OIL-BORING RIGHTS.

New Zealand Herald, Volume XLIX, Issue 15155, 20 November 1912, Page 5

OIL-BORING RIGHTS.

A DISPUTED AGREEMENT.

[BY TELEGRAPH. PRESS ASSOCIATION.] Wellington, Tuesday. Oiii'BOßlNG rights were the subject of a dispute before the Chief Justice. (Sir Robert Stout) at tho Supremo Court today. Tho action took the form of an originating summons to obtain a declaratory judgment. The parties wore Frank Duncan Herrick, of Tautane, Hawke's Ray, and others, plaintiffs, and the Kotuku Oil-lields Syndicate, Limited, carrying on business in "Now Zealand and elsewhere as oil-borers, defendant. By a deed of grant dated July 19, 1911, the plaintiffs granted to respondent certain petroleum-boring rights. Tho deed contained a provision for the termination of the grant if boring operations were not commenced within 12 months by sinking a bore or bores not lees in the aggregate than 2000 ft. The deed contained' a proviso that the company should by August 1, 1913, be entitled to have its rights under the grant revived by paying to the grantors the sum of £100 per month in advance from August 1, 1912, until it should have delivered upon eome part of tho grantor's lands substantially the whole «/ tho plant and started boring operations, the above-men-tioned sum to be paid as damages after August 1, 1912, unless the grant were cancelled.

In an affidavit by F. D. Merrick it was stated that defendant company had failed to comply with the conditions of the grant, notice of the termination of which had been given on August 2, .1912. Plaintiffs claimed (a) that the defendant company was not entitled to have its rights revived, inasmuch as it did not pay tho sum of £100 by August 1, 1912; (b) if entitled to have its rights revived tho company was liable to pay the sum of £100 per month in advance until the deed of grant should bo cancelled. The defendant company claimed (a.) that it was entitled to have Us rights revived; (b) that if eo entitled it was liable to pay plaintiffs the sum of £100 per month in. advance until it should have commenced Iwring operations. Tho Court was > asked to interpret the deed of grant in view of these contentions. After hearing argument His Honor reserved his decision.