Cox v. Acme Land & Investment Co.

188 So. 742, 192 La. 688, 1939 La. LEXIS 1122
CourtSupreme Court of Louisiana
DecidedApril 3, 1939
DocketNo. 35117.
StatusPublished
Cited by18 cases

This text of 188 So. 742 (Cox v. Acme Land & Investment 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
Cox v. Acme Land & Investment Co., 188 So. 742, 192 La. 688, 1939 La. LEXIS 1122 (La. 1939).

Opinion

ROGERS, Justice.

The plaintiff, Levi C, Cox, is the owner of the S% of NWy4 of NE% and SW}4 or NE14 of Section 22, Township 21 North, Range 10 West, in Webster Parish. On September 21, 1922, Cox conveyed to G. E. McFadin, by deed duly recorded, an undivided one-half interest in the oil, gas and other minerals lying in and under the *691 sy2 of NW% of NE% and Ny2 of SW% of NE%. of Section 22, hereinafter for convenience designated as Tract “A”. Cox instituted this suit to have declared extinguished by the prescription of ten years’ non-user an undivided one-sixth interest in the McFadin servitude claimed through mesne conveyances by the defendant Acme Land & Investment Company, Inc.

Answering the suit, defendant denied that the servitude had expired because, on November 15, 1926, the plaintiff, in conjunction with R. O. Roy, through whom defendant holds, and other mineral owners executed a mineral lease for five years in favor of Woodley Petroleum Company, covering Tract “A”, and the S% of SWy, of NE% of Section 22, hereinafter for convenience designated as Tract “B”, and that, by the execution of this lease, Tracts “A” and “B” were integrated and that development of Tract “B”, on which a producing oil and gas well was drilled on April 4, 1927, constituted a development and operation of both tracts sufficient to prevent the running of prescription against the servitude acquired by McFadin on Tract “A”; further, on November 2, 1934, plaintiff and others executed an integrated or unitized lease to the Ohio Oil Company covering the north half of Tract “A”, the effect of which was to acknowledge the rights of the defendant and thereby prevent the running of prescription.

On these issues the case went to trial, which resulted in a judgment decreeing that all rights acquired by defendant to any of the minerals lying in or under Tract “A” had been lost by the prescription of ten years’ non-user, and further decreeing that the servitude on said tracts, asserted by defendant, to be no longer in force and effect. From-that judgment defendant prosecutes this appeal.

Tract “A” is composed of 40 acres and Tract “B” is composed of 20 acres. Plaintiff is in actual, physical possession of both tracts, subject to the claims of the defendant. A written agreement of the parties and the accompanying documents disclose the following facts:

On September 21, 1922, the plaintiff, Levi C. Cox, conveyed to G. E. McFadin, by deed duly recorded, an undivided one-half interest in the minerals under Tract “A”. The mineral interest thus conveyed is designated herein as the McFadin servitude.

On November 16, 1923, McFadin conveyed to R. O. Roy, by deed duly recorded, an undivided one-sixth interest in the minerals under Tract “A”.

On February 5, 1924, Levi C. Cox, the plaintiff, conveyed to W. H. Cook, by deed duly recorded, an undivided one-fourth interest in the minerals under Tract “B”. The mineral interest thus conveyed is designated herein as the Cook servitude.

On February 6, 1924, Cook conveyed to R. O. Roy, by deed duly recorded, an undivided one-sixth interest in the minerals under Tract “B”.

Thereafter, on November 15, 1926, Levi C. Cox, the plaintiff, R. O. Roy, and six of the ten other mineral owners executed a mineral lease to the Woodley Petroleum Company, which lease was for a primary *693 term of five years and covered the entire sixty acres embraced in Tracts “A” and “B”. This lease was not signed by O’Brien Bros., Inc., E. L. Wagner and Harry E. Oliver, owning a %4th interest, and the North Central Texas Oil Company owning a %4th interest, in the minerals under the 40 acres composing Tract “A”.

On April 4, 1937, the Woodley Petroleum Company drilled a producing oil and gas well on Tract “B”. This well has been operated continuously since the date of its completion, and the royalties stipulated in the lease have been paid to the mineral owners in the proportions they own in the mineral acreage under the Tract “B”.

On January 15, 1929, the Woodley Petroleum Company released from the provisions of its lease the 20 acres composing the north half of Tract “A”. Thereafter, in November 1934, the plaintiff and two mineral owners executed mineral leases in favor of the Ohio Oil Company covering their interests in the north half of Tract “A”.

On May 1, 1935, R. O. Roy, by deed duly recorded, conveyed to the Acme Land & Investment Company, Inc., defendant herein, an undivided one-sixth interest in the minerals under the entire 60 acres composing Tracts “A” and “B”, subject to the lease in favor of the Woodley Petroleum Company.

On August 14, 1937, the Woodley Petroleum Company completed another producing well on the division line of Tracts “A” and “B”, which well has continued to produce oil and gas in paying quantities, the royalties resulting therefrom being withheld pending the outcome of this suit.

The servitude that plaintiff seeks to have declared extinguished by non-user of ten years is the McFadin servitude covering Tract “A” in which defendant acquired an undivided one-sixth interest by mesne conveyance. As more than fourteen years has elapsed between the date this servitude was created and the drilling of the well by the Woodley Petroleum Company on Tract “A”, it is clear that the servitude has become extinguished by prescription unless the prescription has been interrupted. Defendant claims that this has occurred a number of times.

Defendant contends that the running of prescription was first interrupted on November 15, 1926, when R. O. Roy, being the owner of an interest in the McFadin servitude embracing Tract “A”, which is the one sought to be cancelled, and being likewise the owner of an interest in the Cook servitude embracing Tract “B”, in conjunction with the plaintiff Cox and others, executed the lease of November 15, 1926, in favor of the Woodley Petroleum Company covering the entire 60 acres owned by plaintiff. Defendant argues that this lease is what is known as a joint lease, that is, joint as to the lessors since, under the contract, the 60 acres covered by the lease is treated as one tract of land and the lease nowhere makes any reference to the individual ownership of the several lessors; that the obligation of the lessee in favor of the lessors was also a joint obligation. And defendant argues that the *695 execution of this lease constituted an acknowledgment of all the rights of the defendant in both Tracts “A” and “B” sufficient to interrupt prescription, and that the production thereafter of oil and gas from the' 20 acres of land embraced in the Cook servitude constituted a development of both tracts and was the exercise of both the McFadin servitude and the Cook servitude.

The lease to the Woodley Petroleum Company was executed a little over four years after the servitude was created. Its primary term is stated to be five years.

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Bluebook (online)
188 So. 742, 192 La. 688, 1939 La. LEXIS 1122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cox-v-acme-land-investment-co-la-1939.