McKnight v. Manuf. N. Gas Co.

Citations

• 146 Pa. 185
• 23 A. 164
• 1892 Pa. LEXIS 1211

Syllabus

<p>1. A leasehold, operated for oil production, imposes on the lessee, after ascertaining the existence of oil, the duty of sinking so many wells as may be reasonably necessary, in view of operations on adjoining lands, to secure so much of the oil from the land demised as may be obtained with profit: Per Mr. Justice Williams.</p> <p>2. The duty imposed upon the lessee in a leasehold operated for gas, cannot be measured by the same rule applied in the same manner as in the ease of a leasehold operated for oil; the peculiar characteristics of the business of producing and transporting natural gas being such as to distinguish it for some purposes from operations for oil.</p> <p>3. In an action against a lessee who had drilled one paying gas well upon the premises, for not putting down other wells to protect the territory against the effect of operations on adjoining lands, it was error to charge that a failure to drill such wells was a breach of an implied covenant imposing a liability in damages, in the absence of a reasonable excuse therefor.</p> <p>4. Moreover, when a lease provides that all wells shall be located by the lessor, he may not maintain an action against the lessee for not drilling additional wells, if he never fixed upon a location for any additional well, or called upon the lessee to locate one for him; the lessee having no right to drill except at points indicated by the lessor.</p> <p>5. Whether, when one paying well has been put down, under a lease containing no express covenant to sink other wells, and the well so drilled has been accidentally destroyed while producing gas in paying quantities, the lessee will be obliged to drill another well in its place, or must abandon the premises, not decided.</p>