Opco, Inc. v. Scott
| Decision Date | 04 September 1963 |
| Docket Number | No. 7224.,7224. |
| Citation | 321 F.2d 471 |
| Parties | OPCO, INC., a corporation, Appellant, v. Dean C. SCOTT and Cecil G. Lalicker, Appellees. |
| Court | U.S. Court of Appeals — Tenth Circuit |
Ferd E. Evans, Jr., Wichita, Kan. (Lester L. Morris, Verne M. Laing, Ralph R. Brock, Joseph W. Kennedy, and C. Robert Bell, Jr., Wichita, Kan., were with him on the brief), for appellant.
Robert Martin, Wichita, Kan. (George B. Collins, Oliver H. Hughes, K. W. Pringle, Jr., W. F. Schell, Laverne Morin, and Robert M. Collins, Wichita, Kan., were with him on the brief), for appellees.
Before BRATTON, LEWIS and BREITENSTEIN, Circuit Judges.
Dean C. Scott and Cecil G. Lalicker instituted this action in the United States Court for Kansas against Opco, Inc., a corporation, to quiet their title to certain oil and gas leases covering land in the East Antelope Pool in Marion County, Kansas. More specifically, the objective of the action was to remove a cloud upon the title of plaintiffs to the leases created by an affidavit which D. E. Kays made and caused to be placed of record stating that he was the holder of an option to purchase under certain terms and conditions all of the oil and gas leases acquired directly or indirectly by plaintiffs covering the land therein described and giving notice that all persons purchasing an interest in such leases should take notice of his option. The defendant answered and counterclaimed. By the counterclaim, it asserted that it was entitled to an interest in the leases and sought equitable relief respecting such interest. The court made findings of fact and conclusions of law and entered judgment quieting title in plaintiffs.
Plaintiffs owned oil and gas leases covering land in an area sometimes referred to in the record as the five-section block. Plaintiffs and D. E. Kays entered into a written agreement dated July 20, 1959. A map was attached to the agreement showing the land within the block. The agreement obligated Kays to pay plaintiffs a specified sum in cash and to drill a test well on a specified quarter section of the land. And it obligated plaintiffs to assign to Kays the leases, reserving to themselves a one-sixteenth overriding royalty, subject to exchange for a one-eighth carried working interest in the leases at their option, and to supply all geological services which Kays requested during actual drilling operations of the specified well and subsequent wells, free of cost to Kays. The agreement did not contain any language indicating an intent or purpose to negate or restrict the right of either of the parties to obtain leases on other acreage. The specified well was drilled, the geological services in connection therewith were furnished, and the leases were assigned. The leases involved in this action cover land outside of the five-section block. And the counterclaim of the defendant is based upon an alleged oral agreement said to have been entered into about five days after execution of the written agreement in which it was agreed that if Kays would drill a total of five wells on the acreage within the five-se...
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