Arkla Exploration Co. v. Delacroix Corp.

650 So. 2d 777, 94 La.App. 4 Cir. 0664, 1995 La. App. LEXIS 15, 1995 WL 21351
CourtLouisiana Court of Appeal
DecidedJanuary 19, 1995
Docket94-CA-0664, 94-CA-0665
StatusPublished
Cited by1 cases

This text of 650 So. 2d 777 (Arkla Exploration Co. v. Delacroix 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
Arkla Exploration Co. v. Delacroix Corp., 650 So. 2d 777, 94 La.App. 4 Cir. 0664, 1995 La. App. LEXIS 15, 1995 WL 21351 (La. Ct. App. 1995).

Opinion

650 So.2d 777 (1995)

ARKLA EXPLORATION COMPANY
v.
DELACROIX CORPORATION, et al.

Nos. 94-CA-0664, 94-CA-0665.

Court of Appeal of Louisiana, Fourth Circuit.

January 19, 1995.
Rehearings Denied March 14, 1995.

*778 Hugh M. Wilkinson, Jr., Wilkinson & Wilkinson, New Orleans, for appellee Delacroix Corp.

M. Hampton Carver, Carver, Darden, Koretzky, Tessier, Finn, Blossman & Areaux New Orleans, for appellants William Skully, Robin F. Skully, Charlotte Hillyer Dupuy, and Hayward H. Hillyer, Jr.

Michael A. Britt, New Orleans, for defendants/appellants Herbert E. Diaz, Allen D. Diaz, Delores Diaz Davidson and Lorraine Diaz Haffner.

Richard P. Ieyoub, Atty. Gen., Gary L. Keyser, Asst. Atty. Gen., David C. Kimmel, Asst. Atty. Gen., Baton Rouge, for appellant State of La.

Jackson M. Cooley, Houston, TX, for AMOCO, Production Co.

John F. Wadsack, The Carmouche Law Firm, Lake Charles, for appearers.

William Timothy Allen, III, J. Jay Caraway, Blanchard, Walker, O'Quin & Roberts, Shreveport, for appellant Seagull Mid-South Inc.—formerly Arkla Exploration Co.

Glenn L. Langley, Julia E. Blewer, Cook, Yancey, King & Galloway, Shreveport, George Pivach, II, Jefferson D. Honeywell, Pivach & Pivach, Belle Chasse, for appearers.

Before WARD, JONES and WALTZER, JJ.

JONES, Judge.

Several parties appeal the trial court's judgment in these consolidated concursus proceedings brought by Arkla Exploration Company relative to royalties from oil, gas and/or mineral leases located at the Lake Petit waterbottom.

We adopt the trial court's findings of fact in part as reproduced herein:

The evidence reveals that in 1895 the State transferred full government sections of 640 acres each to the Lake Borgne Levee District. In 1902 the Levee District also conveyed the property as full governmental sections. There was no exclusion for a lake bed. If the lake then existed it was purportedly transferred into private hands. It was not until 1927 that Delacroix became the record owner of all of Sections 20, 21, 28 and 29 of T158, R14E, Southeastern Land District, East of the Mississippi River, in Plaquemines Parish.
Delacroix admits that after it obtained the referenced sections in 1927 it conveyed certain subdivided lots from them. This is the source of the present ownerships of Diaz and Gallardo. However, the record *779 title of the balance of the governmental sections, marsh and lake bed, remains in Delacroix. Delacroix has not alienated any part of Lake Petit.

In 1983, Arkla Exploration Company filed two concursus suits, consolidated herein, as the holder of royalties owed under the terms of oil and gas leases which Arkla owned and operated. The oil and gas leases had been granted over properties claimed by competing groups made defendants in the instant suit; the State of Louisiana and its overriding royalty owners and Delacroix Corp., the Gallardo claimants and the Diaz claimants. The maximum royalty portion owed by Arkla from the production for each of the two unitized wells in dispute was 25%. Arkla deposited 25% of the revenues attributable to production from each of the disputed units. Arkla requested that it receive a refund to the extent that judgment might be rendered in favor of claimants entitled to royalties less than 25%. Absent the possibility of a refund, Arkla remained a disinterested stakeholder. The royalties amounted to $102,761.93 in the first proceeding and pertain to State Lease 8565 (B.H. 11550 RA SUA) effective November 17, 1981. The royalties in the second proceeding amount to $60,715.24 and pertain to State Lease 8564 (B.H. 1200 RA SUA) effective October 6, 1982. The state leases have expired by their own terms and are kept in full force and effect by various operating agreements.

Pursuant to a joint motion by Delacroix and the State, the trial court bifurcated trial of this matter and trial was limited to issues of rights of ownership of the disputed area. Issues relative to mineral royalty rights were reserved for a later date.

At trial the State claimed the transfers from the Lake Borgne Basin Levee District are subject to reformation to exclude the lake bottom, asserting that the lake was a navigable waterbottom in 1812 (the date upon which Louisiana was admitted into the union and thus gained ownership of the disputed area pursuant to its inherent sovereignty), and also that, if the lake was not navigable in 1812, it was within the ebb and flow of the tide. Alternatively, the State claimed that Lake Petit was navigable in 1902 (the date upon which the levee district conveyed the disputed area into the private domain). Delacroix refuted claims that the lake was navigable in either of those years and further argued that the six year peremption or prescription of Act 62 of 1912 bars the State from attacking the transfers even if the lake was navigable.

The trial court dismissed the claims of the State of Louisiana holding that Lake Petit was non-navigable and remote from tidal ebb and flow in 1812. It further found it unnecessary to determine whether the lake was navigable in 1902 because Act 62 of 1912 barred any attack by the State on the Levee District conveyance following six years after the adoption of Act 62. The trial court recognized the rights of Delacroix Corp., the Gallardo claimants and the Diaz claimants to portions of land and waterbottoms within two (2) unitized areas and fixed percentage of revenues due each based on ownership.

The State of Louisiana filed the initial appeal. Its overriding royalty owners have joined in its appeal or stipulated to its interests. The Diaz claimants and Arkla Exploration Corporation have also filed appeals.

APPEAL OF THE STATE OF LOUISIANA

The State of Louisiana and several royalty owners appeal the trial court's judgment finding that Lake Petit and adjacent marsh lands are the private property of defendants Delacroix Corp., the Gallardo claimants and the Diaz claimants. Specifically, the State raises three assignments of error: 1) the trial court erred in assuming that in order for the State to prevail it must determine that the entire passage of the disputed waterway was navigable; 2) the trial court erred in weight given to the evidence; specifically by ignoring and discounting (a) the reference to Lake Petit on an 1806 Lafon Map, (b) an 1816 map commissioned by Darby, and (c) an 1842 Graham reconnaissance; and 3) the trial court erred in applying Act 62 of 1912, known as the Statute of Repose, thereby partially overruling Gulf Oil v. State Mineral Board, 317 So.2d 576 (1975). We discuss each of the State's assignments of error in the order that it was presented.

*780 Navigability

Navigability is a question of whether a waterbody is capable of sustaining commerce. Ramsey River Road Property Owners v. Reeves, 396 So.2d 873 (La.1981). It has been interpreted broadly but is a question of fact. Both sides offered testimony and evidence to support its position on navigability of the waterbody. In its reasons for judgment the trial court wrote that it relied on the geomorphological history of Dr. Sherwood Gagliano and the 1817 military survey of General Bernard, both of which showed that Lake Petit was not navigable in 1812. The trial court also relied on government surveys in 1842 which reflect impassible marsh. In fact the trial court observed that depth soundings in 1902 indicate the area was still not navigable.

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Bluebook (online)
650 So. 2d 777, 94 La.App. 4 Cir. 0664, 1995 La. App. LEXIS 15, 1995 WL 21351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkla-exploration-co-v-delacroix-corp-lactapp-1995.