Doss Oil Royalty Co. v. Lahman, 36925

• Citation: 302 P.2d 157
• Decision Date: 10 July 1956
• Docket Number: No. 36925,36925
• Parties: DOSS OIL ROYALTY COMPANY, a Corporation, Plaintiff in Error, v. R. W. LAHMAN, Defendant in Error.
• Court: Oklahoma Supreme Court

Page 157

302 P.2d 157

1956 OK 225

DOSS OIL ROYALTY COMPANY, a Corporation, Plaintiff in Error, v. R. W. LAHMAN, Defendant in Error.

No. 36925.

Supreme Court of Oklahoma.

July 10, 1956.

Rehearing Denied Oct. 9, 1956.

Syllabus by the Court

1. Where a contract and deed, although executed and delivered at different times, constitute parts of the same transaction, and the delivery of the deed is on a part performance of the terms of the contract and is not intended to supersede the contract, the contract is not merged in the deed but both are to be construed together, and a restriction on the use of the land by the terms of the contract will be given effect.

2. The term 'royalty' is construed in the broad sense of denoting mineral rights where there is no oil and gas leases upon the property but is construed in the restricted sense of denoting an interest in the production when the property is under lease for oil and gas.

3. Record examined and held that the contract and royalty deed involved passed title to a 3/64 royalty interest or 3/8 of the usual 1/8 royalty and not a 3/64 mineral interest.

Appeal from the District Court of Carter County; John C. Caldwell, District Judge.

Suit to quiet title to undivided mineral interests in lands in Carter County, Oklahoma, as fixed by contract and royalty deed, brought by the plaintiff, R. W. Lahman, against the defendants, Doss Oil Royalty Company and Evalee Lahman. From judgment for plaintiff, defendant Doss appealed. Reversed and remanded with directions.

A. James Gordon, McAlester, Otey, Johnson & Evans, Ardmore, for plaintiff in error.

Fischl & Culp, Ardmore, for defendant in error.

DAVISON, Justice.

This is a suit to quiet title to undivided mineral interests in a 40 acre tract of land in Carter County, Oklahoma, brought by R. W. Lahman, as plaintiff, against Evalee Lahman and Doss Oil Royalty Company, as defendants. The parties will be referred to as they appeared in the trial court.

The plaintiff was the owner of the entire fee in said 40 acres when, in 1921, he leased the same for oil and gas purposes to the Magnolia Petroleum Company, which said lease is still in full force and effect because of continued oil production. Subsequently, plaintiff sold five eighths of the mineral estate leaving him an undivided 3/8 interest therein which he owned when the situation here involved had its inception, with the execution of the following contract:

'This contract, in duplicate, entered into this third day of December A.D.1923, by and between R. W. Lahman, party of the first part and Doss Oil Royalty Company, a corporation, party of the second part:

'Witnesseth: Party of the first part has this day sold to the party of the second part, three sixty fourths royalty interest in and to the oil and gas in and under the following described lands: the south one half of the north east quarter of the north east quarter, and the north one half of the south east quarter of the north east quarter of section twenty five, township two south, range three west I. B. & M., for the consideration of Ten Thousand Dollars ($10,000.00) to be paid upon the approval of title by the attorney for second party, and the delivery of a grant conveying said interests.

'Provided however: that when second party has received from the runs of oil and gas from said premises a sum equal to ten thousand dollars plus eight per cent interest from date, said second party shall reconvey to first party one half of the interest here conveyed.

'Second party shall have the oil runs from date of this contract.

'Signed in duplicate on the day and year last above written.'

On the same day, plaintiff executed a division order directing the lessee to credit or pay to Doss Oil Royalty Company ' 3/64 R.I.' for oil received from the premises.

Two days later, the following conveyance was executed:

'Sale of Oil and Gas Royalty

'Known All Men By These Presents:

'That R. W. Lahman and Evalee Lahman of Healdton, Oklahoma, for and in consideration of the sum of Ten Thousand Dollars ($10,000.00) receipt of which is hereby acknowledged, have granted, bargained, sold, conveyed and set over, and do by these presents grant, bargain, sell, convey and set over to the Doss Oil Royalty Company, successors and assigns, all the following property, estate, right, title and interest, to-wit: three-sixty-fourth ( 3/64) undivided interest in and to all the oil and gas in and under the following described tract of land

'South half ( 1/2) of Northeast quarter ( 1/4) of the Northeast quarter ( 1/4) and North half ( 1/2) of Southeast quarter ( 1/4) of Northeast quarter ( 1/4) of Section Twenty-five (25) Township 2 South, Range 3 West, Indian Base Meridian.

situated in the County of Carter, State of Oklahoma: and also an undivided three-sixty-fourths ( 3/64) intereest in all my right, interest, and estate under and by vurtue of any oil, and gas mining lease now, or hereafter existing upon said premises, or any part thereof, including all rents and royalties accuring and to accure; and also the right, privilege and easement of entering upon said lands and searching for, drilling wells, sinking shafts, mining, diggging, extracting, taking and carrying away all of the oil, and gas in or under said lands, or that may be found therein or thereunder: and also the right to possession and use of so much of said premises at all times as may be necessary to the practical carrying out of the purposes and provisions of this grant.

'To Have and To Hold, All the aforesaid estate, property and easements, together with all and singular the rights, privileges and hereditaments thereunto belonging or appertaining, unto the said Doss Oil Royalty Company, successors, and assigns in fee simple forever.

'And the said R. W. Lahman and Evalee Lahman, for themselves, heirs, successors and personal representatives do hereby covenant and agree to and with said Doss Oil Royalty Company, successors and assigns, that at the delivery of these presents they are lawfully seized in their own right of an absolute and indefeasible estate of inheretance in fee simple of, in and to all the singular the aforesaid premises and property; that they have a good right to sell and convey the same, and warrants the same to be free, clear, discharged and unincumbered of and from all former grants, titles, charges, judgments, taxes, assessments and incumbrances of whatsoever kind and nature, except in oil and gas leasehold estate, hereinafter referred to which is recorded in the office of the County Clerk of Carter County, Oklahoma.

'It is expressly declared that whereas the land, particularly described in the conveyance is subject to an oil, and gas mining lease in favor of the Magnolia Petroleum Company, it is intended that said outstanding lease is fully embraced in the general terms of this conveyance, so as to pass to, and vest in said Doss Oil Royalty Company three sixty-fourths ( 3/64) interest, not only in the oil and gas, but also all rents and royalties therein reserved to the lessor, precisely as if the said Doss Royalty Company has been at the date of making of said lease, the owner in fee of a three...