Collins v. South Penn Oil Co.

Citations

• 222 Pa. 345
• 71 A. 319
• 1908 Pa. LEXIS 707

Syllabus

<p>Lease — Oil and gas lease — Extension—Construction of written instrument.</p> <p>An oil and gas lease was made on September 30, 1875, to extend for a term of tv/enty years. In 1890, the owners of the fee entered into an agreement with the lessees making an extension of the lease for the term of ten years from September 30, 1895, upon the same terms and conditions as the original lease. In 1892, the owners of the land executed a deed therefor, reserving to themselves all the oil and gas from the date of the deed to September 30, 1905, together with the right to execute a new lease to the present owners of the existing lease upon the same terms and conditions contained in the lease of September 30, 1875, for the term of ten years after the expiration of said lease. Held, that the owners in making the reservation intended to retain the rights which they had in the old lease until September 30, 1895, and then for the purpose of extending the time for the period of ten years.</p> <p>One of the lessees in the original lease above mentioned parted with all interest in the leasehold, and thereafter acquired a one-fourth interest as a part owner in the fee of 213 acres in land other than that covered by the original lease. On December 10, 1895, the owner of the lands covered by the original lease entered into an agreement in writing with the owner of the one-fourth interest in the 213 acres in which he recited that he was a part owner of the 213 acres, and referred to the original lease covering the other lands and agreed that as soon as he should become the owner of full three-fourths of the 213 acres, he would extend the lease of September 30, 1875, to the owner of the one-quarter interest of the 213 acres, and the latter person agreed to surrender the full equal three-fourth parts of one-eighth of all the oil produced therefrom from and after September 30, 1905, in the manner provided in the original lease. Held, that the agreement referred only to the 213 acres and no