including the right to pull the piping from the wells, and to lay, maintain and remove all pipes and other, means of transportation; reserving, however, the royalties and payments hereinafter stipulated. Said land situated in - county, Texas, and more particularly described as follows, to wit:
“S. Ys Sec. 12, 320 acres and all of Sec. 10, 640 and all of Sec. 25, 640 acres all in Blk. 6, H. & Gr. N. Ry. Co, '
“To have and to hold, unto the lessees, their heirs, executors, administrators, successors and assigns, forever, upon the following terms:
“1. If oil is found, the lessor shall receive as his share an equal one-eighth (%) part of all the oil and gas produced and saved upon the premises, said oil to be delivered at the wells, if demanded by the lessor, otherwise to be delivered to the credit of the lessor in the pipe line to which such well may be connected, free of all costs of production to the lessor.
“2. If coal is found, the lessor shall receive 25 cents per ton for every ton mined and marketed from said premises, payable quarterly, and if any other mineral or minerals shall be discovered and mined, the lessor shall receive as his share 5 per cent, of the net proceeds thereof.
“3. It is understood and agreed that the lessees are to have the free use of oil, gas and water from said land for development and operation purposes.
“4. If operations for the drilling of an oil or gas well be not begun on the land above described within one year from the final execution and delivery hereof, this conveyance shall be forfeited as to both parties, unless the lessees, or their successors or assigns, shall pay to the lessor on. or before the anniversaries of this lease, according to the date written below, ten (10) cents per acre for the period operations are delayed but such vitality cannot be maintained by such payments for a greater delay than three years, without the written consent of the lessor. Payments as above provided for shall be deemed complete when made or tendered by a deposit of the amount to the credit of the lessor in the-bank of Pecos, Texas.
“5. This instrument is one of several from different parties to the lessees, covering land in the same general locality. It is understood and agreed that if the lessees; or their successors or assigns, shall begin a well in said locality within one year from the date hereof, and having begun such well shall prosecute the same (or an additional one in lieu of the first, in event of an accident to the first) to completion with due diligence, then the time so employed shall not be computed as any part of the time allowed for the beginning of operations as described in paragraph 4 above; and no rentals shall accrue until the expiration of one year from the completion of said neighboring well.
“6. If the lessees, or their successors or assigns, shall sink a well or shaft and discover either oil, gas or any other mineral or minerals, on the above-described land within the limit of time herein provided for, this instrument shall be in full force and effect for a term as long as minerals -are found and produced in paying quantities.
“7. The lessees shall not cut, break, tear down, remove or destroy any fence or fences, barbed wire or posts, on said land, or inclosing any portion thereof, without immediately repairing and replacing the same at their own expense.
“8. This instrument is not intended as a mere franchise but as a conveyance to the extent stated, and is so understood by both parties.
“9. The lessor, in the event oil is found in paying quantities, promises and obligates himself that he will at his own expense and cost perfect Ms title from the state of Texas and obtain from said state a patent to the above-described tract of land, and will pay all sums due or to become due to the state of Texas for the purchase of the same. The lessees, however, have the option of paying any encumbrance on said land and if the lessees elect to make such payments they are hereby authorized to reimburse themselves out of the royalties due the lessor as herein provided.
“10. Th$ estate hereby granted and privileges hereby conferred may be assigned by the lessees, or.successively assigned, and all covenants hereof shall extend to the assigns and successive assigns, their heirs, successors and legal representatives.
“11. The lessees agree: (a) to cause a geological survey of the said locality including the land above described for oil and gas production; (b) to cause to be organized a corporation with an authorized capital stock of 300,000 shares of the par value of $1.00 each, and to *1092 transfer thereto this and other leases covering approximately 100,000 acres; (c) to transfer to the lessor one share of full-paid and nonassessable stock in said company for each 10 acres of land leased; (d) to use their best efforts to sell sufficient of said capital stock to thoroughly test said locality for oil and gas; (e) and to procure by said company the ratification and assumption of this lease and agreement.
“This lease agreement is executed in duplicate.
“Witness our hands this 15 day of Mgy, A. D. 1918. Ben Randals,
“Lessor.
“Jno. B. Howard,
“Alfred Tinally, “Lessees.”

The above lease was duly acknowledged.

Appellee alleged the execution of the lease; that the lessees, Howard and Tinally, transferred the lease to appellant; and that appellant assumed the obligations of Howard and Tinally mentioned in the lease.

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Related

Stevens v. Travelers Insurance Co.
563 S.W.2d 223 (Texas Supreme Court, 1978)
Achterberg v. Gillett
322 S.W.2d 306 (Court of Appeals of Texas, 1959)
Sunshine Oil Corporation v. Dooley
238 S.W. 357 (Court of Appeals of Texas, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
226 S.W. 1090, 1921 Tex. App. LEXIS 547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunshine-oil-corp-v-randals-texapp-1921.