Baird v. Atlas Oil Co.

84 So. 366, 146 La. 1091, 1920 La. LEXIS 1816
CourtSupreme Court of Louisiana
DecidedMarch 1, 1920
DocketNo. 23868
StatusPublished
Cited by41 cases

This text of 84 So. 366 (Baird v. Atlas 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
Baird v. Atlas Oil Co., 84 So. 366, 146 La. 1091, 1920 La. LEXIS 1816 (La. 1920).

Opinion

DAWKINS, J.

Plaintiff alleges that he is in the actual, physical, and corporal possession of the S. % of N. E. % of section 24, less the west SO acres thereof, in township 21 north, range 8 west of Claiborne parish, La., under a valid oil and gas lease from the legal owners and former possessors of said land; that, under and by virtue of said lease, he has drilled a number of wells upon said property, which are now producing oil in large quan tifies, and which he has been selling to the Standard Oil Company of Louisiana; that the defendant has addressed a communication to said ■ company, claiming to be the owner of an undivided one-half interest in and to said mineral lease, well knowing that it had no right thereto, and, notwithstanding petitioner’s protest, continues to assert claim thereto, so that the said Standard Oil Company has withheld, and will continue to withhold, one-half of the purchase price of said oil until the said claim is retracted or removed by final judgment. Plaintiff prays for judgment in the sum of $25,000, $15,000 as damages for the loss of interest on the money so withheld and for annoyance and embarrassment due to said claim, and $10,000 as damages for attorney’s fees incurred in the prosecution of this suit.

Defendant denies the validity of plaintiff’s lease, admits the allegation with reference to the communication addressed to the Standard Oil Company, and claims ownership of the mineral rights under an alleged lease antedating that of plaintiff. It further avers that, through error and oversight, it had trans>-ferred to Denman & Williams, and the latter, in turn, had transferred to the Consolidated Progressive Oil Corporation the mineral rights upon the land in question, but that subsequently the said Consolidated Progressive Oil Corporation had reconveyed the same to defendant, and that all of the terms and conditions of its said mineral lease had been complied with, thereby giving it a valid and legal title to the property in dispute.

Defendant prays that the demands of plaintiff be rejected, and that he be required to give a full and detailed accounting for the oil taken from the leased premises, and for general relief.

The Pacts.

On the trial, it was admitted that the defendant claimed only an undivided one-half interest in the mineral rights, and, in fact, prior thereto, it had authorized the Standard Oil Company to pay to plaintiff the proceeds of the other one-half of the oil received from the land.

Plaintiff acquired an undivided one-half Interest in the mineral rights in dispute from the same original author in title from whom the defendant claims to have acquired the same interest, to wit, Len Langston. As to the other undivided one-half, it is unnecessary to trace or discuss the title, for the reason that, as above indicated, it is admitted that plaintiff is, the owner thereof. The lease under which defendant claims is of a date prior to that relied on by plaintiff, from the said Langston; but, for ^reasons which we shall hereafter discuss, the latter contends that all rights, if any, conveyed thereunder, had expired and terminated when he acquired.

On October 3, 1916, the said Len Langston executed to and in favor of one A. E. Wilder a mineral lease upon the premises here involved, in which it was stipulated that, if operations for the drilling of a well on lands [1095]*1095within five miles of Homer, La., were not commenced and prosecuted with diligence to a depth of 2,600 feet, unless oil were found in paying quantities at a lesser depth, within six months from the date of said lease, all rights thereunder should cease and determine. It further provided that the lessee might prevent such forfeiture by paying to the lessor the sum of $1 per acre, in which event the lease would be extended for another year, with the right to so renew for a period of three years. Drilling operations were not begun within the six months mentioned, nor was the one dollar per acre paid; hut on May 18,1618, the said Langston signed on the bottom of said instrument the following:

“I, Len Langston, the within lessor, do hereby consent and agree that the time for the paying the one dollar per acre as expressed in the second line of paragraph six of the within lease be and said (same) is hereby extended to January 1st, 1919; all other provisions of the within lease shall be and remain unchanged. This 18th day of May, 1918.”

On November 17, 1916, pursuant to a previous agreement, the said A. E. Wilder transferred to the Atlas Oil Company, as a part of some 15,000 acres, whatever rights he may have had upon the land now in contest.

On August 15, 1917, the Atlas Oil Company executed to and in favor of G. W. Williams and T. T. Denman a transfer of the mineral rights upon some 3,753 acres of land, describing 'each tract according to the contract by which the said A. B. Wilder (from whom the Atlas Company had acquired) had acquired from the supposed owner of the land, the portion of the Len Langston tract so conveyed, being described as follows:

“(2) That certain oil and gas lease from Len Langston, dated October 3, 1916, in favor of A. E. Wilder and by said Wilder assigned to the Atlas. Oil Company under date of November 17, 1916, in so far as same applies to and affects, the E. % of N. W. 14 and W.14 of S. W. % the S. W. % of N. E. % and W. % of N. W. % of N.-E.' % of Sec. 19, T. 21 N. R. 7 W. The N. W. % of S. E.- % the S. % of N. E. % of section 24, T. 21 N. R. 8 W. Containing 260 acres more or less.”

And on the 10th day of November, 1917, the said Williams and Denman transferred the same 3,753 acres, under the identical description, as to the Len Langston tract, to the Consolidated Progressive Oil Corporation.

It will thus be seen that, while the description embraces 320 reres (assuming that each one-sixteenth of a section contains 40 acres), the number of acres expressed was 260, or 60 acres less than the government subdivisions set forth called for.

The original Len Langston tract contained an even 800 acres, and acting on the assumption that it had only conveyed 260 thereof to Williams and Denman, and that they in turn had conveyed the same amount to the Consolidated Progressive Oil Corporation, the Atlas Oil ComiDany, on January 1, 1919, the date to which the said Langston had extended the original lease to A. E. Wilder, paid to Langston the sum of §540, or at ihe rate of $1 per acre for the 540 acres which it thought that it had reserved from the sale to Williams and Denman, and said amount was received and accepted by him.

On September 5, 1919, the Consolidated Progressive Oil Company gave to the Atlas Oil Company a deed of correction, in which it was recited that the S. % of N. E. % of section 24, township 21 N., range 8 W., had been erroneously, included in the deeds to Williams and Denman and from the latter to the Consolidated Progressive Oil Corporation, and that it had not been the intention of any of the parties thereto to convey or to receive the same.

In the meantime, however, Len Langston had, within about two months after having received the §540 on January 1, 1919, offered to refund the Atlas Oil Company $80 [1097]*1097of this amount, which, supposedly, was to cover the 80 acres now in contest, hut the same was refused.

Thus we have the chain of title under which the defendant, Atlas Oil Company, claims a one-half interest in the mineral rights on the property involved herein.

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Bluebook (online)
84 So. 366, 146 La. 1091, 1920 La. LEXIS 1816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baird-v-atlas-oil-co-la-1920.