Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-04-13
COSTLY OIL LEASES.
A Supreme Court Decision Creating
Trouble for Operators.
MILLIONS OF DOLLARS INVOLVED.
Documents That Remain in Force Until
They Are Returned.
DEFIULTERS NOW FORCED TO PAY UP

''The oil and gas lease holders of Penn
sylvania are an unhappy lot of people just
now," H. j. Brunot, the gas and oil man,
of Westmoreland county, SAID yesterday.
'They are now suffering from and are
threatened with more litigation than any
other class of people," he went on. "Unless
the Supreme Court can be induced to re-
verse itself, it will be found that many of
the gas and oil men are not as rich as they
estimated themselves
Mr.. Brunot had been discussing the case
of Mrs. Rugh against j. NJ. Guffey, which
was disposed of in the Allegheny county
courts last week. Guifey had leased tract
of land from the woman. Two test wells
had been drilled on the property. Both
were failures, and in consequence the lease
was allowed to 60 by default The money
provided for in the lease was paid to the
woman and the lease was supposed to die
by expiration.
Leases Must Be Formally Resigned.
1t seems, however, that the document re-
mained in full force under recent decision
of the Supreme Court, which held that a
lease expired only when it was returned by
was liable for the rental so long as he re-
tanned in his possession his copy of the lease.
The Allegheny County Court instructed the
jury to find for the plaintiff. The amount
involved in this particular case was only
about $500, but it is said by oil men that the
decision, If it stands, will affect hundreds
and thousands of cases throughout the
State. MANY of such cases, it is said ex-
tend back almost to the first discovery of oil
,,-t,% IL
rupt many producers now prosperous, who
spent wears in wildcatting and prospecting
before they finally struck it rich.
The case decided against Mr. Gufey will
be carried up to the Supreme Court by
George A. jerks, ex-United States Solici-
tor General, who will prepare his argument
and will endeayor to have the highest court
reverse its former decision.
An Enormous Amount Involved.
tTt would be difficult to estimate the
number of just such cases brought by land
owners against their former tenants or lease
holders since the Supreme Court decision"
continued Mr.. Brunot. "Our own COM
pany, which has been organized but a
few years, has already been compelled
to pay several thousand dollars.
and there seems to be nc escape for us. Oil
and gas leases are made all in the same way.
They are fixed and dated for certain time,
but the wording and construction and the
limit fixed seem to have no bearing before
the courts. The verdict is always
the same. No lease holder ever
dreamed that to satisfy the law
and relieve himself from responsibility, he
had to return the lease to the owner of the
land and of course he never did so. As
result, we are all threatened with a suit
from every piece of property we ever had
anything to do with. Our company is not
more unfortunate than all other companies,
and the individual operator and producer
finds himself in the same uncomfortable
box"
"Our only hope" Mr.. Brunot concluded
is that the Supreme Court will reverse it
self and thus save us.