Federal Oil Co. v. Western Oil Co.

• Decision Date: 11 January 1902
• Docket Number: 10,034.
• Parties: FEDERAL OIL CO. v. WESTERN OIL CO. et al.
• Court: United States Circuit Court, District of Indiana

112 F. 373

FEDERAL OIL CO. v. WESTERN OIL CO. et al.

No. 10,034.

United States Circuit Court, D. Indiana.

January 11, 1902

John L Griffiths and Elmer H. Adams, for complainant.

Cable &amp Parmenter, Gavin & Davis, and Charles & Brown, for defendants.

This is a suit in equity to compel the enforcement of a lease for mining for oil and gas. The bill alleges that the defendants Bradford and wife on February 22, 1901, executed to the complainant a lease as follows: 'In consideration of the sum of one dollar, the receipt of which is hereby acknowledged, R. W. Bradford, of Van Buren, Ind., of the first part, hereby grant and guaranty unto the Federal Oil Company, a corporation of Chicago, state of Illinois, second party, all the oil and gas in and under the following described premises, together with the right to enter thereon at all times for the purpose of drilling and operating for oil and gas, and to erect and maintain all buildings and structures and lay all pipes necessary for the production and transportation of oil or gas. The first party shall have the one-eighth part of oil produced and saved from said premises, to be delivered in the pipe line with which second party may connect their wells, namely, all that certain lot of land described as follows, to wit: South half of the northwest quarter of section ten, town twenty-five north range nine east, in county of Grant and state of Indiana containing eighty acres, more or less. To have and to hold the above-described premises on the following conditions: If gas only is found, in sufficient quantities to transport second party agrees to pay first party one hundred dollars annually for the product of each and every well so transported, and the first party to have gas free of cost for heating and lighting purposes in dwelling house. Second party shall bury all oil and gas lines when same interferes with cultivation, and pay all damage done by reason of operating under this grant. In case no well is commenced within one day from this date, then this grant shall become null and void, unless second party shall thereafter pay at the rate of eight dollars and seventy-five cent; ($8.75) for each month such commencement is delayed, in advance. A check to the credit of the first party, mailed to Van Buren, Ind., will be good and sufficient payment for any money falling due on this grant. First party has right to locate roads to and from places of operations. No well shall be drilled nearer to buildings than three hundred feet, unless by agreement with an understanding between the parties hereto. Second party to elect and maintain gates and keep same closed. Shackle lines shall be high enough for team to pass under. Second well shall be completed ninety days after first well, and a well each ninety days thereafter until seven wells are in. Then rental to cease. The second party shall have the right to use sufficient gas, oil, and water, to run all machinery for operating said wells, also the right to remove all its property at any time, and may cancel and annul this contract, or any part thereof, at any time. It is understood between the parties to this agreement that all conditions between the parties hereunto shall extend to their heirs, ex executors, successors, and assigns. ' This lease was properly acknowledged and was duly recorded on Marcy 4, 1901. The complainant avers performance on its part of all the conditions and terms of the lease; that it has paid the rentals as in the lease provided, which rentals were received and accepted by the lessors until the payment required to be made October 22, 1901; that on October 19, 1901, the complainant mailed to the lessor R. W. Bradford a check for $8.75, as required by the lease, which he received, but refused to accept; that he returned the check to the complainant, stating that he would no longer be bound by the lease; that, disregarding the rights of the complainant, Bradford and wife have attempted to lease, and have placed the Western Oil Company in possession of, the premises; that the Western Oil Company has wrongfully entered upon the demised premises, and is wrongfully drilling thereon for gas and oil; that on November 14, 1901, the complainant moved material onto said premises for the purpose of erecting a structure to be used in drilling for gas and oil, and on November 16, 1901, the Western Oil Company wrongfully removed said material from the leased premises, and Bradford...