Texon Drilling Co. v. Elliff

210 S.W.2d 553, 1947 Tex. App. LEXIS 1083
CourtCourt of Appeals of Texas
DecidedJune 4, 1947
DocketNo. 11681
StatusPublished
Cited by5 cases

This text of 210 S.W.2d 553 (Texon Drilling Co. v. Elliff) 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
Texon Drilling Co. v. Elliff, 210 S.W.2d 553, 1947 Tex. App. LEXIS 1083 (Tex. Ct. App. 1947).

Opinion

NORVELL, Justice.

Texon Drilling Company, a Texas corporation, Texon Royalty Company, a Texas corporation, Texon Royalty Company, a Delaware corporation, and John L. Sullivan have appealed from a judgment rendered against them and in favor of Mabel Elliff, a feme sole, Frank Elliff and Charles Elliff, the plaintiffs below. The judgment was rendered upon a special issue verdict and the amount thereof is $154,518.19.

Appellees’ claim for damages was based upon the “blowout” of a gas well which was being drilled upon property owned by Mrs. Clara Driscoll and adjoining the appellees’ lands. The greater part of the judgment ($148,548.19) was awarded for the loss of [554]*554gas and distillate which prior to the blowout lay underneath the appellees’ property.

By its special issues Nos. 14 and 15, the trial court required the jury to estimate the amount of gas and distillate which had been drained from the Elliff property as a result of the blowout. The monetary damage was arrived at by ’multiplying this amount by the Elliff fractional interest of the mineral estate and by 2c per thousand cubic feet for gas and by $1.25 per barrel for distillate.

The controlling question upon this appeal is whether or not a recovery based upon the theory and formula above stated can be sustained in law under the pleadings and facts disclosed by the record.

Appellees are the owners of the surface estate in and to a certain tract of land situated in the Aqua Dulce Gas Field of Nueces County, Texas, containing approximately 3054.9 acres of land. They also were the owners of an undivided one-half interest in and to the mineral estate underlying the East 1554.9 acres of the tract and all of the mineral estate underlying the; West 1500 acres of the tract. Both tracts were subject to oil and gas leases so that the royalty interest of the Elliffs is a one-sixteenth on the East 1554.9 acres and a one-eighth on the West 1500 acres.

In November, 1936, there was a producing well (Elliff No. 1) located on the Elliff property. The appellants were engaged in drilling a diagonal offset to the Elliff well upon the Driscoll property (Driscoll-Sevier No. 2). The Driscoll-Sevier well was approximately 1000 feet Northeast of the Elliff well and 466 feet distant from the Elliff east property line.

On November 19, 1936, while drilling at a .depth of approximately 6,838 feet, appellants lost control of Driscoll-Sevier No. 2, and the well “blew out,” caught fire and cratered. Attempts to control the well were unsuccessful. Enormous amounts of gas, distillate and some oil were blown into the air. The cratering process continued until Elliff No. 1 was-engulfed and destroyed.

The jury found that appellants were negligent in failing to use drilling mud of sufficient weight in the drilling of Driscoll-Sevier No. 2, and that this failure was the proximate cause of the blowout.

The jury found that appellees had sustained the following damages: $4,620 damage to sixty acres of the surface; $1350 for the loss of 27 head of cattle; $78,580.46 “for such gas (distinct from distillate) as was lost from and under the lands” of ap-pellees '(Special Issue No. 14) ; and $69,-967.73 for distillate “lost from and under” the lands of appellees (Special Issue No. 15).

As to gas, the court instructed the jury to figure the value thereof at 2c per M., and allow appellees a recovery for one-eighth of the gas lost from and under the Wes.t 1500 acres of the 3054.9 acre tract, and a recovery of one-sixteenth of the gas lost from and under the East 1554.9 acres of the tract.

A similar instruction was given as to distillate, “figured at $1.25 per barrel.”

The damage issues were conditioned upon the jury’s findings relating to the prior issues of negligence and proximate cause.

Appellees’ pleaded theory of recovery was that there existed beneath the Elliff and adjoining lands a “huge reservoir of oil, gas, distillate and other oil, gas and mineral substances, the .exact area and extent of which is reasonably certain of ascertainment and is definitely known”; that approximately fifty per cent of said reservoir lay beneath appellees’ lands; and that a part of said reservoir underlay lands owned by Mrs. Clara Driscoll, formerly known as Mrs. Clara Driscoll Sevier. That as a result of negligent drilling operations upon the Dris-coll property, the blowout occurred and large amounts of gas and distillate was drained, spent and wasted from the common reservoir and from the part thereof underlying appellees’ tract of land.

The jury’s findings as to the amount of drainage of gas and distillate underlying the Elliff lands is primarily based upon the testimony of the witness C. J. Jennings, appel-lees’ petroleum expert. The Aqua Dulce field is a developed high pressure gas field. Through information derived from the drilling records and electric logs of various, wells in the field, Jennings wa’s able to estimate the amount of gas and distillate lost from under the Elliff lands as a result of the Driscoll-Sevier blowout. Jennings testified that in his opinion eleven different sands [555]*555had been affected. On six separate sands he had definite information as to porosity and bottom-hole pressures, both before and after the blowout. He was able to estimate the amount of gas lost from under the Elliff tract by calculating the volume of the various strata of sands and the voids therein which were occupied by gas. He then applied Charles Law for temperature and a variation of Boyles Law for pressure in arriving at his final estimates of quantity. According to Jennings, the high gas pressure of the field resulted in what he called super compressibility of gas which would make necessary a correction of calculation in applying Boyle’s law. This correction he did not make, as he estimated it would be offset or compensated by the presence of connate water in the voids of the sand along with the gas, and by certain quantities of gas which had escaped or been released from the reservoir from causes other than the blowout well. Under Jennings’ method of calculation, it is apparent that the chief determining factor of the estimate was the decrease in bottom hole pressures of the sands caused and brought about by the blowout. Jennings estimated that 13,096,717,000 cubic feet of gas had been drained from the West 1500 acres of the Elliff tract, and that 57,625,728,000 cubic feet had been drained from the East 1554.9 acres of the tract as a result of the blowout. The loss in money to the Elliffs was calculated on the basis of their ownership of the mineral estate in the two tracts — one-sixteenth on the East and one-eighth on the West. The value of the gas was figured by Jennings at the rate of 2c per M. This figure was accepted by the court and submitted to the jury as established as a matter of law, and! no objections were made to said instruction. It is not clear from Jennings’ testimony whether the value of 2c per M. is the value of the gas at the mouth of a well, at the pipe line or in place in the ground. During the taking of the testimony some contention was made that the value, 2c per M., was the value of the gas in place. The pleading is that “said gas has at all times had a reasonable market value, in Nueces County, Texas, of the sum of two cents (2c) per thousand cubic feet.”

The distillate loss was calculated by taking the gas distillate ratio as shown by the Railroad 'Commission records on six of the sands involved upon which records were available.

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Bluebook (online)
210 S.W.2d 553, 1947 Tex. App. LEXIS 1083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texon-drilling-co-v-elliff-texapp-1947.