Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-12-07
AN OIL LEASE DECISION.
The Right of Forfeiture Defined by the su-
preme Court-It Is Favorable to the Oil
Operators-One Producer and a Duster
Reported Yesterday.

Reported Yesterday.
A decision OF the utmost importance to
the Oil operators o! the country was quite
recently handed down by the Supreme
Court. 1t was on the appeal OF John Glas-
! gov against H. P. Griff1th, lessee, and his az
signee, the CHARTERS Oil Company, from the
| decision of the Butler county courts. 1t
finally settles the question as to the forfeit,
ure of leases, which has for so long been q
| subject of dispute and litigation between OIL
| operators and land owners.
| 1t has been maintained in the past, even
| by eminent attorneys, that the party who
leases a farm for the purpose of drilling for
| oil or gas and agrees 10 drill within cer-
| tain length OF time, or has the option OF
amount at designated intervals, can be COM
PEELED to make these payments whether he
| is desirous of so doing or otherwise, during
the length Of time designated IN the tease.
The operators have steadily maintained
| that they could forfeit lease, on which they
| were satisfied no oil or gas could be OBJ
| tanned, by neglecting to drill and by failing
/ to meet the payments as required In the
lease. They have been sustained by the
Supreme Court. Usually the land owner re-
| ceives a heavy bonus when the lease Is
signed, and if the lessee should be COM
PEELED to make monthly payments on a
lease which was barren of oil or gas he
would be giving something for nothing. II
the lessee does nothing on the dem1sed land,
the penalty for his fnactfon Is forfeiture, Dut
he may prevent the assertion OF this forfeit
ure by paying the monthly installments, as
is generally stipulated in the lease, and thus
postpone the right of forfeiture for one
month or from mouth to month, as he
sees flt.
In case he forfets the lease, the farmer or
land owner, who has already received
bonus and possibly several payments, hos
the privilege OF releasing his land
When on or Gas Is Found
If the lessee drills and finds oil or gas, the
relation of landlord and tenant is estab-
lished, and the tenant would be under an
implied obligation to operate Tor the \com-
mon good of both parties and pay the rent
or royalty reserved.
The action in the above case centered in
Provided, however, that this lease shall
become null and void, and all rights here
unto shall cease and determine, unless
well shall be completed on the said premises
within one month from the date hereof, or
unless the lessee shall pay at-the rate OF SlO0
monthly in advance for each additional
month such completion is delayed from the
time above mentioned for the completion of
such well until q well is completed"
The lessor sued on aSsumpstt to recover
three monthly payments. but the Supreme
Court held that the lessee could elect
whether he should hold or forfeit the lease.
In the case of Ray versus the Natural Gas
Company the lessor had an election whether
to assert the forfeiture provided for or
waive it and proceed upon covenants of the
lessee.
The oil operators are feeling jubiant over
the victory OF Ii. P. Griffith and the Char
tiers Oil Company, as they claim it will
relieve them from much annoyance and
litigation at the hands OF avaricious land
owners, who are not satisfied with munif.
cent bonus,p but insist on their pound OF
flesh, though their properly has suffered no
damage.
One Producer and Duster.
Connors Co.'S No. 2 on the w. G. Cook
farm, south of Laurel Hill. reached the Cor
don sand yesterday, and is making l3 barrels
an hour
Greenlee & Forst's No. on the Oak Ridge
Coal Company's property, east of Oskdale,
was drilled through the fifth sand yester-
day, and is absolutely dry. They were e1-
pecting the sand at every bit yesterday af-
ternoon in their No. Woods.
The Wheeling Gas Company's No. 4, on the
GLADDEN. farm, was one bit in the Gordon
sand yesterday and showing for 100 barrels
day. No. Scott Ia on top of the Gordon.
They located No. 3 Woods yesterday az an
offset to the well on the Dr. Miller larm.
The Devonian Oil Company's No. 9 Cub
baSe will be in the Gordon sand this morn
The Tidal Oil Company's No. 10 Marshall
was drilling in the bottom of tho fourth
sand yesterday and No; S is in IN the Go G1TSon; g
the same arm. They are rigging up at Nos.
6and on the GLADDEN. farm.
The Peoples Gas Compnny's No. 149 on the
Wallace farm is down $40 feet; their No. l59
Wallace is drilling at 1,5OO feet; No. 160 Dixon
is down l.l50 feet; No. 16l Dixon, 200 feet;
No. 163 Kelso is being rigged up, and No. I62
McMurray is 200 Ieet deep.
Fighting for a Lease.
There is trouble near Midway. Some time
ago T. B. Robbins is reported to have sold a
piece of properly to q man named Bazanella.
Robbins leased the oil and gas right to
Mr., Miller, and subsequently Bazenella
leased to a Mr.. McCarty. The latter assigned
his lease to Curly" Phillips. Miller took
possession of the lease Monday and built
tank on it. Yesterday Messrs. Phillips anc
McCarty. assisted by % Italians. carried the
tank of the lease and last evening tho Ital-
ians employed by MIR. Phillips were in pos.
session.
Miller Harrell are finishing up we'll on
the Robbins lot near Midway.
The Gauges Yesterday.
The estimated production of the Mcdonald
field yesterday was 10000 barrels, 500 less
than the day before. The Woodland Oil
Company's No.2 Scott was making 90 barrels
an hour; Knox & Co.'S No. Q Scott, 90 barrels
an hour; Jennings CO. IS No. Sproul, 25 an
rour The stock in tho field was 5000
barrels.
15,TS barrels.
Runs and Shipments Monday.
The National Transit runs were 26, ,666;
shipments, s., ,sS7. Runs of Southwest Penn
sylvania IRON Mcdonald, ID 1877; outside of
Mcdonald, s,379; total runs, 2l, 566. Buckeye
runs Of Macksburg oil, 8,778: shipments, not
in. Buckeye runs of Lima oil, 1884; ship.
men is, $3.50. Eureka runs, 1887; shipments,
2007. New York Transit shipments, 5S, 542.
Southern Pipe Line shipments. o, ,45l.
The runs of the Tidewater Pipe Line Com
pany on Monday were 5,224: total Pitts;
average. 1855. Shipments Monday, q, 1885,
total, sc, 624; average, ll,825
The runs on the estern and Atlantic
Pipe Line on Monday were 3.T7; shipments,
8lSL
The OIL Market.
Range of the january option: Opening,
$3.50; highest, 5Sssc; lowest, 5S11c; closing.
53skc.
Refined oil-New York, IS so; London, ~
@4skd: Antwerp, l2Hf.
NEW YORK. Dec. 6.-The petroleum market
opened and closed steady. Not a single
transaction was reported. The nominal
quotation at the close was 531sc bid, 53Hc
asked Lima oil, lie bid.
on CITY Dec. 6-MGrket opened ut 53sSc;
closed, 5316c; highest 53s<c: lowest, 53szc;
sales, 80. QUO barrels; clearaDces. 136, 900 par
rels; shipments, H3,5sl barrels; runs, sI,003
barrels.
JOSEPH wALT0N's FUNERAL.