Sistersville oil review. [volume] (Sistersville, W. Va.) 1896-1901, 1898-11-09
drilling and operating for petroleum

in paying quantities.
The covenants and agreements,
the consideration of the lease, are:
The lessee to give to the lessor
the full equal one-eighth of all the
petroleum oil obtained or produced
on the leased premises, ard to de-
liver the same in tanks or pipe
lines to the credit of the lessor.
| If gas is obtained in sufficient
quantities to utilize, the considera-
ton in full to the lessor shall be
500 per annum for each gas we'll
drilled on the premises, if there be
sufficient pressure to guarantee the
laying of pipe line to convey to
market, payable ninety days after
the line is laid.
Then follows grant by the lessor
to the lessee of the use of water
from the premises leased necessary
to operation thereon, the right OF
way over and across the premises
to the place of operating, with the
exclusive right to lay pipes and con-
vey. oil and gas from the leased
premises as we'll as the adjoining
farms, and the right to remove any
machinery or fixtures placed by the
lessee on the premises.
All damages to the growing crop
by laying pipes to be paid by the
lessee.
Ten acres around the buildings
are not to be operated by the lessee,
unless the lessor decides to have it
drilled.
The lessor to have the use OF gas
for domestic purposes, after the
boilers On the premises are sup
piled.
Everyone of these covenants, the
consideration for the lease, evident
ly and clearly contemplate active
operation upon the demised prem
ises.
The lease contains this provision.
fixing the time when operations
must begin.
lone we'll to be completed within
one year in Ellsworth, Meade,
Lincoln or Union Districts, from
the date thereof, unavoidable acct
dents excepted" In case of fail
ure to complete operations on a
we'll within such time, the lessee
agrees to pay the lessor for such
delay, ten cents per acre per an
mum after the time for completing
the we'll as specified. The lessor
agreeing to accept this sum as full
payment for the yearly delay, until
one we'll shall be completed. The
failure to complete one well or
to make the payment as stipulated
will avoid the lease.
The consideration for this lease
are the covenants, and these coven-
ants, as has been seen, contemplate
active operation on the demised
premises, the lessor looking for his
reward to the result of these opera
tons, and dependent upon them.
The clause last quoted fixes the
time within which active operations
must commence, and sets forth the
penalty for failure to begin. 1t the
we'll has been begun and is COM
p,eted within year, no money
whatever is paid. 1t not so COM
pleted, then the money payment
ceases when the well has been COM
pletcd. If no we'll is dug at all,
money is paid, not in consideration
of the demise, but as penalty for
not digging the well.
Note the language, zone well"
The digging of one we'll is guar
antee that the operations, the con-
sideration for demise, have begun.
The agreement to dig one we'll
within one year secures the prompt
beginning of these operations. The
completion of the we'll saves the
penalty. 1t does not amount to a
ful6lment of the covenants.
The consideration, therefore, for
this lease was the prospective rents
and royalties the lessor would en-
joy, if the lessee by diligent search
could find oil and gas in paying
quantities. If the lease failed to
bind the lessee to diligent search
for oil or gas. it was without con-
sideration, binding on neither
party, and voidable at the pleasure
of either. Cowan VS. Radford Iron
Co. 50 Va, SAT-; Petroleum Co. VS.
Coal Mining Co. SO Tenn, 3SI.
See Ray VS. Natural Gas company
1873 Pa, $40. In this last quoted
case, the Supreme Court Of Penn
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