Davis Oil Co. v. Citrus Land Co.

576 So. 2d 495, 111 Oil & Gas Rep. 241, 1991 La. LEXIS 640, 1991 WL 32186
CourtSupreme Court of Louisiana
DecidedMarch 11, 1991
Docket90 C 1832
StatusPublished
Cited by2 cases

This text of 576 So. 2d 495 (Davis Oil Co. v. Citrus Land 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
Davis Oil Co. v. Citrus Land Co., 576 So. 2d 495, 111 Oil & Gas Rep. 241, 1991 La. LEXIS 640, 1991 WL 32186 (La. 1991).

Opinion

576 So.2d 495 (1991)

DAVIS OIL COMPANY
v.
The CITRUS LAND COMPANY, et al.

No. 90 C 1832.

Supreme Court of Louisiana.

March 11, 1991.

*496 Robert L. Cabes, Robert L. Cabes, P.L.C., Lafayette, for The Citrus Land Co., et al. defendants-applicants.

Matthew Randazzo, III, F. Henry Lapeyre, Baton Rouge, for Davis Oil Co. plaintiff-respondent.

William J. Guste, New Orleans, David Kimmel, Gary Keyser, Baton Rouge, for State of Louisiana.

Oliver P. Stockwell, William E. Shaddock, William Boyce Monk, Stockwell, Sievert, Viccellio, Clements & Shaddock, Lake Charles, Randall C. Songy, Onebane, Donohoe, Bernard, Torian, Diaz, McNamara & Abell, Lafayette, amicus curiae.

COLE, Justice.

In this concursus proceeding, we are called upon to decide whether alluvion formed near the intersection of a river and a bay is owned by the riparian landowner or by the State. The trial court ruled in favor of the riparian landowner. The Court of Appeal, First Circuit, reversed and ruled in favor of the State. We now affirm in part, reverse in part, and remand to the trial court for further proceedings in accordance with our ruling.

FACTS

Davis Oil Company (Davis) obtained State Lease 9224 from the State of Louisiana covering an area which includes the alluvion at issue in this case. Under the lease, the State is to receive a certain percentage of the proceeds from any mineral production on the leased tract. After acquiring the lease, Davis drilled two oil wells, each of which is located on the disputed alluvion. The first well was dry, but the second well is productive. Following a title examination conducted in connection with the second well, Davis also obtained a mineral lease from Citrus Land Company (Citrus). Both the State lease and the Citrus lease provide for the same percentage of royalties to the lessor, and both purport to cover the disputed alluvion.

Once production began from the second well, Davis, Citrus, and the State entered into an agreement whereby proceeds attributable to the royalty interest owed to the owner of the alluvion would be deposited in the registry of the Court and placed in escrow pending an attempt to determine title to the alluvion. No agreement as to title could be reached, and Davis filed this concursus proceeding in August 1985. The ownership of the funds representing the royalty proceeds necessarily depends upon a determination of title to the alluvion.

The disputed tract consists of alluvion formed near the mouth of Shell Island Pass (a river), where the Pass intersects with Little Bay, which is itself an extension of Atchafalaya Bay.[1] The alluvion forms a peninsula-like extension of the right descending bank of Shell Island Pass, or what is commonly known as a delta. It formed slowly and imperceptibly as sediment flowing out of Shell Island Pass and the nearby Atchafalaya River dispersed and settled. The effect of the buildup is unique in this case because the extension of the right descending bank of Shell Island Pass into Little Bay is not mirrored on the left descending bank side of the Pass.[2] As the *497 delta extends out into Little Bay, it curves sharply to the west, and appears to have attached primarily to what was once the shoreline of Little Bay. The parties stipulated that the alluvion is covered by water at high tide, but the question of whether it is exposed at low tide was a major issue at trial.

The trial court held Citrus owned the disputed alluvion, but the manner in which it reached its ruling requires explanation. Recognizing that accretion which attaches to a riverbank belongs to the owner of the adjacent land, the trial court sought to determine the extent of the bank of Shell Island Pass as it existed in July 1974. The July 1974 date was pertinent, according to the trial court, because of La.R.S. 38:2351, et seq. These statutes create a permanent wildlife and recreation area within portions of the Atchafalaya Bay region. One of these statutes, R.S. 38:2356(M)(2), became effective July 12, 1974 and provides that the area described in R.S. 38:2356(M)(1) "is hereby permanently declared to be an arm of the sea and the laws of accretion and dereliction as defined in Civil Code Article 499 shall not apply."

The trial court interpreted the statute as an implicit legislative recognition that the area described in R.S. 38:2356(M)(1), which includes Little Bay, was not an "arm of the sea" prior to the effective date of R.S. 38:2356(M)(2). Consequently, the trial court deemed it crucial to determine the location of the disputed accretion in relation to the boundaries described in R.S. 38:2356(M)(1).[3] To determine the location of the statutorily defined boundary, the mean high water mark of the Atchafalaya Bay, the trial court had to draw a line which would "close off" Shell Island Pass.[4] To "close off" Shell Island Pass, the line had to be drawn across its mouth, which the court found had been extended by the alluvion. In effect, the trial court held that by July 12, 1974 the mouth of Shell Island Pass had been extended into Little Bay due to alluvial buildup. Thus, the court ruled that the entire disputed tract fell north of the line described in R.S. 38:2356(M)(1) and was, therefore, owned by Citrus, the riparian landowner.

The Court of Appeal reversed. It held that R.S. 38:2356 was inapplicable to this case, stating "[m]erely because the legislature formally declared Atchafalaya Bay to be an arm of the sea does not mean that previously it was not." Davis Oil Company v. Citrus Land Company, 563 So.2d 401, 404 (La.App. 1st Cir.1990). The court went on to state: "absent a specific declaration from the legislature ... it is for the courts of this state to determine what is and is not an arm of the sea." Id. at 404. The Court then described its view of the proper analysis to use to determine who owns the alluvion: "[f]irst, on which bank or shore did the alluvion build up? Second, how is the bank or shore upon which the alluvion was deposited classified? As a river/stream or a sea/lake shore?" Id. at 403. The court then held the alluvion formed, as a matter of law, on the shore of Little Bay:

The alluvion at issue here is a peninsula, or delta, which extends seaward from the mouth of Shell Island Pass into Little Bay. At some point near the mouth of Shell Island Pass where the alluvion "connects" to the land before extending out into the bay, the bank of the river intersects with the shore of the bay.
*498 The shore of Little Bay, as seashore, is a public thing, insusceptible of private ownership, while the bank of the river is a private thing subject to public use. This being the case, where the riverbank intersects the seashore, the seashore, as a public thing insusceptible of private ownership, must prevail and the riverbank must yield to the seashore.
The riverbank ends at the high tide mark where the river meets the bay. The seashore extends all along the coast of Little Bay, between high and low tide. Therefore, the alluvion at issue here, insofar as it extends seaward from the mouth of Shell Island Pass into Little Bay, had to, as a matter of law, have built up on the shore of Little Bay.

Id. at 405.

For the reasons discussed more fully below, we affirm that part of the court of appeal ruling which holds R.S. 38:2356(M)(2) inapplicable in this case, and that part which holds Little Bay is an arm of the sea.

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Bluebook (online)
576 So. 2d 495, 111 Oil & Gas Rep. 241, 1991 La. LEXIS 640, 1991 WL 32186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-oil-co-v-citrus-land-co-la-1991.