Adobe Oil & Gas Corp. v. MacDonell

480 So. 2d 961, 87 Oil & Gas Rep. 533, 1985 La. App. LEXIS 10650
CourtLouisiana Court of Appeal
DecidedDecember 11, 1985
DocketNo. 84-784
StatusPublished

This text of 480 So. 2d 961 (Adobe Oil & Gas Corp. v. MacDonell) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adobe Oil & Gas Corp. v. MacDonell, 480 So. 2d 961, 87 Oil & Gas Rep. 533, 1985 La. App. LEXIS 10650 (La. Ct. App. 1985).

Opinion

KNOLL, Judge.

Wayne Paul Laurents, Eugene Webre Laurents, Blanche Laurents Bourque, Yvonne Bourque Nunez (hereafter the Lau-rents Group), and Marshall E. Macdonell, Jr., Robert A. Macdonell, Esther Snoad Macdonell, Clara Hoag Macdonell, Jeff Davis Bank & Trust Co., Trustee for the Mac-donell Trusts for John Phillip Macdonell, Jr., Mark Emerson Macdonell and Thomas Lucius Macdonell, John Phillip Macdonell, Jr., and Elizabeth Lottinger Macdonell, as Natural Tutrix of Mark Emerson Macdo-nell and Thomas Lucius Macdonell (hereafter the Macdonell Group), appeal that portion of the judgment of the trial court in favor of the Central Oil Company Group, grantees of an undivided 3/64 royalty interest from the Laurents Group, and the Garth Group, grantees of an undivided 7/192 royalty interest from the Macdonell Group. We reverse that portion of the judgment appealed from, finding the royalty rights of the Central Oil Company Group and the Garth Group prescribed as they relate to land not included in the 1956 pooling agreement.

PACTS

The facts of this case are undisputed and have been summarized by the learned trial judge as follows:

“In May of 1981, Adobe Oil & Gas Corporation and Traverse Oil Company instituted this concursus proceeding alleging that they were stakeholders of certain funds from the production of oil and/or gas or other liquid hydrocarbons from that unit known as the Miogypsinoides Sand, Reservoir A, created by Louisiana Department of Conservation Order No. 745-C, dated July 3, 1980, and effective May 20, 1980, which funds were attributable to certain royalty interests on lands included in said unit. They allege that there is a dispute as to whether those royalty interests affecting certain portions of the property in said unit have been extinguished by ten years liberative prescription. As stakeholders, they have initially deposited in the registry of the court the sum of $19,533.76 because of the conflicting claims among the defendants made parties to this action.
All parties have entered into a Joint Stipulation of Fact. Those stipulations reveal that in 1955, Marshall E. MacDonell, Emerson F. MacDonell and Delta MacDonell entered into a series of royalty deeds transferring a total undivided 7/192 royalty interest in and to that tract referred to as the ‘MacDo-nell Tract’ and which property is more fully shown [as ///// on the plat at [963]*963 tached as Appendix A.] The present owners of the MacDonell Tract are the heirs, legatees and successors in title to Marshall E. MacDonell, Emerson F. MacDonell and Delta MacDonell and are described as Group ‘A’in the stipulation and referred to as the ‘MacDo-nell Group’. The grantees, or their heirs, legatees, successors or assigns, in the royalty deeds covering the MacDo-nell Tract are described as Group ‘B’in the stipulation and referred to as the ‘Garth Group.’
Involved in this matter are also those royalty deeds in 1954 from Margaret Pomeroy Laurents and Blanche M. Laurents covering and affecting that tract of land known as the ‘Laurents Tract’ which tract is shown [as ???? on the plat attached as Appendix A.] Said royalty deeds conveyed a total of 3/64 royalty interest in and to said property. The owner, or their heirs, legatees and successors, of the Laurents Tract are described as Group ‘C’ in the stipulation and referred to as the ‘Laurents Group’. The grantees, or their heirs, legatees, successors or assigns, in the royalty deeds covering the Laurents Tract are described as Group ‘D’ in the stipulation and are referred to as the ‘Central Oil Company Group. ’ Following these royalty transfers, the leasehold owners of oil, gas and mineral leases covering the Laurents and MacDonell Tracts entered into a unit declaration dated March 7, 1956, with the State of Louisiana creating a 320 acre unit for the H.L. Hawkins No. 2 Well, which well was located on the State Lease No. 2438 or on the bed and bottom of Lake Arthur which lies adjacent to the MacDonell and Laurents Tracts. A copy of this pooling agreement is attached to the stipulation. The 320 acres pooled in said declared unit as it affects the MacDonell and Laurents Tracts are outlined [with oo-ooo on the plat attached as Appendix A.] As can be seen from said plat, only certain portions of the Laurents and MacDonell Tracts were included within the 320 acres pooled by the agreement. These include 4A, 4F, 4G and 13A of the MacDonell Tract and tracts 8A, 9A and 11B of the Laurents Tract. Following the unit declaration, the H.L. Hawkins No. 2 Well produced oil/or gas or other liquid hydrocarbons in paying quantities continuously from 1956 to July 29, 1974.
In July of1979, Adobe Oil & Gas Corporation commenced drilling of the Mac-Donell No. 1 Well which was drilled and completed on the MacDonell Tract. The well began production of oil and/or gas or other liquid hydrocarbons in paying quantities on September 3, 1980, which production has continued to date. By Order No. 745-C, dated July 3, 1980, effective May 20, 1980, the Louisiana Department of Conservation created a producing unit for the Miogypsinoides Sand, Reservoir A. Unit. The surface boundaries of said unit contain 395 acres and are outlined [with XXXXX on the plat attached as Appendix A.] As can be seen from said plat, Order No. 745-C includes that portion of the MacDonell and Laurents Tracts which were previously included within the 320 acre declared unit for the H.L. Hawkins No. 2 Well situated on State Lease No. 2438 as well as portions of the MacDonell and Laurents Tracts situated outside of the 320 acre unit. Those tracts lying outside the 320 acre unit are tracts 4B, 4C, 4D, 4E and 13B of the MacDonell Tract which tracts total 68 acres and tracts 8B and 9B of the Laurents Tract which tracts total 14 acres.
Adobe Oil & Gas Corporation and Traverse Oil Company are the working interest owners of the leases found within the confines of the unit established under Order No. 745-C with Adobe named, pursuant to said order, as the operator of said unit.
After the creation of Order No. 745-C for the MacDonell No. 1 Well and the commencement of production therefrom, the question arose as to whether [964]*964 ten years liberative prescription extinguished the royalty interest created by those royalty deeds covering the Mac-Donell and Laurents Tracts as to the 68 acres of the MacDonell Tract and the 14 acres of the Laurents Tract lying outside of the 320 acre declared unit but which are now included within Order 745-C. Accordingly, Adobe Oil & Gas Corporation and Traverse Oil Company suspended payment to said disputed interest which totals a unit participation of .0062716 of the MacDonell Tract and a .0016774 of the Laurents Tract and paid the funds attributable to the production therefrom into the registry of this court. What is presented, therefore, is the proper disposition of the disputed royalty interest as to lands not included within the 320 acre declared unit, but now included within Order No. 745-C.
Following the institution of this con-cursus proceeding, attorneys were appointed to represent the non-resident defendants. Answers were filed on behalf of the MacDonell Group and the Laurents Group. An answer was also filed on behalf of Exchange Oil & Gas Corporation, a defendant included in the Garth Group. Defendants, Sabine Corporation, Hibernia National Bank, New Orleans, Trustee for Winfield H.

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Bluebook (online)
480 So. 2d 961, 87 Oil & Gas Rep. 533, 1985 La. App. LEXIS 10650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adobe-oil-gas-corp-v-macdonell-lactapp-1985.