Graham v. McRae Exploration, Inc.

493 So. 2d 705, 92 Oil & Gas Rep. 526, 1986 La. App. LEXIS 7552
CourtLouisiana Court of Appeal
DecidedAugust 20, 1986
Docket17992-CA
StatusPublished
Cited by6 cases

This text of 493 So. 2d 705 (Graham v. McRae Exploration, 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
Graham v. McRae Exploration, Inc., 493 So. 2d 705, 92 Oil & Gas Rep. 526, 1986 La. App. LEXIS 7552 (La. Ct. App. 1986).

Opinion

493 So.2d 705 (1986)

Wesley GRAHAM, et al., Plaintiff-Appellant,
v.
McRAE EXPLORATION, INC., et al., Defendant-Appellee.

No. 17992-CA.

Court of Appeal of Louisiana, Second Circuit.

August 20, 1986.
Rehearing Denied September 18, 1986.

*706 J. Michael Rhymes, Monroe, for plaintiff-appellant.

Shaw & Shaw, Inc. by William M. Shaw, Homer, for defendant-appellee.

Before JASPER E. JONES, NORRIS and LINDSAY, JJ.

LINDSAY, Judge.

The plaintiffs appeal a ruling of the trial court sustaining a peremptory exception of no cause of action filed by defendants which allege that plaintiffs failed to file their possessory action as to mineral rights on a disputed piece of property within one year of the disturbance of possession of those mineral rights. We find the plaintiffs were barred from bringing a possessory action as to the mineral rights, but for the reasons stated below, we find plaintiffs do have a cause of action for possession of the surface of the property. For those reasons we reverse the trial court judgment sustaining the exception of no cause of action and remand the case for further proceedings.

This case involves numerous parties. The plaintiffs are the heirs and successors in title of Wesley Graham and Bessie Wright Graham and their mineral lessees. The defendants are the heirs and successors in title of Mrs. F.A. Gladney and their mineral lessees. (A listing of all the parties to this litigation is contained in an unpublished appendix.)

This possessory action was originally filed in the trial court on May 30, 1980 by Wesley Graham and the heirs of his deceased wife, Bessie Wright Graham. Graham alleged that in 1942 he purchased ten acres of land from Mrs. F.A. Gladney for $200. Graham built a house on the property and lived on the property from that time until his death in 1982. Bessie Graham died in 1960. Since Wesley Graham passed away while these proceedings were pending, his heirs were substituted as parties plaintiff.

According to the plaintiffs' allegations, in 1974 the heirs of Mrs. F.A. Gladney executed a mineral lease on the property to Perry G. Holloway. Holloway conveyed a 5/12 interest in the lease to Smackover Producing Company and a 5/12 interest to Jack T. Everrett. All three parties then subleased a ¼ interest in the lease to MRT Exploration Company. It was further alleged that in 1976 the property in question was included in an oil and gas production unit by order of the Commissioner of Conservation of the State of Louisiana and that production was ultimately obtained from the unit, although no well was drilled on the property itself.

*707 Plaintiffs did not specifically allege when this well was drilled or when it began to produce, but the record clearly indicates that these activities occurred more than one year before the Grahams filed this possessory action. The petition alleged that the granting of the mineral lease and the production of minerals from the property constituted a continuous disturbance of the Grahams' possession. Graham filed to be recognized as the possessor of the property and for a full accounting of the minerals taken from the property.

A petition to intervene was filed by several parties claiming to hold mineral leases on the property granted by the Grahams, alleging that the Grahams, through various lease agreements, executed mineral leases in their favor in late 1978 and early 1979. The intervenors sought to share in the accounting should plaintiffs be successful in their possessory action.

The lessees of the Gladneys filed an answer, a reconventional demand for recognition of the validity of their mineral leases, and a third party demand against the Gladneys for a return of bonuses and royalties paid them should the Grahams be successful.

The Gladney lessees then filed a peremptory exception of no cause of action and/or liberative prescription, as to the mineral rights, claiming the Grahams failed to file their possessory action within one year of the alleged disturbance of possession of the mineral rights.

The trial court entered a judgment sustaining this exception by the Gladneys' lessees, dismissing with prejudice the Grahams' petition against the Gladney lessees, reserving the Gladney lessees' rights under the reconventional and third party demands.

Thereafter, the Gladneys filed an exception of no cause of action, also claiming that the Grahams were not entitled to assert a possessory action as to the mineral rights in the property because they failed to file their action within one year of the time of the alleged disturbance of possession.

The trial court also sustained this exception and dismissed the Grahams' suit with prejudice. It is from this ruling that the Grahams have appealed, asserting that the trial court erred in sustaining the exception of no cause of action and in dismissing the suit entirely, rather than limiting the effect of the judgment to the mineral rights, leaving the plaintiff's claim to possession of the surface of the property intact, and in failing to allow the Grahams time to amend their pleadings and attempt to remove the grounds for the exception.

The plaintiffs argue that possession of the land includes possession of mineral rights, and that execution of a mineral lease by persons who are not in possession does not interrupt plaintiff's physical and actual possession. They argue that the mineral lease is a continuous disturbance in law but does not interrupt corporeal possession, that production from a unit well without actual drilling operations on the disputed property does not dispossess an adverse possessor, and further, that if there was a defect in the pleadings the trial court should have granted them a reasonable time within which to amend and cure any defects.

The defendants argue that the pleadings filed by plaintiffs failed to allege that their possessory action was filed within one year of the disturbance of possession caused by the granting of the mineral lease by the Gladneys. The defendants also argue that adverse possession of mineral rights through production of a unit well is sufficient to disturb the possession of an adverse possessor.

The record does not contain written reasons for the trial court judgment. The judgment simply sustains the Gladneys' exception of no cause of action and dismisses the Grahams' suit with prejudice. (In brief, defendants refer to a letter written by the trial judge when he sustained the lessees' exception. However, that letter does not form a part of this appellate record.)

*708 Plaintiffs claimed in their petition they were in possession of both the surface of the property and the mineral rights therein. It is clear that surface rights and mineral rights may be possessed separately and, depending upon the facts and circumstances of each case, disturbance of possession of one does not necessarily constitute disturbance of possession of the other. It is also clear that a possessory action must be brought within one year of the disturbance of possession. In the instant case, we find that the production from the unit well was a disturbance in fact of the Grahams' mineral rights on the property and the trial court correctly found that because plaintiffs failed to bring a possessory action as to the mineral rights within one year of the disturbance they are barred from doing so. However, we find that the disturbance of mineral rights in this case did not disturb the right of possession of the surface and the Grahams have not lost the right to bring a possessory action for the surface of the property.

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Bluebook (online)
493 So. 2d 705, 92 Oil & Gas Rep. 526, 1986 La. App. LEXIS 7552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graham-v-mcrae-exploration-inc-lactapp-1986.