Franks Petroleum v. J. E. Hobbs

200 So. 2d 708, 1967 La. App. LEXIS 5237
CourtLouisiana Court of Appeal
DecidedMay 29, 1967
DocketNo. 10800
StatusPublished
Cited by2 cases

This text of 200 So. 2d 708 (Franks Petroleum v. J. E. Hobbs) 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
Franks Petroleum v. J. E. Hobbs, 200 So. 2d 708, 1967 La. App. LEXIS 5237 (La. Ct. App. 1967).

Opinion

HARDY, Judge.

Plaintiff instituted this concursus proceeding for the purpose of procuring a judicial determination of the ownership of funds accrued and to be accrued from gas and condensate production from an 80 acre tract of land located in Webster Parish, Louisiana, and particularly described as follows:

The South Half of Southwest Quarter (S. ½ of SW. ¼) of Section 31, Township 22 North, Range 10 West.

The claimants to the funds, named as defendants in this action, are J. E. Hobbs and his wife, Onia M. Hobbs, on one part and the widow and children of W. L. Coyle on the other.

The pertinent facts, established without dispute, may be briefly outlined.

By warranty deed dated September 12, 1945, W. L. Coyle, as owner, sold and conveyed to Irwin D. McClellan the property above described, reserving to himself, his heirs and assigns an undivided one-half of the oil, gas and other minerals in and under said land, and on September 5, 1946, Irwin D. McClellan conveyed the described tract to J. E. Hobbs.

Pursuant to expropriation proceedings, and as the result of a “Judgment on Declaration of Taking” signed on December 4, 1950, the United States acquired the fee simple title to 74.6 acres out of the above described 80 acre tract in connection with the development of the Bayou Bodcau Reservoir Project. A subsequent judgment dated and filed March 28, 1951, confirmed the condemnation of the property and fixed the compensation to be paid therefor. Both of the above noted judgments described the title vested in the United States as:

“ * * * the fee simple title, subject to existing easements for public roads and highways, public utilities, railroads and pipelines, with reservations to the owners as set forth in Schedule ‘A’ hereof, and further excepting and reserving to the owners, their heirs and assigns, all oil, gas and minerals and rights therein, on and under the lands herein described * * (Emphasis supplied.)

Plaintiff operator acquired an oil and gas lease on the entire 80 acre tract from the Hobbs defendants by instrument dated June 1, 1962, and subsequently acquired a lease by assignment from John Franks, lessee from the Coyle defendants by an instrument dated October 24, 1964 covering the same property. Plaintiff drilled and completed a well in the Davis Sand of the Cotton Valley formation as a producer of gas and condensate, which well was placed in production on January 8, 1965. The 80 acre tract involved in this litigation was included in a 689 acre production unit established by order of the Department of Conservation with respect to production from the Davis Sand. Plaintiff has paid the Hobbs defendants the funds attributable to one-half of the one-eighth royalty interest but withheld payment as to the remaining one-half interest pending judgment in this suit es[710]*710tablishing the respective rights of the opposed claimants.

The Hobbs defendants assert ownership of the minerals involved on the ground that the mineral servitude created by the reservation of W. L. Coyle in his deed to McClellan of September 12, 1945, was extinguished by the running of the ten-year period of liberative prescription.

The Coyle defendants assert ownership of the mineral interest as to the 74.6 acres taken by the United States under the provisions of LRS. 9:5806 A and as to the mineral interest involved in the remaining 5.4 acres on the ground that the mineral servitude created by the reservation of W. L. Coyle must be construed as an indivisible right and the statutory imprescriptibility of the right as to the 74.6 acres expropriated by the United States must therefore be applied to the 5.4 acres which was not taken.

After trial there was judgment in favor of the Hobbs defendants, recognizing them as owners and entitled to possession of the disputed one-half of the minerals underlying 5.4 acres of the 80 acre tract, and in favor of the Coyle defendants, recognizing them as owners and entitled to possession of the disputed one-half of the minerals underlying 74.6 acres of the 80 acre tract. From this judgment both the Hobbs and the Coyle claimants have appealed and the Coyle defendants have answered the appeal of their opposed claimants.

The rights of the claimants must be determined under the provisions of Act 315 of 1940 which was in effect at the time of the condemnation and expropriation by the United States in 1950. The act was incorporated in the Louisiana Revised Statutes of 1950, 9:5806, and reads as follows:

“When land is acquired by conventional deed or contract, condemnation or expropriation proceedings by the United States of America, or any of its subdivisions or agencies, from any person, firm, or corporation, and by the act of acquisition, verdict, or judgment, oil, gas, or other minerals or royalties are reserved, or the land so acquired is by the act of acquisition conveyed subject to a prior sale or reservation of oil, gas, or other minerals or royalties, still in force and effect, the rights so reserved or previously sold shall be imprescribable (Emphasis supplied.)

Section 5806 of Title 9 of the Louisiana Revised Statutes of 1950 was amended and reenacted by Act No. 278 of 1958 but the above quoted portion, save for immaterial changes in punctuation and the substitution of the word “order” for the word “verdict” and “imprescriptible” for “imprescribable” was unchanged. This legislation is presently shown in LRS. 9:5806 A.

The principal contention of the Hobbs appellants rests upon the argument that the provision of imprescriptibility must be applied only in favor of the landowner and not to the owner of the outstanding mineral servitude at the time the surface rights were acquired by the United States. In support of this contention it is forcibly urged by learned counsel for the Hobbs appellants that the intent of the Legislature must be examined; that other statutory provisions in pari materia must be considered and that a number of principles of statutory interpretation must be given effect.

We do not differ with counsel as to the rules of statutory interpretation upon which he insists and which have been discussed in such a comprehensive and scholarly manner in his argument and brief before this Court. Our difference with counsel may be simply and briefly stated — in our opinion the statutory provision governing the issue presented does not require interpretation.

Support of our position is so well established by our jurisprudence as to preclude the necessity for citation of authority. However, the principles which have impelled our conclusion were cogently, although briefly, stated in the opinion of Mr. Justice McCaleb in the comparatively [711]*711recent case of State of Louisiana, through Department of Highways v. Bradford (1962), 242 La. 1095, 141 So.2d 378, as follows:

“It is a rudimentary tenet of statutory construction in this State that ‘When a law is clear and free from all ambiguity, the letter of it is not to be disregarded, under the pretext of pursuing its spirit.’ Article 13 of the Civil Code.”
* * * * * *
“This language, albeit broad in scope, is clear and explicit. Hence it is not subject to construction

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Related

Franks Petroleum v. Martin
234 So. 2d 268 (Louisiana Court of Appeal, 1970)
Petroleum v. J. E. Hobbs
203 So. 2d 555 (Supreme Court of Louisiana, 1967)

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Bluebook (online)
200 So. 2d 708, 1967 La. App. LEXIS 5237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franks-petroleum-v-j-e-hobbs-lactapp-1967.