Payne v. Campbell, 43094
| Decision Date | 01 June 1964 |
| Docket Number | No. 43094,43094 |
| Citation | 250 Miss. 227,164 So.2d 780 |
| Parties | Bryan W. PAYNE et al. v. William CAMPBELL et al. |
| Court | Mississippi Supreme Court |
Mounger & Mounger, Tylertown, Robert B. Payne, Dallas, Tex., for appellants.
Joe D. Gordon, Liberty, Bacon & Smith, Forrest B. Jackson, Jackson, for appellees.
On March 28, 1944, Joe V. Mullins and his wife, Dollie Mae Mullins, were the owners in fee simple of 307 acres of land in Amite County, and on that date executed to T. F. Hodge the following royalty deed:
'That Joe V. Mullins and wife, Dollie Mae Mullins, for and in consideration of the price and sum of TEN AND NO/100 ($10.00) DOLLARS and other valuable considerations, cash in hand paid by T. F. Hodge, has granted, bargained, sold and conveyed, and does by these presents grant, bargain, sell and convey, unto the said T. F. Hodge the mineral royalty interest hereinafter set out affecting and relating to the following described lands * * * (description omitted) * * *.
'The royalty interests and rights herein sold, transferred and conveyed are:
'(a) One-half (1/2) of the whole of any oil, gas or other minerals, except sulphur, on and under and to be produced from said lands; delivery of said royalties to be made to the purchaser herein in the same manner as is provided for the delivery of royalties by any present or future mineral lease affecting said lands.
'(b) Twenty-five (25) cents per long ton for all sulphur produced from said lands, payments therefor to be made monthly for sulphur marketed.
'The grantor herein reserved the right to grant future leases affecting said lands so long as there shall be included therein, for the benefit of the grantee herein, the royalty rights herein conveyed; and the grantor further reserves the right to collect and retain all bonuses and rentals paid for or in connection with any furture lease or accruing under the lease now outstanding.
'TO HAVE AND TO HOLD said royalty rights unto the said purchaser, forever; and the said grantor hereby agrees to warrant and forever defend said rights unto the said purchaser against any person whomsoever lawfully claiming or to claim the same.'
On April 13, 1944, T. F. Hodge executed to Bryan W. Payne a royalty deed using the same form as the conveyance from Joe V. Mullins and wife to T. F. Hodge conveying 'three-eights (3/8) of the whole of any oil, gas or other minerals,' etc., under said lands. On May 31, 1945, Bryan W. Payne conveyed to Iowa Payne Oil Company '3/16 of the whole of any oil, gas and minerals,' etc., under said lands. Appellant Bryan W. Payne was the president of Iowa Payne Oil Company, a corporation, which was subsequently dissolved and the interests it acquired under the deed from Bryan W. Payne on May 31, 1945, vested in the appellants, Bryan W. Payne, Robert B. Bayne, L. C. Johnson, Mrs. R. Bruce Johnston, and Mrs. Clara Louise Hagge, stockholders of said corporation. On October 19, 1944, Bryan W. Payne conveyed to Gilbert S. Johnson, Jr., a one-half interest in the royalty acquired by the said Bryan W. Payne from T. F. Hodge on April 13, 1944. This interest was conveyed by Johnson to Saltmount Oil Company (now Midwest Oil Corporation) and there is no dispute concerning that interest.
None of the successors in title to T. F. Hodge except appellants make any claim inconsistent with appellees' contention that the deed from Joe V. Mullins and wife to T. F. Hodge actually conveyed a royalty interest of 1/2 of 1/8 of the whole of all oil, gas and other minerals produced from said lands.
The land itself and all of the right, title and interest of Joe V. Mullins and his wife, Dollie Mae Mullins, not conveyed to T. F. Hodge on March 28, 1944, is now owned by appellees, including the present lessee who is now operating producing oil wells on said lands.
This suit was filed when it was learned that appellants were claiming a royalty interest entitling them to share in the production of oil and gas from said lands to the extent of 3/16 of the whole. The complainants sought cancellation of the claims of appellants to any interest in the mineral estate exceeding 3/16 of 1/8 of the whole of all oil, gas and other minerals, except sulphur, produced from said lands.
When the aforesaid royalty deeds were executed there was outstanding of record a ten-year mineral lease executed by Joe V. Mullins and wife to E. G. Morehead dated February 9, 1943, which provided for the payment to lessors a royalty of 1/8 of the oil and gas produced. This lease was assigned to Gulf Refining Company and remained in force until it expired on February 9, 1953. The successors in title of Joe V. Mullins and his wife, Dollie Mae Mullins, executed an oil, gas and mineral lease dated September 22, 1958, to Harris G. Anderson providing for the payment of a 1/8 royalty of oil, gas and other minerals, except sulphur, and this lease was assigned to Pan American Petroleum Corporation on September 28, 1958. Said assignee and its assignees are now owners of said lease and have produced oil from said lands.
The usual royalty provided by in oil leases in Mississippi prior to and at the time of the execution of the royalty deed from Joe V. Mullins and wife to T. F. Hodge on March 28, 1944, was a 1/8 of the whole of all oil, gas and other minerals, except sulphur. At that time the prevailing price being paid landowners per royalty acre in Amite County was $5 to $7 per acre. The amount paid by Hodge to Mullins for said royalty conveyance was $1,000, or $6.51 per acre, if the royalty deed is interpreted as conveying a 1/2 of 1/8 of the oil and gas produced from said lands. When Hodge sold the royalty interest to Bryan W. Payne which is here involved, the purchase price paid by Payne was $1,036.17, or approximately $9 per acre, if that deed is interpreted as conveying a royalty interest of 3/8 of 1/8 of the whole.
The chancellor entered a decree adjudging that the deed from Joe V. Mullins and wife to T. F. Hodge dated March 28, 1944, conveyed 1/2 of 1/8 royalty in the oil, gas and other minerals, except sulphur, in and under the lands involved; that the deed from T. F. Hodge to Bryan W. Payne dated April 13, 1944, conveyed 3/8 of 1/8 royalty in said minerals under said lands; and that Bryan W. Payne and the other appellants own together a royalty interest of 3/16 of 1/8 of the oil, gas and other minerals in, on, or under said lands, and all claims of appellants to royalties in excess thereof were cancelled as clouds upon the title of appellees.
The royalty deeds from Mullins to Hodge, from Hodge to Payne, and from Payne to Iowa Payne Oil Company were all on the same form, captioned 'Royalty Deed.' The...
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