Allain-Lebreton Co. v. Exxon Corp.

694 So. 2d 296, 136 Oil & Gas Rep. 529, 95 La.App. 1 Cir. 1576, 1996 La. App. LEXIS 797, 1996 WL 155301
CourtLouisiana Court of Appeal
DecidedApril 4, 1996
Docket95 CA 1576
StatusPublished
Cited by3 cases

This text of 694 So. 2d 296 (Allain-Lebreton Co. v. Exxon Corp.) 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
Allain-Lebreton Co. v. Exxon Corp., 694 So. 2d 296, 136 Oil & Gas Rep. 529, 95 La.App. 1 Cir. 1576, 1996 La. App. LEXIS 797, 1996 WL 155301 (La. Ct. App. 1996).

Opinion

694 So.2d 296 (1996)

ALLAIN-LEBRETON COMPANY
v.
EXXON CORPORATION, et al.

No. 95 CA 1576.

Court of Appeal of Louisiana, First Circuit.

April 4, 1996.

*298 Robert L. Cabes, Lafayette, for Plaintiff/Appellant Allain-LeBreton Company.

Louise V. White, William Courtney, New Orleans, for Defendant/Appellee Exxon Corporation.

Christopher J. Boudreaux, Thibodaux, for Defendants/Appellees Margaret Robichaux Baudoin, Myra Robichaux Blanchard, Mary Robichaux Boudreaux, David J. Robichaux, Jr., and Mary Weimer Robichaux.

Loulan J. Pitre, Jr., Cut Off, for Defendant/Appellee Taylor Energy Company.

David A. Kerstein, New Orleans, for Defendants/Appellees Monte C. Shalett, Individually and as Trustee for the Monte Cresap Shalett Trust.

David W. Rusch, Mandeville, for Defendants/Appellees Flash Gas and Oil Northeast, Inc., and Ashlawn Corporation.

Barry H. Grodsky, New Orleans, for Defendant/Appellee Jacqueline McPherson as Executrix of Joy B. Shalett.

W.C. Hollier, Lafayette, for Defendants/Appellees Russell M. Frankel, Individually and as Trustee of the Sherry Gwynne Frankel Louisiana Testamentary Trust, and Sherry Frankel Greenwald, et al.

C.G. Norwood, Jr., New Orleans, for Defendants/ Appellees Dorothy Pecot Norwood, Richard C. Pecot, and Marguerite Pecot Singleton.

William S. Strain, Baton Rouge, for Defendants/Appellees Estate of Wylmer I. Pool Through Wylmer Crenshaw Pool as Executor, and First National Bank of Commerce as Trustee of the Wylmer Crenshaw Pool Trust #3.

Herbert W. Christenberry, Metairie, for Defendant/Appellee Ashlawn Corporation.

Before CARTER and PITCHER, JJ., and CRAIN, J. Pro Tem.[1]

CARTER, Judge.

This is an appeal from a trial court judgment on a motion for summary judgment.

BACKGROUND

On January 15, 1948, the Lafourche Land Company, Incorporated granted an oil, gas, and mineral lease (the "Lease"), covering approximately 3,323 acres of property in the Clovelly Field, Lafourche Parish, Louisiana, to Wylmer I. Pool. By act, dated May 6, 1963, Shell Oil Company, Humble Oil & Refining Company, and J.R. Frankel, then owners of the "Lease," released 2,305 acres of the property from the "Lease;" however, the "Lease" was specifically retained on the 1,018 acres in Township 18 South, Range 22 East and in Township 19 South, Range 22 East.

Paragraph 5 of the "Lease" provided, in pertinent part, as follows:

If at the expiration of the primary term or at the expiration of the sixty (60) day period provided for in the preceding sentence, oil, gas, sulphur or other mineral is not being produced on said land but Lessee is then engaged in drilling operations or reworking operations thereon, or if production previously secured should cease from any cause after the expiration of the primary term, this lease shall remain in force so long thereafter as Lessee either (a) is engaged in drilling operations or reworking operations with no cessation between operations or between such cessation of production and additional operations of more than sixty (60) consecutive days; or (b) is producing oil, gas, sulphur or other mineral from said land hereunder.

Paragraph 3 of the "Lease" also provided that, if a well is shut-in, the lessee may make shut-in payments, beginning ninety (90) days after the shut-in, and maintain the "Lease" without production or operations for a period of five (5) years.

On December 31, 1977, plaintiff, Allain-LeBreton Company (Allain-LeBreton), acquired rights in the "Lease." The "Lease" was maintained by drilling and production activities, until October 14, 1991, when all production stopped.

*299 FACTS

On July 1, 1993, Allain-LeBreton filed the instant suit for declaratory judgment, seeking a determination that the oil, gas, and mineral lease had terminated and requesting other relief against the former working interest owners at the expiration and termination of the lease,[2] transferees of the former working interest owners,[3] former overriding royalty owners,[4] and other parties who may have an interest in the "Lease."[5] In its petition, Allain-LeBreton sought a determination that the "Lease" had expired and terminated under its own provisions. Allain-LeBreton alleged that, under the terms of the lease, the lease would terminate at the expiration of sixty (60) days after the cessation of production of oil and gas in paying quantities without resumption of production or drilling or reworking operations within such period of time. Allain-LeBreton alleged that in October, 1991, production of oil and gas in paying quantities ceased and that, during the sixty (60) days thereafter, production was not resumed, nor were drilling or reworking operations conducted on the leased premises.

In its petition, Allain-LeBreton also sought an accounting and money judgment from certain defendants for the proceeds from the sale of oil and gas derived from the "Lease." Allain-LeBreton alleged that, after the expiration of the lease, certain defendants produced oil and gas from the "Lease" without any legal right to do so. Accordingly, Allain-LeBreton alleged that it was entitled to the net proceeds so derived.

The defendants answered Allain-LeBreton's petition, generally denying the allegations and asserting that the "Lease" had been maintained in full force and effect.

Thereafter, on February 14, 1995, the defendants filed a motion for summary judgment, contending that there were no genuine issues of material fact in dispute and that they were entitled to judgment as a matter of law. In support of their motion, defendants argued that they had engaged in timely good faith reworking operations during the period in question such that the lease was maintained. Attached to defendants' motion for summary judgment were copious documents, including the oil and gas lease, dated January 15, 1948; a history of Clovelly Field; various affidavits with attachments, and excerpts of numerous depositions with a plethora of attachments.

The affidavits filed by defendants included affidavits by: Barry C. Ellis,[6] an Exxon petroleum technologist who prepared AFEs (authority for expenditure forms) for the Clovelly Field, as well as a history of the Clovelly Field, outlining the operations performed by Exxon and Flash in the Clovelly Field;[7] Kirby Chaisson, a welder who performed work in the Clovelly Field in December, 1991, and January, 1992;[8] Steve J. Dufrene, superintendent at Harris Dufrene Enterprise, which furnished equipment to Exxon or its contractors in the Clovelly *300 Field in January, 1992;[9] Eric P. Bollinger, president of Bollinger Workover, Inc., which furnished labor and equipment operators to Exxon in the Clovelly Field between November 14 and December 5, 1991;[10] Steven G. Haller, president of Flash, regarding production in the Clovelly Field during Flash's ownership,[11] and Joseph Wilson, maintenance foreman with Exxon, who verified the invoices by Chaisson, Dufrene, and Bollinger for work performed in November and December, 1991.

The depositions filed by defendants included those of: Mark Agnew, a reservoir engineer who performed tests in the Clovelly Field in November, 1991;[12] Thomas Stringer, who testified regarding pipe supplied to the Clovelly Field;[13] and Barry Ellis, Exxon petroleum technologist.[14]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Frankel v. Exxon Mobil Corp.
923 So. 2d 55 (Louisiana Court of Appeal, 2005)
Ciba-Geigy Corp. v. Town of St. Gabriel
740 So. 2d 147 (Louisiana Court of Appeal, 1999)
Thibodeaux v. Ferrellgas, Inc.
741 So. 2d 34 (Louisiana Court of Appeal, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
694 So. 2d 296, 136 Oil & Gas Rep. 529, 95 La.App. 1 Cir. 1576, 1996 La. App. LEXIS 797, 1996 WL 155301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allain-lebreton-co-v-exxon-corp-lactapp-1996.