Huckabay v. Texas Co.

73 So. 2d 321, 3 Oil & Gas Rep. 1889, 1954 La. App. LEXIS 791
CourtLouisiana Court of Appeal
DecidedMay 26, 1954
DocketNo. 8127
StatusPublished
Cited by1 cases

This text of 73 So. 2d 321 (Huckabay v. Texas Co.) 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
Huckabay v. Texas Co., 73 So. 2d 321, 3 Oil & Gas Rep. 1889, 1954 La. App. LEXIS 791 (La. Ct. App. 1954).

Opinion

HARDY,, Judge.

This is a suit in which plaintiffs seek the recovery of an undivided one-eighth of the natural gas produced by the defendant company, or the cash value thereof which has been fixed in the sum of $1,102.-58. After trial there was- judgment in favor of plaintiffs in the amount above set- forth, from which judgment defendant has appealed. '

There is no dispute as to the material facts.’ In 1944 Osborne J. Dykes was the owner of a tract" of land situated in Red River Parish, Louisiana, containing 636 acres, more or less. By proper deeds of conveyance executed, filed and recorded during the year 1944 Dykes conveyed an undivided one-fourth interest in the min-.erais in the said property to each of his three sons. By deed dated August 7, 1945 and recorded August 8, 1945 in the Conveyance Records of Red River Parish, Dykes sold and conveyed the property to Theodore L. Gray, reserving to himself one-half of the minerals in the said property. On August "8, 1945, Dykes and his three sons executed an oil, gas and mineral lease to The Texas Company, the defendant ip this suit, which lease was filed and recorded in the Conveyance Records of Red River Parish on August 23, 1945. The lease purported to cover the full interest in the property described and The Texas Company was not informed as to any outstanding mineral interest which was not covered by the lease. By deed dated February 28, 1950 Gray conveyed the property to P. Lyndon Huckabay, Pugh T. Huckabay and wife, Mrs. Verda McNaughton Huckabay, J. Philip Smith and wife, Mrs. Vera Huck-abay Smith. These parties, together with Henry W. Bethard, Jr. and Henry W. Bethard, III, members of the law partnership of Bethard & Bethard, are the plaintiffs in this suit. On September 25, 1950 Pugh T. Huckabay addressed a letter to The Texas Company informing the said company that he and his co-owners claimed title to the property described, which title included the entire surface of the land and a mineral interest believed to be an undivided one-eighth therein. On November 22, 1950 an attorney-at-law in the employ of The Texas Company rendered an opinion recognizing title of the Huckabays to the surface and a one-eighth of the minerals in the property and setting forth The Texas Company as full owner of the leasehold interest. The law partnership of Bethard and Bethard, composed of Henry W; Bethard, Jr. and Henry W. Bethard, III, ácquired an undivided one-fourth of one-eighth of the minerals in the property by conveyance from the Huckabays on [323]*323June 13, 1951. On November 4, 1951, The Texas Company drilled a well on the property, which well, known as Dykes Well No. 2, was completed as a gas producer at a total cost of $110,150.59. This suit was filed December 22, 1952.

There are other facts appearing in the record which, however, we think it unnecessary to detail, inasmuch as they have no material bearing upon the issues of the case. Among these facts is evidence of the filing of a suit, accompanied by the filing of a notice of lis pendens, by the Huckabay plaintiffs against O. J. Dykes seeking a declaratory judgment fixing the mineral interests of said parties with respect to this and other tracts of land, which action was settled by a compromise agreement recognizing the Huckabays as owners of an undivided one-eighth of the minerals in this particular property. We further note in brief of counsel for defendant reference to a supplemental opinion by its attorney under date of September 29, 1952, recognizing the ownership of plaintiffs of a one-eighth mineral interest, which exhibit, however, is not incorporated in the record before this court. There is also included in the said brief a statement of an offer to plaintiffs by an official of The Texas Company of the choice of joining the said company in the operation on the property or of ratifying the Dykes lease and receiving a proportionate part of the royálties from the production. This statement is not substantiated by anything that we find in the record and, to the contrary, the plaintiff, Pugh J. Huckabay, the writer of the letter of September 25, 1950, testified positively and emphatically that no proposal for lease had been made by The Texas Company.

The court has been favored by exceedingly able, instructive and informative briefs, filed by counsel for the respective parties litigant, despite which, however, it has found determination of the issue presented to be fraught with considerable difficulty.

The defense to plaintiffs’ demands is found in the contentions, first, that defendant as lessee of the owners of mineral servitudes on a tract of land, which servi-tudes were acquired from the sole owner of the surface of said tract, is vested with the right to enter upon said land in the exercise of the servitude; second, that defendant in good faith believed itself to be the owner of the whole leasehold interest on the property involved; and, third, that defendant is liable only for the return of the value of plaintiffs’ proportionate interest in the recovery of the gas produced from Dykes No. 2 well, less their proportionate part of the drilling and operating expenses. It is asserted that the third proposition is true regardless of the status of defendant either as lessee" in good faith, lessee in legal bad faith, or, with respect to plaintiffs’ interest, as lessee in moral bad faith even to the extent of being a willful trespasser.

We have experienced no difficulty in resolving the first proposition for we think the jurisprudence is clear on the point that the lessee of servitude owners, who had acquired such servitudes from the owner of both the whole of the land and the minerals, is entitled to entry upon the land for the purpose of drilling and producing oil or gas; Starr Davis Oil Company, Inc., v. Webber, 218 La. 231, 48 So.2d 906; Union Sulphur Company, Inc. v. Lognion, La.App., 26 So.2d 845; Clark v. Tensas Delta Land Company, 172 La. 913, 136 So. 1. The correctness of this principle is at least impliedly recognized by counsel for plaintiffs. In this case it is an admitted fact that when Dykes conveyed an undi vided one-fourth interest in the minerals to each of his three sons, and when he reserved an undivided one-eighth of the minerals to himself, he was the sole owner of the whole of the land. It therefore follows that defendant, The Texas Company, was the lessee of the owners of servitudes who had acquired from one who owned both the land and the minerals. The conclusion, based upon the facts above cited and considered in connection with the legal principle enunciated in the cases cited supra, that The Texas Company was vested with the right to enter upon the [324]*324property, to drill and to conduct operations for the production of minerals therefrom is inescapable.

Much of the argument of counsel, in fact all of their argument with the exception of such part as concerns the above holding, has been devoted to a detailed consideration of the question of good or bad faith, the degree thereof and the consequent effect upon the extent of liability of defendant. In our opinion no question of good or bad faith is pertinent or material to the issue presented for we are firm in the belief that one who properly exercises a right conferred by operation of law cannot be subject to a charge of bad faith in any degree.

Unfortunately, the above conclusion does not satisfactorily determine the question of the nature and degree of reimbursement, from the production of oil or gas, to which the plaintiffs are entitled. The question may be presented as follows:

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Related

Huckabay v. Texas Company
78 So. 2d 829 (Supreme Court of Louisiana, 1955)

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Bluebook (online)
73 So. 2d 321, 3 Oil & Gas Rep. 1889, 1954 La. App. LEXIS 791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huckabay-v-texas-co-lactapp-1954.