90 So. 427 | La. | 1922
On the 23d of September, 1920, the plaintiff, as lessor, entered into the following agreement:
“This agreement entered into by and between Hugh Talley, a resident of Claiborne parish, Louisiana, hereinafter called lessor, and the Haynesville Oil Company, Inc., represented herein by W. T. McEachern, its vice president, hereinafter called lessee, witnesseth:
“Whereas, the said lessor did, on the 24th clay of October 1919, execute an oil, gas and mineral lease in favor of N. M. Hyde, trustee, who assigned same to the Haynesville Oil Company, Inc., covering the following described property, to wit. “S. E. % of S. B. % Tp. 33, R. 8 West, containing 40 acres, under the terms of which lease it is provided that, if lessee shall have begun operations in an attempt to find oil or gas in paying quantities within six months from date thereof, then without making any further payment lessee may continue with reasonable diligence such attempt as long as lessee shall wish, and make as many attempts as the lessee pleases, provided not more than sixty days shall elapse between the cessation of work on one well and the beginning work on another, all of which is more fully shown by said lease, recorded in the records of Claiborne parish, Louisiana; and
“Whereas, the said Haynesville Oil Company, Inc., transferee of the said N. M. Hyde, began operations for drilling a well within the delay as provided by said lease but was forced to abandon the first well drilled at a depth of twenty-two hundred and eighty feet, on or about the first day of August, 1920; and
“Whereas, it will be impracticable for the said Haynesville Oil Company to begin operations of drilling another well within sixty days from the date that it ceased operations on its Goree well No. 1; and
“Whereas, it is the-intention of the parties hereto to prove up the territory surrounding the property herein leaséd:
“Therefore, for and in consideration of the price and sum of eighty dollars in stock dollars this day paid lessor by lessee, it is hereby agreed by and between the parties hereto that the lessor has and does hereby amend said lease so as to extend the time of the beginning
The lease to which this agreement refers contained the usual stipulations for royalties in the event oil or gas was discovered in paying quantities, and required that for each 6 months’ time within which to attempt to discover oil or gas in paying quantities a payment of $160 should have to be made in advance.
The Haynesville Oil Company transferred the lease to defendant.
By the terms of the lease the work had to be “continued with reasonable diligence.” The hauling of cordwood could hardly be said to hav.e been continuing the work with reasonable diligence even if it had been the work of the lessee, and it can hardly be said to have been such, as it was discontinued because the man who was doing it, and to whom the wood belonged, ceased, for the-reason that he doubted whether he would bo paid. Tlie fact is the evidence goes far towards showing, if it does not actually show, that for lack of funds the Haynesville Oil Company had abandoned the enterprise altogether.
The assignment of the lease to the defendant Lawhon was made on the 7th of April, 1921, three days after the serious resumption of work, and some time after the lease had been suffered to lapse for lack of reasonable continuation of the work.
It is therefore ordered, adjudged, and decreed that the judgment appealed from be set aside, and that there now be judgment annulling the lease executed by the plaintiff in favor of N. M. Hyde on October 24, 1910, and assigned by the latter to the Haynesville Oil Company, and by the latter to the defendant, Z. R. Lawhon, as well as the extension thereof dated Septembér 24, 1920, .and ordering canceled the recordations of said lease and extension in Conveyance Books 15, p. 634, and 24, p. 73, of the clerk’s office of the parish of Claiborne, of the following described property: S. E. % of S. E. 14 of section 33, Township 23 North, Range S West, parish of Claiborne, containing 40 acres — and that defendant pay the costs of this suit.