Davis Oil Co. v. Citrus Land Co.

563 So. 2d 401, 111 Oil & Gas Rep. 231, 1990 La. App. LEXIS 1517, 1990 WL 75363
CourtLouisiana Court of Appeal
DecidedMay 30, 1990
DocketCA 89 0489
StatusPublished
Cited by1 cases

This text of 563 So. 2d 401 (Davis Oil Co. v. Citrus Land Co.) 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
Davis Oil Co. v. Citrus Land Co., 563 So. 2d 401, 111 Oil & Gas Rep. 231, 1990 La. App. LEXIS 1517, 1990 WL 75363 (La. Ct. App. 1990).

Opinion

563 So.2d 401 (1990)

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

No. CA 89 0489.

Court of Appeal of Louisiana, First Circuit.

May 30, 1990.
Rehearing Denied July 18, 1990.

*402 F. Henry Lapeyre, Jr. and Matthew J. Randazzo, III, New Orleans, for plaintiff/appellee.

David C. Kimmel, Asst. Atty. Gen. and Gary L. Keyser, Dept. of Justice, Baton Rouge, for State Mineral Bd. (appellant).

Robert L. Cabes, Lafayette, for Citrus Land Co. and its various shareholders.

Before LOTTINGER, CRAIN and LeBLANC, JJ.

LOTTINGER, Judge.

This is an appeal from a judgment in a concursus proceeding instituted by Davis Oil Company[1] (Davis) to determine the ownership of funds representing royalty proceeds from two wells identified as Davis-S/L 9224, No. 1 and Davis-S/L 9224, No. 2, as these wells are affected by Unit Nos. 1162-A-2 and 1162-D, designated as the Tex W 12,800' Sand and the Tex W 12,400' Sand. The ownership of the funds representing the royalty proceeds necessarily depends on a determination of title to an area of accretion located at the mouth of Shell Island Pass, a small bayou running between Shell Island and Section 11, Township 18 South, Range 11 East in St. Mary Parish, Louisiana, near the mouth of the Atchafalaya River. In essence, the royalty proceeds at issue here, which at the time of trial exceeded one million dollars, belong to the owner of the accreted area in dispute.[2]

Both the State of Louisiana, who owns the surrounding waterbottoms, and Citrus Land Company (Citrus) the owner of the land adjacent to the accreted area, claim to own the disputed tract. The trial court held in favor of Citrus, and the State has appealed devolutively.

FACTS

Davis obtained State Lease 9224 from the State of Louisiana covering an area which includes the accretion at issue on January 19, 1987, and thereafter drilled the aforementioned wells. The No. 1 well turned out to be dry, but the No. 2 well, which is located on the accreted area, is productive.

Following a title examination conducted in connection with the No. 2 well, Davis also obtained a lease covering the accreted area from 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 accreted area.

Once production began from the No. 2 well, Davis, Citrus, and the State entered into an agreement whereby proceeds attributable to the royalty interest owed to the owner of the accreted area would be deposited in the registry of the Court and placed in escrow pending an attempt to determine title. No agreement could be reached and Davis filed this concursus proceeding in August of 1985.

The area of accretion in dispute is alluvion which has built up slowly and imperceptibly *403 near the mouth of Shell Island Pass in an area of Atchafalaya Bay known as Little Bay. It may be characterized as a peninsula like extension of the right descending bank of Shell Island Pass into Little Bay, or what is commonly known as a delta.[3] As this delta extends out into the bay, it curves sharply to the west. It is completely covered by normal high tide, but is exposed at low tide.[4]

The evidence was overwhelming and testimony uncontradicted that the delta which would normally build up on the opposite side of the channel and extend the left descending bank of Shell Island Pass into the bay is almost non-existent and is not exposed above water even at low tide. This is due to strong cut-bank currents emanating from the mouth of the Atchafalaya River just to the east of the mouth of Shell Island Pass.

APPLICABLE LAW

La.Civ.Code arts. 499 and 500 provide for ownership of alluvion that has built up on the banks or shores of various bodies of water. They provide:

"Art. 499. Alluvion and dereliction
"Accretion formed successively and imperceptibly on the bank of a river or stream, whether navigable or not, is called alluvion. The alluvion belongs to the owner of the bank, who is bound to leave public that portion of the bank which is required for the public use.
"The same rule applies to dereliction formed by water receding imperceptibly from a bank of a river or stream. The owner of the land situated at the edge of the bank left dry owns the dereliction."
"Art. 500. Shore of the sea or of a lake
"There is no right to alluvion or dereliction on the shore of the sea or of lakes."

Therefore, if the disputed tract has built up on the bank of a river or stream, it belongs to Citrus, the riparian landowner. But if the disputed tract has built up on the shore of the sea, or a lake, it belongs to the State.

With these precepts in mind the factual and legal issues upon which this case turns become clear. First, on which bank or shore did the alluvion build up? That of Shell Island Pass or of Little Bay? Second, how is the bank or shore upon which the alluvion was deposited classified? As a river/stream bank or a sea/lake shore?

The first of these issues is a factual one. On which bank or shore did the alluvion at issue build up? The trial court did not expressly rule on this issue. The trial court held that the disputed tract was the bank of Shell Island Pass, not that it had built up on, or was deposited on, the bank of Shell Island Pass. However, for the purpose of this opinion, we will treat this as a holding that the alluvion at issue built up on the bank of Shell Island Pass.

Nor did the trial court expressly rule on the second issue, i.e. how is the bank or shore upon which the alluvion was deposited classified—as a river/stream bank or as a sea/lake shore? However, since the ownership of the disputed tract was awarded to Citrus, it is clear that the trial court considered the area upon which the alluvion was deposited to be the bank of a river or stream, and we will treat this as its holding.

Before considering the correctness of the trial court's resolution of these issues, we will consider the applicability of La.R.S. 38:2356(M)(2) upon which the trial court placed much emphasis. It provides:

"The area described in Section 2356(M)(1) [Atchafalaya Bay] 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; provided, however, as to other areas nothing herein shall be construed to affect the law of accretion and *404 dereliction as defined in Civil Code Article 499."

The trial court reasoned that since this act declares Atchafalaya Bay, of which Little Bay is a part, to be an arm of the sea, that the legislature must not have considered them to be an arm of the sea prior to the enactment of that statute. For if it did, then it would not have gone through the trouble to single out the area and designate it as an arm of the sea. The trial court thus implies, although it does not expressly hold, that by enacting La.R.S. 38:2356(M)(2), the legislature has decreed that Atchafalaya Bay was not an arm of the sea prior to July 12, 1974, the effective date of the statute. We do not subscribe to this view.

It is clear that subsequent to the enactment of this statute, Atchafalaya Bay is to be considered an arm of the sea and any accretion thereto after that date belongs to the State. However, the reverse is not necessarily true.

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Related

Davis Oil Co. v. Citrus Land Co.
576 So. 2d 495 (Supreme Court of Louisiana, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
563 So. 2d 401, 111 Oil & Gas Rep. 231, 1990 La. App. LEXIS 1517, 1990 WL 75363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-oil-co-v-citrus-land-co-lactapp-1990.