Swearingen v. Oldham

1945 OK 106, 159 P.2d 247, 195 Okla. 532, 1945 Okla. LEXIS 411
CourtSupreme Court of Oklahoma
DecidedMarch 27, 1945
DocketNo. 31680.
StatusPublished
Cited by24 cases

This text of 1945 OK 106 (Swearingen v. Oldham) 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
Swearingen v. Oldham, 1945 OK 106, 159 P.2d 247, 195 Okla. 532, 1945 Okla. LEXIS 411 (Okla. 1945).

Opinion

DAVISON, J.

This cause is presented on appeal from the district court of Pawnee county wherein L. D. Oldham and others as defendants obtained judgment determining their interest in the oil and gas and other minerals under a tract of land previously conveyed to their deceased father to be 15/16 and determining that Swearingen and others (plaintiffs) as heirs of the grantor in the instrument of conveyance had retained a 1/16 interest in such oil, gas and minerals. Plaintiffs in error will hereinafter be referred to as plaintiffs and defendants in error as defendants.

The deed executed by Swearingen and his wife in 1925 contained the following provision:

“. . . The grantors reserve to themselves one-sixteenth 1/16 of all oil, gas, or other minerals in or under this land but convey unto grantee full rights to lease this land for any purpose and to collect and retain all rentals and bonuses. . .

On January 24, 1941, the Oldhams executed a five-year oil and gas lease to the Alma Oil Company under which they were to receive one-eighth of all oil and gas produced on the land subject to division with the Swearingens in accord with their respective interests.

In the following calendar year the oil company became doubtful as to the division of the one-eighth royalty and prepared an agreement to be executed by the interested parties under which it was proposed that such parties agree to a coequal division of one-eighth royalty between the heirs of Swearingen and the grantees in the deed and their heirs.

The heirs of Swearingen were satisfied with the agreement and executed the same. The heirs of Oldham were not satisfied with the same and refused to join in the execution thereof.

On June 11, 1942, this action was instituted by Eva A. Swearingen et al., being all of the heirs of C. W. Swearingen, who deeded the land in 1925 with the reservation heretofore mentioned and quoted. The defendants were the heirs of W. J. Oldham and his cograntee, L. D. Oldham.

Issues on the merits were joined by appropriate pleadings.

*534 The theory of the plaintiffs in presenting their case in the court below was outlined in the opening statement pursuant to inquiry by the trial court. It was then said:

“The Court: Let me ask you, please, Mr. McCollum, is it your theory that the language of the deed is subject to the interpretation which you seek to place on it, or is it your theory that the deed should be reformed to comply with the alleged will of the parties? In other words, I want to know what the issue is which I am going to try. In other words, whether it is a suit to reform a deed, or to interpret a deed.
“Mr. McCollum: Well, under our pleadings, we say that the reservation as it is drawn is sufficient to show the intention of the parties to be what we say it is: That this one-sixteenth is a net one-sixteenth, which is equivalent to saying in a different fractional way, one-half of the customary one-eighth, which is a net interest, but if the court believes that the instrument should be reformed by inserting or adding the expression ‘which is a net interest,’ why, then, we ask that the instrument be reformed to that effect.”

In this court plaintiffs say:

“Plaintiffs in error assert that the reservation in the deed in the case at bar gave to plaintiffs in error a net one-sixteenth of any and all oil and gas produced from the premises covered by said deed; that such one-sixteenth interest was and is a one-sixteenth net interest, free and clear of cost of production ... a net interest. And that such one-sixteenth net royalty interest was not diminished by defendants in error executing and delivering the oil and gas lease to the Alma Oil Company, under which lease the oil and gas is being produced.”

Their first proposition as stated in their brief is:

“Under decision of our court plaintiffs in error have 1/16 of oil and gas if, when and as produced and defendants in error have 1/16 of the oil and gas, if when and as produced.”

In support of this position our attention is called to Carroll v. Bowen, 180 Okla. 215, 68 P. 2d 773, and Sykes v. Austin, 182 Okla. 299, 77 P. 2d 719.

In Carroll v. Bowen, supra, we were called upon to determine the legal effect of a reservation or exception contained in a deed reserving “an undivided one-half (%) -interest in and to the royalty (the ordinary % ordinarily left the grantor in oil and gas leases being the royalty above referred to).” In determining the meaning and effect of this reservation, we said:

“We are of the opinion that the clause in question is not ambiguous, and it was error for the court to admit or consider the evidence of Mrs. Bowen. It is our duty to construe the clause in its entirety and to give effect to every word therein. When this is done, we think it is plain that the parties intended the clause to reserve an undivided one-half of the one-eighth royalty. The words in parentheses ‘the ordinary % ordinarily left the grantor in oil and gas leases being the royalty above referred to,’ make plain what would have been otherwise ambiguous if those words had not been used. While the term ‘royalty’ means a share of the product or proceeds therefrom, the percentage is variable. It is always agreed upon in the lease contract. Generally it is one-eighth. In the Osage Reservation, the Department of the Interior exacts a sixth. The state receives a fourth from the wells that adorn the Capitol grounds. If the parties had not inserted the words in parentheses, the instrument would have been indefinite upon the percentage of royalty to be paid by the lessee, but as the amount of the royalty reserved has been defined, such ambiguity has been removed.”

In Sykes v. Austin, supra, we were called upon to determine the effect of the conveyance of “one-half of the one-eighth royalty of the oil and gas arising from the land.” We held the language to be free from ambiguity and said:

“. . . No right became vested in defendant except to receive one-half of the one-eighth of the oil and gas, if, when and as produced, for clearly no conveyance of oil or gas in place (even if possible in this state) was attempted, nor were any mineral rights granted *535 other than to share in the definite one-eighth royalty. There is no enjoyment of a defined royalty, as used in this sense, until and unless there is a production of that to which the royalty pertains.
“Having held as above, it is manifest that we cannot agree with defendants in their contention that when the lease expired their interest then broadened to a one-half interest in all of the oil and gas rights pertaining to the land, on the theory that the owner of the fee had conveyed to defendant half of all he had. He had a valuable reversionary interest, in case the lessee failed to develop, which he did not convey. He did not convey any of the corpus to defendant nor any mineral right connected therewith, other than the right to receive ‘one-half of the one-eighth royalty of the oil and gas arising from the land.’

We are unable to see where the above authorities are helpful to plaintiffs in error.

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Bluebook (online)
1945 OK 106, 159 P.2d 247, 195 Okla. 532, 1945 Okla. LEXIS 411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swearingen-v-oldham-okla-1945.