Delacroix Corp. v. Jones-O'Brien, Inc.

597 So. 2d 65, 119 Oil & Gas Rep. 504, 1992 La. App. LEXIS 650, 1992 WL 47775
CourtLouisiana Court of Appeal
DecidedMarch 17, 1992
Docket91-CA-0851
StatusPublished
Cited by4 cases

This text of 597 So. 2d 65 (Delacroix Corp. v. Jones-O'Brien, Inc.) 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
Delacroix Corp. v. Jones-O'Brien, Inc., 597 So. 2d 65, 119 Oil & Gas Rep. 504, 1992 La. App. LEXIS 650, 1992 WL 47775 (La. Ct. App. 1992).

Opinion

597 So.2d 65 (1992)

DELACROIX CORPORATION
v.
JONES-O'BRIEN, INC. and Martin Exploration Company.

No. 91-CA-0851.

Court of Appeal of Louisiana, Fourth Circuit.

March 17, 1992.
Rehearings Denied May 13, 1992.

*66 Hugh M. Wilkinson, Jr., Wilkinson & Wilkinson, New Orleans, for plaintiff-appellee.

Edward B. Poitevent, II, Carl D. Rosenblum, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, New Orleans, for appellee.

Glenn L. Langley, Hargrove, Guyton, Ramey and Barlow, Shreveport, John F. Wadsack, The Carmouche Law Firm, Lake Charles, Jackson M. Cooley, Amoco Production Co., Houston, Tex., Richard S. Pabst, New Orleans, George Pivach, II, Anne Derbes Keller, Pivach, Cossich & Pivach, Belle Chasse, William J. Guste, Jr., Atty. Gen., Gary L. Keyser, Asst. Atty. Gen., David C. Kimmel, Asst. Atty. Gen., Baton Rouge, for appellant.

Blake G. Arata, Steven W. Copley, Gordon, Arata, McCollam & Duplantis, New Orleans, for defendant/appellant.

Before KLEES, BYRNES, and JONES, JJ.

JONES, Judge.

Defendant, the State of Louisiana, together with other defendants, appeal the trial court's judgment finding that the bed and bottom of Lake Quatro Caballo was not state property. Defendant, Jones-O'Brien appeals the trial court's ruling finding it was not entitled to reimbursement for drilling and operating cost. We affirm the trial court's judgment.

On May 29, 1979, Delacroix Corporation, "Delacroix", filed an action to be recognized as the land-owner of 42.3773% of the Unit consisting of portions of Township 16 South and to order Jones-O'Brien to pay royalties to Delacroix. Jones-O'Brien was operating in good faith under a perfected lease of the unit from the estate of Winnifred Smith and others (referred to in the Judgment as "A. Bart Brown Group") and had been paying royalties accordingly to its lessees. The issue raised by the ownership of the land comprising the Unit was the location of a township line dividing Township 16 South from Township 15 South. Basically, Delacroix Corporation asserted that the township line was north of the position that Jones-O'Brien and the A. Bart Group asserted. That disputed area amounted to 42.3773% of the Unit.

Accordingly, on January 12, 1979, Jones-O'Brien filed a Concursus Proceeding, depositing *67 all of the revenue from the production of the disputed area from April 1, 1979 into the Registry of the Court. All interested parties were joined in the Concursus Proceeding, including ATC Realty Eight, Inc. as successor to Martin Exploration Company, the mineral lessee of Delacroix, Texaco Corporation, the State of Louisiana and other parties.

The court bifurcated the trial with the first hearing limited to the township line issue and the survey thereof. The survey issue was tried and the court rendered a decision in favor of Delacroix. This portion of the judgment is not being appealed by any of the parties, however in a motion for new trial or, alternatively, amendment of the judgment, Jones-O'Brien asserted that the trial court should have deducted production and operation costs from the revenue deposited with the registry of court. The trial court denied Jones-O'Brien's motion and Jones-O'Brien appeals this issue. The result of the survey issue made necessary the second hearing, that of whether the bed of Lake Quatro Caballo, contained within the unit, was owned by the State of Louisiana or was in the private domain. The court found that the State of Louisiana holds no ownership of the bed and bottom of Lake Quatro Caballo. The State of Louisiana appeals and Jones-O'Brien, Texaco, Amoco, and the overriding royalty owners join in its appeal and stipulate to its brief.

I

The State claims that the trial court erred in finding that it had no ownership right in the bed and bottom of Lake Quatro Caballo in three respects: 1) in ruling that the bed and bottom of Lake Quatro Caballo was non-navigable in 1812 or in 1902; 2) in ruling that Lake Quatro Caballo was not subject to the ebb and flow of the tide of the Gulf of Mexico in 1812 or in 1902; and 3) in applying Act 62 of 1912 to the facts of this case irrespective of navigability.

NAVIGABILITY

The State contends that it acquired ownership of the bed of Lake Quatro Caballo as sovereignty lands because the lake was navigable in 1812 when Louisiana was admitted to the Union; and if not navigable in 1812 that the lake became navigable by 1902 and the purported alienation into private domain in that year was null. The State submits that in order to establish navigability its only burden is to show that a particular waterbody has sufficient depth to support commercial use given the time and place at issue. The key is the waterbody's susceptibility to support whatever commercial activity is normal for that particular area.

Relying on State v. Sweet Lake Land & Oil Co., et al, 164 La. 240, 113 So. 833 (La.1927), the trial court observed in its reasons for judgment that the characteristics of Sweet Lake, cited by the Supreme Court as supporting non-navigability, are significantly present with respect to Lake Quatro Caballo. Paramount among these facts were isolation and the failure of all but a very few persons to have knowledge of the lake's existence.

Also in its reasons for judgment the trial court embraced the expert opinion of Dr. Sherwood Gagliano, who testified that in 1812 the area of present day Lake Quatro Caballo was an isolated fresh water marsh. He reasoned that the lake may have existed in the form of small marsh ponds, four in number, which consolidated with the passage of time. To support his opinion he relied on published and accepted works of other recognized expert geomorphologists, including an actual map of an oval pond made by deputy surveyors in 1846. He also pointed to such physical evidence as the four outlet streams and the footprint of the pond in the margin of the present lake.

To satisfy its burden the State relies on the testimony of its own expert, Mr. Charles H. Coates, Jr., offered at trial to prove that at the time in question Lake Quatro Caballo was a navigable lake. The State insists that the testimony of its expert witness, Mr. Coates, directly refutes the trial court's findings. Mr. Coates testified that the existence of the lake can be confirmed in two different ways: first, by examining the area and its consistent history for the past century; and secondly, by *68 calculating subsidence over the years to determine the depth of the waterbody at the time in question.

In his consideration of the area, Mr. Coates determined that the area surrounding Lake Quatro Caballo remained consistent for over 100 years. He compared the first true depiction of the area in 1932 with the earlier depiction on the township plat and upon placing the various marks in proper location concluded that a striking similarity existed between the two.

Using a subsidence figure supplied by Delacroix's expert, Dr. Gagliano, Mr. Coates then calculated a depth of the waterbody in 1812 of 4.852 feet. The State contends that this is sufficient for navigability in 1812 when one considers that in this locality commercial use of the water would entail such activities as hunting, trapping and fishing. The State challenged the trial court's depth projections arguing that it relied on the Garret survey which does not cite any tidal data from which a proper reference to water elevation can be made.

The trial court held that the State's expert witnesses were not qualified to give valid opinions on the geomorphological processes of the land development and later deterioration.

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Bluebook (online)
597 So. 2d 65, 119 Oil & Gas Rep. 504, 1992 La. App. LEXIS 650, 1992 WL 47775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delacroix-corp-v-jones-obrien-inc-lactapp-1992.