Galey Bros. v. Kellerman

Citations

• 123 Pa. 491
• 16 A. 474
• 1889 Pa. LEXIS 673

Syllabus

<p>(a) The lessees in an oil lease covenanted to commence operations within sixty days from the date of the lease, and to complete one well within three months thereafter; and, in case of failure to complete one well in said time, they covenanted to pay the lessor for such delay the sum of $1,000 per annum within three months after the time of completing such well.</p> <p>(b) It was also covenanted by the parties that a failure to complete one well or to make suck payment within said time, “renders this lease null and void, and to remain without effect between the parties hereto.” The lessees did nothing towards drilling a well, nor did they make payment within three months after it should have been completed:</p> <p>1. In such ease, a forfeiture of the lease did not happen until default made by the lessees both in completing the well and in paying for the delay or failure to complete it.</p> <p>2. The lessees having neither drilled the first well nor paid the price of delay, according to the terms of the contract, the lessor was entitled to recover at the stipulated rate for the time the lessees held the exclusive right to operate.</p>