Slater v. Boyd

PARKER, J.,

pro tem.

This is an action to quiet title. From a judgment in favor of plaintiffs, the defendants appeal.

It is conceded that plaintiffs are the owners in fee of the real property in controversy. The defendants claim an interest therein as lessees, under the terms of a written lease and sublease. The court below found the rights or claims of defendants forfeited through failure to comply with the terms and requirements of the lease. The lands involved were demised under what is generally known as a lease for the discovery and development of oil. By its terms it provided as follows:

“Paragraph 3. The lessee agrees to start the drilling of a well for oil on or before February 8, 1927, with heavy service rotary rigs, tools and equipment, and to continue the work of drilling such wells, after the commencement of the same, diligently and continuously until a depth of 4500 feet has been reached, unless oil is discovered in quantities deemed paying quantities by the lessee, at a lesser depth, or unless such formations are encountered at a lesser depth as will indicate to the geologist of the lessee that further drilling would be unsuccessful.

“Paragraph 4. After discovery of oil in said paying quantities in the first well, the lessee agrees to commence the drilling of a second well within ninety days thereafter, and thereafter continuously operate one string of tools, allowing 90 days between the completion of one well and the commencement of the next until further wells have been drilled.

“Paragraph 15. A well in paying quantities is hereby defined as a well which, after being pumped continuously for' a period of thirty days, shall produce at least sixty barrels of oil per day.”

The lessee commenced operations, and well No. 1, being the only well drilled, was put down to a depth of 4,350 feet. At that point further drilling ceased, and the well was put upon production. The drilling was completed on or about November 30, 1927. As far as the record discloses production

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did not begin until January, 1928, and the working schedule and the results are as follows: