[Download] "Berthelote Et Al. v. Loy Oil Co. Et Al." by Supreme Court of Montana # eBook PDF Kindle ePub Free
eBook details
- Title: Berthelote Et Al. v. Loy Oil Co. Et Al.
- Author : Supreme Court of Montana
- Release Date : January 29, 1933
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 77 KB
Description
Oil and Gas ? Leases ? Forfeiture ? Release of Record ? Action One at Law ? Implied Covenants ? Burden of Proof ? Pleadings ? Amendments During Trial ? Appeal and Error ? Instructions ? Harmless Error. Oil and Gas ? Leaseholds ? Forfeiture ? Action for Cancellation and Release of Record One at Law. 1. An action for the cancellation of an oil and gas lease, for recovery of damages and the statutory penalty for failure to release, brought under sections 6902-6904, Revised Codes 1921, is one at law, even though incidentally it calls for equitable relief. Same ? Leases ? When Certain Covenants Implied. 2. Where an oil and gas lease is granted for a nominal initial consideration and the lessee agrees to pay royalty in the form of oil or gas produced, the principal consideration is the payment of royalty; hence in the absence of provisions therein calling for exploration, operation, development, marketing the product, etc., necessary for production, the law implies them. Same ? "Unless" Leases ? When Terminated and Forfeited. 3. Breach of any one of the implied covenants of an "unless" oil and gas lease ? one which provides that if no well be commenced within a given time, it shall be void unless delay rental be paid ? ipso facto terminates and, therefore, forfeits the lease. (This statement not to be understood as applying to every conceivable covenant, but only to those involved in the instant case.) Same ? Forfeiture of Oil and Gas Leases Favored by Law. 4. While, generally speaking, courts view forfeitures with disfavor, in connection with oil and gas leases they are favored by the law. Same ? Term of Lease ? Quantity of Production Required Under "Thereafter" Clause ? Proper Refusal of Instruction. 5. Where an oil and gas lease was to remain in force for a certain number of years "and as long thereafter" as oil or gas was produced, an instruction in an action to have the lease declared forfeited, that if the lessee drilled a well prior to a given date producing oil, the requirement in that behalf was satisfied, was properly refused, the law requiring that, to extend the lease under such a clause, the production must have been in paying quantities. Same ? Production in "Paying Quantities" to Bring About Extension of Term of Lease Under "Thereafter" Clause ? Definition. 6. Production of gas or oil in "paying quantities" within the meaning of the last above rule is production in such amount as