Greer v. State

616 So. 2d 811, 1993 WL 96631
CourtLouisiana Court of Appeal
DecidedMarch 31, 1993
Docket24,552-CA
StatusPublished
Cited by24 cases

This text of 616 So. 2d 811 (Greer v. State) 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
Greer v. State, 616 So. 2d 811, 1993 WL 96631 (La. Ct. App. 1993).

Opinion

616 So.2d 811 (1993)

John L. GREER, et al., Plaintiff-Appellants,
v.
STATE of Louisiana, et al., Defendant-Appellee,
(OXY USA, Inc. & Crystal Oil Company), Defendant-Appellants.

No. 24,552-CA.

Court of Appeal of Louisiana, Second Circuit.

March 31, 1993.

*812 Mills, Timmons & Flowers by J. Broocks Greer, III, Shreveport, for Greer Group, plaintiffs-appellants.

Blanchard, Walker, O'Quin & Roberts by J. Jay Caraway, Shreveport, for OXY USA, Inc. and Crystal Oil Co., defendants-appellants.

Richard P. Ieyoub, Atty. Gen., E. Kay Kirkpatrick, Gary L. Keyser and David C. Kimmel, Asst. Attys. Gen., Baton Rouge, for State of Louisiana, defendant-appellee.

Before NORRIS, LINDSAY and VICTORY, JJ.

LINDSAY, Judge.

This suit is for reformation of a mineral lease granted in favor of the plaintiffs (hereinafter referred to as the Greer Group) by the Mineral Board of the State of Louisiana. The trial court sustained an exception of res judicata in favor of the State. For the reasons assigned below, we reverse the judgment and remand the case to the trial court for further proceedings.

FACTS

This case arises from the same facts set forth in Cities Service Oil and Gas Corporation v. State of Louisiana, 574 So.2d 455 (La.App. 2d Cir.1991), writs denied, 578 So.2d 132, 134, 136, 137 (La.1991), reconsideration denied, 580 So.2d 663 (La.1991), cert. denied, ___ U.S. ___, 112 S.Ct. 186, 116 L.Ed.2d 147 (1991).

Briefly stated, Cities Service involved a concursus proceeding which was invoked in 1985 to determine ownership of $15,000,000 in mineral revenues from a tract of land located near the boundaries of Caddo and Bossier Parishes in the flood plain of the Red River.

*813 In 1972, the State granted a mineral lease (hereinafter referred to as the "State Lease") in favor of the Greer Group covering the bed of the Red River. Production was obtained, and a unit was established. Thereafter, the Red River meandered in a westwardly direction until its movement was ultimately stopped by revetment work performed by the Army Corps of Engineers. Determination of ownership of the proceeds in the concursus was complicated by this westward movement of the Red River between 1966 and 1978, which changed the ownership of the surface of the land. There were disputes over the effect of the river's movement on mineral leases covering some of the property in the vicinity of the Red River. Several claimants in the concursus sought application of LSA-R.S. 9:1151, the so-called "Freeze Statute," which "freezes" the effects of mineral leases when the ownership of land or water bottoms change as the result of the movement of navigable water bodies. One such mineral lease was the 1972 State Lease.

Seven groups of litigants in the concursus claimed various interests in the mineral revenues. Of these, only four groups are relevant to the present case. These litigants (and the interests they claimed) are as follow:

(1) the State of Louisiana—ownership of the present and former beds of the Red River;
(2) the Greer Group—the 1972 State Lease which covered the bed of the river;
(3) the Clements Group—ownership of property which was west of the river in 1972;
(4) the Operators (Cities Service Oil & Gas Corporation, now OXY USA, Inc., and Crystal Oil Company, the oil companies that invoked the concursus proceedings)—owners of mineral interests obtained from members of several of the other groups.

In the first suit, the State and the Greer Group contended that the State Lease moved with the bed of the Red River as it meandered, consequently entitling them to the proceeds attributable to both the present bed and the former bed of the river. To the contrary, the Clements Group contended that they had a mineral lease which affected the present bed of the river.

The parties to the concursus filed a joint motion for partial summary judgment seeking a determination of their claims under the terms of the "Freeze Statute." The trial court found, in relevant part, that the State Lease in favor of the Greer Group applied to the riverbed as it existed when the lease was granted in 1972, the lease did not move with the river, and that the lease did not affect the present riverbed or other land in that area. Accordingly, as to the former riverbed, the Freeze Statute maintained the mineral ownership rights of the parties to the 1972 State Lease. It further found that the Clements Group's mineral rights in the new riverbed had expired in 1978 at the end of the 1974 Clements lease; since that time the State has owned the new riverbed free of the Clements lease.

Following the rendition of the trial court opinion, the Greer Group filed a motion for reconsideration. The State filed a memorandum in support of the motion in which it specifically concurred with the Greer Group's position that the issue before the trial court of whether the State Lease followed the riverbed as the river moved westward was not before the court on the motion for partial summary judgment. The trial court denied the motion for reconsideration.

All parties, except the State, either appealed or answered the appeals. This court affirmed the judgment of the trial court. On appeal, the Greer Group and the Operators contended that the trial court erred in finding that the State Lease did not affect the present riverbed. They contended that such a finding was beyond the scope of the joint motion for partial summary judgment. However, this court found no merit to this argument. We held that a thorough resolution of the effect of the Freeze Statute on the property required a determination of the current status of the mineral ownership of the new riverbed.

*814 The Greer Group and the Operators also asserted that the trial court erred in finding that the State Lease did not follow the river wherever it moved. However, this court agreed with the trial court, referring to the language of the lease itself, which did not provide for the lease to follow the movement of the river.

The present suit arose in January, 1992, when the Greer Group filed a petition to reform the State Lease. Named as defendants were the State and the Operators. (The Operators were included as defendants because of their status as co-owners of the State Lease.) The Greer Group claimed that the original intentions of the parties to the lease (i.e., the lessee, John B. Greer, Jr., and the Mineral Board, acting on behalf of the State) was that the lease would cover the riverbed, no matter where the river might wander. The Greer Group contended that, to the extent that the State Lease has been found to have no effect on any water bottoms or beds except those as they existed at the time the State Lease was granted, a mutual mistake occurred in the confection of the lease. In so doing, the Greer Group sought to reform the State Lease so that it covers the present bed of the Red River.[1]

The Operators filed an answer admitting the allegations in the plaintiffs' petition. They also asserted a cross-claim in which they likewise requested judgment against the State reforming the property description in the State Lease to reflect that it covers the present bed of the Red River.

The State filed a peremptory exception of res judicata. It contended that the instant suit asserts a cause of action which arose out of the original transaction or occurrence which was the subject matter of the previous concursus action.

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Bluebook (online)
616 So. 2d 811, 1993 WL 96631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greer-v-state-lactapp-1993.