Lowther Oil Co. v. Guffey

• Decision Date: 14 January 1903
• Citation: 43 S.E. 101,52 W.Va. 88
• Parties: LOWTHER OIL CO. v. GUFFEY et al.
• Court: West Virginia Supreme Court

43 S.E. 101

52 W.Va. 88

LOWTHER OIL CO. v. GUFFEY et al.

Supreme Court of Appeals of West Virginia.

January 14, 1903

Submitted June 7, 1902.

Syllabus by the Court.

1. Where a grant of oil and gas, and oil and gas privileges, in consideration of $1, without limitation as to time, contains a forfeiture clause in these words: "In case no well is completed within two years from this date, then this grant shall immediately become null and void as to both parties provided, that second party may prevent such forfeiture from year to year by paying to the first annually in advance eighteen and 75/100 dollars, at her residence, until such well is completed,"--such lease is thereby converted into a lease from year to year, at the option of the lessee until a well is completed. It would then continue so long as oil or gas is produced in paying quantities.

Appeal from circuit court, Calhoun county; Warren Miller, Judge.

Bill by the Lowther Oil Company against James M. Guffey and others. Decree for plaintiff, and defendants appeal. Reversed.

Edward A. Brannon and R. L. Bland, for appellants.

John M HamiltoN and T. P. JACOBS, for appellee.

DENT P.

James M. Guffey appeals from a decree of the circuit court of Calhoun county canceling a certain oil and gas lease executed to him by Ella Yoak and husband in a certain chancery suit wherein appellant was defendant and the Lowther Oil Company was plaintiff; and the lease filed with the said bill from Ella and A. T. Yoak to James M. Guffey, and referred to as "Exhibit B," is in the words and figures following, to wit:

"In consideration of the sum of one dollar, the receipt of which is hereby acknowledged, Ella Yoak and Agnew Yoak, of Athens county, state of Ohio, first party, hereby grant unto James M. Guffey, of Pittsburg, Pennsylvania, second party, their heirs and assigns, all the oil and gas in and under the following described premises, together with the right of ingress and egress at all times for the purpose of drilling and operating for oil, gas, or water, and to conduct all operations and lay all pipes necessary for the production and transportation of oil, gas, or water taken from said premises, reserving, however, to first party the equal one-eighth (1/8) part of all oil produced and saved from said premises, to be delivered in the pipe line to the credit of the first party free of charge: All that certain lot of land situate in the district of Center, county of Calhoun, in the state of West Virginia, bounded and described as follows, to wit: North by lands of Taylor heirs, east by lands of Holbert, west by lands of James Metz, south by lands of Wilson Richards; containing seventy-five acres, more or less. To have and to hold the above premises unto the parties of the second part, their heirs and assigns, on the following conditions: If gas only is found, second party agrees to pay two hundred dollars each year in advance for the product of each well while the same is being used off the premises. Whenever first party shall request it, second party shall bury all oil and gas lines, and pay all damage done to growing crops by reason of burying and removing said pipe lines. No well shall be drilled nearer than 500 feet to the house or barn on said premises. In case no well is completed within two years from this date, then this grant shall immediately become null and void as to both parties: provided, that second party may prevent such forfeiture from year to year by paying to the first party annually in advance eighteen and 75/100 dollars, at her residence, until such well is completed. The second party shall have the right to use sufficient gas, oil, or water to run all necessary machinery for operating said well, and also the right to remove all their property at any time. It is understood between the parties to this agreement that all conditions between the parties hereunto shall extend to their heirs, executors, and assigns. In witness whereof the parties hereto have hereunto set their hands and seals the 13th day of April, A. D. 1895. Ella Yoak. [ Seal.] A. T. Yoak. [ Seal.] James M. Guffey. [ [Seal.]

Signed, sealed, and delivered in the presence of H. C. Sherard, J. F. Kimpton."

Appellant did not drill a well on the land, but paid up the commutation money until the 13th day of April, 1901. In March, 1901, he took possession, and began drilling, and tendered his lessors the commutation money of $18.75, and a further sum increasing the aggregate to $75, if they would permit him to continue operations without...