Yates Et Ux. v. Gulf Oil Corporation

182 F.2d 286
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 1, 1950
Docket12945_1
StatusPublished
Cited by7 cases

This text of 182 F.2d 286 (Yates Et Ux. v. Gulf Oil Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yates Et Ux. v. Gulf Oil Corporation, 182 F.2d 286 (5th Cir. 1950).

Opinions

WALLER, Circuit Judge.

The sole question involved in this case is whether under a lease made in 1924 “for the sole and only purpose of mining and operating for oil, gas, potash, or any other minerals, and of laying of pipe lines and of building of tanks, power stations and structures thereon, to produce, save and take care of said products,” and granting no express privilege to the lessee to go upon the lands for the purpose of making explorations for oil and gas, an heir of the lessor to the soil can prevent lessee from making geophysical explorations by seismographic tests; or, stated differently, whether or not in a lease giving the lessee the right to mine and operate for oil and gas, with no mention of the right of exploration, there is an implied right to make such explorations over the objection of a present owner of a Vio interest in the surface or subservient estate unless the lessee pay to him $50 for each seismographic hole drilled in such lands.

The Court below held that the lessee had the implied right to go upon the subservient estate to make geophysical explorations by the use of the seismographic process so long as the lease is in force and to use so much of such lands as is reasonably necessary for the enjoyment of the estate created under such lease.

Plaintiff sought 'by its original complaint a temporary restraining order prohibiting Yates and his wife, the occupants of the [288]*288land and tenants in common of the title, from interfering with the agents, servants, or employees of the plaintiff in doing geophysical work on the lands in question. Defendants answered, admitting that Yates had demanded $50 per seismographic shot hole in advance as compensation for damages that would accrue to the defendants, and asserted that tire plaintiff had no legal right to enter upon the lands or to use “so much of the surface thereof as is reasonably necessary to do geophysical work” since such right was not granted under the oil and gas lease or the amendment thereof. The defendants also filed a cross-action, alleging that the cross-plaintiffs were citizens of Texas, the cross-defendant was a citizen of Pennsylvania, and the amount involved exceeded $3,000; that between the time of the issuance of the temporary restraining order and the filing of the cross-complaint the plaintiff, or cross-defendant, had completed the geophysical explorations and seismographic operations and in doing so had caused the cross-plaintiffs to suffer actual damages in the total amount of $6,-535; that the exploratory operations were conducted in such gross and wanton manner as to constitute a trespass to injure the top soil and vegetation on the said cross-plaintiffs’ pastures.

We take it that since the cause of action sought to be asserted in the counterclaim is one that arose “out of the transaction or occurrence that is the subject matter of the opposing party’s claim and does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction,” this counterclaim was a compulsory counterclaim under Rule 13 of the Federal Rules of Civil Procedure, 28 U.S. C.A., or a counterclaim that the defendants were required to interpose in the pending suit. Testimony was taken before the Court in the absence of the jury, but counterclaimants, announcing that they did not insist upon their cross-action, offered no evidence whatsoever as to any damages caused by the explorations and seismographic operations alleged in the counterclaim.1

After the filing of the counterclaim, plaintiff filed an amendment to its complaint stating that it would have occasion from time to time to conduct geophysical operations, including seismographic work, in connection with its work under the terms of its lease, and that the acts of the defendants in denying it access to the premises constituted a cloud upon its title to its lease that should 'be removed, and that it was entitled to a declaratory judgment as to its rights and to a permanent injunction. At the time the case came on for trial the seismographic operations on the lands occupied by the defendants had been completed and any damage to be caused had already been caused to the surface, so that there was no occasion further to continue the temporary injunction. When, therefore, defendants and cross-plaintiffs renounced their right to insist upon their cross-action, the only question remaining was whether or not the plaintiff had an implied legal right to make explorations and seismographic operations upon the premises covered by its lease. The lower Court concluded: “The Court holds that under the lease involved in this suit plaintiff’s predecessors in title had, and plaintiff now has, the right to enter upon all of the lands covered by said lease, and use so much of same as is reasonabty necessary for the purposes provided for in said lease; and further that plaintiff has the right under such lease, among other things, so long as said lease is in force, to enter the lands covered by such lease and carry on geophysical operations, which include seismographic work, toward the end of locating, prior to the drilling of wells, the structures under the surface of the ground most likely to contain oil and gas, and ascertain where are situated the most favorable locations for drilling.”

The only specification of error of the defendants is that: “The Trial Court erred in rendering judgment that appellee had [289]*289the right to conduct geophysical operations, which includes seismographic work on the lands covered by the lease herein because said lease provides ‘for the sole and only purpose of mining and operating for oil, gas, potash or any other minerals and of laying of pipe lines, and of building tanks, power stations and structures thereon, to produce, save and to take care of said products’ and could not have contemplated conducting geophysical operations, including seismographic work, because same were unknown to the parties at the time of the execution of the contract.”

There is neither assignment of error nor cross-assignment of error based upon the failure of the Court to make the temporary injunction permanent, or upon the failure of the Court to award damages or otherwise to make final disposition of the compulsory counterclaim.

The only contention of the appellants is that the intention of the parties in making the lease in question should control and that in 1924, when the lease was made, the lessors had never heard of the use of seismograph in geophysical operations in exploring for oil and gas. Wherefore they argue that there could have been no intention on the part of either party to the lease to use the seismograph in making explorations on the land in question. The Court below found that the parties executed the lease in complete unaw'areness of the existence of the seismographic method in geophysical tests.

We have been pointed to no case holding specifically that a lessee may not avail himself of any careful and prudent method of exploring the surface for oil and gas.

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Yates Et Ux. v. Gulf Oil Corporation
182 F.2d 286 (Fifth Circuit, 1950)

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Bluebook (online)
182 F.2d 286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yates-et-ux-v-gulf-oil-corporation-ca5-1950.