Citations
- 279 S.W.2d 127
Full opinion text
McDONALD, Chief Justice.
" This is a suit filed by plaintiff Tolar N. Hamblen against defendants John Mecom and Placid Oil Company for $11,690.35, alleged to be the balance of the purchase price of an assignment of an oil, gas and ■mineral lease, which was assigned by Ham-blen to Mecom. Defendants brought into the suit A. D. Hawkins and J. H. Byerly. Hawkins and Byerly filed pleadings to the effect that each owned a ⅛ interest in the •cause of action asserted by Hamblen.
This case involves the construction ■of the provisions of an oil, gas and mineral lease covering 11,690.35 = acres of'land in Chambers County, together with a construction of the provisions of the assignment of this lease.
The original lease was executed by. R. J. Barrow and others to plaintiff Hamblen on 19 July 1948, and provided, among other things, as follows:
“4. (a) If operations for drilling are not commenced on said land on or before 6 months from this date, this lease shall then terminate as to both parties mless on or before the expiration of said 6 months Lessee shall pay * * * Lessor * * * $4.00 per acre for the number of acres 'then covered by this lease and not surrendered as hereinafter provided, which shall cover the privilege of deferring commencement of drilling operations for a period ■of 12 months. Thereafter, upon the payment * * * annually the sum of $1.00 per acre for the number of acres then covered by this lease, and not surrendered as hereinafter provided, the ■commencement of drilling operations may be further deferred for successive ■periods of 12 months each during the primary term. * * * Lessee may at any time execute and deliver to Lessor * * * a release covering any portion of the premises and thereby surrender this lease as to such portion and be relieved of all obligations as to the acreage surrendered, and thereafter the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said release.
“4. (b) It is expressly agreed that said privilege of selecting acreage or commencing operations for the drilling of a well on said lease on or before the expiration of said 6 months, as provided above, may be further extended for additional months, not exceeding 12, by paying * * * the sum of 5⅞⅜ per acre for said 11,690.35 acres, and the expiration of the last extension, if any, shall mark the commencement of the 5 year period and shall be the anniversary date of said lease for rental payment purposes; provided, however, that Lessee shall have the right at any time on or before said selection date,' or extension thereof, to select certain' acreage which he desires to retain and to pay said selection bonus only upon such acreage, provided further that, not withstanding this selection provision, no such selection shall be effective unless Lessee selects at least 3000 acres. In the'’event Lessee begins operations for drilling a well prior to said selection date, or extension thereof, * * * Lessee shall if he elects to retain less than the whole of said acreage, give notice in writing to Lessor on or before said selection date, or extension thereof, of the acreage which Lessee elects to so select and retain under this lease. In either such. event Lessee shall within a reasonable time after such selection deliver a good and sufficient recordable release as to that portion of said property which he elects to surrender.”
“5. * * * If Lessee should drill a dry hole, this lease shall not terminate * * * if it is in the primary term and Lessee commences or resumes payment of rentals * *
Plaintiff Hamblen thereafter assigned this lease to defendant Mecom, which assignment provided:
“Assignee agrees, as a part of the consideration herefor, that he' will pay Assignor $1.00 per acre for each acre selected and retained under the provisions of Paragraph 4(a) of said oil, gas and mineral lease, and will pay Assignor 5‡ for each 5