Cormier v. Ferguson

92 So. 2d 507
CourtLouisiana Court of Appeal
DecidedFebruary 4, 1957
Docket4317
StatusPublished
Cited by6 cases

This text of 92 So. 2d 507 (Cormier v. Ferguson) 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
Cormier v. Ferguson, 92 So. 2d 507 (La. Ct. App. 1957).

Opinion

92 So.2d 507 (1957)

J. Collins CORMIER et al., Plaintiffs-Appellants,
v.
John B. FERGUSON, Sr., Defendant-Appellee.

No. 4317.

Court of Appeal of Louisiana, First Circuit.

February 4, 1957.

*508 Dubuisson & Dubuisson, Opelousas, for appellants.

Liskow & Lewis, Lake Charles, John D. Edwards, Opelousas, for appellee.

TATE, Judge.

Plaintiffs appeal from dismissal of their suit to be declared the owners of a certain 1/32nd (or ¼th of the landowner's 1/8th) interest in the minerals produced from an 175 acre tract of land owned by them in St. Landry. At the time of suit in 1949, based upon a 1926 deed defendant was receiving payments in that proportion of the production from oil and gas wells situated on said property.

Primarily this suit involves a determination of whether a mineral right or only a royalty interest was acquired by this 1926 deed; as the answer to that question determines whether the ten years' liberative prescription against the right acquired, LSA-Civil Code, Articles 789, 3544, 3546, see 3529, was or was not interrupted by user or exercise, and, therefore, whether the right is still in existence or has been extinguished by non-user.

The distinction between the two types of interests affecting minerals is now well settled. Strictly speaking, the "mineral right" interest is in the nature of a servitude granting the owner thereof the right to explore for and extract minerals from the land subject thereto; whereas a "royalty" right or interest merely imparts to its owner a right to share in *509 production if and when obtained by the owner or lessee of a mineral right affecting the land; Horn v. Skelly Oil Co., 224 La. 709, 70 So.2d 657, Union Sulphur Co. v. Andrau, 217 La. 662, 47 So.2d 38, Daggett, Louisiana Mineral Rights (1949 Ed.), esp. pp. 19-30, 247-256.

Therefore, as both parties hereto agree, if the interest conveyed by the 1926 instrument was indeed a mineral right, as claimed by defendant, then the unsuccessful but bona fide drilling for oil in 1935 and 1936 by defendant's (and plaintiffs') mineral lessee constituted user or exercise of the servitude so as to interrupt the running of the ten years' prescriptive period for non-user, Hunter Co. v. Ulrich, 200 La. 536, 8 So.2d 531; whereas if, on the other hand, plaintiffs' contention is correct that the 1926 deed conveyed only a royalty interest, then the right owned by defendant was not exercised by such unsuccessful exploration efforts and had expired by non-user before oil was finally produced on the land in question in 1938, since actual mineral production within the prescriptive ten years is necessary to interrupt the accrual of prescription against, and to maintain the existence of, the royalty right, Union Sulphur Co. v. Andrau, 217 La. 662, 47 So.2d 38; St. Martin Land Co. v. Pinckney, 212 La. 605, 33 So.2d 169; Vincent v. Bullock, 192 La. 1, 187 So. 35.[1] (In the Andrau case, drilling had commenced 45 days before expiration of the ten years from date of the royalty sale, and from this drilling successful production resulted three days after the ten years had elapsed; the royalty interest was nevertheless held to have expired by failure of actual production within the prescriptive period.)

The deed about which this suit revolves conveyed title as follows:

"That A. J. Cormier[2] and L. C. Cormier of the Parish of St. Landry, State of Louisiana, hereinafter called "Grantor" (whether one or more), hereby grant, sell and convey unto J. B. Ferguson, Jr.,[3] of the Parish of Jefferson Davis, State of Louisiana, hereinafter called "Grantee", an undivided one-quarter (¼) interest in and to all the oil, gas, sulphur and other minerals on, in and under the following described land, situated in the Parish of St. Landry, State of Louisiana: [Then follows description of the 175 acre tract.]"

Following that conveyance and the description of the land as to which the rights attached, the deed went on to say:

"The land above described is now covered by a mineral lease from A. J. Cormier & J. C. Cormier to J. B. Ferguson, Jr., date July 29th, 1926, and recorded at Page ____ Volume ____ of the Records of the Parish of St. Landry, State of Louisiana."

And then it set forth these conditions:

"This grant is subject to the mineral lease above mentioned but includes one-quarter (¼) of all the royalties in such lease provided on oil, gas, sulphur and other minerals produced from the said leased premises after the date hereof. Should said lease above referred to expire, *510 then Grantor shall have the right and authority to execute at any time a lease or leases covering said land without the joinder of the Grantee herein or assigns, and all bonuses and rentals that may be paid for or under such subsequent lease or leases shall be paid to Grantor, but Grantee herein or assigns shall be entitled to receive one-quarter (¼) of all the royalties on oil, gas, sulphur and other minerals provided for in such subsequent lease or leases." (Italics ours.)

Counsel for plaintiffs most persuasively and logically argues that the italicized qualifying limitations incorporated in the last quoted paragraph show, construing the instrument as a whole, that what was intended to be conveyed was, not a right to develop and extract the minerals (i. e., a mineral right), but simply a right to share in the proceeds of minerals actually produced by others (i. e., a royalty interest.)

Cited to us in support of this argument are distinctions between the two types of interests set forth in cases such as in Continental Oil Co. v. Landry, 215 La. 518, 41 So.2d 73, at page 75: "The owner of the mineral right has the right of ingress to, and egress from, the land, the right to produce the minerals, the right to participate in the bonuses and delay rentals paid under the terms of any lease. On the other hand, the owner of a royalty right has none of these rights, nor is his consent even necessary for the execution of a lease by the mineral owner, his right being to share in production if and when it is had." (Italics ours.) The latter right is "passive in its nature." Id. 41 So.2d 75.

It must be noted, however, that such cases cited to us concern what are admitted therein to be royalty interests only, and the quotations are merely descriptive of the usual incidents attaching to mineral rights or royalty interests created without qualification. Such cases are not determinative of the question presently before this court, which rather, is: when what is described as a mineral right (i. e., "an undivided one-quarter (¼) interest in and to all" the minerals "on, in, and under" certain land) is limited at the time of its conveyance by the vendor's reservation of the right to execute subsequent leases and to receive the entire bonus and rentals therefor, do such limitations denote that what in reality was conveyed was merely a royalty interest—i. e., merely a right to share in production without participation in lease bonuses or rentals, the consent of the owner of which is unnecessary for the execution of a lease by the landowner?

More relevant in determination of this question are the cases relied upon by the District Court and cited by defendant, Horn v. Skelley Oil Co., 224 La. 709, 70 So.2d 657, and Standard Oil Co. of Louisiana v. Futral, 204 La.

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Bluebook (online)
92 So. 2d 507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cormier-v-ferguson-lactapp-1957.