McKean Natural Gas Co. v. Wolcott

Citations

• 254 Pa. 323
• 98 A. 955
• 1916 Pa. LEXIS 727

Syllabus

<p>Lease — Oil and gas lease — Failure to pay rent on time — Forfeiture — Rent—Repossession by lessor — Bill in equity — Injunction.</p> <p>1. An oil and gas lease is not a mere license, but creates in the lessee a corporeal interest in the land.</p> <p>2. The provision in an oil and gas lease rendering it void for failure to pay rent as stipulated is for the protection of the lessor, and after breach of such provision the tenancy continues until the lessor declares the forfeiture. If the rent in arrear be paid or tendered before the lessor declares the forfeiture, the breach is healed and the tenancy saved.</p> <p>3. At the hearing of a bill in equity to restrain defendants as lessors from repossessing themselves of premises embraced in an oil and gas lease, by reason of an alleged forfeiture of the lease, it appeared that the lease provided “if the second party (lessee) fails to pay the first party $300 annually on January 28th of each year, then the lease becomes absolutely null and void.” After paying the rent on time for thirteen successive years, on the fourteenth year of the tenancy the lessee mailed a check for the rent to the lessor so that it reached the office of the lessor on January 29th. On January 30th, the lessor returned the check and declared the lease forfeited. The lower court found that the failure to pay the rent on time was unintentional and that the enforcement of the forfeiture would be unconscionable. Held, the enforcement- of forfeiture was properly restrained.</p>