Gulf Oil Corporation v. Clement

118 So. 2d 361, 239 La. 144, 13 Oil & Gas Rep. 229, 1960 La. LEXIS 922
CourtSupreme Court of Louisiana
DecidedFebruary 15, 1960
Docket43903
StatusPublished
Cited by13 cases

This text of 118 So. 2d 361 (Gulf Oil Corporation v. Clement) 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
Gulf Oil Corporation v. Clement, 118 So. 2d 361, 239 La. 144, 13 Oil & Gas Rep. 229, 1960 La. LEXIS 922 (La. 1960).

Opinion

HAMITER, Justice.

*147 •' In this concursus proceeding plaintiff, the Gulf Oil Corporation, deposited in the registry of the district court funds ($17,-192.93) derived from the production of oil, during the period from March, 1950 through November, 1955, on a certain 30 acre tract of land located in Acadia Parish; and it cited the two groups of conflicting claimants thereto, they being referred to hereinafter as the Jules Clement heirs and the Danforths, respectively.

The district court rendered judgment favoring the Clement heirs, and the Danforths are appealing.

By an instrument dated May 18, 1927 Jules Clement, Sr., as landowner, sold, granted and conveyed unto L. H. Dunn the following:

“ * * * an undivided J4 part and interest in and to all that certain lot,‘tract or parcel of land described as fractional section 46, Township 9 south — range 2 west situated in the Evangeline oil field in the Parish of Acadia, State of Louisiana, containing 106 acres more or less, excluding, saving and reserving from this sale, conveyance, and deed, however, all oil now being produced- or hereafter to be produced to a depth of 2200' on the south 30 acres of the tract of- land above described, said 30 acres being defined and described by running a line parallel to the south side of said fractional section 46, Township 9 south — range 2 west, Acadia Parish, Louisiana, at such a place as to contain south of such dividing line 30 acres of land; it being distinctly understood and agreed that this sale, delivery and conveyance includes an undivided part or interest in and to all oil, gas and other minerals which may hereafter be produced from said 30 acre tract of land from any and all formations below said depth of 2200 feet, it being intended hereby to convey to the said L. H. Dunn a 'J4 part of all oil, gas and other minerals under said 30 acre tract of land produced from a strata or depth below the 2200' level as well as a J4 part of the oil, gas and other minerals produced from the north 76 acres, more or less, of said fractional section 46 regardless of the depth or strata from which said oil be produced and I, Jules Clement, Sr., do hereby grant unto the said L. H. Dunn the right of ingress and egress at all times for the purpose of taking said minerals.” (Although some of the quoted language would seem to indicate the transfer of an interest in the land itself this court, in a prior suit, held that by the deed only a mineral interest was sold and conveyed. See Clement v. Dunn, 168 La. 394, 122 So. 122.)

Through mesne conveyances such mineral interest was acquired by the Danforths who assert in this proceeding that there resulted from the 1927 sale one servitude on the entire 106 acres, less any oil produced from the upper 2,200 feet of the south 30 acres *149 thereof, and that it has continuously since been in existence.

Countering, the Clement heirs contend that by the conveyance their ancestor created two servitudes, one being on the north 76 acres of the 106 acre tract and the other on the remaining south 30 acres; and that the servitude on the last mentioned acreage (from which the disputed oil was produced — some from above and some below the 2,200 foot level) expired by reason of nonuse for more than ten years between August 1, 1938 and October 17, 1949. In this connection,' however, they concede that if the transaction resulted in the creation of only one servitude on the 106 acre tract, as the Danforths assert, there were drilling operations conducted on the north 76 acres thereof during such period (both above and below the 2,200 foot level) sufficient to interrupt prescription on the entire acreage, including the south 30 acres.

We do not agree with the contention of the Clement heirs that two separate servitudes resulted from the 1927 mineral deed. Since the year 1923 our jurisprudence has uniformly enunciated and adhered to the principle of law that if a definite mineral interest is granted (or reserved) by a single instrument covering the whole of a continuous tract of land only one servitude is craated thereby, and the proper exercise of it on any part of the tract interrupts the accruing of prescription as to any and all of the remaining portion. Lee v. Giauque, 154 La. 491, 97 So. 669; Arent v. Hunter, 171 La. 1059, 133 So. 157; Levy v. Crawford, Jenkins & Booth, Limited, 194 La. 757, 194 So. 772; Ohio Oil Co. v. Cox, 196 La. 193, 198 So. 902; Hodges v. Norton, 200 La. 614, 8 So.2d 618, and Lenard v. Shell Oil Co., Inc., 211 La. 265, 29 So.2d 844. And by the single deed in question in the instant cause a one-fourth mineral interest was conveyed on the whole of the continuous 106 acres. Hence, there resulted but one servitude which permitted the grantee to go on any part of the entire tract to explore for and remove oil.

It is true that the grantor excluded and reserved from the sale “ * * * all oil now being produced or hereafter to be produced to a depth of 2200 feet on the south 30 acres * * But, in our opinion, this exclusion or reservation had no effect on the nature of the interest granted. Obviously, it did not restrict the grantee’s right to go on the entire tract to exercise his servitude; it merely provided a limitation respecting the ownership of the oil recovered from the south 30 acres. It, in other words, amounted to nothing more than an agreement that the grantor would be entitled to and would receive royalties for the oil produced by the grantee or others from that portion of the south 30 acre tract above the 2,200 foot level.

*151 In support of their above stated contention the Clement heirs rely primarily on Cox v. Acme Land & Investment Co., Inc., 192 La. 688, 188 So. 742; Ohio Oil Co. v. Ferguson, 213 La. 183, 34 So.2d 746 and Long-Bell Petroleum Co., Inc. v. Tritico, 216 La. 426, 43 So.2d 782. However, each of those cases involved a dissimilar factual situation and is therefore inappropriate here.

Alternatively, the Clement heirs argué that even though one servitude resulted from the 1927 conveyance the parties themselves effectively divided it on April 6, 1938 by entering into a written contract with the lessee which dealt with only the south 30 acre tract. And in support of the argument they cite Spears v. Nesbitt, 197 La. 931, 2 So.2d 650 and Elson v. Mathewes, 224 La. 417, 69 So.2d 734. Concededly, those cases are authority for' the legal principle, as stated in the brief of counsel for the Clement heirs, that “There is no law prohibiting the landowner and the mineral owner from entering into a contract with each other whereby a division or reduction of a servitude results.” However, the instrument relied on contained no language which might produce the suggested result. It was merely an agreement, obviously for the benefit and protection of the lessee, as to how royalty payments should be prorated (between the mineral grantee and Clement) for oil produced on the south 30 acre tract from sands both above and below the 2,200 foot level.

As a further alternative counsel for the Clement heirs maintain that because of allegations made by Dunn (the Danforths’ ancestor in title) in Clement v. Dunn, supra, the Danforths are estopped from denying that two servitudes were created.

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

Related

Energy Development Corp. v. St. Martin
128 F. Supp. 2d 368 (E.D. Louisiana, 2000)
Rippey v. Steatite Co.
28 Va. Cir. 255 (Nelson County Circuit Court, 1992)
Horton v. Mobley
578 So. 2d 977 (Louisiana Court of Appeal, 1991)
Allied Chemical Corp. v. Dye
441 So. 2d 776 (Louisiana Court of Appeal, 1983)
Cox v. Sanders
421 So. 2d 869 (Supreme Court of Louisiana, 1982)
Roemer v. Caplis
369 So. 2d 1186 (Louisiana Court of Appeal, 1979)
Hanszen v. Cocke
246 So. 2d 200 (Louisiana Court of Appeal, 1971)
Nelson v. Young
234 So. 2d 54 (Supreme Court of Louisiana, 1970)
Whitehall Oil Company v. Heard
197 So. 2d 672 (Louisiana Court of Appeal, 1967)
Mire v. Hawkins
177 So. 2d 795 (Louisiana Court of Appeal, 1965)
Gunby v. Commercial Solvents Corporation
170 So. 2d 259 (Louisiana Court of Appeal, 1964)
Spier v. Barnhill
168 So. 2d 479 (Louisiana Court of Appeal, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
118 So. 2d 361, 239 La. 144, 13 Oil & Gas Rep. 229, 1960 La. LEXIS 922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-oil-corporation-v-clement-la-1960.