Arkansas-Louisiana Gas Co. v. Parker Oil Co.

183 So. 229, 190 La. 957, 1938 La. LEXIS 1333
CourtSupreme Court of Louisiana
DecidedJanuary 10, 1938
DocketNo. 34557.
StatusPublished
Cited by67 cases

This text of 183 So. 229 (Arkansas-Louisiana Gas Co. v. Parker Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arkansas-Louisiana Gas Co. v. Parker Oil Co., 183 So. 229, 190 La. 957, 1938 La. LEXIS 1333 (La. 1938).

Opinions

ODOM, Justice.

Plaintiff, alleging that it was in physical possession of a narrow strip of land, 25 feet wide and 726 feet long, in the Rodessa oil field, brought this suit against defendant to protect its possession. It is alleged that the strip of land was part of a larger tract which it held under an oil and gas lease from the Rodessa Oil & Land Company, dated February 7, 1934, and that it had taken physical possession of the leased tract by drilling thereon several producing oil wells,

In its original petition, plaintiff alleged that defendant had gone upon this narrow strip of land, without right and in violation of plaintiff’s right of possession, for the purpose of exploring it for oil and gas, and that, in so doing, defendant was a trespasser. It ruled defendant to show cause why it should not be enjoined from further trespassing.

The rule was heard and dissolved, the judge citing as authority for his ruling the case of United Gas Public Service Company v. Arkansas-Louisiana Pipe Line Company, 176 La. 1024, 147 So. 66.

After the court so ruled, the defendant erected a drilling rig on the strip of land, drilled and brought in a producing oil well.

*961 Plaintiff then filed an amended petition, in which it reiterated its former allegations and further alleged in substance that, since the original suit was filed, defendant continued its trespass by drilling on the land and had brought in a producing oil well and would, if not enjoined by the court, market the products of the well, which belonged to the plaintiff under its lease which gave it the exclusive right to extract minerals from the land.

Plaintiff further alleged that defendant had conducted its drilling operations with full knowledge of plaintiff’s rights as disclosed by the records of the parish, after defendant had been notified in writing of plaintiff’s rights, and after plaintiff had filed suit against it, in which suit plaintiff had set out in detail its title and claim and had specifically charged that defendant was a trespasser on the land, and had stated the reasons for making the charge.

For these reasons, plaintiff alleged that defendant was a trespasser in legal bad faith; that defendant should be ordered to remove its equipment from the premises and enjoined from further producing oil from the well; that plaintiff was entitled to all the oil previously extracted, or its proceeds, free of all cost and expense of production, including the expense of drilling. It prayed for judgment recognizing its exclusive right to explore the land for minerals, ordering defendant to remove its equipment, enjoining it from further trespassing upon the property, and recognizing plaintiff to be the owner of the oil and gas already produced or its proceeds, free of all expense of production ‘including the expense of drilling.

Defendant excepted to both the original and the amended petitions on the ground that they set out no cause or right of action. The exceptions were overruled, and defendant answered.

It admitted the execution of the lease claimed by plaintiff but especially denied that it conferred upon plaintiff any right to produce oil and gas .from the strip of land involved. It denied that plaintiff was in possession of, or had a right to possess, this strip of land at the time the suit was filed. It admitted that it had entered upon the land and drilled a well thereon under and by virtue of a lease which it acquired by assignment from R. J. Reinke; that Reinke had acquired the lease from Glenn Fitts, the owner of the strip of land, and that its operations were conducted in good faith, upon the advice of counsel that Fitts, who leased to Reinke, owned the strip of land in fee under a valid title.

Defendant admitted that it conducted drilling operations after plaintiff filed its original petition,. but alleged that it , had done so on the advice of counsel and in good faith.

The answer sets out at great length and in detail Glenn Fitts’ chain of title to the 25-foot strip of land, and it is alleged that, should the court hold that the Rodessa Oil & Land Company, plaintiff’s lessor, is vested with title to the strip of land on which the well was drilled and that plaintiff held a valid lease thereon, then, .because defendant acted in good faith, it is entitled to be reimbursed the cost of drill *963 ing, equipping and operating said well. Assuming the position of plaintiff in re-convention, it prayed for judgment against plaintiff for its expenses, or, in the alternative, that the court appoint a judicial sequestrator to operate the well until it produced sufficient revenue to repay all its expenses.

In a written opinion, the district court held that plaintiff’s lease covered this strip of land, that it was in possession, and that it had the exclusive right to explore it for minerals; and held further that defendant’s operations thereon were conducted in good faith and therefore it should be reimbursed its expenses out of the proceeds of the products of the well, all matters of accounting to be deferred. There was judgment accordingly. The injunction prayed for by plaintiff was granted.

Plaintiff appealed from the judgment. Defendant answered the appeal, praying that there be judgment rejecting plaintiff’s demands in toto, and, in the alternative, that, if the court should uphold plaintiff’s title, the judgment ordering that defendant be reimbursed its expenses be affirmed.

This is not an action to try title to real estate, nor is it a possessory or petitory action. Originally it was an action against an alleged trespasser to protect possession. One who is in physical possession of a tract of land under a lease which gives him the exclusive right to possess it for lawful purposes may protect his possession against a trespasser by an injunction and may recover damages. Esmele v. Violet Trapping Company, 187 La. 728, 175 So. 471; Pure Oil Operating Company v. Gulf Refining Company, 143 La. 284, 78 So. 560, and cases there cited; Police Jury v. Kidder et al., 4 La.App. 296; Bright v. Bell et al., 113 La. 1078, 37 So. 976.

It is stated by counsel for plaintiff in their brief that the question of title to the property involved is not at issue. While that is true, yet in a case like this, one where possession of a tract of land is involved, and where the right to possess is inseparably connected with ownership, a discussion of the title of the person under whom the litigants possess or claim the right to possess, cannot be avoided.

In this case we note that both plaintiff and defendant put in evidence the title of the owner under whom they claim the right of 'possession. As neither the Rodessa Oil & Land Company, plaintiff’s lessor, nor Glenn Fitts, defendant’s lessor, is a party to this litigation, what we here say regarding the title to this strip of land is not intended to nor can it affect their rights.

The strip of land on which defendant drilled the oil well is a part of the tract covered by plaintiff’s lease. While plaintiff did not drill on this 25-foot strip of land, it did drill several wells, under its lease, on the larger tract of which this strip is a part. The tract of land covered by plaintiff’s oil and gas lease was owned, prior to 1908, by the Rodessa Land & Development Company (not plaintiff’s lessor) and sold by that company to R. J.

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Bluebook (online)
183 So. 229, 190 La. 957, 1938 La. LEXIS 1333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkansas-louisiana-gas-co-v-parker-oil-co-la-1938.