Delta Refining Co. v. Bankhead

73 So. 2d 302, 225 La. 422, 3 Oil & Gas Rep. 1866, 1954 La. LEXIS 1233
CourtSupreme Court of Louisiana
DecidedApril 26, 1954
Docket41332
StatusPublished
Cited by3 cases

This text of 73 So. 2d 302 (Delta Refining Co. v. Bankhead) 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
Delta Refining Co. v. Bankhead, 73 So. 2d 302, 225 La. 422, 3 Oil & Gas Rep. 1866, 1954 La. LEXIS 1233 (La. 1954).

Opinion

MOISE, Justice.

This is a concursus proceeding in which the Delta Refining Company deposited certain sums of money in the Registry of the Nineteenth Judicial District Court for the Parish of East Baton Rouge, which sums represented the value of oil, less severance taxes, produced from a well known as A. J, Bankhead et al., Bank of Baton Rouge in Liquidation Well No. Two Unit, which well is located in the University Field of East Baton Rouge Parish, Louisiana.

*425 ■ The trial judge passed on many disputed claims, and from his judgment there are only two appeals. The first is by Mrs. Lillian B. Haase, individually and as tutrix of Charles Wendell Haase, Southern Production Company, Inc., William G. Helis, Jr., Testamentary Executor of the Succession of William G. Helis, deceased, and Maryland Casualty Company, from his judgment rejecting the claim of Mrs. Lillian B. Haase, individually and as natural tutrix of the minor, Charles Wendell Iriaase, to the ownership of the undivided one-half interest in and to the minerals under certain described property and the claim of Southern Production Company, Inc. and the Estate of William G. Helis to an oil, gas and mineral lease on the undivided one-half interest.

Appeal Number Two is taken by the Bank of Baton Rouge in Liquidation from that part of the judgment awarding Robert Louis Kohlmann and William Kohlmann a %84th royalty interest of all the oil, gas and other minerals produced.

The land involved is a part of Ben Hur Plantation located south of Baton Rouge, Louisiana, and is now an oil producing area known as the University Field. A chronological listing of title to the land involved in the present appeals is pertinent.

On May 10, 1919, A. Adler Realty Company owned the Ben Hur Plantation which it sold to John P. and William H. Burgin, reserving to the vendor one-half of the minerals.

On December 20, 1920, William H. Burgin sold his interest to John P. Burgin.

On March 28, 1923, John P. Burgin conveyed the property to the Bank of Baton Rouge, subject to the reservation of one-half of the minerals made by A. Adler Realty Company in 1919.

On December 27, 1924, the Bank of Baton Rouge conveyed the property to the Louisiana Investment Company.

On December 28, 1925, the Louisiana Investment Company conveyed the property back to the Bank of Baton Rouge.

By 1927, A. Adler Realty Company and the Bank of Baton Rouge had both entered into separate leases with Roxana Petroleum Corporation, and on July 28, 1927, they entered into the following understanding:

“Whereas, it is to the mutual advantage of both lessors and lessee that lessors stipulate the extent of the interest of each in said property.
“Now, therefore, lessors acknowledge that A. Adler Realty Company, a Louisiana corporation is the owner of an undivided one-half (%) interest in all minerals on and under said property, and that the Bank of Baton Rouge, a Louisiana corporation, is the owner of an undivided one-half (%) interest in all minerals on and under said property and the oivner of all of the surface of the land described in the aforementioned mineral lease. (Italics ours.)
*427 “And A. Adler Realty Company agrees that under the terms of the lease it executed it is entitled to one-half of the royalties, rentals and other monies therein provided.
“And the Bank of Baton Rouge agrees that under the terms of the lease it executed it is entitled to one-half (V2) of the royalties, rentals and other monies therein provided.”

We shall now discuss the effect of the above understanding. The reservation made by A. Adler Realty Company in the sale of Ben Hur Plantation to the Burgin brothers on May 10, 1919, if nothing were done which would prevent the prescription of that servitude, would prescribe on May 10, 1929; after that date, the Bank of Baton Rouge in Liquidation or the Louisiana Investment Company, being the owner of the surface land, would have become the sole owner of the minerals. On July 28, 1927, the date of the above understanding, the Bank of Baton Rouge in. Liquidation and the A. Adler Realty Company were each the owners of one-half of the minerals (because Adler’s reservation of minerals expired on May 10, 1929). This 1927 document should be accepted as proof of what it contains, and words must be given their normal meaning. It did no more than set forth, for the benefit of the mineral lessees, the ownership of the lessors at that time in the minerals. The current of prescription running had not completed its span, as shown, supra. The bare acknowledgment by a landowner of the existence of a mineral servitude in his lands does not interfere with the running of prescription. To have that effect the acknowledgment must be coupled with a purpose and intention, and such must be expressed in clear and unmistakable terms.

In the case of Bremer v. North Central Texas Oil Co., 185 La. 917, 171 So. 75, 77, plaintiff granted a mineral servitude on June 30, 1924. On November 28, 1925, a three year oil and gas lease was executed. The contention was made that the lease interrupted the running of prescription. This Court held that there was no interruption and stated:

“But article 3520 of the Code, which says that prescription ceases to run whenever the debtor or possessor ‘makes acknowledgment of the right of the person whose title they prescribed,’ does not mean that a mere acknowledgment of the existence of the rights of those in whose favor the servitude runs interrupts prescription. There must be more than a bare acknowledgment; the acknowledgment must be accompanied by or coupled with ‘the purpose and intention of the party making the acknowledgment to interrupt the prescription then running.’ ”

The Court, in the Bremer case, supra, distinguished it from the case of Mulhern v. Hayne, 171 La. 1003, 132 So. 659, and stated:

*429 “On further consideration we adhere to our ruling in that case, but it has no .application to the case presently under consideration. Here the lease was •dated November 28, 1925, was for a ■period of only three years, and by its •terms expired on November 28, 1928, or more than five years prior to the end of the ten-year prescriptive period. There was, therefore, nothing in the lease to indicate that Bremer intended to interrupt prescription.”

In the case of Achee v. Caillouet, 197 La. 313, 1 So.2d 530, 536, this Court stated:

“ * * * It is utterly inconsistent and irreconcilable with the firmly established rule that a bare acknowledgment by the landowner of the existence of the mineral rights of another in his land does not interrupt the running of prescription in the sense that the prescription begins to run anew from the date of acknowledgment. To have that effect, the acknowledgment must be coupled with the purpose and intention that it shall have that effect, and such purpose and intention must be expressed in unmistakable terms. Frost Lumber Industries v. Union Power Co., 182 La. 439, 162 So. 37, and the cases therein cited; Bremer v. North Central Texas Oil Co., supra; Goldsmith v. McCoy, 190 La. 320, 182 So.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Church v. Bell
790 So. 2d 82 (Louisiana Court of Appeal, 2001)
Armour v. Smith
170 So. 2d 347 (Supreme Court of Louisiana, 1964)
Scott v. Hunt Oil Company
160 So. 2d 433 (Louisiana Court of Appeal, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
73 So. 2d 302, 225 La. 422, 3 Oil & Gas Rep. 1866, 1954 La. LEXIS 1233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delta-refining-co-v-bankhead-la-1954.