Law v. The Heck Oil Company

145 S.E. 601 (1928)

Facts

P is the owner in fee of an undivided one-seven-hundred and sixty-eighth interest in the oil and gas underlying a tract of 131 1/2 acres. D holds leases for development purposes on the remaining oil and gas interests in the said land and having failed to obtain a lease from P, it undertook to drill a well without his consent after it had given assurance to him that account would be made for his full proportionate share of the mineral production, if any, without deduction for the expense of development or operation. In the negotiations for a lease from P of his interest, he offered to execute a lease in consideration of a bonus of $1,000.00. the offer was not accepted. P sued D for an injunction against drilling. d takes the position that the P's conduct is inequitable and unjust; that he does not come into equity with clean hands; and that the owner of such a small fractional interest, who is unable to obtain an exorbitant price which he has placed on his interest, ought not to be permitted to prevent development which is desired by all his co-owners, and which the lessee is willing and ready to undertake. D in part claimed drilling was necessary to prevent drainage. The court enjoined D from drilling and D appealed.