Jones v. Southern Natural Gas Co.

36 So. 2d 34, 213 La. 1051, 1948 La. LEXIS 925
CourtSupreme Court of Louisiana
DecidedApril 26, 1948
DocketNo. 38476.
StatusPublished
Cited by16 cases

This text of 36 So. 2d 34 (Jones v. Southern Natural Gas 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
Jones v. Southern Natural Gas Co., 36 So. 2d 34, 213 La. 1051, 1948 La. LEXIS 925 (La. 1948).

Opinions

O’NIELL, Chief Justice.

On September 8, 1943, Mrs. Mary Ellis Jones leased to L. M. Calhoun, Jr., for the production of oil, gas and other minerals, a tract of land described as follows:

*1053 “The Southeast quarter of the Southwest quarter (SE^ of SW^) and the South half of the Southeast quarter (S^ of SE)4) Section One (1), Township Thirteen (13) North, Range Seven (7) East. The Southwest quarter of the Southwest quarter (SW)4 of SW^), the North half of Southeast quarter of Southwest quarter (W/2 of SE)4 of SWi/i) and the North half of South half of Southeast quarter (Ni/i of Si/2 of SEi/4) Section Six (6). The South half of Southwest quarter of Northwest quarter (S^ of SWy, of NWÍ4), the Southeast quarter of the Northwest quarter (SE% of NW^,) and the Southwest quarter (SW^,) of Section Five (5). The Northeast quarter of the Northwest quarter (NE% of NW)4) Section Eight (8), Township Thirteen (13) North, Range Eight East. All of the above containing in the aggregate Five Hundred Eighteen and Eighty two one-hundredths (518.82) acres, more or less.”

The consideration paid by Calhoun for the lease was $518.82 as stated in the lease. It contained the usual declaration that for all of the purposes of the lease the land described should be treated as containing 518.82 acres, even though it might actually contain more or less acreage. The primary term of the lease was ten years. The act contained also the following clause:

“If operations for drilling are not commenced on said land on or before one year from this date, the lease shall then terminate as to both parties unless on or before such anniversary date lessee shall pay or tender to lessor or to the credit of lessor in Richland State Bank at Rayville, Louisiana (which bank and its successors are lessor’s agent and shall continue as the depository for all rentals payable hereunder regardless of changes in ownership of said land or the rentals) the sum of Five Hundred Eighteen and 82/100 dollars ($518.82) (herein called rental) which shall cover the privilege of deferring commencement of drilling operations for a period of twelve (12) months. In like manner and upon like'payments or tenders annually the commencement of drilling operations may be further deferred for successive periods of (12) months each during the primary term. The payment or tender of rental may be made by the check or draft of lessee mailed or delivered to lessor or to said bank on or before such date of payment. * * * Lessee, or any assignee hereunder, may at any time execute and deliver to lessor, or to the depository above named, or place of record, a release or releases covering any portion or portions of the premises held by him, and thereby surrender this lease as to such portion or portions, and thereafter the rentals payable by him shall be reduced proportionately.”

The lease provided that the rights of either party thereunder might be assigned in whole or in part, and in that connection the act contained the following clause:

“In event of assignment of this lease as to a segregated portion of said land, the *1055 rentals payable hereunder shall be apportionable as between the several leasehold owners ratably according to -the surface area of each, and default in rental payment by one shall not affect the rights of other leasehold Owners hereunder.”

On July 31, 1944, Calhoun assigned the lease to the Southern Natural Gas Company, so far as it covered the land described as follows:

“The South half of Southeast • quarter (Sy> of SE14) Section 1, Township 13 North Range 7 East; The Southwest quarter of Southwest quarter (SWy of SWyj Section 6; The South half of Southwest quarter of Northwest quarter (SVi of SWJ4 of NW^t), the Northwest quarter of Southwest quarter (NWJ4 of SWyjJ and the East half of Southwest quarter (Ei^ of SW%) Section 5; The Northeast quarter of Northwest quarter (NEy of NW%) Section 8, Township 13 North Range 8 East, containing 300 acres, more or less.”

On August 24, 1944, the Southern Natural Gas Company mailed its check to the Richland State Bank for $300 accompanied by a blank receipt for the bank to sign, declaring that the check for $300 was in full payment of all delay rentals for the period from September 8, 1944, to September 8, 1945, as per the terms of the oil and gas and mineral lease executed by Mrs. Mary Ellis Jones in favor of L. M. Calhoun, Jr., and subsequently partially assigned to the Southern Natural Gas Company to the extent of 300 acres, more or less, and particularly described in the receipt as follows:

“Sy2 of SEi/4 Sec. 1, Twp. 13 North, Range 7 East; SWyj, of SW1/^ Section 6; sy2 of swy of NW%; NWy4 of SW% and Ei/2 of SW14 Sec. 5; NEy4 of NW% Section 8, Township 13 North, Range 8 East.”

The receipt contained a citation of the conveyance book and page where the lease was recorded, and concluded with the statement that the $300 was for the credit of Mrs. Mary Ellis Jones. The cashier of the Richland State Bank signed the receipt and retained it in the files of the bank, and returned a copy to the Southern Natural Gas Company. At the same time he mailed a deposit slip for the $300 to Mrs. Jones declaring that the slip was a duplicate and that the amount of $300 was deposited to her credit by the Southern Natural Gas Company. Mrs. Jones’ checking account with the bank was carried in the name of Mrs. W. L Jones. She had no checking account in the name of Mrs. Mary Ellis Jones; but the bank, knowing that Mrs. W. L. Jones and Mrs. Mary Ellis Jones were one and the same individual, placed the deposit of $300 to the credit of Mrs. W. L. Jones.' The duplicate deposit slip which was mailed to her did not contain a description of the 300 acres of land, but the receipt which was sent to the bank by the Southern Natural Gas Company with the check for $300 showed upon its face that if each of the sections referred to contained *1057 the regulation area of 640 acres, the 7% quarter-quarter sections described in the receipt contained exactly 300 acres.

Mrs. Jones made no complaint of there being a shortage in the payment of the delay rental but continued to draw against her checking account in which the bank had deposited the $300.

On August 11, 1945, the Southern Natural Gas Company again deposited $300 in the Richland State Bank to the credit of Mrs. Mary Ellis Jones, to pay the delay rental for the period from September 8, 1945, to September 8, 1946. The remittance was accompanied by a statement of the Southern Natural Gas Company to the effect that the payment was made for the purpose of continuing in force the mineral lease dated September 8, 1943, executed by Mrs. Jones in favor of L. M. Calhoun, Jr., so far as it covered 300 acres in the sections mentioned in the assignment by Calhoun to the Southern Natural Gas Company. The cashier of the bank signed the receipt which accompanied the remittance and returned the receipt to the Southern Natural Gas Company, and at the same time sent to Mrs. Jones a deposit slip for the $300. For some reason which is not explained in the testimony the bank opened a new account in the name of Mrs. Mary Ellis Jones, instead of depositing the $300 to the credit of the account of Mrs. W. L. Jones, as the bank had done with the first deposit of $300.

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Cite This Page — Counsel Stack

Bluebook (online)
36 So. 2d 34, 213 La. 1051, 1948 La. LEXIS 925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-southern-natural-gas-co-la-1948.