Wood v. Haye

175 S.W.2d 189, 206 Ark. 892, 1943 Ark. LEXIS 184
CourtSupreme Court of Arkansas
DecidedOctober 25, 1943
Docket4-7006
StatusPublished
Cited by8 cases

This text of 175 S.W.2d 189 (Wood v. Haye) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Haye, 175 S.W.2d 189, 206 Ark. 892, 1943 Ark. LEXIS 184 (Ark. 1943).

Opinion

Griffin Smith, Chief Justice.

February 4, 1916, H. N. Slayter sold lands to J. J. Thurlkill, the description being “Fractional northeast quarter of section thirty, township eighteen south, range fifteen west, containing in all 150 acres, more or less:” August 19, 1919, Thurlkill conveyed to Ed Combs the northwest quarter of the northeast quarter (40 acres) and fractional southwest quarter of the northeast quarter (30 acres). 1 November 16, 1920, Combs reconveyed to Thurlkill ■“ The north three-fourths of the southwest quarter of the northeast quarter, . . . containing thirty acres.” The grantor reserved “A seven-eight interest in all oil and gas rights in and to this land.”

April 8, 1921, Thurlkill, by warranty deed, sold to D. C. Richardson “The southeast quarter of the northeast quarter and the north three-fourths of the southwest quarter of the northeast quarter, . . . containing seventy acres.” There were no reservations.

The appeal relates to oil and gas rights pertaining to the thirty-acre tract.. 2

It is alleged that at the time Thurlkill conveyed to Richardson, he (Thurlkill) obtained from Combs a quitclaim deed covering all interest in the land. This deed, it is said, was lost before being filed for record. It is stipulated that the title contended for by appellants, who were plaintiffs below, stems from Richardson.

On April 8, 1921, Thurlkill executed and delivered to Combs an oil and gas lease covering the north three-fourths of the southwest quarter of the northeast quarter, the term being for five years. It will thus be seen that the deed from Thurlkill to Richardson and the lease b}7 Thurlkill to Combs were made April 8, 1921, and the quitclaim deed from Combs to Thurlkill was concurrently executed, but its delivery denied.

The Thurlkill-to-Combs lease was filed April 9. On April 14 the subject matter was assigned bj^ Combs to H. E. Hay by an “Instrument of Writing” in which it was recited that Combs had purchased of Thurlkill thirty acres located in section thirty; that previously Combs had deeded the land to Thurlkill, but “had retained thereon seven-eighths of the oil, gas, and mineral rights in and to said lands”; that Thurlkill had executed an oil and gas lease in favor of Combs; that Combs was then the owner of the lease referred to, “and also the owner of seven-eighths of the oil, gas, and mineral rights above referred to.” The language following was that Combs sold “all of his rights above referred to, and the oil and gas lease above referred to,” etc.

Appellants predicate their claims upon the assertion that Richardson was an innocent purchaser. It is conceded .that the assignment executed by Combs April 14 conveyed “every right, title, and interest [the grantor] had in the minerals or lease on the land.” But it is denied that Combs had any interest other than the' oil and gas lease received by him April 8 from Thurlkill, and this, it is insisted, was delivered in consideration of Combs’ act in quitclaiming to Thurlkill — a transaction intended, appellants say, to blot out “the remote, indefinite, and ambiguous reservation” contained in the deed from Combs to Thurlkill, dated November 16, 1920.

An argument is that the reservation, if it covered more than the right to lease, was void for uncertainty in that no time was fixed within which use should be made of the privilege retained; that if oil and gas ‘ ‘ in place, ’ ’ as minerals, were the things reserved, then the fee owner could not be indefinitely circumscribed by-something the grantor might or might not do; nor was there anything in the reservation expressly giving the right to drill wells, to erect derricks, construct tanks, or make use of the surface in exploring for oil and gas.

We agree with the Chancellor that the reservation was not to be ignored for the reasons assigned. The right to enter and to make reasonable use of the land hi achieving in a workmanlike way the only result the parties could have intended (if, in fact, oil and gas in place, as distinguished from the right to lease, were retained) must be implied from the nature of the matters dealt with. Thornton, “The Law of Oil and Gas,” vol. 1, § 342, states the better rule to be that in case of either a reservation or an exception, a grantor has the right to enter on the surface with all usual necessaiy appliances, and .to remove the mineral without any express authority resei-ved to that effect. In case of a reservation of minerals, such property descends to the grantor’s heirs.

It was said in Bodcaw Lumber Company v. Goode, 160 Ark. 48, 254 S. W. 345, 29 A. L. R. 578, that the separate title to minerals, if not otherwise expressed, is retained in pei’petuity. In the Bodcaw case -Chief Justice McCulloch discussed Liston v. Chapman & Dewey Land Co., 77 Ark. 116, 91 S. W. 27, where it was held that a deed to standing timber which does not specify the time for removal conveys to the grantee an estate in the timber which runs with the land and goes on forever, “but the right to enter upon the land for removing the timber exists for only a reasonable time after the execution of the deed.” After commenting that there was a broad distinction between a sale of timber and a sale or reservation of mineral rights, the opinion says:

“. . . we have no hesitancy in saying that the reason for that rule as applied to the removal of timber has no application to the enjoyment of mineral rights where there is no interference with the enjoyment of surface rights during the period of delay. Since there was an independent and separate right to the minerals/ no lapse of time would impair the continuance of the right or bar its enjoyment on account of laches.”

That oil and gas in place did not pass from a grantor whose deed reserved “the mineral rights in, upon, and under” designated lands was expressly held in Sheppard v. Zeppa, Trustee, 199 Ark. 1, 133 S. W. 2d 860. Appellants point to dissimilarity between wording of the reservations expressed by Combs and those contained in the McCall deed to the Stewards, referred to in the Zeppa case. There is want of exactness, but the variance is immaterial. Combs withheld “. . . a seven-eighths interest in all oil and gas rights in and to this land.” McCall reserved the mineral rights “in, upon, and under.” In each case mineral “rights” were reserved. Oil and gas in place were mineral rights, just as oil and gas “upon and under” the McCall lands were mineral rights.

It should be observed that in the so-called assignment of April 14 Combs mentions having retained ‘ ‘ seven-eighths of the oil, gas, and mineral rights in and to said land.” He then identifies the oil and gas lease issued in his favor by Thurlkill, and in conveying to Hay he seemingly sets out the two rights as separate interests.

Treating the transaction of April 14, 1921, as an oil and gas lease, appellants allege that Hay (April 30, 1921) duly assigned it to H. F. Alexander, the contention being that Hay, who as we have determined received two separate interests from Combs, assigned to Alexander all that he had so acquired. Wé think, however, that only the leasehold was conveyed, leaving Hay the owner of seven-eighths of the oil, gas, and mineral rights pertaining to the land.

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Bluebook (online)
175 S.W.2d 189, 206 Ark. 892, 1943 Ark. LEXIS 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-haye-ark-1943.