Trotter v. Wells Petroleum Corp.

732 P.2d 797, 11 Kan. App. 2d 679, 91 Oil & Gas Rep. 505, 1987 Kan. App. LEXIS 797
CourtCourt of Appeals of Kansas
DecidedFebruary 12, 1987
DocketNo. 59,302
StatusPublished
Cited by1 cases

This text of 732 P.2d 797 (Trotter v. Wells Petroleum Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trotter v. Wells Petroleum Corp., 732 P.2d 797, 11 Kan. App. 2d 679, 91 Oil & Gas Rep. 505, 1987 Kan. App. LEXIS 797 (kanctapp 1987).

Opinion

Brazil, J.:

Oil and gas lessors appeal the trial court’s holding that the words “growing crops” in their lease did not include naturally occurring pasture.

In 1977, J. David, Claude, and H. Darby Trotter purchased some land in Chautauqua County, in David’s name. David, a Texas attorney specializing in oil and gas law, and his wife executed an oil and gas lease to the property in 1980. David and his wife deeded the property to Claude and Darby in 1981. The various defendants all have a portion of the lessee’s interest in the lease.

The trial court summarized the Trotters’ claims, only some of which might have involved damage to “growing crops.” Those [680]*680involving possible crop damage are: (1) reasonable rental value of pasture for four years, including pasture on the south half of the section where the defendants’ wells are located and on two adjoining sections; (2) reasonable rental value for grazing of winter wheat for four years for the cultivated portion of the section where the wells are located; (3) complete loss of six acres of pasture used for roads to the wells; and (4) $1,000 per well for damage to approximately three acres of pasture, which twelve of the wells occupied. The court then reached the following pertinent conclusions:

“4. . . . Plaintiffs offered no evidence of damage to growing wheat. Other jurisdictions are not in conformity as to whether native pasture constitutes a “growing crop.” There are no reported Kansas decisions on point. In Texas, where the original lessor, J. David Trotter, practices oil and gas law, native pasture is not considered a “growing crop” and it seems appropriate in this case to follow the Texas precedent and deny recovery for any damage to the pasture, which has not actually been used for grazing since before 1977.
“5. Plaintiffs’ claim for damages for loss of pasture rental is not supported by the evidence. There was only one well in the pasture during 1981, 1982, and 1983. More wells were drilled in 1984 and 1985. However, with respect to that portion of Plaintiffs’ land, the evidence is that the property was never suitable and made ready for leasing. Even if it were, plaintiffs had an affirmative duty to mitigate damages by installing the 300 to 400 feet of fence necessary to segregate the pasture, which they chose not to do. Fundamentally, plaintiffs have never leased this land for pasture, have never offered it for lease, and have never been refused [by a potential tenant] on account of defendants’ ongoing operations. . . .
“7. Plaintiffs’ claim for damages for construction of the new roadway ... is unsupported by the facts and the law. . . . Plaintiffs offered no evidence upon which to base their claim . . . except that approximately one acre of cultivated land was taken out of production. However, no growing crops were damaged in the process.”

The parties appear to agree that this issue involves the interpretation of an ambiguous phrase in the lease. However, in construing written instruments “[t]he fundamental rule ... is that the intent and purpose of the parties be determined from an examination of the entire instrument or from its four corners. Thus the language used anywhere in the instrument should be taken into consideration and construed in harmony with other provisions.” Heyen v. Hartnett, 235 Kan. 117, 122, 679 P.2d 1152 (1984). “The interpretation of a written contract which is free [681]*681from ambiguity is a judicial function.” Hall v. Mullen, 234 Kan. 1031, 1037, 678 P.2d 169 (1984). “[A]mbiguity in a conveyance does not appear until application of pertinent rules of interpretation to the face of the instrument leaves it genuinely uncertain which of two or more meanings is the proper meaning.” Brungardt v. Smith, 178 Kan. 629, 636, 290 P.2d 1039 (1955). See Hall v. Mullen, 234 Kan. at 1037. The first question is: Does the lease indicate whether the original lessor and lessee intended to include native grasses in the phrase “growing crops”?

“[A]n oil and gas lessee or mineral owner usually is entitled to enjoy reasonable surface user necessary or convenient for his exploration and development operations, absent express provision to the contrary in the lease or instrument severing the mineral interest.” 1 Williams & Meyers, Oil and Gas Law § 218.7 at 225 (1986). However, if the lease specifically provides for the recovery of damages, or if the conduct of the lessee is tortious, or if the surface use rights of the lessee are exercised unreasonably and excessively, the lessor is entitled to recover his damages. Annot., 87 A.L.R.2d 236.

Appearing as typewritten provisions in a space between printed portions of the lease are the following:

“Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for its operations thereon, except water from lessor’s wells, lakes & streams.
“Lessee shall bury his pipe lines below plow depth and promptly cover and level all pits.
“No well shall be drilled nearer than 200 feet to the house or barn now on said premises without the written consent of the lessor.
“Lessee shall pay for all damages caused by its operations to growing crops, terraces, fences and gates on said land.
“Lessee shall have the right at [any] time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
“Lessee shall restore each drill [site] to its original condition promptly upon plugging or abandoning each well.

Where an oil and gas lease provided that “the lessee shall bury its pipe lines below plow depth and shall pay for damages caused by its operations to growing crops on said land,” a federal court applying Texas law held that native pasture grass was not included in the phrase because the reference to “plow depth” in the same sentence indicated that the parties intended to cover [682]*682only items which resulted from planting, cultivation, and labor. Wohlford v. American Gas Production Company, 218 F.2d 213 (5th Cir. 1955). See Annot., 87 A.L.R.2d 235, 238 (discussing Wohlford). Wohlford provides some support for the trial court’s decision here since the crop damage clause is within two sentences of a reference to “plow depth.” However, this reasoning is not strong enough to be dispositive in this case since the phrases were not in the same sentence, as in Wohlford.

Several Kansas cases have involved a clause for crop damage, but none have considered the precise issue involved here. In Fast v. Kahan, 206 Kan. 682, 481 P.2d 958 (1971), the court held no damages could be recovered under such a clause without proof of crop damages. In Berns v. Standish Pipe Line Co., 152 Kan. 453, 105 P.2d 893

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732 P.2d 797, 11 Kan. App. 2d 679, 91 Oil & Gas Rep. 505, 1987 Kan. App. LEXIS 797, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trotter-v-wells-petroleum-corp-kanctapp-1987.