Allain v. Shell Western E & P, Inc.

762 So. 2d 709, 146 Oil & Gas Rep. 114, 99 La.App. 1 Cir. 0403, 2000 La. App. LEXIS 2002, 2000 WL 593774
CourtLouisiana Court of Appeal
DecidedMay 12, 2000
Docket99 CA 0403
StatusPublished
Cited by9 cases

This text of 762 So. 2d 709 (Allain v. Shell Western E & P, Inc.) 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 v. Shell Western E & P, Inc., 762 So. 2d 709, 146 Oil & Gas Rep. 114, 99 La.App. 1 Cir. 0403, 2000 La. App. LEXIS 2002, 2000 WL 593774 (La. Ct. App. 2000).

Opinion

762 So.2d 709 (2000)

Doris ALLAIN, et al.
v.
SHELL WESTERN E & P, INC., et al.

No. 99 CA 0403.

Court of Appeal of Louisiana, First Circuit.

May 12, 2000.

*710 William C. Dupont, Joseph B. Dupont, Jr., Plaquemine, for Plaintiffs-Appellees Doris Allain, et al.

John M. Wilson, Cheryl M. Kornick, Jana L. Grauberger, Mark B. Meyers, New Orleans, for Defendant-Appellant Shell Western E & P, Inc.

BEFORE: CARTER and PETTIGREW, JJ., and CLAIBORNE,[1] J. Pro Tem.

PETTIGREW, J.

The primary issue presented by this appeal is whether the plaintiff-owners of a minority interest in undivided leased property have standing to enforce a provision set forth in their ancestor's lease contract with defendant-lessee. Following the trial court's grant of plaintffs' motion for partial summary judgment, defendant-lessee now appeals.

FACTS

Prior to 1970, Baist Cooperage & Lumber Company, Inc. ("Baist") owned certain undeveloped property in Iberville Parish, Louisiana. On or about September 5, 1950, Baist entered into an oil, gas and mineral lease ("the Baist lease") with Shell Oil Company ("Shell"), predecessor-in-interest to defendant, Shell Western E & P, Inc. ("Shell Western"), covering property owned by Baist, and described therein as "[a]ll of Sections Nine (9), Ten (10), Twelve (12) and Thirteen (13) in Township Ten (10) South, Range Eleven (11) East, Southwestern Land District." Said property ("the Baist property") comprised a portion of the Bayou Sorrel Field, Iberville Parish, Louisiana.

Following execution of the Baist lease, Shell, during the 1950s, commenced oil and gas operations in the Bayou Sorrel Field. Said operations included the use of surface structures, pipe and pipelines across the Baist property. The aforementioned lease between Baist and Shell contained a provision in paragraph 10 that "[w]hen requested by Lessor, Lessee shall bury its pipe lines below plow depth."

In 1970, Baist was dissolved; and its assets, including the land covered by the Baist lease, were distributed among Baist's shareholders who now own the Baist property in indivision. The Baist property has been continuously leased by Shell or its successors-in-interest since execution of the lease.

On or about March 29, 1983, Joseph B. Dupont, Sr., one of the owners of the undivided Baist property, sent correspondence to Shell's office in Houston, Texas, complaining of the condition of the property and invoking the lease provision mandating that Shell bury its pipelines below plow depth. Joseph Dupont further stated that he expected burial operations to commence within sixty (60) days. Evidently, receiving no reply, Joseph Dupont sent a follow-up letter, via certified mail, to Shell's office in New Orleans, Louisiana, again complaining of the condition of the Baist property and asserting that Shell's actions had violated the provisions of its *711 lease. Joseph Dupont wrote to Shell's New Orleans' office again on April 7, 1986, and enclosed copies of his two previous letters. On June 30, 1986, Joseph Dupont wrote a similar letter to Shell Western (at the same address in New Orleans)[2] stating that "if this mess is not cleaned up immediately with no pipe visible," he would be compelled to file suit against Shell.

The instant suit was ultimately filed in Iberville parish by William C. Dupont on behalf of Doris Allain and several other similarly situated owners of the Baist property (collectively, "plaintiffs") against Shell Western and several individuals (collectively, "defendants") on October 6, 1992.

ACTION OF THE TRIAL COURT

On November 30, 1995, during the pendency of this litigation, Shell Western purportedly sold its interest in the Baist property to Panaco, Inc ("Panaco"). Shell Western further assigned to Panaco its interest in the Bayou Sorrel Field.

On August 4, 1998, plaintiffs filed a motion seeking a partial summary judgment on their first cause of action, i.e., to have defendants either bury or remove its pipes from plaintiffs' property. Defendants responded by filing an opposition memorandum and later, a supplemental opposition memorandum, arguing that summary judgment was inappropriate. Defendants further filed peremptory exceptions raising objections of no right of action and failure to join an indispensable party. According to defendants, any acts of management affecting co-owned property must be made pursuant to the unanimous consent of all co-owners. Defendants further allege that Panaco, Inc. (believed to be the present owner of Shell Western's lease interest in the Baist property[3]) is an indispensable party that must be brought into this litigation.

Following oral arguments by the parties, the trial court took the matter under advisement. Upon review of the parties' memoranda, exhibits submitted and applicable law, the trial court, on October 7, 1998, granted plaintiffs' motion for partial summary judgment "to enforce the provision of the lease that mandates burial of the pipes and pipelines subject to the `Baist Lease'" between Baist and Shell. The trial court further stated that it adopted "as its own Reasons For Judgment the findings of fact and law contained in the Plaintiffs' Memorandum In Support Of Motion For Partial Summary Judgment and Plaintiffs' Supplemental Memorandum In Support Of Partial Summary Judgment."[4]

From this judgment, defendants now appeal.

ISSUES PRESENTED FOR REVIEW

In connection with their appeal, defendants set forth the following issues for review by this court.

1. Whether the [trial] court may grant summary judgment ordering the defendants to bury pipelines no longer owned by the defendants, without joining the present owner of the pipelines as an indispensable party to the litigation?
2. Whether a small minority of co-owners of the lessor's interest in and [sic] oil and gas lease may unilaterally make management decisions which affect the entirety of the property owned in indivision, in violation of La. Civ.Code art. 801?
*712 3. Whether a court may grant summary judgment based on a clause in a 50-year old lease when that clause has no meaning as applied to the leased property, and when applying that clause as written would lead to absurd consequences?
4. Whether intervening governmental regulations which may make performance impossible can excuse performance of part of a contract?
5. Whether the record on appeal is adequate to support the [trial] court's judgment?

DISCUSSION

Joinder of indispensable party

In their brief to this court, defendants assert that the present owner of the lease (which Shell believes to be Panaco, Inc.) is an indispensable party to this action and should have been joined as a defendant prior to consideration of plaintiffs' motion for partial summary judgment. Defendants correctly note that La.Code Civ. P. art. 641 sets forth the standard for determining when a party must be joined for the just adjudication of an action:

Art. 641. Joinder of parties needed for just adjudication
A person shall be joined as a party in the action when either:
(1) In his absence complete relief cannot be accorded among those already parties.

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Opinion Number
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762 So. 2d 709, 146 Oil & Gas Rep. 114, 99 La.App. 1 Cir. 0403, 2000 La. App. LEXIS 2002, 2000 WL 593774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allain-v-shell-western-e-p-inc-lactapp-2000.