(Download) "Herigstad v. Hardrock Oil Co." by Supreme Court of Montana ~ Book PDF Kindle ePub Free
eBook details
- Title: Herigstad v. Hardrock Oil Co.
- Author : Supreme Court of Montana
- Release Date : January 27, 1935
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 69 KB
Description
Oil and Gas ? Leases ? Assignments ? Liability of Assignor and Assignee ? Federal Exploration Permits ? Nature of Instruments ? Covenants Running With Land. Oil and Gas ? Federal Exploration Permit ? Nature of Instrument. 1. A permit issued by the federal government to one who contemplates prospecting for oil and gas on public lands does not constitute merely a license, but is equivalent to the ordinary lease of - Page 23 privately owned land thought to contain oil and gas; it is a grant of a valuable right which takes the character of an interest or estate in the land itself; and though the permit is not assignable without the consent of the Secretary of the Interior, an assignee cannot take advantage of such departmental regulation. Same ? Contract for the Use of Land ? When Instrument a Lease. 2. The test for determining whether a contract for the use of land is a license or a lease is whether it gives exclusive control of the premises; if it does, it is a lease, it being unimportant what the paper evidencing the agreement may be called. Same ? Meaning of "Bonus" in Oil Industry ? Consideration for Oil Lease. 3. While in the oil industry a cash payment after production is termed a "bonus," the agreement to make such payment in lieu of or in addition to royalty is nevertheless the, or a part of, the consideration of the oil or gas lease. Same ? Assignment of Operating Agreement ? What Constitutes Covenant Running With Land. 4. Where the holder of a permit to prospect for oil and gas on public land transferred his interest under an operating agreement to another in consideration of a certain per cent. of the oil produced and in addition of a payment of $2,000 if oil to the amount of 500 barrels a day were produced, payable to the permittee or order, the covenants to be binding on the successors and assigns of the parties, and the transferee assigned his interest to another, who in turn assigned it to a third party, subject to the terms of the original operating agreement, which third party drilled a well producing more than 500 barrels of oil a day, the contingent agreement for the payment of the $2,000 was a covenant running with the land binding upon the final and producing assignee, in an action by the assignee of the permittee. Assignments ? Contract for Payment of Money ? Liability of Assignor and Assignee. 5. While the assignment of a contract for the payment of money does not relieve the assignor from liability, the assignee who assumes its obligations becomes primarily liable for their discharge and the assignor remains but secondarily liable, and the payee or his successor may sue either the assignor or assignee alone or the two jointly. Same ? Of What Assignments may be Made. 6. A valid assignment may be made of contingent debts and of money to become due in the future or on the performance of an existing contract, although the contract itself under which the money is to become due is not assignable. Oil and Gas ? Assignment of Lease ? Assumption by Assignee of Prior Operating Agreement ? Liability of Assignee. 7. Where an oil and gas permittee in due time secured a lease on the premises from the federal government, and thereupon assigned the lease to an operator who assumed all obligations of a prior operating agreement entered into with another, one provision of which was that the operator would pay a certain sum of money when a paying well was brought into production, the permittees assignee of such sum of money was, under section 9067, Revised Codes 1921, the real party in interest and entitled to bring action for its recovery. - Page 24
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