Tennessee Oil, Gas & Mineral Co. v. Brown

Citations

• 131 F. 696
• 65 C.C.A. 524
• 1904 U.S. App. LEXIS 4308

Syllabus

<p>1. Mines and Minino — Contract — Construction—Termination—Abandonment.</p> <p>A landowner, in consideration of one dollar, “as well as the agreements hereinafter mentioned,” bargained, sold, and conveyed to plaintiff’s assignor, his heirs and assigns, all the mineral, coal, iron ore, ore and potter’s clay, and other minerals, etc., and all timber suitable for lumber on a certain farm described. The agreement required the grantee “to enter upon the land and make search for coal and other minerals,” and, if they were found in such quantities as to justify him to work the same, then he was to pay $10 per annum after the completion of a certain railroad, and on request, until mining was commenced or during the continuance of the agreement, “to apply on the payment of rent of coal, iron ore, or other minerals, or oil first mined thereafter.” There was no provision as to how long the agreement should continue, nor any stipulation as to when the grantee should commence to mine, or how long he should continue. Held, that such agreement did not constitute a conveyance of the minerals, timber, etc., to the grantee in fee, but constituted a mining lease, requiring the grantee to search for ores, etc., within a reasonable time.</p> <p>2. Same — Exploration for Minerals — Extent.</p> <p>Where a mining lease required the grantee to make a search for minerals on the land within a reasonable time as a condition precedent to the right to take minerals discovered on the terms of payment specified, the duty of exploration included a search for all of the minerals named in the lease which might reasonably be expected to be found in the land, considering known geological conditions, to such an extent as would not only determine the presence or absence of minerals, but their commercial value, considering their abundance and accessibility.</p> <p>3. Same — Abandonment.</p> <p>Where a mining lease required the grantee to search for minerals within a reasonable time as a condition preced