Texas Company v. O'Meara

36 N.E.2d 256, 377 Ill. 144
CourtIllinois Supreme Court
DecidedJune 13, 1941
DocketNo. 25890. Decree affirmed.
StatusPublished
Cited by22 cases

This text of 36 N.E.2d 256 (Texas Company v. O'Meara) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Company v. O'Meara, 36 N.E.2d 256, 377 Ill. 144 (Ill. 1941).

Opinion

Mr. Justice Shaw

delivered the opinion of the court:

This litigation originated in the circuit court óf Wayne county and was commenced by complaint in the nature of a bill to quiet title and for injunction. The relief prayed for was granted and the defendants have appealed to this court, a freehold being involved. A decision in the case requires construction of certain deeds given by various landowners to the Big Mound Drainage District No. 1 and the details of those conveyances will be set forth below. The case was disposed of in the trial court on the pleadings so no question of fact is involved.

In the years 1905, 1906 and 1907, the district acquired title to its right-of-way by numerous deeds, all of which were identical, except as to the names of the grantors, the legal descriptions of the lands crossed, and the date of the instrument. These deeds were on printed forms (with the blanks appropriately filled in) as follows:

“This Indenture Witnesseth:
“That........................of the County of Wayne and State of Illinois, for and in consideration of the benefits and advantages which may result to the owners of lands in Big Mound Drainage District No. 1, and to myself as one of the said land owners, by the construction of a drainage ditch in said district as now surveyed, and for "the purpose of facilitating the construction and completion of said drainage ditch, and in further consideration of One Dollar in hand paid by the Commissioners of Big Mound Drainage District No. 1, do hereby convey, release, relinquish and quit claim to said Commissioners of Big Mound Drainage District No. 1, the right of way One Hundred feet in width, being fifty feet on each side of said drainage ditch as now surveyed, for so much of said drainage ditch as may pass through the following described land, to-wit:
“And, as I believe that the construction of said drainage ditch will be a public benefit to all the land owners of said district as well as a personal benefit to myself, I hereby release and relinquish all claim for damages by reason of the location and construction of said drainage ditch through or upon any or all of the real estate hereinbefore described.
“Witness my hand and seal, this........day of.............. A. D.......
.....................................(SEAL)
....................................(SEAL)”

On December 5, 1938, Big Mound Drainage District No. 1, and sub-district No. 1, of Big Mound Drainage District No. 1, entered into an oil and gas lease with M. W. O’Meara and Charles D. Tate. In at least two respects this lease is peculiar. First, it does not specifically describe any real estate, but in the blank provided for that purpose says, “all of the real estate, land and lands owned by and belonging to the lessors, and to each of them individually, situated in the County of Wayne and State of Illinois, and containing...... acres, more or less.” Second, it contains none of the usual covenants of warranty. Otherwise, it appears to be a usual producers form of lease, except for a provision for an extension of time for drilling if delay results from “fire, flood, act of God, or by injunction.”

About a year after the execution of this lease the legislature passed an act (Laws of 1939, p. 526) whereby the Drainage act of 1879 was so amended as to purport to grant power to the commissioners of any drainage district to lease lands for the purpose of exploring for, drilling or producing oil and to validate any such leases theretofore given. Since this act could not affect the granting clause or legal description contained in deeds executed nearly twenty-five years prior to its enactment it requires no consideration in this opinion.

At the time of the commencement of this suit the Texas Company was the owner of seven oil and gas leases dated in 1936 and 1937, whereby it had acquired the right to go upon various lands crossed by the drainage ditch of the district for the purpose of exploring for and producing oil and gas, and in most, if not all, of these leases, no exception was made as to the right-of-way of the drainage ditch. On December 5, 1938, O’Meara and Tate assigned the lease which they obtained from the district to defendant Strickland in so far as it covered (or was claimed to cover) the following described land:

“Twenty-four hundred (2400) feet off of the west end of the Drainage Canal Right of Way, (the entire width thereof) owned and operated by said Big Mound Drainage District Number One, which Drainage Canal Right of Way runs eastwardly and westwardly and is located near the section line between Sections 28 and 27, on the north and 33 and 34 on the south, Township 2 South, Range 7 East of the 3rd P. M. Wayne County, Illinois.”

This assignment reserved an overriding royalty, provided for certain payments to the district out of oil and provided for a delay in drilling if it should be prevented, “by fire, flood, act of God, or by injunction or a suit or suits at law or in equity.” The above described lease and its assignment to Strickland are alleged to be clouds upon plaintiff’s title to the oil and gas under its various leases, which it was sought to have removed, and as to which an injunction was prayed to prevent Strickland and others from drilling. A temporary injunction was entered on September 1, 1939, which was made permanent by the final decree of April 23, 1940, and by that same decree the oil and gas lease given by the district to O’Meara and Tate was held to be void.

The question for decision here is whether each of the deeds above described conveyed the entire property and estate of the grantors in and to a strip of land 100 feet wide centered along the ditch as surveyed, or whether they conveyed to the districts a right-of-way only.

In Thompson v. Magnolia Petroleum Co. 309 U. S. 478, 84 L. ed. 624, 60 Sup. Ct. 628, a question of title to fugitive oil and gas underlying a railroad right-of-way was involved in a reorganization proceeding under the Bankruptcy act. The Supreme Court of the United States remanded the cause to the District Court, holding that the question of title was a matter that must be determined by the laws of Illinois and in the courts of this State. The exact wording of the deeds in question does not appear in the opinion of the court, but the question presented was obviously similar to the one now under consideration by us. This opinion was filed in March of 1940, and it is thus apparent that in so far as the Federal courts are concerned it is expected of us that we will rely upon our own laws and precedents. In view of the fact that we have what we consider to be adequate precedents in our own court for our guidance in the determination of this case we will not enter upon any extended review of the decisions of other courts, State or Federal.

A greater portion of appellants’ brief is devoted to citations and argument intended to show that the conveyance in question was “in fee” and the arguments pro and con as to this point are urged by them as determinative of the result.

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Bluebook (online)
36 N.E.2d 256, 377 Ill. 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-company-v-omeara-ill-1941.