The Law of Petroleum and Natural Gas: With Forms

George Bryan

G. T. Bisel, 1898 - Natural gas - 521 pages

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Title Page

Table of Contents

Index

Definitions	9

1 Minerals 2 and 3 Petroleum 4 and 5 This definition to be taken sub modo 6 7 8 and 9 Natural	15

The Nature and Right of Property	19

Nature and right of property in minerals as such	20

11 The nature of mineral rights	22

and 14 A review of the leading cases	24

15 and 16 The doctrine in Ohio	36

S17 The doctrine in Indiana	38

Test Wells 239 When lease requires well must be drilled on demised not neighboring territory	206

The sameif intention exists other than the words imply parties should so state	207

Kentucky ruling contra 242 Evidence tending to show a misunderstanding of the law not admissible	208

The reasons for substantially similar rulings well expressed by the Supreme Court of Ohio	209

Covenant for testwell complied with if well be completed	210

Bonafide occupant to be reimbursed for cost of drilling	217

66	220

The reasons for the distinction	223

18 The samemarried women 19 Real or personal	39

40 Property in oil delivered to a pipeline company	40

The respective rights of the lifetenant and the remaindermen in a producing lease and incidentally of waste 21 and 22 The rule at common	41

The earlier Pennsylvania cases	42

Timber 25 The later cases	43

and 28 Mortgagor and mortgagee	45

Severance	48

30 The samehow created and its effects 31 Severancerequisites of adverse possessionstatute of limita tionsnotice in fact	49

32 After severance the different interests are taxable separately 33 and 34 Taxationcontinued	51

35 Distinctness of property rights in oil and gas 36 Presumption that lessee holds under landlords title	52

Right of lessee who has purchased judgment liens upon the leasehold to sell subject to his estate	53

An article of commerce	66

53 Construction of contractcustom of the partiespopular	72

After expiration of term oil well machinery becomes prop erty of landowner if not removed during term or in a reasonable time	77

Entry for the purpose of cleaning engines not a continuance of mining operations 64 Doctrine in Indiana	79

Abandonment presumed 66 Option confers no title as against execution creditors	80

Leases 67 The intention of the parties must control	81

Assignability of a license	82

Covenants running with the land 71 A covenant to use due diligence runs with the land	83

72 And a covenant to pay rent or royalty 73 No implied covenant that land is fit for mining purposes 74 Covenant to pay minimum rent	84

75 Covenants personal between lessor and lessee 76 Mining right sometimes a personal privilege if the intention be clear	85

77 78 79 and So Exceptionreservationlimitation 81 Clauses in a lease excepting a certain area from drilling ope rations construed as limitations	88

But in the case of an express reservation of part of the tract lessor may lease such part to third parties 83 Reservation of mining privileges	89

86Rights not intended to be conveyed	91

Breach of covenant to prosecute business 88 Lessor and lessee of salt wells where oil has risen	92

Tenants in commonfraudulent concealment	93

Doctrine as stated by United States Supreme Court 91 The value of the mineral undeveloped must be considered	94

Stocks and oil not governed by the same rule 93 Doctrine of substantial performancecontract for well of certain measurement not fulfilled by well of...	95

Rents and royaltieswhen due 95 Attempts to avoid liability	96

and 97 Royalties on different tracts subject to same lease devised to different partiesdivisible	97

Lessors royalty preferred to claim of mortgagee of the leasehold 99 Lessees refusal to permit designation of boundaries will not prevent recovery of ...	98

Waiver of rentalparol evidence 102 Payment of rent to cotenants jointly 103 and 104 Construction	99

Operating expenses to be first paid	100

106 107 and 108 Sale of lease does not include the severed mineral	101

Uncertainty of descriptionin construing leases the courts lean towards the party of the second part 110 Modification of lease by parol agreement	103

Differing instruments and their equivalents	104

Agreement purporting to be a lease in effect a sale	105

Acceptance of the terms and conditions of an instrument may be established as well by acts as by signing and sealing 114 Further as to parol evidence	106

A specified price per acre for failure to commence and complete requires payment for each acre leased 116 Lessees compromise with third party ass...	107

Of what the courts will take judicial notice 118 Geography of the country	108

Words and phrases paying quantitiesusage and cus tom of trade	109

Expert testimony S121 Further of paying quantities	111

The samepumping into pipeline raises presumption against lessee 123 Due diligence S124 Success or abandonment	112

Commencement of operations	113

Retained	114

Vicinity 128 Termination	115

The sameday on which lease is made is included in the period	116

Surrender	117

Formal redelivery not necessarytender of rent after rescis sion will not revive lessees rights	118

Surrender to the solicitor of a company not sufficient with out more 133 Rescission for fraud	119

Defendant must be placed in statu quo 135 and 136 Questioning landlords title	123

and 138 The law cannot relieve against misunderstanding of the meaning of an instrument in the absence of accident	125

Tenant who has enjoyed lease cannot assert imperfect execution 140 and 141 Defective acknowledgment	126

Defective execution by corporation 143 Pennsylvania legislation authorizing mortgages of leaseholds	127

and 145 Judicial constructions of this legislation	128

Assignments 146 Covenants running with the land	132

147 Liability arises out of privity of estate not of contract 148 and 149 Covenant to produce oil held to run with the land and bind assignee	133

150 151 and 152 OhioIndiana	137

Drilling oil well through coal veincontinuing liability of assignors	138

Forfeitureassignee put upon inquiry	139

Sale under execution equivalent to assignment 156 Purchaser of oil lease at sheriffs sale must inquire as to unfulfilled covenants 157 Liable also for ...	140

Payment of rental to cotenants jointlyassignment by	141

Assignees of assignor with notice 163 Joint ownership and liability 164 Actual entry not essential to commencement of assignees obligation	142

Not necessary to plead assumption by assigneestatute of frauds 166 Oil leasepartnership assets 167 Assignment of reversion by lessor	143

Assignee of vendees interest stands upon no higher footing than his assignor 169 Assignment carrying option for a second lease	144

Evidence of fraudulent representations admissible in an action by payee of promissory note given in payment for oil leases	145

Forfeiture	146

Equity abhors a forfeitureunless it works equity 172 Equity does not abhor a forfeiture where it protects the landowner from the laches of a lessee	148

The courts punish the person committing the breachnot the innocent party	150

Forfeiture is not selfoperating 175 and 176 A judicial history and statement of the law of for feiture in Pennsylvania	151

A promise to drill or pay rent cannot be discharged by a failure to perform even where the lease would seem to permit	153

Nevertheless the parties may by fitting terms cause the option of lessee to control	154

New York doctrine substantially the same as that laid down in Wills vs Gas	156

180 Absence of clause requiring development or payment of rent 181 A restatement of the doctrine	157

and 160 Parol agreement for forfeiture yields to an assign	159

Requirements for enforcement of right of forfeiture	160

Forfeiture a question of fact 185 Tracts retained must yield rent until formal surrender	161

Assertion of the right by children of the lessor	162

Difference between striking oil and bringing it to the surface	163

Physical inability to complete well will not avert forfeiture	164

Covenant to complete a well or pay rent will be enforced after discovery that territory is worthless	165

Conflicting leaseslease dated before but recorded after anotherpurchaser for valueimputation of knowledge	166

Conflicting leasesthe courts after operations commenced and expenditures made lean toward the diligent operator	168

Waiver	169

A waiver of the time within which operations shall com mence is not necessarily a waiver of the time for completion 196 Receipt of rent construed a...	170

197 Laches 198 Estoppel	171

199 The samelessor encouraging the expenditure of money in operations on the lease 200 Surrender	172

201 202 203 and 204 Abandonment or implied surrender	173

Question for jury	180

Lack of railroad facilities no excuse for abandonment	181

and 208 Reentry by lessor not necessary in Pennsylvania to assertion of right of forfeiture 209 The making of a second lease after default of lessee a...	182

and 212 Erection of building on leased ground not an assertion of right of forfeiture	183

Entrance for preservation of machinery not a continuance of operations	185

Who may set up forfeiture	186

But the law implies a covenant to work the mines with reason able diligence 216 Lessees neglect to mine no defence	189

and 218 The rule the same as to oil and gas wells	190

Operations must be conducted according to the ordinary course of business 220 After obtaining indications of success lessee must proceed or forfeit	192

Drill or pay rent	193

When the number of wells to be drilled is expressed no other number can be implied 223 Obligation on lessee of gas rights less rigid than upon lesse...	195

S224 The latest statement of the general doctrine	196

A similar ruling where the stipulation was express	197

After compliance with stipulations and reasonable test fol lowed by finding but subsequent exhaustion of oil lessees not liable for rent 227 and 228 T...	198

Good faith a controlling element	199

Covenant to repair tank	201

Lessee takes subject to easement 232 Rentobligation cannot be avoided by assignment 233 The sameeviction	202

Where lease provides for payment of rent so long as gas is found on premises lessee discharged by inflow of water 235 Rent for gas in marketable qu...	203

Where notice to be given to avoid entry upon another year of tenancy 238 Operations should be commenced within the time specified	204

Running of the statute stopped by injunction	229

Gas companies may be compelled to give bond to secure landowners	237

Duty to furnish gas to all 274 The sameregulation of price of gas monopoly	238

275 The sameacceptance of provisions of ordinance 276 Municipalitiescontract as to other companies 277 Municipal consentpipes in boroughs	241

The franchise taken subject to existing borough provisions 279 Compliance with requirements of statutes conferring right of eminent domain enforced	242

Injuries to abutting propertyowners 281 Pennsylvania act of May 29 1885right of direct action on bond	243

Act of June 2 1883presumption that statutory require ments will be observed 283 Revocation	244

Appropriating property to second public	245

Owners of coalsurface support 286 Compensation	246

Definition of just compensation 288 To what companies applicable 289 Propertyowner entitled to both statutory and common law remedy	247

What damages recoverable and how 291 May be compelled to give bond 292 Elements of valueevidence	248

Measure of damagesexpert testimony	250

Requisites of expert testimony	251

Evidencespecial damage 300 Value for special purpose 301 Evidencelocation of line of property	254

Evidence of particular sales not admissible 303 Price demanded by plaintiff admissible	255

S304 The nature of the injuries that may be considered 305 Value of properties similarly situated only admissible upon crossexamination 306 307 a...	256

309 Interest on damages	259

311 and 312 Profits of mineral lands	260

313 Valuepotentialities of improvements 314 Damages for negligence in operating not recoverable in condemnation proceedings 315 Probable futur...	261

316 View by jury 317 Limitations	262

Discontinuance of proceedings 319 Ohio rules	263

320 Possible uses can be shown 321 Pipeline on highwaysadditional burden on the	264

Eminent domain	265

Constitutional lawlocal and general law 325 Lessee may sue in lessors name for breach of covenant 326 Lease of property pending condemnation pr...	266

327 Collateral attackjurisdiction	267

328 Remedy 329 Pipeline companies are transporters of freight	268

operate	269

The samemere cotenancy raises no presumption of partnership 347 The samethe law will not create the partnership relation for tenants in common	282

Cotenants developing property presumed to maintain the same relations	283

One of several tenants in common mining coal and taking the proceeds thereof liable to account to his cotenants for the value of the coal in place	284

350 Mineral rights under unseated landstaxation 351 Equitable remedy for partnerships administered to tenants in common	285

Practice in Pennsylvaniause of the action of assumpsit 353 The sameaction of account render 354 Owners of a leasehold by admissions acts and decl...	286

and 357 Duty to disclose	287

But buyer and seller deal at arms length	292

Tenants in common not held to the confidential relations of partners 360 The samemining partnerships	293

The general rule recognized in West Virginia 362 Inability of one tenant in common to surrender lease 363 Cotenants should bear in proposition lo...	295

Payment of rental to cotenants jointlyassignment of	296

Liability of incoming partners	297

Rights of tenant in common not joining in assignment	298

The value of the oil in the tankthe measure of damages of tenant in common fraudulently deprived of his share	299

Leasehold interest when partnership assets	300

Liability in Pennsylvania of joint owners for labor done or materials furnished oil or gas wellsact of May 6 1891	301

Setoffs as between lessor and lesseethird parties 371 Limited partnershipssale of the business	303

One who is already a member of a limited partnership asso ciation and who purchases additional shares is not entitled to represent such additional inte...	304

Mechanics Liens	310

The Act of June 17 1887 entitled An Act relating to the liens of mechanics and others upon buildings unconsti	311

and 377 Notice of intention	312

378 Local laws 379 Paraffine works part of oil refinery	313

380 and 381 Requisites 382 and 383 Particularity of descriptionreasonable certainty	314

384 Ohio	318

Nuisances 385 General doctrine 386 Where the fact of the public nature is controverted a jury should decide	319

and 388 A more rigid rule in the case of pipelines	321

and 391 Negligently permitting leakage into sewer and generation of gases actionable	323

392 Subterranean supplies of water 393 Damnum absque injuria applicable only in the absence of negligence	326

394 Pipelineincrease in insurance rates 395 Waste of gas on private property a public nuisance	328

330 Naturalgas and pipeline companies common carriers	330

331 Injuries from corporations duly authorized to operate dam num absque injuria if without negligence	331

Grant of exclusive use of streets by gas pipeline companies	332

general doctrine 333 and 334 Pipeline companiesright of wayexclusive	333

400 Time of the essence of the option but not the performance 401 Optionlicenseconveyance to another equivalent to revocation	334

Maximum price named in statute cannot be exceeded	335

and 337 A gas franchise accepted becomes a contract	336

338 The true ground of distinction	338

The enlargement of equitable jurisdiction	339

Partnership and Tenancy in Common 340 and 341 Partnership and tenancy in commondistinction	340

Coadventurers in a mine have no implied power of agency one for the other	342

Participation in profits cogent but not conclusive evidence its absence conclusive against partnership	343

Product and profit	344

The samedivision of product in kind raise presumtion against partnership	345

S421 Assumpsit the proper remedy for breach of contract under	352

S432 Against reentry of lessor when claim of forfeiture	358

Against the use of explosives in sinking natural gas wells S440 Against trespass	362

Federal and state practice 442 Against cutting off a supply of natural	363

Against the violation of a restrictive covenant and rendering the neighborhood less desirable for residences 444 Refused upon exhaustion of fuel sup...	364

and 446 The restoration and preservation of the status	366

Mandatory injunction to compel the laying of pipeline under the surface 448 Receivers	368

The right of	370

Negligence 450 Definition 451 General doctrine	373

General duty of one collecting an element liable to escape	374

453 The degree of care	377

454 Indiana	379

Transportation of oil by common carrier	380

and 457 The sameproximate causeprovince of court and jury	381

The samereasonable probabilitydegree of contributory negligence	383

and 460 Proximate causeIndiana	385

Contributory negligenceburden of proof	386

462 Contributory negligencepipes outside of building leakage 463 Liability of company when work has been done by inde pendent contractor	388

The samePennsylvania act of May 29 1885	389

465 The sameIndiana	390

466 Ohiorevised statutes section 3561a	391

467 Province of court and jury	392

Concurrent negligenceinjured party may defendant party may elect this 469 Recovery over against original wrongdoer	393

470 Defective pipescontributory negligence 471 Defective flueundue increase of pressuretrespass	394

Liability of purchaser of plant of tortfeasor 473 474 and 475 Notice	395

Failure to test pipes 477 Failure to inspect oil pipes	397

Evidenceadmissions of agent	398

Declarations of workman 480 Expert testimony	399

Latent defects in highwaytownship not an insurer	400

482 Evidencehighwayfright of horse	401

In crossing streams natural gaspipes should be laid beneath the bed 484 Master and servantrisks of employment	402

The samerisks of employmentsuitable appliances 486 Oil refininginevitable accidentburden of proof 487 Presumption	405

Absence of proofpresumptionfederal court 489 and 490 Shade trees	407

Addenda to Chapter III	408

41a The right of	409

The same extinction by nonuser S41c and 41d Drilling through coal for oil or	416

ment for valuable consideration without notice	482

or quit	488

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Common terms and phrases

abandonment action adjoining agreement Appeal assignment assumpsit bill borough cited claim co-tenant coal commence contract corporation court of equity covenant damages drill easement eminent domain Enterprise Oil entitled evidence fact failure forfeiture Gas Co gas lease Gas Light Gas Trust grant held injunction injury interest jurisdiction jury land leasehold lessee lessor liable lien minerals mining mortgage natural gas company negligence Ohio C. C. R. Ohio Oil Ohio Oil Co oil and gas oil lease oil or gas operations opinion owner parties partner partnership paying quantities payment Pennsylvania person petroleum Phila Philadelphia Co pipe-line pipes Pitts plaintiff possession premises produced profits purchase purpose R. R. Co reasonable recover remedy rent rental right of eminent royalty rule statute stipulated street Super supra Supreme Court surface tenants in common thereof tion tract trespass

Popular passages

Page 376 - ... which he knows to be mischievous if it gets on his neighbour's, should be obliged to make good the damage which ensues if he does not succeed in confining it to his own property. But for his act in bringing it there no mischief could have accrued, and it seems but just that he should at his peril keep it there so that no mischief may accrue, or answer for the natural and anticipated consequences. And upon authority, this we think is established to be the law whether the things so brought be beasts,...‎

Appears in 170 books from 1843-2007

Page 230 - Assembly from taking the property and franchises of incorporated companies, and subjecting them to public use, the same as the property of individuals; and the exercise of the police power of the State shall never be abridged or so construed as to permit corporations to conduct their business in such manner as to infringe the equal rights of individuals or the general well-being of the State.‎

Appears in 393 books from 1870-2008

Page 59 - They belong to the owner of the land, and are part of It, so long as they are on or In it, and are subject to his control; but when they escape, and go into other land, or come under another's control, the title of the former owner is gone.‎

Appears in 118 books from 1859-2007

Page 346 - ... the prevention or restraint of the commission or continuance of acts contrary to law and prejudicial to the interests of the community or the rights of individuals.‎

Appears in 94 books from 1836-1988

Page 176 - Ray hath granted, demised, and let unto the said company, " for the sole and only purpose of drilling and operating for petroleum, oil, and gas, for the term of two years, or so long thereafter as oil or gas is found in paying quantities, a certain tract of land in Crow Creek Township,‎

Appears in 59 books from 1885-1998

Page 319 - The term nuisance, in legal phraseology, is applied to that class of wrongs that arise from the unreasonable, unwarrantable or unlawful use by a person of his own property, real or personal...‎

Appears in 124 books from 1847-2005

Page 59 - Water and oil, and still more strongly gas, may be classed by themselves, if the analogy be not too fanciful, as minerals ferae naturae. In common with animals, and unlike other minerals, they have the power and the tendency to escape without the volition of the owner. Their 'fugitive and wandering existence within the limits of a particular tract is uncertain,' as said by Chief Justice Agnew in Brown v.‎

Appears in 98 books from 1870-2007

Page 108 - Courts will generally take notice of whatever ought to be generally known within the limits of their jurisdiction.‎

Appears in 97 books from 1847-1992

Page 376 - We think that the true rule of law is, that the person who for his own purposes brings on his lands and collects and keeps there, anything likely to do mischief if it escapes, must keep it in at his peril, and, if he does not do so is prima facie answerable for all the damage which is the natural consequence of its escape.‎

Appears in 224 books from 1843-2008

Page 376 - The general rule, as above stated, seems on principle just. The person whose grass or corn is eaten down by the escaping cattle of his neighbour, or whose mine is flooded by the water from his neighbour's reservoir, or whose cellar is invaded by the filth of his...‎

Appears in 94 books from 1843-2006

Bibliographic information

Title	The Law of Petroleum and Natural Gas: With Forms
Author	George Bryan
Publisher	G. T. Bisel, 1898
Length	521 pages

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