Ash Grove Lime & Portland Cement Co. v. Chanute Brick & Tile Co.
Ash Grove Lime & Portland Cement Co. v. Chanute Brick & Tile Co.
Opinion of the Court
The opinion of the court was delivered by
The Ash Grpve Lime & Portland Cement Company, the owners of a tract of land containing 30.44 acres which had been conveyed to it by a deed reciting the existence of an oil and gas lease covering an eighty-acre tract of which this formed a part, brought an action against the Chanute Brick & Tile Company as the assignee of such lease, to recover the rent for nine years. A demurrer to the plaintiff’s evidence was sustained, and it appeals.
The lease was executed on November 26, 1902, to W. E. Barker. On November 23, 1903, Barker assigned it to H. M.
“The party of the first part, in consideration of One Dollar, the receipt whereof is hereby acknowledged, and the covenants hereinafter contained on the part of the said party of the second part, does hereby lease unto the party of the second part the exclusive right for three years from date hereof to enter upon, operate, for and procure oil and gas upon the following' premises. . . . The party of the second part agrees to deliver to the party of the first part, one eighth of the oil realized from these premises, in tanks, at the wells, without cost, or pay the market price therefor in cash at the option of the first party. If oil or gas be found on these premises, all rights, benefits and obligations, secured hereby, shall continue so long as either can be procurein paying quantities. . . . Second party agrees to locate all wells so as to interfere as little as possible with the cultivated portion of the premises, and pay all damages by reason of its operations. ... In case no well for oil or gas be drilled on said premises within three years of date hereof, all rights and obligations secured under this cpntract shall cease. . . . Provided, however, that the second party shall have the right at any time to terminate this lease by surrendering this lease and paying One Dollar consideration therefor, and shall thereafter be released from all obligations and liabilities under the same. . . . Rental of One Dollar per acre, payable in advance semi-annually, to continue until exceeded by royalty.”
The judgment is affirmed.
Reference
- Full Case Name
- The Ash Grove Lime and Portland Cement Company v. The Chanute Brick and Tile Company
- Cited By
- 5 cases
- Status
- Published
- Syllabus
- SYLLABUS BY THE COURT. 1. Mineral Lease — Expiration—Extension on Condition — Evidence of Extension. Where a mineral lease, by its terms, expires within a definite period unless oil or gas is discovered, in which event it is to be extended so long as either can be produced in paying quantities, the fact that after the expiration of the period named the lessor executed a deed purporting to be subject to the lease, and the lease itself was assigned, constitutes no evidence, in an action for rent, of the extension of the life of the lease. 2. Same — Still of Record — Evidence of Extension of Lease. The fact that such a lease has not been released of record is no evidence of its being still in force, the matter not being affected by the statute requiring the lessee to discharge an oil and gas lease that has become forfeited. 3. Same — Possession of Lease — Evidence. The execution of an ordinary oil and gas lease creates no presumption of subsequent possession by the lessee. '