Venedocia Oil & Gas Co. v. Robinson

Citations

• 71 Ohio St. (N.S.) 302

Syllabus

<p>Oil and gas contract — Right to enter premises to drill and operate for oil and gas — Grantor to have one-sixth of the product— Implied duty of lessee — Performance within ninety days — Or penalty payable by lessee — Lease becomes null and void, when — Law of contracts.</p> <p>1. A grant in consideration of one dollar of all the oil and gas under certain premises with the right to enter thereon for the purpose of drilling and operating for oil and gas excepting and reserving to the grantor the one-sixth part of all the oil produced and saved from said premises, to be delivered in the pipe lines with which the grantee may connect his wells, implies an engagement by the lessee to develop the premises for oil and gas.</p> <p>2. The time within which the implied engagement must be performed is postponed by acceptance of the sum specified in the condition of such grant that “in case no well is completed within ninety days from date hereof, unavoidable delay excepted, then this grant shall become null and void, unless second party shall pay to first parties, twenty-five cents an acre per year, payable by deposits at the - or directly to first party, after demand having first been made,” and does not commence to run until the end of the year for which payment is accepted, and the lease does not become null and void at the end of such year upon refusal of the grantor to accept payment for another year.</p>