Northwest Pipeline Corp. v. Forrest Weaver Farm, Inc.
Decision Date | 10 June 1982 |
Docket Number | No. 13701,13701 |
Citation | 646 P.2d 422,103 Idaho 180 |
Parties | NORTHWEST PIPELINE CORPORATION, Plaintiff-Respondent, v. FORREST WEAVER FARM, INC., an Idaho Corporation, Defendant-Appellant. |
Court | Idaho Supreme Court |
Leon R. Weeks (deceased), Nampa, for defendant-appellant.
Gary L. Montgomery, of Marcus & Marcus, Boise, for plaintiff-respondent. McFADDEN, Justice.
On June 3, 1955, Earl and Darlene Clark executed a contract which granted to Pacific Northwest Pipeline Corporation and its successors and assigns "the right to select the route for and construct, maintain, inspect, operate, protect, repair, replace, alter or remove a pipeline or pipelines for the transportation of oil, gas and the products thereof, on, over and through (grantors property)." The consideration was established at one dollar per lineal rod of pipe installed. The contract was recorded and the company constructed a pipeline approximately 113 rods long. Forrest Weaver Farms, Inc., (hereinafter Weaver) succeeded to the interest of the Clarks and Northwest Pipeline Corporation (hereinafter Northwest) succeeded to the interest of Pacific Northwest Pipeline.
In March 1979, Northwest advised Weaver that it intended to construct an additional pipeline pursuant to the right of way granted by the 1955 contract. Northwest offered to submit payment in the amount of one dollar per lineal rod, a total of $113.00, and in its written notice of intent committed payment for any damages caused by the laying of additional pipeline. Weaver refused the offer of payment and denied that Northwest has the right to lay an additional pipeline.
Northwest filed a declaratory judgment action which was originally assigned to the magistrate division but was transferred to the district court by agreement of the parties. Both parties moved for summary judgment. In its motion, Northwest asked the court to adjudicate that Northwest has the right to construct an additional pipeline across Weaver's land under the terms of the contract. In its motion, Weaver asked the court to adjudicate that the contract is void, invalid, and unenforceable insofar as it purports to grant the right to lay additional pipelines across Weaver's property. Weaver asserted that the contract is unenforceable because it is vague and indefinite in its terms as to the location of the specific route for the pipeline and the time period in which any pipeline would be constructed. The validity of the contract was also challenged on the ground that it was a mere option to secure a future right of way, without a limitation as to the time within which it must be exercised, and as such, it suspends the power of alienation in violation of I.C. § 55-111. The court entered summary judgment in favor of Northwest. Weaver appeals.
On appeal the two contentions advanced below are renewed with the addition of an unconscionability argument.
In Quinn v. Stone, 75 Idaho 243, 270 P.2d 825 (1954), this court set forth the general rule that "(i)n describing an easement, all that is required is a description which identifies the land which is the subject of the easement, and expresses the intent of the parties." This contract contains a specific description of the land which is the subject of the easement and it is clear that the intent of the contracting parties was to allow additional pipelines. The contract language provides, in the granting clause, "Grantors do hereby grant and convey unto ... grantee, the right to select the route for and construct ... pipeline or pipelines ...." Another paragraph states: "Should more than one pipeline be laid under this grant, at any time, an additional consideration, calculated on the same basis per lineal rod as specified above, shall be paid for each such line laid." Another paragraph states: "Any pipeline constructed by Grantee ... shall be buried to such a depth as will not interfere with cultivation." The reference to "pipelines," "more than one pipeline," and "(a)ny pipeline" would be unnecessary if the contracting parties intended that only one pipeline would be constructed. The fact that the location of the route for an additional pipeline is not fixed will not render the contract unenforceable. The courts of other jurisdictions which have been confronted with multiple pipeline contracts have upheld them as enforceable. In Sorrell v. Tennessee Gas Transmission Co., 314 S.W.2d 193 (Ct.App. Kentucky 1958), the court stated:
Although the contract does not specify the exact location of additional pipelines, Northwest's choice of route is limited by the rule "(w)here a conveyance of a right of way does not definitely fix its location, the grantee is entitled to a convenient, reasonable, and accessible way within the limits of the grant." Quinn v. Stone, supra, at 246, 247, quoting Parker v. Swett, 40 Cal.App. 68, 180 P. 151 (1919). 1 In light of these authorities, the multiple line grant cannot be held void for want of definiteness.
Weaver also advances a theory that he is prohibited from constructing buildings on his property because Northwest may choose to construct a pipeline where the buildings are located. In response to this we need only note that Northwest is limited to a reasonable route, and that the contract provides that Northwest will pay any damages which may arise due to the exercise of their rights under the contract.
It is next contended that the right of way contract is an option contract which, because there is no time limitation, suspends the power of alienation in violation of I.C. § 55-111. This section reads, "The absolute power of alienation of real property cannot be suspended by any limitation or condition whatever, for a longer period than during the continuance of the lives of the persons in being at the creation of the limitation or condition, and 25 years thereafter ...."
The Court of Civil Appeals in Texas, in Strauch v. Coastal States Crude Gathering Co., 424 S.W.2d 677 (1968), was confronted with this issue under almost identical facts. The court cited numerous cases holding that the courts have uniformly rejected this type of argument. The court then quoted from Sorrell v. Tennessee Gas Transmission Co., 314 S.W.2d 193 (Ky.Ct.App.1958),
The court concluded by stating "We hold that the grant of the right at any time to lay and maintain an additional pipeline or pipelines alongside of the first one for the purposes mentioned did not constitute a mere option, but created an expansible easement with vested rights not affected by the rule against perpetuities." The language in this right of way contract is almost identical to the language in those cases....
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CHAPTER 14 DUE DILIGENCE FOR THE PURCHASE OF PIPELINE SYSTEMS
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