Winkler v. Creekmore

• Decision Date: 27 April 1922
• Docket Number: (No. 1341.)
• Citation: 241 S.W. 730
• Parties: WINKLER v. CREEKMORE.
• Court: Texas Court of Appeals

241 S.W. 730

WINKLER v. CREEKMORE.

(No. 1341.)

Court of Civil Appeals of Texas. El Paso.

April 27, 1922.

Rehearing Denied June 1, 1922.

Appeal from District Court, Stephens County; C. O. Hamlin, Judge.

Suit by T. A. Creekmore against N. Winkler. Judgment for plaintiff, and defendant appeals. Affirmed.

V. L. Shurtleff, of Breckenridge, and E. W. Bounds, of Fort Worth, for appellant.

Goggans, Bateman & Leaverton, of Breckenridge, for appellee.

HIGGINS, J.

Pick Campbell, Cleve Johnson, and S. H. and H. O. Tatum were the owners of an oil and gas lease covering 10 10/11 acres of land in Stephens county, and upon January 17, 1920, they entered into a drilling contract with Henry Riley whereby Riley obligated himself to begin the drilling of a well on the premises on or before June 1, 1920, and drill the same 3,500 feet deep unless oil was found in paying quantities at a lesser depth. Riley also obligated himself to drill as many wells as was necessary to fully develop the premises, or as many as might be necessary to properly offset wells on adjoining property. It was also provided that he was to drill at least two wells, the second to be begun within 90 days after drilling had ceased on the first well. It was provided that, if oil was found upon the land, the same should pass into the pipe lines to credit of the parties in the following proportion: one-eighth to the landowner; four-eighths to Riley; and three-eighths to the owners of the leases. On the same date the Tatums, Johnson, and Campbell transferred and assigned unto T. A. Creekmore, his heirs and assigns, a one-fourteenth undivided interest in and to said leasehold interest, subject to the oil and gas lease and to the terms and conditions of said drilling contract. On July 30, 1920, Creekmore conveyed an undivided 1/32 interest in the leasehold unto N. Winkler in consideration of a note for $5,500 executed by Winkler in favor of Creekmore. This transfer from Creekmore recites the assignment to him from Campbell and others dated January 17, 1920, and provides:

"Now, therefore, for and in consideration of the execution and delivery to N. Winkler of his certain promissory note of even date herewith in favor of T. A. Creekmore for the sum of fifty-five hundred dollars ($5,500.00) and due six months after date, the receipt of which is hereby acknowledged, the undersigned, T. A. Creekmore, present owner and holder of the rights, titles, and privileges conveyed to, vested in, and conferred upon him by the above-mentioned assignment in his favor from Pick Campbell et al. covering said 10 10/11 acres of land more or less, do hereby bargain, sell, transfer, and assign and convey to N. Winkler, of Stephens county, Tex., his heirs, successors, and assigns, all rights, title, and interest of the original lessee and present owner in and to the lease and rights thereunder mentioned in said assignment from Pick Campbell et al. to T. A. Creekmore, recorded in Volume 80, p. 190, of the Deed Records of Stephens County, Tex., as above shown in so far as it covers an undivided 1/32 interest in and to the 10 10/11-acre tract of land above described, subject, however, to the terms and conditions of the lease and drilling contract mentioned in said assignment, together with a like undivided interest in and to all personal property used or obtained in connection therewith.

"It is expressly understood that N. Winkler is to receive 1/32 of the production under the above mentioned contracts, free of any cost to N. Winkler, except the consideration mentioned, and in case there is no production within the terms of said contracts, or valid extension thereof, then this assignment shall become null and void, but the validity of the hereinbefore mentioned note shall not be affected in any way.

"To have and to hold the above-described...