Sullivan
Western Oil & Refining Co. v. Sullivan
Opinion
Lead Opinion
Thompson, J.
This is an appeal from a judgment rendered in favor of the plaintiff corporation in a claim and delivery action. The facts essential to an understanding of the case are briefly as follows: On November 27, 1928, the appellant owned certain land, together with all the oil and eighty per cent of natural gas that might be produced therefrom. Being desirous of drilling for the oil and gas he entered into a contract with respondent on that date whereby respondent agreed, in consideration of the contemporaneous execution of a gas contract in its favor, to place at the disposal of appellant for a period of seven months two boilers to be used in the drilling of a well. There was included in the contract a provision that when the well should be placed on production respondent should retain sufficient of the royalty gasoline belonging to appellant to pay for the boilers in the sum of $4,850, plus interest at seven per cent from the date of the agreement. Respondent furnished the equipment as agreed, but the seven months passed without any funds being raised or made available by the appellant for the work of drilling. On June 22, 1929, upon the statement of appellant’s representative to a Mr.…