Hunt Trust v. Crowell Land Mineral Corporation

28 So. 2d 669, 210 La. 945, 1946 La. LEXIS 843
CourtSupreme Court of Louisiana
DecidedNovember 12, 1946
DocketNo. 38189.
StatusPublished
Cited by12 cases

This text of 28 So. 2d 669 (Hunt Trust v. Crowell Land Mineral Corporation) 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
Hunt Trust v. Crowell Land Mineral Corporation, 28 So. 2d 669, 210 La. 945, 1946 La. LEXIS 843 (La. 1946).

Opinions

FOURNET, Justice.

The Hassie Hunt Trust, as the sub-lessee that had for more than a year (by virtue of an assignment of the lease executed by the defendant’s ancestor in title) been in possession of the oil, gas, sulphur,, and other minerals underlying certain lands in Evangeline Parish belonging to-the defendant, Crowell Land and Mineral Corporation, and was actively engaged in drilling for and producing oil therefrom,, availing itself of the provisions of Act 205-of 1938, instituted this jactitation or slander of title suit against the defendant landowner to protect its possession. After the two instruments under which the plaintiff allegedly had possession of the premises-as sub-lessee were filed in response, to the defendant’s prayer for oyer, the defendant, converted the suit into a petitory action by asserting title in itself on the ground, that the lease under which the plaintiff took possession of the premises had expired by its terms. A certified copy of the lease in question was made a part-of the defendant’s petition and other interested parties were joined in the suit. The plaintiff then filed exceptions of no cause and no right of action to the defendant’s petition in the petitory action and the defendant appealed suspensively when the trial judge sustained these exceptions and. dismissed its action.

Under the well recognized rule of procedure, by converting this jactitation suit into a petitory action, the defendant became the plaintiff in such' action and assumed the burden of proving its title to the property rights in controversy (Arent v. Hunter, 171 La. 1059, 133 So. 157) and the rule of law that for the pur *950 pose of disposing of the exceptions of no cause and no right of action all of the well pleaded allegations of fact in a petition must •be accepted as true is applicable.

The undisputed facts of this case are that the defendant’s ancestor in title, the Crowell and Spencer Lumber Company, Ltdv for the recited cash consideration of $1,045.36 leased certain property owned by it in Evangeline Parish on June 9, 1919, for mineral exploration for a term of 25 years. This lease, under its terms, was kept in full force and effect by the payment of $1 per acre yearly rental until 1943, at which time the plaintiff, Hassie Hunt Trust, that had by an instrument dated November 1, 1942 (later supplemented by instruments dated November 1, 1943, and May 11, 1944), become the sub-lessee of .this lease, took possession of the premises by beginning the drilling of a well that was completed as a producer in paying quantities that same year and has continued the development of this property with the result that at the time the 25 year period had elapsed four wells had been completed as producers on the property and, at the time this suit was filed on October 4, 1944, three more had been completed. This suit was instituted when the defendant declined to sign a division order for the oil produced from the property in accordance with the provisions of the lease contract without the inclusion in such order of a provision stipulating that no royalties would be paid the plaintiff after the twenty-fifth year from the date of the lease, or after June 9, 1944, contending that under the express terms of the contract of lease it terminated on that dale regardless of the production of oil in paying quantities prior to that time.

The prefatory remarks to the lease in question characterize the instrument as an "agreement and contract of lease” and after giving the status of the parties, the consideration, and the description of the property, contains eleven enumerated sections in which are found the conditions thereof. (Italics ours.)

The first section states that the objects and purposes for which the lease was granted was to permit the lessee “to search for minerals of all kinds * * * and doing all things necessary to accomplish the objects and purposes of this Lease ‡ ‡ ‡ »

The second section simply imposes restrictions upon the use of the described lands, limiting the use of the surface area to only those parts absolutely necessary for the purpose of carrying out the purposes of the lease.

By the third section the lessor specifically reserves and excepts from the lease all timber on the leased premises and makes provision for remuneration for such timber as may be used or damaged as well as the location of the wells with respect to one of the buildings on the leased premises.

In the fourth section it is declared: "This lease is to continue in full force and *952 effect for a period of twenty five (25) years from its date unless it becomes null and ■void at an earlier díate by virtue of the failure of the ‘Second Party" * * * or sub-lessees to comply with and fulfill any of the conditions herein entered into, or otherwise.” It is further declared that default or violation of any of the conditions of the lease shall render the same null and void.- (Italics ours.)

By the fifth section the lessee is obligated to commence actual and bona fide operations on the leased premises within 12 months from the date of the lease and tc prosecute such operations “diligently and continuously by drilling and so on, until the stratum of oil, gas, or sulphur, or some other mineral deposit, is found, and developed in marketable quantities * * or until such depth is reached as to satisfy the operators that no such deposits can be found under the land at the point at which the operation is going on” and provides further that the lessee shall have the right to make as many successive attempts as he may please to find oil, so long as not more than six months intervenes between such attempts, "provided also, that no further attempts or operations shall be conducted or attempted after the maximum period of twenty-five (25) years from this date.” (Italics ours.)

The sixth section provides for the payment of a royalty of 1/8 part or portion of all of the oil produced, and saved on the leased premises, or a 1/8 of the proceeds of any sale of the same, less such oil as may be used in the development and consumed on the premises. This section also contains further provisions that are not pertinent to a determination of the issue presented to this case.

In the seventh section it is declared that if oil, gas, or other minerals be found in paying quantities, the lessee shall become vested “with an Estate in and to all such minerals underlying the said land with the exclusive right to produce the same, as long as any of the said minerals shall be produced in paying quantities, but always and ever subject to the conditions and covenants set forth in this lease.” (Italics ours.)

The eighth section provides for the payment of an annual rental of $1 an acre in lieu of the drilling provided for in the fifth section, such payment having the effect of renewing and continuing the lease in force at the option of the lessee "but not exceeding the life of this lease which is Twenty-five (25) years from its date.”

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

Related

Acadian Geophysical Services, Inc. v. Cameron
119 S.W.3d 290 (Court of Appeals of Texas, 2003)
Henry v. Ballard & Cordell Corp.
418 So. 2d 1334 (Supreme Court of Louisiana, 1982)
Howk v. Sulphur Motor Co.
155 So. 2d 272 (Louisiana Court of Appeal, 1963)
Garber v. Phillips Petroleum Co.
146 So. 2d 518 (Louisiana Court of Appeal, 1962)
Rogillio v. Cazedessus
127 So. 2d 734 (Supreme Court of Louisiana, 1961)
Orleans Parish School Board v. Campbell
126 So. 2d 82 (Louisiana Court of Appeal, 1960)
Kendrick v. Garrene
96 So. 2d 58 (Supreme Court of Louisiana, 1957)
Melancon v. Texas Company
89 So. 2d 135 (Supreme Court of Louisiana, 1956)
Miami Corp. v. State Mineral Board
48 So. 2d 643 (Supreme Court of Louisiana, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
28 So. 2d 669, 210 La. 945, 1946 La. LEXIS 843, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-trust-v-crowell-land-mineral-corporation-la-1946.