Texas Co. v. Walker

78 S.W.2d 997
CourtCourt of Appeals of Texas
DecidedDecember 18, 1934
DocketNo. 9966
StatusPublished
Cited by1 cases

This text of 78 S.W.2d 997 (Texas Co. v. Walker) 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
Texas Co. v. Walker, 78 S.W.2d 997 (Tex. Ct. App. 1934).

Opinions

LAXE, Justice.

L. Walker brought this suit against the Texas Company, a corporation, to specifically enforce a certain written contract, hereinafter set out, praying for judgment for damages for the alleged failure of the Texas Company to perform its part of said contract, for the establishment of his right to the overriding royalty mentioned in said contract, 'and for judgment requiring the Texas Company to specifically perform that part of said contract providing for payment to plaintiff of said overriding royalty, and for such other and further relief, general and special, legal and equitable, as he might be found entitled to.

The contract entered into between the parties, sought to be enforced, reads as follows:

“Houston, Texas, July 26th, 1927.
“Subject: Proposed Drilling Prospect — Bra-zoria County, Texas.
“Mr. L. Walker, Houston, Texas.
“Dear Sir: With reference to the proposed drilling prospect in Brazoria County, Texas, which you have brought to the attention of The Texas Company, on which you advise certain geophysical work has been done and substantial evidence of the existence of a salt dome discovered by means of such geophysical methods:
“It is understood that you will furnish all maps and information in your possession concerning the area in question, and assist The Texas Company in every way possible to assemble the block of acreage which we understand shall consist of not less than 2,300 acres of land at a cost to The Texas Company not exceeding $2.50 per acre.
[998]*998“When you hare furnished such maps and information it is agreed that The Texas Company shall proceed at its own cost and expense to assemble the block of acreage in question for the purpose of drilling tests, in an effort to. locate and prove the existence of a salt dome. Such drilling, however, to be at the option and judgment of The Texas Company, and in no event shall The Texas Company be obligated against its wish or option to drill or otherwise carry on operations hereunder.
“We agree to carry you for a l/32nd overriding loyalty on all leases acquired by The Texas Company in this proposed prospect. However, in the event any property or lease now owned by The Texas Company shall be embraced within said prospect or located in the vicinity of said prospect, it is understood and agreed that you will not be entitled to any royalty on such lands.
“When we have satisfied ourselves, either by drilling operations or otherwise, that a salt dome exists on said block of acreage, we agree to pay you, in addition to the over-riding royalty above mentioned, the sum of $4,050.00. It is distinctly understood and agreed, however, that said $4,950.00 shall not be due and payable unless and until The Texas Company has been satisfied that a salt dome exists on said block.
“The sum of $60.00 is hereby paid you as a consideration for the options herein granted.
“You will note your acceptance on a. copy hereof.
“Yours very truly,
“The Texas Company,
“By W. R. Thomas.
“Accepted: L. Walker.”'

The Texas Company paid Walker the $50 mentioned in the contract for the option specified thereby.

The plaintiff alleged that upon the execution of the contract and the .payment of the $50 by the Texas Company to him he “furnished to the defendant two maps showing the location, of the. area referred to in said contract and informed the defendant as to where the said dome was located, and informed the defendant that he would cooperate with the defendant in every way possible and would secure and furnish to the defendant any other information that it desired which could be procured by him, and .that he offered to assist the defendant in every way possible to assemble the block of acreage referred to in said contract;, that the. information so furnished by plaintiff to the defendant was received and accepted by the defendant without question and the sufficiency of such information was not questioned by the defendant; that the defendant still has in its possession the maps referred to, and it is here notified to produce same upon the trial of this cause or secondary evidence of the contents of such maps will be offered; that if defendant had availed itself of the services of the plaintiff, plaintiff could and would have secured the acreage referred to in said contract, under the terms mentioned therein; that while the defendant did not avail itself of the services of the plaintiff, in assembling the block of acreage around said prospect and securing leases thereon, the defendant did on the 27th day of November, 1928, and on various other dates from then until the .present time, the exact dates of which plaintiff cannot give, but which are well known to the defendant, proceed to assemble the block of acreage constituting such drilling prospect and did secure oil, gas and mineral leases on the lands constituting the acreage covered by such drilling prospect; that the defendant did satisfy itself that a salt dome exists on said block of acreage, the exact date when the defendant so satisfied itself being unknown to the plaintiff but being well known to the defendant; that the defendant drilled two wells for oil and gas on said drilling prospect, discovering therein strata of sands containing oil in paying.quantities and containing gas in huge and paying quantities; that the plaintiff cannot state with certainty when said wells were begun and when they were completed, nor can he state with certainty when it was that the defendant discovered in said well the sands referred to, but these dates are well known to the defendant; that oil and gas were not developed by the defendant in the first well drilled, but were developed by the defendant in the second well drilled, and the defendant is now proceeding to drill other wells on the land included in said drilling prospect. That a salt dome exists on said block of leases and the evidence demonstrates, both geophysically and by drilling, that such salt dome exists under said block and that oil and gas are to be found there in paying quantities. That if the defendant is not satisfied of the existence of such dome, it is because the defendant arbitrarily refuses to be satisfied of the existence thereof.”

Eollowing such allegations, plaintiff, described certain leases taken by defendant in said prospect area, and alleged that he had demanded of defendant the one thirty-second overriding royalty mentioned in the contract; [999]*999that defendant had refused to assign same to him; that by suoh refusal on the part of defendant, and plaintiff’s consequent inability to dispose of it at a larger value, which later prevailed, he had been damaged; that the Texas Company had satisfied itself that a salt dome existed under “said block of acreage,” indicating the existence of oil thereunder, and under the terms of said contract it was due plaintiff the $4,950; and that by reason of the matters and things stated he was entitled to his one thirty-second royalty on production taken by defendant from said “block of acreage.”

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Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1987

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78 S.W.2d 997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-co-v-walker-texapp-1934.