Caddell v. Threshold Development Co.
| Citation | 609 S.W.2d 871 |
| Decision Date | 10 December 1980 |
| Docket Number | No. 9204,9204 |
| Parties | Delton CADDELL and wife, Wanda Ruth Caddell, Appellants, v. THRESHOLD DEVELOPMENT COMPANY, Appellees. |
| Court | Court of Appeals of Texas. Court of Civil Appeals of Texas |
Wicks & Lee, William E. Lee, Ralls, for appellants.
McCleskey, Harriger, Brazill & Graf, Mike Worley, Lubbock, for appellees.
The trial court summarily decreed the extension of the primary term of an oil, gas and mineral lease for the commencement of drilling operations. Concluding that the movant established entitlement to the summary judgment by operation of the force majeure provision in the lease, we affirm.
The facts are undisputed. On 20 June 1974, Delton Caddell and his wife granted an oil, gas and mineral lease to Gulf Oil Corporation covering the Caddells' property situated in Crosby County and described as the West One-half (W/2) of Section 812, T. T. Ry. Co. Survey. The lease, granted for a primary term of five years to expire on 20 June 1979, provides that the lease shall terminate on its anniversary date unless drilling or mining operations are commenced, or a rental to defer such operations is paid, prior to each anniversary during the primary term. A force majeure provisions in the lease is worded thusly:
11. Force Majeure. Lessee (Gulf Oil Corporation) shall not be liable for any delays in its performance of any covenant or condition hereunder, express or implied, or for total or partial nonperformance thereof, due to force majeure. The term "force majeure", as used herein, shall mean any circumstance or any condition beyond the control of Lessee, including but not limited to acts of God and actions of the elements; acts of the public enemy; strikes; lockouts; accidents; laws, acts, rules, regulations and orders of federal, state or municipal governments, or officers or agents thereof; failure of transportation; or the exhaustion, unavailability, or delays in delivery, of any product, labor, service or material. If Lessee is required to cease drilling or reworking or producing operations on the leased premises by force majeure, then until such time as such force majeure is terminated and for a period of ninety (90) days after such termination, each and every provision of this lease that might operate to terminate it shall be suspended and this lease shall continue in full force and effect during such suspension period. If any period of suspension occurs during the primary term, the time thereof shall be added to such term.
In lieu of drilling or mining operations, annual rentals were timely paid to continue the lease in effect through its primary term ending 20 June 1979. Meanwhile on 1 June 1978, Gulf entered into a farmout agreement with Threshold Development Company whereby Threshold would conduct drilling operations under the lease.
Threshold staked an area for drilling and contacted Delton Caddell, who knew of the staking, on 15 June 1979 concerning its intentions to start drilling operations under the lease. The parties had several meetings which ended with Caddell's insistence on an advance payment of $10,000 for property damages and proof of Threshold's authority to drill.
Anticipating from their discussions that Caddell would hinder its drilling operations, Threshold filed suit on 18 June 1979, two days before the expiration of the primary term of the lease, seeking a temporary restraining order to prevent the Caddells from interfering with its drilling operations. On the same day, the court granted the restraining order and citation was issued to be served. Although Delton Caddell was not served until 20 June 1979, he admittedly knew the previous morning of the lawsuit's filing.
On 19 June 1980, the day before the primary term of the lease was to expire, Threshold prepared to go upon the leased property to commence drilling. Being notified, Delton Caddell, accompanied by his son, each of whom carried a firearm, met his armed employee at the site. Once there, Caddell was informed by Threshold's agent that he had court papers to allow entrance onto the property. At that time, Caddell told the agent that "if he went on that property he was going to need an undertaker to get off." Threshold did not go onto the property.
The next day, the last day of the primary term, Caddell was served with the restraining order. On the same day, Threshold filed its first supplemental petition, reciting the June 19 incident and further seeking a declaration of its rights under the lease. On 2 July 1979 after a bench hearing, the trial court signed an agreed order decreeing that neither the Caddells nor Threshold "shall drill or commence any operations which are calculated to ultimately produce oil or gas on the Caddell property" until further order of the court.
...
To continue reading
Request your trial
-
Atkinson Gas Co. v. Albrecht
...in which Atkinson was physically prevented from entering the lease or obtaining production from the well. See Caddell v. Threshold Development Co., 609 S.W.2d 871, 873 (Tex.Civ.App.--Amarillo 1980, no writ). On the contrary, Atkinson was promptly informed of the shut-in and was generally fr......