Court Opinion

ID: 9765337
Source: CourtListenerOpinion
Date Created: 2023-08-29 04:00:31.462332+00
Date Added: 2024-06-11T07:30:09.039832
License: Public Domain

SUTTON, Justice.
I concur in the disposition of this case and particularly on the ground plaintiff had never designated any productive areas in squares of ten acres or more, or in any area less than the 160 acre lease. Plaintiff, in case of production, was given the privilege in his discretion to designate productive areas to' contain ten acres or more in as nearly squares as possible and when so done he agreed to pay in oil the sum of $500 per acre for such lands thus designated. He did nothing whatsoever to designate any areas as productive areas.
The lease provides if oil be produced from the lease within the primary term of five years the lease shall continue so long as oil is produced therefrom. For this purpose and to perpetuate the lease the 160 acre lease is regarded and is constituted a productive area. Any producing well has the effect of perpetuating the lease. The 40 acres upon which a dry hole was drilled was not forfeited by the failure of the well to produce. The lease had already been perpetuated as to that 40 acres by the production had on the other portions of the lease.
We take it it is conceded the plaintiff was under the necessity of designating productive areas, because it is said each 40-acre tract constitutes such areas. It is conceded no designations had been made. Mr. Moss when asked if 'he had ever done anything to designate such areas, replied:
“I have not done anything except the wells were drilled on forty acre pattern, again I say the allowable was given by a forty acre pattern.”
In his own mind he regarded the 40-acre tracts as productive areas without doing *496anything to so indicate' to the lessors. It seems to me he was und’er the necessity of alleging and proving he had so designated them as productive areas before be cotild claim an overpayment, and until such designations were made the whole 160-acre tract must be regarded as a productive area.