Pittsburg Consolidated Coal Co. v. Greenlee & Forst
Pittsburg Consolidated Coal Co. v. Greenlee & Forst
Opinion of the Court
Opinion by
While the contract which is the subject of construction in this case grew out of the attempted drilling by defendants of a single well through plaintiff’s intervening seam of coal, its manifest purpose was to set at rest not only the existing dispute in respect of that particular well, but other wells which defendant should desire to drill under their lease. If oilshould be developed in paying quantities by that well, they would of course drill other wells to the exhaustion of that field, and provision would therefore naturally be made for them in order to avoid a repetition of the difficulties. The subject of the contract was a right of easements, in indefinite series, which were essential to the development of defendants’ leasehold property and whose regulation was necessary to the safe operation of plaintiff’s mines :
It" was suggested that plaintiff’s recognition of the assignee’s status operated as a release of defendants’ liability, but defendants’ assignment was the exercise of a right, incident to ownership, which plaintiff had no power to prevent, and which had no relevancy to the question of liability as between them.
So it was argued that because plaintiff had failed to demand from the assignee the sum stipulated for each well when begun, it was guilty of laches which worked a forfeiture of its right to claim: but the time of payment, being for its benefit, might be
It follows, therefore, that there was no error in entering judgment, in favor of plaintiff and against defendants, for want of a sufficient affidavit of defence.
Judgment affirmed. .
Reference
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- Contract—Oil and gas wells—Assignment of lease. Defendants, the owners of an oil and gas lease, drove a well through a vein of coal owned by a coal company. The coal company filed a bill in equity against defendants to restrain them from further operations. Subsequently defendants and the coal company entered into an agreement in writing “ for the purpose of settling and adjusting all differences” between them, by which the coal company agreed to no longer obstruct the drilling of oil and gas wells, and defendants agreed to pay five hundred dollars for the first well, and, “in addition thereto, to pay five hundred dollars for each additional well drilled upon said land hereafter, the said sum to be paid before the drilling of any of said wells.” Defendants subsequently assigned their lease, and other wells were drilled by their successors in title. Held, that defendants were liable in the sum of five hundred dollars for each well hulled after their assignment. Forfeiture—Waiver. The fact that plaintiff failed to demand from the assignee the sum stipulated for each well when begun, did not work a forfeiture of its rights under the contract, since the time of payment, being for the company’s benefit, might be waived.