Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-01-26
BRAT TON MAKES
IMPORTANT OIL
/. LAND DECISION

N'Pt'lu correspondence 10 bne JohIuahl
Dayton, N. NJ. Jan. 25.-An inn
+ roltant and far reaching decision
relative to the validity of oil and
gas leases has Just been rendered
ny Judge Sam G.. Bratton of the
Fifth judicial district court at
Carlsbad. The case at issue was
that Of j. D. Terry and Elmyra n.
Terry VS.. S. G Humphreys and the
Artesia oil and Gas company, the
plaintiffs seeking to cancel Ger
Jain oil and gas lease executed to
defendant Humphreys and later
assigned to Defendant Artesia Oil
and Gas company. alleging fraud
and Misrepresentation in that said
Y lease was to be placed in escrow in
the First State bank of Artesia UNI
IA til certain development had been
4 made; that Defendant Humphreys
4 rad, contrary to said alleged rep
n reSentation and agreement. caused
aid lease to be recorded. Plain
ifs further alleged that they were
81 Joint owners by fee simple title and
a in possession of said leased prem
n ises at the time said lease was ex-
ecuted; that said premises We're
occupied and used as homestead
at time of execution of said lease
and that said premises We're. COM
munity property, Plaintiffs fur
Their made the matter of fact ale
cation that the wife had not Joined
the husband in the execution of
the lease.
Considerable evidence was in
troduced on both sides after which
I 1lh III VI
and his successors in title had reg
ularly paid the rentals provided in
said lease; that the land described
in said lease were not occupied by
plaintiffs at the time of execution
yhnd delivery of said lease, as
. homestead and that they are not
now so occupied, as the proof de-
Veloped that the residence , and
other buildings were, and are. on
the west forty acres of the tract,
while the lease covered the east
forty acres.
It appeared from the evidence of
i, d. Terry, after he was brought
back upon the stand the second
time, that his wife, out of her sep
aratc estate, paid one-third of the
purchase price for the land cover
cd by the lease, The court. there
fore, held that the lease was not
effective as to her separate prop
erty, inasmuch as she had not join
ed in the execution or the lease,
but that the undivided two thirds
was community property and that
the oil and gas lease involved was
not such a conveyance, or incum-
brance, which required the wife to
join in the execution thereof. but
that the husband, J. d, Terry, had
n right to execute a valid and
binding lease on the undivided two
thirds interest in said leased prem
ises. The court further found that
the Artesa Oil and Gas company
is the owner of said lease and en-
titled to all the rights and benefits
thereof previously conferred upon
Humphreys and his assigns; that
.costs of the suit. therefore. be
taxed against the plaintiffs.
Expressed in q single sentence
the most important factor in Judge
Bratton's decision is that an oil and
gas lease on community property
signed by the husband only, is a
valid and binding instrument. 1t
appears that many leases have
been taken in New Mexico on COM
munity property, in which the wife
has not Joined, hence the ruling
of Judge Bratton is far reaching in
its effect and clears up the title to
oil and gas leases covering thou
sands Of acres throughout the state.
1t also appeared from the evil
dence, and the ruling of the court,
in this case that the committee of
five local citizens who secured the
book of leases in the name of
Humphreys had at all times faith
fully protected the land owners,
and at the same time secured the
development work which is now in
progress. Since deve1opmentswork
has become quite active in this inn
mediate vicinity, and leases, there
fore. have become quite valuable,
a considerable number of suits
were Instituted by property owners
seeking ito have their leases de-
clared void, on the alleged grounds
Of fraud and Misrepresentation by
members of the committee in Sc
curing them. Since the decision
in the Terry case. however, the
greater number of these cases have
been dismissed, and It is conf
IDENTITY expected that the remainder
soon will be.