Bubb v. Parker & Edwards Oil Co.
Bubb v. Parker & Edwards Oil Co.
Opinion of the Court
Opinion by
The plaintiffs’ predecessors in title conveyed in 1896 to' one T. N. Barnsdall the exclusive right to mine for and produce petroleum and natural gas from, and the exclusive possession of, so much of sixty-three acres of the land described as might be necessary therefor. This lease — for such it was — was assigned to the Parker & Edwards Oil Company some time prior to 1911. On 18th April, 1911, the plaintiffs then being the owners of the premises, conveyed to the oil company, its successors and assigns, all their right, title, claim and interest in and to all the casing head or waste gas produced and saved from wells that had been drilled upon and were
The following offer was made on the part of the plaintiffs:
“I offer to show by this witness, that before this agreement, Exhibit B, was signed by the above heirs, he took the matter of the execution of this agreement up with the representatives of the Parker & Edwards Oil Company, and was assured, as counsel for the above heirs and their representatives in this behalf, that the purpose of this agreement was to enable them to use the casing
Several witnesses called on behalf of the defendants were permitted to testify on the ground that they were experienced and familiar with the methods of production of head gas and the manufacture of gasoline therefrom. Some of these were allowed, under objection, to express their opinion as to what would be included under such grant as is the subject of contention here; others were permitted to testify to a prevailing custom to regard such lease as embracing and including the rights which are here contended for on the part of the defendants. The opinions expressed by these witnesses, however well informed the witnesses might be with respect to the correct method of operating plants such as the
Evidence was introduced by plaintiffs to show that defendants were employing the plant they were operating to extract gasoline from oil piped there from property adjoining plaintiffs and belonging to another. The chancellor held that the point here suggested was irrelevant because not raised by the pleading. To this we cannot agree. Under the pleading the plaintiffs were entitled to show how and in what manner the plant was being used. It would be for the court to say whether using it in the way attempted to be shown by this wit
Reference
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- Bubb v. Parker & Edwards Oil Company
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- Syllabus
- Contracts — Construction—Oil and gas lease — Ambiguous terms —Parol evidence — -Custom—Bill in equity — Injunction refused. 1. In construing an indefinite or ambiguous contract, the construction placed upon it by the parties themselves is to be considered, and to this end it may be shown by declarations of either party that what such party understood at the time of its execution to be the scope and purpose of the contract is at variance with the construction that such party seeks to establish when the matter becomes the subject of subsequent litigation. 2. In a suit in equity to enjoin defendants from operating a gasoline plant on land which they held under an oil and gas lease from plaintiff’s predecessors in title, it appeared that subsequent to the execution of the lease, plaintiffs conveyed to one of defendants under whom the other defendant held all the waste gas produced and saved from wells that were being operated under the lease, “together with all the rights necessary to the use and enjoyment of the same.” Defendants erected a gasoline extraction plant and used the waste gas for the extraction of gasoline. Plaintiffs offered parol evidence to prove that after the agreement conveying the waste gas was prepared but before it was signed, defendants stated that its purpose was to enable them to use the waste gas for the operation of gas engines to increase the flow of oil from the wells then in operation, and that upon the strength of this ¿assurance plaintiffs signed the agreement. Held, the lower court erred in excluding such evidence. 3. In such ease where it appeared that when plaintiffs made the agreement the manufacture of gasoline from waste gas was in its infancy, so that there could have been no certain, uniform and notorious custom affecting grants of waste gas, it was error for the court, over plaintiff’s objection, to permit witnesses to state what in their opinion would be included under such a grant of waste gas, and to testify to a particular custom by which the contract was to be construed. 4. In such case it was reversible error to exclude evidence to show that defendants were operating the plant to extract gasoline from oil piped from an adjoining property; such evidence was admissible to show how the plant was being used so that the court could determine whether it was being used in the manner contemplated by the parties to the contract.