Hutton v. Carnegie Natural Gas Co.

Citations

• 51 Pa. Super. 376
• 1912 Pa. Super. LEXIS 228

Syllabus

<p>Deeds — Minerals—Oil and Gas — Severance.</p> <p>1. Oil and gas in and under land being minerals, are part of the realty, which, notwithstanding their migratory nature, may be severed in title from the surface by conveyance so as to vest in the grantee the mineral estate, as fully as it was before vested in the owner of the land.</p> <p>2. An agreement in writing granted to a natural gas company all the oil and gas under land designated, together with the right of ingress and egress for the purpose of drilling and operating for oil and gas, reserving to the grantors the equal one-eighth part of all oil produced. The grantees were to have and to hold the “above premises” for the term of ten years “or such part thereof as the grantee may consider it valuable for oil and gas purposes, and comply with the terms hereinafter mentioned, and as long thereafter as oil or gas is produced in paying quantities. ... If gas only is found the second party agrees to pay at the rate of $300 each year, payable quarterly in advance for the product of each well while the same is being used off the premises.” It was then provided that the grant should become void if no well was commenced on the premises within twelve months, but that forfeiture might be avoided by the grantee paying $3.00 per acre annually “until such well is commenced.” It was finally provided that the grantee upon paying all moneys due might surrender the grant at any time, and be discharged from all further liability. The grantee drilled a well within twelve months, and began using gas therefrom off the premises. After paying three quarters it disconnected the well, notified the grantors to that effect, and subsequently plugged the well and removed the casing. The evidence tended to show that the abandonment was due to failure of gas. The grantee never formally surrendered the premises covered by the grant. Subsequently the grantor brought suit for several quarterly installments. Held, (1) that the agreement was n