**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN**  **GROVER**

**SELLERS Al-rORNLY** 

**GINERAL hl** 

Non. 01111Culbarson, Ohalrram Railroad Coxnlaoion **0r** Tams kuatln, Toxaa 1)4ar $1~ O&dnlon No. O-7046

..~_- ,, ‘\ ,,/:

suah sroaptlonr in rant only ona we&l to

~411 ohall b4 lQcret4d. /

Hauklna town8lt4. applloanto ooto **or** th0 **0m4r or** Hon. GlIn Oulberson- ?sgs 2

arter dlsoorsry. llwi r8siainlng

two lots **w4re** 14assd to **oth4r parties,**  also **8rt8r a4**  Ol4oor4ry. All lots am adJoinin& sad oontiguous.

**wn4 or**  **th4** **appiiasnt*8** **188848 rro81**  **th8 origi**  ml omer or ths rour eubtllvldad lot8 Is prior in point ot time to **th4** 14ese on th4 oth4r two lots. **Thlr** eppllsant **oontends that**  **ths** les80x-s and. orl@.nal **owmrs** oi **th4** rour lots havs s right to **at** least one well on said rbur lots (TheOssmlsslon Is agreeable to thla oontantlon**but** he8 herstotore retused sppliostlons 

### tar oae no11 011

essh 

### or the two subdlrlbed**lots);** thst their 144se, being **prior in**  point **o? the**  to **tk4** leas4 on the other two lots, they (the applioants)are entItle to a prior right to a **permit** as ocmpared with those holding a subrepuentlease on the other two lots. '1 wish to ysln rapeat **that** the Oosuslsslon has held that oaly one well sari **be** drlllsd on these iour lots, and we have not berm oonsiderfa# the louatlonor ths well anywhere other than as **shore-mentions&.** *At ths NQINIS~ oi applf4ants,the tOllowing law question is propouadedr wC,%LGTIGNz **rdlhere 8**  **tM4t of**  land **is segrb**  gat4d In areas *hi&# **oannot** be drilled exoept **under** exoaptionto Rule 37, 4008 the holdar ot th4 rirat lease granted (oonslderatioxi of waste **exaeptad)** hsrs a prhr right to a perthit uvef th8 holder or a uubsepusnt lease?* The desorlbsdiaot situstlon 18 an ultLgat4resbilt or the applisation of Rule 37 and Its allowsble oxosptloasto the Hawkins Fielil

or East !B~xa8. 3~4 ownerof the four lets Is entitledto but one w4ll. He **oannot expand**  this right by & voluntsryrubdivision**u&d thereby**  **ozwita a**  rl6ht in hiaseli, of in a~ lessee, to an adbitlenalwall. Bun Oil 0smpan.y Vs. Railroad Commlsslon,68 9. a. (24) 609. Nevertheless,the owner-lessor had le4n **rit** to **qndt** an‘011 *ad gas lrase **to two**  or the lots to one lessee, and. at a lst4r **dsta, an**  l ddltloa alHon. Olin Oulknoa - Page 3

lease on the other two lots to another lessee and without any exDMS* OOnV%yMoo Or his right to thr on4 wall to eitherlessee. % assume that the 011 and gas leasae to th4 two lesseea ~ployed the same and standard form with respeot to QrIlllngrights.

at hsnd.

ia Extenslre researoh Indloatesthat the preolse 

### question one 

### or rlrat impression. Is the sane of Railroad Ods*ioR, et al, *a. MillFr, 165 9, **W.** (26) 504, the court 8p~oifioallY

reS~:m~dthe questionof the.legal**erred** or the two oIr4umstano4s: only under exseptlon (1) a small trsot whloh osn be dorrloped to Rule 37 to proteot rested rights,and 85 SUSh entitled to but on4 well; and (2) the hota of a prior and OS a subsequentlease on subdltIslonsof the tra4twithout an express oonvaysnoeby the owner-lessorot the right to the on4 l llswablewell.

W4 are of the opinion that the legal etrest of the first lease in relation to the seoon&, in the respeots about whloh you lnqulr4&-wheth4r desmibed aa an Implied conveysmoe of the lesaor*sright to drill th4 one null, **or** the granting to the first lessee or a prorerentlalright to drill suoh well, or otherwIse--1sto gir4 to ths first lessee a prior right to a permit to drill as against the holder of the sub8equentlease. Th4 pronounowmnt or the Court ti Edgar, et al, vs. Stanollnd 011 & Gas Gompsny, 4t al, 90 8. W. (26) 656, writ **refused,** that a subsequentlessee "4ould insure no greater rlghd **under** the law than that vest4d in his lesaors~ Is persuaslYeby analogy..

It Is believedthat frarp **any** approach to thb question, the first lsS444 la in the **stronger** legal and oqultableposition. **For** example,under the applloatlonof' th4 imputednotioe dootr$se (see 31 Tex. SW. pp. 363, 3641 Bsloher LandMtg. 00. vs. 01-k. 238 **s.** W. 685)--iand 'ehs **faotcand** 4lrWWt4nO~are smple, in 0~ opinion, for its a plioatlon--theseoond lessee is ohar ed with notio4 of the rao t or the first lease, togetherwith de sorollaryra4t that the lessor had pr4TIously **dirested** himuslf of auoh‘rightsas wm granted In the 011 and gas less4, On4 of whloh Gas the right to drill.

**Therefore,** under the faata stated in your Iauufr~, ,md expr4ssly

### limited to fmoh raots. Your 

### we8tion I* snrmr4d In the afflrmatire.

we expressno opinion upon t&e question of th4 right* or we moon& leasee in event or dralnaao

### or hi* leasrholdbyRon. Olin Culborean- Page 4

the first well (seaMagnolia Pet. Co.~rs.Blankenshlp,et al, 85 **Fe+.** (2Q) 5531, or upon any questionawhioh might subsaquentlyaria4 oonosrnln(r. additionalwell8.

Yours very truly ATTORNZYOgagRALOFTEXAS

BY Asslstanf