Texas Pacific Coal & Oil Co. v. Comanche Duke Oil Co.

274 S.W. 193, 1925 Tex. App. LEXIS 576
CourtCourt of Appeals of Texas
DecidedJune 3, 1925
DocketNo. 7373.
StatusPublished
Cited by3 cases

This text of 274 S.W. 193 (Texas Pacific Coal & Oil Co. v. Comanche Duke Oil Co.) 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 Pacific Coal & Oil Co. v. Comanche Duke Oil Co., 274 S.W. 193, 1925 Tex. App. LEXIS 576 (Tex. Ct. App. 1925).

Opinion

SMITH, J.

Appellant, Texas Pacific Coal & Oil Company, and appellee, Comanche Duke Oil Company, owned oil leases on adjoining *194 tracts of land near the south line of Stephens county, in what is known as the “Ranger” oil field. Appellee drilled a well on its lease near appellant’s line, which became a producer of oil in paying quantities. Shortly afterwards appellant also drilled a well on its lease, 300 feet from and in offset of ap-pellee’s well.

It appears that wells in that vicinity did not usually produce oil naturally, as a result of drilling into or through the oil structure, and operators were therefore forced to resort to the use of explosives with which to shatter the formation and induce production. Eor this purpose they used nitroglycerin, which was lowered into the well and exploded against the so-called oil-bearing structures. This process is known as “shooting” wells. Appellee itself resorted to this process on two occasions in bringing in its well, which was 3,696 feet deep; it used something over *200 quarts of nitroglycerin with each shot, made at different depths. And when appellant completed its well, at a depth of 3,680 feet, it shot the well, first with 200 quarts of nitroglycerin, and .this shot failing in result, the .second shot was resorted -to, this time with 600 quarts of nitroglycerin.

It is contended by appellee that the second shot in appellant’s well resulted in stopping the flow of oil from appellee’s well, and produced a flow of salt wafer which destroyed its value as a producer. It is conceded by appellee that appellant had the right to shoot its well, and to shoot it with nitroglycerin, at the very time and place of the occurrence. The effect of this concession is to reduce or restrict appellee’s complaint to the single contention that in shooting its well appellant used an unnecessarily and unreasonably heavy charge of explosive, knowing that the resulting explosion would stop the flow of oil from appellee’s well and let in the flow of salt water, thus destroying the value of the well. Thus arises the controlling question in the appeal.

The doctrine is now well established that petroleum oil in its normal state is of a fugitive nature, restlessly and ceaselessly moving about in the bowels of the earth in response to natural forces and influences which have never been fathomed or mastered by human science. Because of this peculiar characteristic, oil may never become the subject of definite barter and sale, or of absolute ownership, unless and until it is' brought to the surface of the earth and reduced to physical possession.

The owner of the surface of one tract of land, and -of a producing well thereon, cannot complain if his neighbor sinks a well on the adjoining tract, even though the latter operation drains all the oil from beneath both tracts, and thereby completely destroys the purpose and value of the first well. This rule rests upon the doctrine stated, that the owner of the surface obtains no title to the oil beneath that surface until and unless he first reduces it to his pos-sessión; for, so long as it is in the fugitive state, it is subject to capture by any person seeking it in good faith from his own premises as a base,'and when once captured 'the title becomes vested in the captor. Offset wells are thus authorized by the rule stated, which is universal.

The doctrine goes further. If the offset well does not efficiently tap the source from which the pioneer well gets its flow, then the operator of the former may resort to artificial means in order to force production, and by this means he may destroy the value of the initial well by absorbing the entire source. This may .be done by the use of pumps sunk into the offset well, to operate which the owner may use all the force necessary to accomplish the purpose, even though it may divert the whole supply of the first well and thus completely destroy its value. Or, it may be done by means of explosives, as in this case, whereby the formations in the ascertained oil-bearing structure are broken up so as to divert the product from the first well and draw or force it into the offset well and thence to the surface and into the possession of the operator of the latter. These rules are now thoroughly and universally established, and are freely conceded by appellee in this case. So, we return to the concrete question presented by the case made, and that is: Was appellant guilty of negligence merely because it used as much as 600 quarts of nitroglycerin in shooting its well? We have concluded that there is no evidence in the record to support the jury’s affirmative answer to this question, and that therefore, that being the controlling question, appellee was not entitled to recover in the ease.

The negligence of appellant cannot be inferred from the mere occurrence of the difficulties in appellee’s well following the, shooting of appellant’s well. The doctrine of res ipsa loquitur does not apply in cases of this nature. This is conceded by appellee, and is the established rule. Accordingly, we are relegated to an analysis of the evidence to determiné if it is sufficient to support an inference of negligence.

In the first place, the finding of the jury that the explosion proximately caused the flow of oil .to cease, and the flow of salt water to .begin, in appellee’s well, must have •had its basis in pure conjecture and irresponsible speculation. For, as a matter of fact, established by appellee’s own testimony, the shot was promptly followed by an unusually heavy flow of oil from appellee’s well, the heaviest flow it had ever before produced; and there is evidence, embraced in an agreed statement of the pipe line runs from the well, that the average daily production for the month next following the shot was greater than that of the month next *195 preceding the shot, and that of the second month was heavier than that of the first, after which it decreased irregularly until the well was abandoned two years later. There was no effort to explain this queer and inconsistent conduct of the well, unless the explanation is supplied by the mere happening of the events following the explosion, and that explanation does not suffice. We suppose there could be no satisfactory explanation of it based upon either experience or science, which does not seem to have ever comprehended, controlled, or subdued the mysterious forces or elements which inhabit the far interior of the earth, at least in so far as they affect liquid or gaseous substances. The operation here complained of occurred more than three-fifths of a mile beneath the surface of the earth, and it is not contended that any one knows, or could possibly determine, whether the source of the oil tapped by appellee’s well was reduced or its volume materially affected by the explosion in question. So far as. known, or shown by the evidence, the supply may have been enlarged by the shot; certainly it appears to have been at least temporarily accelerated by it. But, even if it was in fact materially diminished, it was after all no more the property of appellee than of appellant so long as if was a fugitive; and the latter had the right to use' whatever means and force necessary to effect its capture, so long as it operated from its own premises and in a manner notwillfully intended to unnecessarily injure appellee.

The same rule would apply to appel-lee’s charge that the shot induced the flow of salt water into its well.

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274 S.W. 193, 1925 Tex. App. LEXIS 576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-pacific-coal-oil-co-v-comanche-duke-oil-co-texapp-1925.