Kleppner v. Lemon

Citations

• 176 Pa. 502
• 35 A. 109
• 1896 Pa. LEXIS 1105

Syllabus

<p>Lease — Oil and gas lease — Implied condition.</p> <p>It is an implied condition of every lease of land for the production of oil therefrom that when the existence of oil in paying quantities is made apparent the lessee shall put down as many wells as may be reasonably necessary to secure the oil for the common advantage of both lessor and lessee. In determining when ^ind where such dells shall be located, regard must be had to the operations on adjoining lands, and to the well kno.wn fact that a well will drain a territory of much larger extent when the sand rock in which the oil or gas is found is of coarse and loose texture than when it is of fine grain and compact character. Whatever ordinary knowledge and care would dictate as the proper thing to be done for the interests of both lessor and lessee under any given circumstances is that which the law requires to be done as an implied stipulation of the contract.</p> <p>A lease conferred on the lessee “ the exclusive right of drilling and operating for petroleum and gas on the plaintiff’s land.” If oil and gas were found certain royalities were to be paid. There was no distinct covenant for putting down wells on the land, except that which related to the first or experimental well which was to determine the value of the land for oil purposes. The right to divide the leasehold and to sublet the parts into which it was divided for oil purposes was distinctly reserved by the lessee. The defendant had oil and gas leases on adjoining properties. Ho put down one well on plaintiffs land and other wells on adjoining lands near to the boundaries of plaintiff’s land with the express purpose of securing the oil under plaintiff’s lands through these wells. Eelcl, (1) that the lease contemplated the production of the oil underlying the plaintiff’s lot by means of operations conducted on its surface; (2) that the number and location of the wells necessary to carry out the purposes of the contract was a subject belonging prim