Illinois Nat. Oil & Gas Co. v. Sinclair

• Decision Date: 05 June 1940
• Docket Number: No. 25356.,25356.
• Citation: 373 Ill. 581,27 N.E.2d 450
• Court: Illinois Supreme Court
• Parties: ILLINOIS NAT. OIL & GAS CO. v. SINCLAIR.

373 Ill. 581

27 N.E.2d 450

ILLINOIS NAT. OIL & GAS CO.

v.SINCLAIR.

No. 25356.

Supreme Court of Illinois.

April 10, 1940.

Rehearing Denied June 5, 1940.

Appeal from Circuit Court, Marion County; William B. Wright, judge.

Suit by the Illinois National Oil & Gas Company against H. K. Sinclair to construe a deed and to remove an alleged cloud upon plaintiff's title. From an unsatisfactory decree, defendant appeals.

Affirmed.Leonard & Leonard, of Chicago (Ernest E. Freeman and Gordon McLeish Leonard, both of Chicago, of counsel), for appellant.

Jones, Grant & Sebat, of Danville (John E. Sebat, of Danville, of counsel), for appellee.

SHAW, Justice.

This is an appeal from a decree of the circuit court of Marion county construing a deed from the Illinois National Oil and Gas Company to Edward L. Dee and ordering the claim of appellant to be removed as a cloud upon the title of the plaintiff. The cause is before us on direct appeal, a freehold being involved.

On February 1, 1937, appellee entered into a contract with Edward L. Dee according to which the appellee agreed to assign to Dee three-fourths of the working interest in and to certain oil and gas leases on certain described premises. In consideration of the assignment of the leases, Dee was to carry the appellee for a one-fourth overriding royalty on the seven-eighths working interest in all wells drilled on the leases. This agreement was filed for record February 11, 1937. Subsequently, on February 27, 1937, appellee conveyed to Dee a three-fourths working interest in these certain oil and gas leases, the assignment being made subject to the contract executed February 1, 1937. A similar conveyance to Dee was made on April 9, 1937, by the appellee, which also conveyed a three-fourths working interest in and to the certain oil and gas leases. Dee then made an assignment on December 10, 1937, of his interest in the oil and gas leases referred to. This assignee then assigned his interest in the leases to the appellant H. K. Sinclair.

Appellee commenced this action in equity to construe the deed made to Dee, to determine what interest the appellee still retained in its oil lease and to remove the claim of Sinclair as a cloud upon its title. The issue involves the ownership of six sixty-fourths of the oil and gas produced under the leases concerned. The appellee contends that it is entitled to seven sixty-fourths of all the oil and gas produced on the leased lands, while appellant, admitting...