Court Opinion

ID: 9863056
Source: CourtListenerOpinion
Date Created: 2023-09-25 03:00:48.39659+00
Date Added: 2024-06-11T11:46:43.994688
License: Public Domain

PRICE, Chief Justice
(concurring).
The parties to the lease in question might lawfully provide that the section be developed as a unit or the}' might provide that the land be divided into 160 acre tracts for the purpose of development. It seems to me that from the provisions of the lease the only proper construction is that same was divided into quarter-sections for the purpose of development; also' that the conditional limitation as to drilling or paying delay rentals by the contracting parties applied to each quarter section. See Summers Oil & Gas, Perm.Ed. Vol. 3, p. 205, latter part of Sec. 515; Producers Oil Co. v. Snyder, Tex.Civ.App., 190 S.W. 514; Johnson v. Montgomery, Tex.Civ.App., 31 S.W.2d 160, Wr. Ref.; Hunt Production Company v. Dickerson, Tex.Civ.App., 135 S.W.2d 597; Jackson v. Kent, 106 W.Va. 37, 145 S.E. 572.
One hundred and sixty acres is a quarter-section. ■ The only sanction the State had to enforce the drilling on each quarter-section was the conditional limitation.
The only rentals provided for in the lease in question are delayed rentals. State *397v. Magnolia Petroleum Co., Tex.Civ.App., 173 S.W.2d 186.
Under the express provisions of the lease, development of oil in paying;' quantities renders the payment of' delay rentals unnecessary to keep the lease in force as to the 160 acres or quarter-section on which such production is developed. • This lease for a certainty intends to provide that the development of oil in paying quantities on 160 acres shall keep the lease in good standing as to such 160 acres only. For a certainty it is intended that rental he paid for the privilege of delaying development on the other 480 acres constituting the section leased. Delay rentals are not paid for the use of minerals, the purpose of payment is for the option to develop and make use of the minerals at a later date. The lessee is in no way bound to pay delay rentals. Their payment during the primary term does excuse development and keep alive the right to develop.