Tidewater Associated Oil Company v. Shipp

1954 NMSC 129, 278 P.2d 571, 59 N.M. 37
CourtNew Mexico Supreme Court
DecidedDecember 29, 1954
Docket5779
StatusPublished
Cited by4 cases

This text of 1954 NMSC 129 (Tidewater Associated Oil Company v. Shipp) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tidewater Associated Oil Company v. Shipp, 1954 NMSC 129, 278 P.2d 571, 59 N.M. 37 (N.M. 1954).

Opinion

McGHEE, Chief Justice.

This action was filed by the appellant seeking an injunction against the appellee’s interference with its attempt to go upon lands belonging to the state of New Mexico on which the appellee held grazing leases, for the purpose of doing seismographic work. The appellant owned oil and gas leases in the vicinity, but the mineral leases on the lands upon which appellee held his grazing leases were owned by others.

Appellant based its right to go onto the lands in question upon the written consent of the Commissioner of Public Lands of New Mexico and of the owners of the various mineral leases, the consent of the latter being conditioned upon appellant holding them harmless because of damages inflicted upon the cattle, ranch, improvements, etc., upon such lands.

The appellant alleged its ownership of mineral leases in the vicinity, the permission of the state and the owners of other leases above set out, and its right to enter upon the lands and conduct the tests. A restraining order was issued, the seismographic work was done and thereafter the appellee filed his pleading denominated answer and cross complaint. He did not deny any of the matters set out in the complaint, but asserted he had been damaged by reason of the activities, as follows:

“2. That during its operations upon said lands the plaintiff drilled 51 shot holes upon said lands and traveled back and forth across saidjands with numerous drilling rigs, power wagons, trucks and other vehicular equipment, and disturbed and interrupted the defendant’s ranch operations on said lands and the defendant’s livestock thereon, and lessened the value of the use of said lands for ranching and grazing purposes, and damaged defendant’s ranges, livestock, growing crops and improvements, to the plaintiff’s damage in the sum of $1,275.00.”

The appellant answered the cross complaint setting up it failed to state facts upon which relief could be granted. It again pleaded the permission given it by the commissioner and the owners of the mineral leases, setting forth the following provision in the grazing lease issued by the commissioner to appellee: ,

“The right is hereby expressly reserved by the Commissioner, to execute leases for the above lands for mining purposes, or the extraction of petroleum, natural gas, salt, and other deposits therefrom, and right to sell and dispose of the same. The right is also reserved to grant rights-of-way and easements over, across or upon the land embraced in this lease for public highways, power lines, irrigation works, mining, logging, pipe line, business leases, water leases, and other purposes.”

In addition, the appellant plead the following by way of estoppel:

“3. That having accepted the lease to said lands containing the reservation in the Land Commissioner of the right to grant rights of way and easements for mining and other purposes and occupying said lands for grazing purposes pursuant to said lease, defendant is estopped and barred from denying the right of the Land Commissioner to grant such easements and rights of way and is barred and estopped from denying plaintiff right under such easement and right of way to go upon said lands and conduct its seismographical survey and that defendant is barred and estopped from asserting any claim from damages resulting for plaintiff’s exercise of the right observed by defendant’s landlord and by defendant’s landlord granted to plaintiff.”

On motion of the appellee an advisory jury was called to determine the damages which returned a verdict in favor of the appellee for $800. The trial court adopted the verdict of the jury, made findings of fact and conclusions of law and then entered judgment on the verdict.

Many assignments of error are made because of instructions given, as well as the refusal of certain tendered instructions by appellant, and the denial of its motion to dismiss appellee’s cross complaint, but they can be disposed of without a discussion of each claimed error.

The appellant contends that because of the reservation in the grazing lease and the decision of this court in Lea County Water Co. v. Reeves, 1939, 43 N.M. 221, 89 P.2d 607, it may only be held liable for damages resulting from its negligence or excessive use of the privilege conferred on it to exercise; that it was not claimed either existed.

It is further urged that even if appellant be liable, the damages awarded were excessive.

The doing of geophysical or seismographic work has become an inseparable part of oil and gas discovery procedure. It is done ahead of the location of a well site and its drilling. The extent of the work done and the resultant damage is reflected by finding of fact No. 7, as follows :

“That in conducting its geophysical exploration work upon said lands the plaintiff drilled 51 wells upon said land for the placing of dynamite therein and the detonation thereof in order to record on scientific instruments the reactions therefrom, and that in connection therewith the plaintiff used drilling rigs, power wagons, trucks and other vehicular equipment and travelled back and forth across said lands and disturbed the defendant’s livestock which were grazing thereon and damaged the defendant’s range, livestock and improvements; and that the verdict of the jury assessing said damages at the amount of $800.00 is reasonable.”

The decision in the Lea County Water Co. case cited above was by a divided court, as shown by the dissent of Justice Brice on motion for rehearing (with which the writer agrees), and involved the laying of a pipe line for which the land commissioner had received a stated consideration. The writer was the trial judge and the judgment was reversed, although, as shown by what was said in the motion for rehearing, as well as in fact, the legal points in the case were never urged or considered below, it being agreed the sole question was one of damages. Unfortunately for the holder of the grazing lease, no record was made of such turn in the case, so it was decided here on the legal questions involved which, it is true, had been pleaded.

If the doctrine of the majority opinion in the Lea County Water Co. case is to be extended to seismographic work, in the face of legislative history and the present effective act, Ch. 18, Laws of 1931, then the judgment below must be reversed and the holder of a grazing lease denied damages to his grass, livestock, crops, etc., in the absence of proof of negligence or excessive use.

In the Lea County Water Co. case stress was placed on what are now sections 7-8-29 and 7-8-61, 1953 Comp., as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
1954 NMSC 129, 278 P.2d 571, 59 N.M. 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tidewater-associated-oil-company-v-shipp-nm-1954.