Woods v. Bost

26 S.W.2d 299
CourtCourt of Appeals of Texas
DecidedJanuary 8, 1930
DocketNo. 3337.
StatusPublished
Cited by16 cases

This text of 26 S.W.2d 299 (Woods v. Bost) 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
Woods v. Bost, 26 S.W.2d 299 (Tex. Ct. App. 1930).

Opinion

HAUL, O. J.

On January 26, 1928, John Q. Bost and wife, joined by S. A. L. Morgan, as plaintiffs, sued the Tyler Oil Corporation, M. F. Woods, and Margie Edgar to cancel an oil lease and remove cloud from title caused by an oil and gas lease which appellants claim to be a valid subsisting lease. The first trial resulted in a judgment for the plaintiffs. Upon appeal, this judgment was reversed and the cause remanded. 14 S.W.(2d) 364. Prior to the second trial all parties amended their pleadings.

The lease sought to be canceled is described as the north 62.6 acres of Sec. 14, block Y-2, Cert. No. 75, G. B. & O. M. B. Ry. Co. surveys in Hutchinson county, Tex. The original lease embracing 400.6 acres was executed and delivered on the 11th day of Juñe, 1923, and was a lease of the premises for five years from the date thereof and as long thereafter as oil or gas, or either, might be produced from the land. It further provided that if no well be commenced on the leased premises, on or before the 11th day of June, 1924, the lease should terminate as to both parties unless the lessee should, on or before that date, pay the lessors the sum of $1 per acre rent, which would operate to postpone the commencement of a well for twelve months. It is further provided that in like manner and upon like payments or tenders, the commencement of a well could be deferred for like periods of the same number of months successively.

The appellees, plaintiffs below, allege that the rentals for deferring the commencement of a well on said land were paid on or before the expiration of the first, second, and third years of the lease, but that no rent was paid on or before the expiration of the fourth year, to. wit, on or before the 11th day of June, Í927, and that no well had been commenced in good faith on any of the land described in the original lease, and no oil or gas had been produced therefrom.

The appellees also alleged: That long pri- or to the 11th day of June, 1927, on to wit, about the 1st day of January, 1927, the Tyler Oil Corporation, then claiming to be the owner of said lease, caused a derrick and two shacks to be built on the 62.6 acres of land hereinbefore described. That the said corporation failed to follow the building of said derrick' and shacks by commencing and prosecuting the drilling of a well on said land within a reasonable time thereafter. That sixty days was a reasonable time within which to commence and complete a well to the depth of the producing sands in the *301 vicinity of said land. That at the expiration of sixty days from the building of the derrick and shacks, no well had been commenced, and nothing further done with reference to the development of the lease. That certain tools and machinery had been placed on the premises at the derrick about the 15th day of June, 1927, and that “the bit was spudded into the ground or was let into an excavation made in the ground to the depth of two to five feet,” and “thereafter no drilling was done ñor was anything done looking to the prosecution of the drilling of said wen but said machinery was allowed to stand at said location inactive until the filing of this suit more than six months thereafter. That a well could have been drilled and completed on or before the 15th day of August, 1927, and by reason of the failure of said Tyler Oil Corporation or its successors in interest, to prosecute the drilling of said well to its completion from and after the purported spudding in thereof on or about the 15th day of June, 1927, said lease, if it did not terminate on the 11th day of June, 1927, under the facts hereinbefore set forth, certainly terminated at the expiration of such reasonable time from and after the 15th day of June, 1927, within which a well should have been completed, and plaintiffs here say that such reasonable time expired on or about the 15th day of August, 1927, on which date said lease fully terminated.”

Appellees further pleaded; in the alternative, that if any operations were carried on by the owners of the lease prior to the 11th day of June, 1927, or thereafter, or were such that said lease did not terminate on the 11th day of June, 1927, or at the expiration of a reasonable time thereafter within which a well should have been completed by the lessees, then plaintiffs represent that on or about the 1st day of October, 1927, the corporation, then the owner of said lease, abandoned the same and all operations in good faith thereon with the intent and purpose to terminate any connection with said lease. That the appellant M. F. Woods claimed to have succeeded to the rights, if any, of the original lessee as to the seven-eighths working interest in and to the lease, and that the defendant Margie Edgar was claiming and asserting certain rights in and to a one-eighths overriding royalty interest in the gas which might be produced from any well drilled upon the premises.

Appellants Woods and Margie Edgar answered separately, but defended substantially upon the same grounds. They alleged that prior to the 11th day of June, 1927, a standard derrick and two bunk houses had been erected upon the leased premises, that a cellar and slush pit for the derrick had been dug and sufficient tools for spudding in a well had been delivered upon the premises, and a well actually spudded in. That subsequent to the 11th day of June, 1927, a water well was drilled upon the premises to the depth of 220 feet for the purpose of procuring water for drilling operations. That prior to the 11th day of June, 1927, appellee John Q. Bost informed the lessee that unless a rental of $62.80 was paid on or before the 11th day of June, 1927, that the lease would be forfeited.. That immediately after the 11th day of June, 1927, Bost asserted that the lease had been forfeited, and that this assertion was communicated to the lessee and to third parties who were interested in the completion of the well. That the reason for the failure of the Tyler Oil Corporation to complete the well after they had commenced it was the conduét of appellees in asserting that the lease had been forfeited. They deny that the leaSe had ever been abandoned by them.

The court submitted the case to the jury upon special issues, in response to which the jury found:

(1) That following the erection of the derrick on or aDout the 1st day of January, 1927, the Tyler Oil Corporation did hot pursue operations for the drilling of a well on the lease with reasonable diligence;

(2) That tools were procured by the Tyler Oil Corporation from the defendant Woods and placed on the lease not later than June 11, 1927, and such tools were reasonably sufficient to commence the drilling of a well;

(3) That at the time the corporation procured Woods to put the machinery and tools on the lease, it did not in good faith intend to prosecute the drilling of a well;

(4) That sixty days after June 11, 1927, was a reasonable time within which the corporation should have completed the well to the gas bearing sands in the vicinity of the lease;

(5) That Bost first notified the corporation about September, 1927, that he regarded the lease as being forfeited;

(6) That after placing the tools on the premises, .the defendant corporation did not use reasonable diligence in prosecuting thedrilling of a well prior to the date when Bost first stated to the corporation after June 11, 1927, that he regarded the lease as forfeited;

(7) At the time Bost first told J. L.

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Bluebook (online)
26 S.W.2d 299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woods-v-bost-texapp-1930.