Superior Oil Co. v. Jackson

1952 OK 336, 250 P.2d 23, 207 Okla. 437, 1 Oil & Gas Rep. 1730, 1952 Okla. LEXIS 805
CourtSupreme Court of Oklahoma
DecidedOctober 14, 1952
Docket34544
StatusPublished
Cited by2 cases

This text of 1952 OK 336 (Superior Oil Co. v. Jackson) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Superior Oil Co. v. Jackson, 1952 OK 336, 250 P.2d 23, 207 Okla. 437, 1 Oil & Gas Rep. 1730, 1952 Okla. LEXIS 805 (Okla. 1952).

Opinion

PER CURIAM.

On May 3, 1945, S. W. (Seth) Bridwell and wife executed an oil and gas lease to Zelma Burruss covering the north 49.65 acres of lot 3 and 30 additional acres in Garvin county, Oklahoma. This lease was later assigned to the Superior Oil Company. It was on a form generally called an “unless” lease, providing that well be commenced within twelve months, or lease would terminate, unless lessee pay or tender to lessor a stipulated rental for the privilege of delaying the commencement of well for an additional twelve months. The 1946 and 1947 rentals appear to have been paid satisfactorily.

The lessors conveyed the following mineral interests prior to May 3, 1948, the rental payment date: To J. O. Wood “an undivided one-tenth, or five acre interest”; to Charles E. Jackson “an undivided 6/49.65 interest”; to Has-kell Paul, “an undivided 5.25/49.65 interest”; and to Lee W. Garner, Jr., “an undivided 11.25/49.65 interest.” All of the grantees named in the above mineral deeds are plaintiffs in this action against the Superior Oil Company to cancel the above lease for alleged failure to make proper payment of the delay rental due May 3, 1948. The interest of Frank and Jessie McCully, also named as plaintiffs, was acquired subsequent to May 3, 1948, from the plaintiff Lee W. Garner, Jr.

The original owners of the land, Brid-well and wife, still owned an undivided interest in the minerals when this action was filed, but did not join as plaintiffs and were not made parties defendant. Plaintiffs prayed for judgment canceling the lease for nonpayment of rentals and to quiet title.

The Superior Oil Company filed an answer and cross-petition alleging proper payment of the rental due May 3, 1948, and prayed that its lease be declared valid and that its title thereto be quieted. Judgment was rendered, for plaintiffs, canceling the lease and quieting title in plaintiffs to their respective mineral interests. The Superior Oil Company has appealed. The parties will be referred to by name or as “lessors” and lessee.”

*438 It is admitted that copies of the mineral deeds from Bridwell and wife to plaintiffs Jackson, Hall, Wood and Garner were furnished to the lessee prior to the rental payment date of May 3, 1948.

It is not disputed that the Superior Oil Company, on April 26, 1948, forwarded its check for $49.65 to the depository bank, the First National Bank of Lindsay, Oklahoma, for the joint credit of all lessors owning mineral interests in the land, including the original lessors, Bridwell and wife.

The pertinent portions of the oil and gas lease dated May 3, 1945, are as follows:

“Witnesseth, That the said lessor * * * does grant, demise, lease and let unto the said lessee, for the sole and only purpose of mining and operating for oil and gas * * * all that certain tract of land situate in the County of Gar-vin, State of Oklahoma, described as follows, to-wit:
“The North Nineteen and 65/100 acres of Lot Three (3) and the South East (10) acres of Lot Three (3) and the East Half of the South East Quarter of the North West Quarter of Section Two (2) Township Three (3) North, Range Four (4) West I.M. * * * and containing 49.65 acres, more or less. * * *
“If no well be commenced on said land on or before the 3rd day of May, 1946, this lease shall terminate as to both parties, unless the lessee on or before that date shall pay or tender to the lessor or to the lessor’s credit in the First National Bank at Lindsay, Oklahoma, or its successors, which shall continue as the depository regardless of changes in the ownership of said land, the sum of Forty Nine and 65/100 Dollars, which shall operate as rental and cover the privilege of deferring the commencement of a well for 12 months from said date. In like manner and upon like payments or tenders the commencement of a well may be further deferred for periods of the same number of months successively. * * *
“If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly allowed, the covenants hereof shall extend to their heirs, executors, administrators, successors or assigns, but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee until after the lessee has been furnished with a written transfer or assignment or a true copy thereof.”

The Superior Oil Company contends that the sale by Bridwell et ux. to J. O. Wood was ambiguous in that it conveyed the “North Half of Lot Three (3)” and thirty other acres, while the lease covered the “North Nineteen and 65/100 acres of Lot Three (3)” and thirty other acres, and that the deed to Wood recited that the grantor was conveying “an undivided one-tenth, or five acre interest”, and that it was impossible for the lessee to determine exactly the correct interest conveyed to Wood, because the “North Nineteen and 65/100 acres” of lot 3, as described in the lease, might not be the exact amount of the “North Half” of lot 3. Failure to pay the exact amount of rental to the holder of any mineral interest would have affected the amount allo-cable to the other lessors, and resulted in a forfeiture of the lease, as held in Empire Gas & Fuel Co. v. Saunders (C. A. A. 5) 2 F. 2d 733, wherein it was said in the third syllabus:

“Where lessor and lessee and one to whom the lessor conveyed undivided interest in portion of land all treated * * * lease as divisible, mistaken payment of half of rental to such other was not sufficient, on ground that such other was joint owner with lessor.”

The lessee elected to deposit the exact amount of the total rental, $49.65, in the depository bank named in the lease, and claims that such deposit to the joint credit of the holders of all mineral interests met the requirements of the lease contract. The lessee has submitted all assignments of error under the following proposition of law:

“Under the customary form of oil and gas lease here involved the lessee is not required to divide or apportion to each lessor, or to each subsequent *439 purchaser of an interest in the leased land, his exact or proportionate share of the drilling delay rental. Such lessee, if he so elects, may pay the full rental to the depository bank for the joint credit of all the lessors, or of all parties owning mineral interests in the leased land at the time of such payment.”

The lessee cites the case of Jens-Marie Oil Co. v. Rixse, 72 Okla. 93, 178 P. 658, where this court announced the general rule as follows:

“Where the husband and wife execute an oil and gas lease as ‘parties of the first part, as the interest of the lessors may appear’, under the terms of which the rentals are to be paid ‘to the parties of the first part’, and which lease contains no provision defining the interests of the lessors, they are joint obligees, and payment of the rentals to the wife discharges that obligation, notwithstanding the record title to the land is in the husband.”

In Thornton Oil & Gas (5th Jud. Ed.) vol. 2, p. 755, it is said:

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Related

Latham v. Continental Oil Co.
558 F. Supp. 731 (W.D. Oklahoma, 1980)
Knight v. Yoakam
1959 OK 65 (Supreme Court of Oklahoma, 1959)

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Bluebook (online)
1952 OK 336, 250 P.2d 23, 207 Okla. 437, 1 Oil & Gas Rep. 1730, 1952 Okla. LEXIS 805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/superior-oil-co-v-jackson-okla-1952.