Smith v. Hickman

Citations

• 14 Pa. Super. 46
• 1900 Pa. Super. LEXIS 5

Syllabus

<p>Contract — Construction of particular paragraphs.</p> <p>In construing a paragraph of an agreement the court will consider the entire contract, and give to it its legitimate and fair meaning; and in arriving at the meaning of a phrase in one paragraph of a contract it is proper to consider the meaning which was attached to it by the parties in another part of the contract, where the phrase was used in the same connection and with regard to the same subject-matter.</p> <p>Words and phrases — Oil and gas lease — Found in paying quantities.</p> <p>A contract in an oil and gas lease containing the phrase “ and as much longer as oil or gas is found in paying quantities,” means and as much longer as, under the operations of the lease, oil or gas continues to be produced in paying quantities. So long as the wells drilled by the lessee continue to supply oil or gas in paying quantities the lease remains in force.</p> <p>Oil and gas lease — Election of lessor to take well and rig, etc.</p> <p>Where an oil and gas lease provides for the abandonment of a nonproductive well, and that in such event the lessor may have the gas “ by paying the ordinary price for casing and rig,” upon the abandonment of a well which had been productive or paying, but which had become nonproductive, the lessor may, if he so elect, take the well by paying for the casing and rig; to deny his right would be to play upon the meaning of words.</p>