Hart v. Standard Oil Co.

• Court: Louisiana Supreme Court
• Writing for the Court: O'NIELL, J.
• Citation: Hart v. Standard Oil Co., 146 La. 885, 84 So. 169 (La. 1920)
• Decision Date: 05 April 1920
• Docket Number: 22172
• Parties: HART v. STANDARD OIL CO. et al

84 So. 169

146 La. 885

HART v. STANDARD OIL CO. et al

No. 22172

Supreme Court of Louisiana

April 5, 1920

Appeal from First Judicial District Court, Parish of Caddo; J. P Land, Judge.

Action by Tycus Hart, Jr., against the Standard Oil Company and another. Decree for the named defendant, and plaintiff appeals.

Affirmed.

John B Files, of Shreveport, for appellant.

J. C Pugh & Son, of Shreveport, for appellee.

OPINION

O'NIELL, J.

This is an action to compel further development under an oil and gas lease, and to compel the offsetting of wells drilled on lands adjoining the leased premises, or, in the alternative, for annulment of the contract of lease. Plaintiff also asks for a judgment for $ 5,000 damages against the defendant Standard Oil Company of Louisiana for the alleged failure to drill enough wells on the land and to offset wells drilled on adjoining lands.

On the 6th of December, 1907, plaintiff leased his land, being two tracts containing in all 320 acres, to M. L. Benedum, H. S. Glenn, and L. L. Thomas, granting them the right to drill and develop the land for oil and gas, under certain stipulations and conditions.

On the 15th of January, 1908, the lessees, not having drilled any wells, transferred the lease to a corporation styled J. C. Trees Oil Company.

On the 19th of September, 1910, the lessor and the J. C. Trees Oil Company signed an agreement, modifying and amending the original contract in some particulars, and adding several stipulations, of which the following is now alleged to have been violated, viz:

"The said J. C. Trees Oil Company obligates itself and agrees that, after the said well on land in section twenty-two has been connected with tank or pipe line, as herein provided, and the other two wells herein provided for have been completed, to continue development of the said lands in the same manner as the lands of like character and value in the Caddo field are developed, and to drill wells on said lands to offset wells on the adjacent lands, as is customary in the Caddo field."

Thereafter the J. C. Trees Oil Company transferred its gas rights to the Arkansas Natural Gas Company, and transferred its oil rights to A. C. Bedford, who, in turn, transferred the oil rights to the Standard Oil Company of Louisiana.

This suit was filed in October, 1915, against both the Arkansas Natural Gas Company and the Standard Oil Company of Louisiana.

The complaint is that the defendants violated the obligation "to continue development of the said lands in the same manner as the lands of like character and value in the Caddo field are developed, and to drill wells on said lands to offset wells...