Hudspeth v. Producers' Oil Co.

64 So. 891, 134 La. 1013, 1914 La. LEXIS 1696
CourtSupreme Court of Louisiana
DecidedMarch 30, 1914
DocketNo. 19,674
StatusPublished
Cited by18 cases

This text of 64 So. 891 (Hudspeth v. Producers' Oil Co.) 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
Hudspeth v. Producers' Oil Co., 64 So. 891, 134 La. 1013, 1914 La. LEXIS 1696 (La. 1914).

Opinion

LAND, J.

The petition alleged that Mrs. Emily A. Hudspeth and Miss Leila Hudspeth had been for many years owners of an undivided one-half interest in and to a certain tract of land in the parish of Evangeline, being the S. % of the N. W. and the N. W. % of the S. W. % of section 35, township 3 S., range 1 W. The petition further alleged that the said Hudspeths on March 6, 1912, sold to their coplaintiffs, J. C. Wilson and W. B. Tucker, an undivided interest in and to the N. % of the S. % of the N. W. of said section 35 for the consideration of $5,-000 in cash, and $12,000 to be paid by the purchasers out of 50 per cent, of the oil and other minerals produced from the premises.

The petition further alleged that the said Hudspeths on March 7, 1912, leased for development of oil and gas to said Wilson and Tucker the undivided one-half interest in [1015]*1015and to the S. % of the S. % of the N. W. % and the N. W. % of the S. W. % of section 35 aforesaid.

The petitioners alleged that the other undivided one-half interest in and to the 120 acres above described was owned by the Le Danois Land & Stone Company of the parish of Orleans, which had executed a mineral lease of the said interest to the Myles Mineral Company of said parish; that all the land adjoining the said 120 acres on the south and east was owned absolutely by the said Le Danois Land & Stone Company, which had leased the same to the said Myles Mineral Company, which had subleased a portion of said land to the Producers’ Oil Company of Texas.

The petitioners further alleged that the Myles Mineral Company had recently under its said lease completed a producing well upon the S. W. Yi of the N. E. % of said section 35, within a very short distance of the lines of the property in which the petitioners owned an interest as aforesaid; and that said oil well was then flowing large quantities of oil daily; and that one T. C. Bass and said Producers’ Oil Company, under some arrangement with the Myles Mineral Company, were drilling a well in search for oil and gas in the N. E. % of said section within a few feet of petitioners’ said property; and that they and other persons were making preparations to drill other wells adjacent to the lines of said property.

Petitioners further alleged that, to protect the land in which they were interested from drainage by wells on adjacent lands, it was necessary that a number of wells be drilled on the said 120 acres along and in proximity to the eastern and southern boundary of said tract; that the petitioners were in possession of the said 120 acres of land, but not claiming exclusive possession of the same, conceding the right of their co-owners to the like possession; and that your petitioners, Wilson and Tucker, had commenced to erect a derrick thereon for the purpose of exercising their right to drill for oil and gas, for the benefit not only of themselves but for their co-owners.

The petition further alleged that the three defendant companies were interfering with the petitioners in their operations for drilling on the land, and were threatening to prevent petitioners and other employSs from exercising their said rights on the premises by threat and show of force.

Petitioners prayed for writs of injunction restraining and prohibiting the defendants from interfering with, molesting, hindering, or preventing in any way the drilling and operations of said Wilson and Tucker upon the said property; and that after legal notices and delays for judgment perpetuating said injunction.

Defendants filed a rule on the plaintiffs to show cause why the injunction should not be dissolved on several grounds, among others that the Myles Mineral Company, at the time of the issuance of said injunction, was in possession of the property sued for under a valid lease from Mrs. and Miss Hudspeth, and that said Wilson and Tucker were well acquainted with the existence of said lease before they made the purchase and lease referred to in the petition; and that at the same time the Producers’ Oil Company, under a sublease from the Myles Mineral Company and said company, were drilling wells on said premises; and that on or about March 27,1912, the plaintiffs took surreptitious possession of a piece of said land about 24 feet square, against the warning and protest of the company aforesaid, and have since maintained said possession by armed violence; and that only one producing well was drilled on the adjoining property, and, before any oil was taken therefrom for commercial purposes, two wells had been begun on the land in controversy. The rule was referred to the mer[1017]*1017its. Thereupon the defendant excepted that the plaintiffs could not attack collaterally the said lease from the Hudspeths to the Myles Mineral Company under which the defendants were in possession of the premises.

Defendants, after pleading the general issue, averred that they claimed and held possession of the premises by valid leases from Mrs. and Miss Hudspeth and the Le Danois Land & Stone Company; that they sank eight wells in proximity to the tract in controversy before they found oil on February 4, 1912, and the eighth well was capped and not opened until the latter part of February, 1912, when it showed a flow of about a thousand barrels a day, which has constantly decreased; and that while well No. 8 was boring, and shortly before the discovery of oil therein, the Myles Mineral Company, at the solicitation of the plaintiffs, promised that the next well should be bored on the property in dispute, with which promise the plaintiffs expressed themselves as entirely satisfied; that in accordance with this promise the said company on February 19, 1912, and before No. 8 was opened, selected a spot to drill a well on the premises in dispute, and commenced operations thereon to clear the land .and to erect a derrick, and prosecuted said work diligently, and was so engaged in March 3, 1912, when the Hudspeths notified the said company that said lease was not binding and was terminated; whereupon said company made to the said plaintiffs tender of the sum required by said lease to keep the same in effect, which tender the said plaintiffs refused. Defendants in their answer reiterated the averments of their rule as to the alleged trespass on the premises by the said Wilson and Tucker.

Defendants prayed that the injunction be dissolved and the plaintiffs’ demand be rejected with costs, reserving to said plaintiffs the right to contest if they so desired, the lease of said property by the Hudspeths to the Myles Mineral Company in a direct action; and for $1,000 for counsel fees, and costs.

There was judgment in favor of the defendants dissolving the injunction, and rejecting plaintiffs’ demand, and also for $500, and costs to be taxed. Plaintiffs appealed.

[1 ] This suit was instituted on April 5,1912. The petition ignored the lease from Mrs. and Miss Hudspeth to the Myles Mineral Company, treating the same as a nullity.

The lease was executed on the 10th day of April, 1909, and was duly recorded in the parish of St. Landry on May 24, 1909. Under the terms of the contract the lessee was to commence operations on the tract by drilling, boring, or mining for oil within 24 months from the date thereof. It was further stipulated as follows:

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Bluebook (online)
64 So. 891, 134 La. 1013, 1914 La. LEXIS 1696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hudspeth-v-producers-oil-co-la-1914.