W. T. Waggoner Estate v. Sigler Oil Co.

284 S.W. 921
CourtTexas Commission of Appeals
DecidedJune 9, 1926
DocketNo. 654-4523
StatusPublished
Cited by36 cases

This text of 284 S.W. 921 (W. T. Waggoner Estate v. Sigler Oil Co.) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W. T. Waggoner Estate v. Sigler Oil Co., 284 S.W. 921 (Tex. Super. Ct. 1926).

Opinion

SPEER, J.

Sigler Oil Company is the owner by assignment of 3,000 acres out of that certain 85,000 acres described in a lease agreement between Electra W. Wharton et al. and W. G. Burton, which said lease is as follows:

“Agreement, made and entered into the 27th day of January, KUO, by and between A. B.v Wharton and Electra W. Wharton, his wife, of Dallas, Tex., and W. T. Waggoner of Port Worth, Tex., hereinafter called lessor (whether one or more), and W. G. Burton, of Port AYorth, Tex., hereinafter called lessee, wit-nesseth:
“That the said lessor, for and in consideration of $100,000 dollars cash in hand paid, receipt of which is hereby acknowledged and of the covenants and agreements hereinafter contained on the part of the lessee to be paid, kept and performed, have granted, demised, leased, and let, and by these presents do grant, demise lease and let unto the said lessee for the sole and only purpose of mining and operating for oil and gas of laying of pipe lines and of building tanks, powers,' stations, and structures thereon to produce, save, and take care of said products, all that certain tract of land situate in the counties of Wilbarger and Baylor, state of Texas, described as follows, to wit:
“All of the land which lessor now owns, excepting one section around each of the four improvements now on said land amounting to 85,000 acres, more or less; fully described and shown by plat of said land attached hereto. Annual rental provided for herein, to wit $100,-000 per year, payable annually in advance, on the 27th day of each January, during the life of said lease to be placed at the Pirst National Bank, Port Worth, Tex.; provided each producing well shall hold 2,000 acres in a square, said well to be the center, and said 2,000 acres shall be released as to further annual rental. Provided, also, that the lessor shall have the right to lay his own pipe line to the pipe line or storage of the lessee, for the handling of his own royalty. The lessee agrees to pay seven-eighths of the increase in tax on said land by virtue of oil and gas values, provided also the lessor shall have the option of taking his one-eighth' of the gas instead of the. $200' per well.
“It is agreed that this lease shall remain in force for a term of five years from this date, and as long thereafter as oil or gas, or either of them, is produced from said land by the lessee.
“In consideration of the premises, the said lessee covenants and agrees: . «
“(1) To deliver to the credit of lessor, free of cost, in the pipe lines to which they may connect their wells, the equal one-eighth part of all oil produced and .saved from the leased, premises.
“(2) To pay the lessor two hundred ($200.00) dollars each year in advance, for the gas from each well where gas only is found, while the same is being used off the premises and lessor to have gas free of cost from any such well for all stoves all inside lights in the principal dwelling house on said land during the same time by making his own connections with the well at his own risk and expense.
“(3) To pay lesspr for gas produced from any oil well and used off the premises at the rate of $200 per year, for the time during which such gas shall be used, said payments to be made each three months in advance.
“If no well be commenced on said land on or before the 1st day of June, 1910, this lease shall terminate as . to • both parties, allowing reasonable time for unavoidable delays.
“If the said lessor owns a less interest in the above-described land than the entire and undivided fee-simple estate therein, then the royalties and rentals herein provided for shall be paid the lessor only in the proportion which interest bears to the whole and undivided fee.
“Lessee shall have the right to use, free of cost, gas, oil, and water produced on said land for all operations thereon, except water from wells and tanks of lessor, without permission of lessor.
“When requested by lessor, lessee shall bury their pipe line below plow depth.
“No well shall be drilled nearer than 200 feet to the house or barn now on said premises without the written consent of lessor. Lessee shall use due diligence in keeping all gates closed and trespassers out of leased land.
“Lessee shall pay for damages caused by all operations to growing crops 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 easing.
“If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly allowed, the covenants hereof shall extend to their heirs, executors, administrators, successors, or assigns, but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee until after the lessee has been furnished with a written transfer or. assignment, or a true copy thereof; and it is hereby agreed that, in the event this lease shall be assigned as to a part or parts of the above described lands and the assignee or assignees of such part or parts shall fail or make default in the payment of the proportionate part of the rentals due from him or them, such default shall not operate to defeat or affect this lease in so far as it covers a part or parts of said lands upon which the said lessee, or any as-signee thereof, shall make due payment of said rental.
“Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the lessee shall have the right at any time to redeem for lessor, by payment, any mortgages, taxes, or other liens on the above-described lands, in the event of default .of payment by lessor and be subrogated to the rights of the holder thereof.
“In testimony whereof we sign this the 27th day of January, 1919.”

The W. T. Waggoner estate is the owner of the land and of the rights in the lease of the original lessor. W. T. Waggoner estate sued the Sigler Oil Company to cancel the lease and to remove cloud from title to the land created by the registration of the lease [923]*923)n the ground of abandonment, and, in tbe alternative, for tbe reason tbe oil company bad failed and refused to carry out tbe purposes of the lease or to carry on tbe enterprise wbicb tbe lease created, or to use tbe property for tbe production of oil and tbe development of tbe land for oil as was tbe purpose of tbe lease. Tbe plaintiff, as a further alternative, sought a decree of specific performance. Tbe case was tried before a jury on special issues, wbicb, together with tbe answers thereto, are as follows: .

“(1) Did tbe defendant, Sigler Oil Company, and its predecessors in title, prior to January. 29, 1924, use reasonable diligence in developing for oil the lands described in the lease in question? Answer: No.
“(2) Did the defendant, Sigler Oil Company, prior to January 29, 1924, breach the duty of carrying out the essential purposes of the lease in question? Answer: Yes.

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284 S.W. 921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-t-waggoner-estate-v-sigler-oil-co-texcommnapp-1926.