Bouterie v. Kleinpeter

234 So. 2d 812, 36 Oil & Gas Rep. 414, 1970 La. App. LEXIS 5553
CourtLouisiana Court of Appeal
DecidedApril 13, 1970
DocketNo. 7860
StatusPublished
Cited by3 cases

This text of 234 So. 2d 812 (Bouterie v. Kleinpeter) 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
Bouterie v. Kleinpeter, 234 So. 2d 812, 36 Oil & Gas Rep. 414, 1970 La. App. LEXIS 5553 (La. Ct. App. 1970).

Opinions

LOTTINGER, Judge.

The basic facts of this case are as follows : By instrument effective as of September 20, 1961, plaintiff Gertrude Bou-terie, as Lessor, granted an oil, gas and mineral lease to defendant, T. W. Klein-peter, as Lessee, covering her undivided 1/5th interest in an 80 acre tract of land situated in Sections 45 and/or 103, T 15 S, R 16 E, and Sections 7 and/or 8, T 15 S, R 17 E, Lafourche Parish, Louisiana. The plaintiff Alma B. Leckert, as Lessor, also by instrument effective as of September 20, 1961, granted an oil, gas and mineral lease to defendant T. W. Kleinpeter, as Lessee, covering her undivided i/sth interest in the same 80 acre tract just described, and also a full lease in a 13 acre tract located in Sections 45 and/or 103, T 15 S, R 16 E, and Sections 7 and/or 8, T 15 S, R 17 E, Parish of Lafourche. The defendant David J. Robichaux, Jr. acquired his one-half interest in these leases by assignment from T. W. Kleinpeter. The leases were for a primary term of three years from September 20, 1961, and contained the additional clause “and so long thereafter as oil, gas or some other mineral is being produced or drilling operations are conducted either on this land or on acreage pooled therewith.”

While none of the leased land had wells located thereon, it appears that the land subject to the leases had been included in three units created by order of the Conservation Commission.

Plaintiffs claim their leases terminated as of September 1, 1965, because of defendants’ unreasonable delays in making royalty payments. By letter of December 9, 1964, plaintiffs made formal demand upon the defendants for timely monthly payment of royalty payments accruing under the leases, and concluded as follows: “Be assured that if the demand herein made for payment of Lessor’s royalty is not complied with we shall institute the necessary legal action to cancel the said leases.” Subsequent to that letter of December 9, 1964, the plaintiffs cashed all royalty checks sent to them through the month of August of 1965, or until September 1, 1965. No checks were cashed by them after that date. On December 29, 1966, plaintiffs, by registered letter, made formal demand upon the defendants pursuant to the provisions of LSA-R.S. 30:102, to execute and return to them an instrument acknowledging the termination of the leases. On March 8, [814]*8141967, plaintiffs filed their suit seeking the cancellation of the leases.

Both of the defendants testified that at no time during the period from August of 1965 to the date of the filing of the suit did they receive written notice from the plaintiffs as required by Paragraph 11 of the two lease agreements, and they filed a dilatory exception of prematurity based on that fact. Paragraph 11 of the leases reads as follows:

“11. In the event that Lessor at any time considers that operations are not being conducted in compliance with this lease, Lessor shall notify Lessee in writing of the facts relied upon as constituting a breach hereof, and Lessee, if legally required to conduct operations in order to maintain the lease in force, shall have sixty (60) days after receipt of such notice in which to commence the necessary operations to comply with the requirements hereof.”

The defendants also alleged in their exception that the plaintiffs filed their suit even though royalty payments were being made regularly to them.

Trial of the exception of prematurity was held on February 6, 1968, at which time the defendants attempted to introduce evidence showing that the royalties were timely and properly paid under the subject leases. Plaintiffs objected to the introduction of any such evidence on the grounds that it was immaterial to the hearing on the question of prematurity; that the issue raised in plaintiffs’ petition, that is, whether or not the royalty payments were timely made, was the subject for the merits of the case and had no bearing on the question of the necessity of giving notice, which was the basis of the exception of prematurity. The Trial Court ruled to accept evidence on whether or not plaintiffs had given the defendants proper notice and plaintiffs applied for supervisory writs to this Court under our docket No. 7451, which writs were refused on February 20, 1968. Plaintiffs then applied to the Supreme Court of Louisiana for supervisory writs under its docket No. 49,147, 251 La. 1039, 208 So.2d 320. The application was denied on March 25, 1968.

Following the refusal of the Supreme Court to grant writs, the trial of defendants’ exception of prematurity was heard on June 25, 1968, and for writtten reasons assigned, judgment was rendered, read and signed on March 10, 1969, sustaining defendants’ dilatory exception of prematurity and dismissing plaintiffs’ suit at their costs, from which judgment plaintiffs have appealed.

The main question involved here is whether or not the provisions of Paragraph 11 of the lease agreements in question have application to the facts of this case, and, if so, whether plaintiffs complied with the provisions of Paragraph 11.

The learned Trial Judge in his excellent reasons for judgment pointed out that in the case of Bollinger v. Republic Petroleum Corporation, La.App., 194 So.2d 139, application den. 250 La. 463, 196 So.2d 276, this Court held that a requirement of notice to the lessee and a thirty day waiting period was a valid and binding condition precedent to the institution of suit for cancellation of a lease. He then went on to hold that it is lawful for parties to enter into agreements such as set forth in Paragraph 11 of the leases in question herein and that these agreements are binding on the parties.

In Bollinger, supra, 194 So.2d at page 141, the lease terms relied on provide as follows:

“(9) In the event Lessor considers that Lessee has failed to comply with one or more of its obligations hereunder, either expressed or implied, Lessor shall notify Lessee in writing setting out specifically in what respects Lessor claims Lessee has breached this lease. The service of such notice and the lapse of thirty (30) days without Lessee’s meeting or commencing to meet the alleged breaches [815]*815shall be a condition precedent to such action by Lessor on this lease. If within thirty (30) days after receipt of such notice Lessee shall meet or commence to meet the breaches alleged by Lessor, Lessee shall not be deemed in default hereunder. Neither the doing by Lessee of any acts claimed to meet all or any of the alleged breaches, nor its failure so to act, shall be deemed an admission or presumption that Lessee has failed to perform any of its obligations hereunder.”

In interpreting that lease provision, this Court held as follows, to-wit:

“We find that the requirement of notice to the lessee and the thirty day waiting period is a valid and binding condition precedent to institution of suit for cancellation of the lease in question. It is our opinion that if plaintiff, as lessor, considered and determined to his own satisfaction that the defendant, as lessee, was not complying with any condition or provision of the lease agreement, he, the plaintiff, should have complied with the requirements of paragraph (9) quoted supra. This the plaintiff failed to do; therefore, his demands must be rejected;” -

It is therefore clear that under the authority of the Bollinger case, such provisions as contained in Paragraph 11 of the leases herein are legal and binding.

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Related

Bouterie v. Kleinpeter
289 So. 2d 163 (Louisiana Court of Appeal, 1974)
Alvord v. Sun Oil Co.
251 So. 2d 659 (Louisiana Court of Appeal, 1971)
Bouterie v. Kleinpeter
247 So. 2d 548 (Supreme Court of Louisiana, 1971)

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Bluebook (online)
234 So. 2d 812, 36 Oil & Gas Rep. 414, 1970 La. App. LEXIS 5553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bouterie-v-kleinpeter-lactapp-1970.