Gulf Refining Co. of Louisiana v. Glassell

171 So. 846, 186 La. 190, 1936 La. LEXIS 1277
Supreme Court of Louisiana·Decided November 4, 1936·No. Nos. 33869, 33870.·Published·Cited by 90 cases

Opinions

HIGGINS, Justice.

This is a petitory action by the lessee of an oil and gas lease against alleged trespassers claiming the exclusive right to possession of the land for the purpose of taking therefrom the oil and gas deposits, and the right to possession and ownership of the oil well drilled by defendants, and the oil said to have been illegally taken by the defendants from the property, and for an accounting of the oil that the defendants obtained therefrom and sold.

The defendants filed exceptions of no right or cause of action on the ground that the plaintiff, having alleged, that it was a lessee, was without any legal right to institute a petitory action, since it did not have a real right in the realty and had not sued as the owner of the property, and the *195 owner of the land had not joined the plaintiff in bringing the suit.

The district judge sustained the exceptions for the reason that, under the law, the lessee has no right to bring a petitory action, this right being reserved by law to the owner of the land or to those who have a real right therein; and that a lessee of a mineral and oil lease, like a lessee under an ordinary lease of real property, lias no real right in the land upon which the lease is effective.

Plaintiff then filed a second petitory action for the same purpose as the first one, joining the owner of the property as a party defendant, and alleging that it was an obligee or creditor of the owner of the land, or lessor, and, as such, had the right to assert the petitory action in its own right and name, upon the owner’s refusal to institute the suit or join the lessee in doing so, the lessor having warranted lessee the peaceful possession of the land and the sole and exclusive right to go upon the same and take therefrom the gas and oil deposits.

The defendants again filed exceptions of no right or cause of action on the ground previously urged, and also for the reason that only obligees or creditors of liquidated money debts or demands, such as a judgment creditor, have the right to institute petitory actions under our jurisprudence, in order to satisfy or pay the amount due them by the defaulting and financially embarrassed debtor.

The trial judge sustained the exceptions upon both points urged.

Plaintiff appealed from the adverse judgments in both cases, which we consolidated here for hearing.

We may say that this litigation was before us on two previous occasions, first when the trial judge refused to grant a suspensive appeal (No. 33836 of the docket of this court), and, second, on motion to remand the case, 185 La. 143, 168 So. 755.

Articles 5 and 45 of the Code of Practice read, respectively, as follows:

“5. The petitory action is that by which he who has the property of a real estate, or of a right upon or growing out of it, proceeds against the person having the possession, in order to obtain the possession of the immovable property, or the enjoyment of the rights upon it, to which he is entitled.”
“45. The petitory action may be brought by one who has the ownership only of an undivided part of an estate, or of a real right to which such an estate is subjected, though his ownership may be limited to a certain period, or end by the occurrence of a certain event.”

The first question to be determined is whether or not a lessee in a mineral lease has, by virtue of the lease, such a real right in the land as to entitle him, in his own right, to maintain a petitory action to recover possession of the leased premises?

At the outset, it might be well to emphasize the fact that plaintiff is claiming only as a lessee under a contract of lease and not under a contract of sale, or sale of the mineral rights, or a sale of the land, with reservation of the mineral rights. This dis *197 tinction must be noted, in order to avoid confusion in analyzing the cases on this subject. There is a vital difference between a conveyance or reservation of the mineral rights and a grant of the right to the use or enjoyment thereof. R.C.C. arts. 1904, 2449, and 2671.

On several occasions this court has decided that the usual oil and gas lease, with a cash or royalty consideration, or both, such as presently before us, is a contract of letting and hiring within the meaning of the codal articles, and therefore does not create a servitude on the realty or a real right in the land. Cooke v. Gulf Refining Co., 127 La. 592, 53 So. 874; Rives v. Gulf Refining Co., 133 La. 178, 62 So. 623; Cooke v. Gulf Refining Co., 135 La. 609, 65 So. 758; Gulf Refining Co. v. Hayne, 138 La. 555, 70 So. 509, L.R.A.1916D, 1147, Ann. Cas.1917D, 130; Spence v. Lucas, 138 La. 763, 70 So. 796; Hennen’s Digest, vol. 1, 479, 480; Allen v. Shreveport Mutual Bldg. Ass’n, 183 La. 521, 525, 164 So. 328; and articles 2669, 2670, 2671, 2674, 2679 of the Revised Civil Code.

On the other hand, in all those cases in which there had been a sale or conveyance of the mineral rights or a sale or conveyance of the land, with reservation of the mineral rights, this court held that the legal effect produced by such a transfer was a right of servitude on the realty or a real right in the land. Holladay v. Darby, 177 La. 297, 148 So. 55; Gayoso Co. v. Arkansas National Gas Corp., 176 La. 333, 145 So. 677; Palmer Corp. v. Moore, 171 La. 774, 132 So. 229; Nabors Oil & Gas Co. v. Louisiana Oil Refining Co., 151 La. 361, 91 So. 765; Frost-Johnson Lumber Co. v. Sailing’s Heirs, 150 La. 756, 91 So. 207, 208. See, also Tulane Law Review vol. 9, No. 2, p. 275.

It is elementary that a sale is fundamentally different from a lease. The former transfers ownership which includes both title and the right to possession. The latter grants only the use and enjoyment of the thing leased. Consequently, the courts were compelled to classify the rights flowing from such transactions according to the divisions made by the articles of the Civil 'Code and the Code of Practice on the subjects of “Sales” and “Leases.”

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

Gulf Refining Co. of Louisiana v. Glassell, 171 So. 846, 186 La. 190, 1936 La. LEXIS 1277 (La. 1936).

171 So. 846 (Gulf Refining Co. of Louisiana v. Glassell) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Byles v. Bank of Coushatta
184 So. 3d 789 (Louisiana Court of Appeal, 2015)
Forterra Capital, L.L.C. v. Mamal, Inc.
55 So. 3d 963 (Louisiana Court of Appeal, 2011)
Opinion Number
Louisiana Attorney General Reports, 2010
Petro-Hunt, L.L.C. v. United States
90 Fed. Cl. 51 (Federal Claims, 2009)
Plaquemines Parish Government v. Getty Oil Co.
673 So. 2d 1002 (Supreme Court of Louisiana, 1996)
Hawthorne Oil & Gas Corp. v. Continental Oil Co.
368 So. 2d 726 (Louisiana Court of Appeal, 1979)
Placid Oil Company v. Taylor
313 So. 2d 626 (Louisiana Court of Appeal, 1975)
Port Arthur Towing Company v. Owens-Illinois, Inc.
352 F. Supp. 392 (W.D. Louisiana, 1972)
Mire v. Sunray DX Oil Company
285 F. Supp. 885 (W.D. Louisiana, 1968)
LeSage v. Union Producing Co.
184 So. 2d 727 (Supreme Court of Louisiana, 1966)
Hayes v. Muller
146 So. 2d 176 (Louisiana Court of Appeal, 1962)
Davis v. Laster
130 So. 2d 479 (Louisiana Court of Appeal, 1961)
Ark. La. Gas Co. v. Evans
338 S.W.2d 666 (Supreme Court of Arkansas, 1960)
Hodges v. Long-Bell Petroleum Company
121 So. 2d 831 (Supreme Court of Louisiana, 1960)
Tinsley v. Seismic Explorations, Inc.
117 So. 2d 897 (Supreme Court of Louisiana, 1960)
Dees v. Hunt Oil Co.
123 F. Supp. 58 (W.D. Louisiana, 1954)
Texas Co. v. State Mineral Board
44 So. 2d 841 (Supreme Court of Louisiana, 1949)
Arnold v. Sun Oil Co.
48 So. 2d 369 (Supreme Court of Louisiana, 1949)