Lamson Petroleum Co. v. Hallwood Petroleum, Inc.

763 So. 2d 40, 99 La.App. 3 Cir. 1937, 146 Oil & Gas Rep. 129, 2000 La. App. LEXIS 1135, 2000 WL 573114
CourtLouisiana Court of Appeal
DecidedMay 10, 2000
Docket99-1937
StatusPublished
Cited by11 cases

This text of 763 So. 2d 40 (Lamson Petroleum Co. v. Hallwood Petroleum, Inc.) 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
Lamson Petroleum Co. v. Hallwood Petroleum, Inc., 763 So. 2d 40, 99 La.App. 3 Cir. 1937, 146 Oil & Gas Rep. 129, 2000 La. App. LEXIS 1135, 2000 WL 573114 (La. Ct. App. 2000).

Opinion

763 So.2d 40 (2000)

LAMSON PETROLEUM COMPANY
v.
HALLWOOD PETROLEUM, INC., et al.

No. 99-1937.

Court of Appeal of Louisiana, Third Circuit.

May 10, 2000.
Rehearing Denied June 28, 2000.

*41 Mark H. Tompkins, Lafayette, Counsel for Appellants Union Oil Company of California, Petrocorp, Inc., Duer Wagner & Co., States Inc., Agricultural Methane, L.P. and Colt Resources Corp.

John W. Grant, Lafayette, Counsel for Appellants Oran Guidry, Jr.

Robin D. McGuire, Arthur D. Mouton, Lafayette, Carl D. Rosenblum, Covert J. Geary, New Orleans, Counsel for Appellee Lamson Petroleum Corp.

Ewell E. Eagan, New Orleans, Counsel for Appellants Union Oil Company of California, and Petrocorp Inc.

(Court composed of Judge NED E. DOUCET, Jr., Chief Judge, SYLVIA R. COOKS, and OSWALD A. DECUIR, Judges).

DOUCET, Chief Judge.

This case concerns ownership of a .59 acre strip of roadbed located in the Scott Field area of Lafayette Parish, Louisiana. The Plaintiff, Lamson Petroleum Corporation (Lamson) sued Hallwood Petroleum, Inc. and others who claim ownership of the property or underlying minerals as landowners, mineral lessees, royalty owners or overriding royalty owners. The Plaintiff seeks recognition of its oil, gas and mineral leases on the .59 acre tract, recovery of 100% of the production attributable to that property and a report of all sums due to it from the sale of production attributable to the property.

In 1989, Hallwood completed the A.L. Boudreaux No. 1 Well in the Scott Field. The property at issue in this suit is located in the production unit and both Hallwood and Lamson Petroleum Corporation purport to hold oil mineral leases on the property. The Defendants leased from the successors in title to the nine tracts divided in the 1933 partition of the property of Oneil Guidry. Lamson leased from the successors in title to a portion of the property which was allegedly left undivided. The trial judge, in his written reasons for judgment, correctly outlined the chain of title and the essential issues of this case as follows:

The lessors of both Lamson and the defendants trace their titles to Oneil Guidry as "common author" within the *42 provision of C.C.P. 3653. Oneil Guidry and his wife, Josephine Foreman, owned land in Section 1, T10S, R3E, and Section 6, T10S, R4E, Lafayette Parish. Both died intestate, Josephine in 1918 and Oneil in 1933. By Judgment of Possession in their joint succession proceedings dated October 25, 1933, their nine children were recognized as owners of and placed in possession of the property belonging to the successions. A tract of land which had been described in the succession proceedings as containing 248 acres, more or less (or a portion of it only according to Lamson's allegations) was partitioned by the drawing of lots. The partitioned property was divided into nine lots by the survey of V.E. Smith dated October 28, 1933, six lots containing 34.76 arpents each and three lots containing 33.33 arpents each, totaling 308.56 arpents. The three 33 .33-arpent tracts were represented to constitute the 100-arpent tract described in the boundary agreement between Oneil Guidry and Severin Duhon in 1919. In the act of partition dated November 16, 1933, the heirs acknowledged that the nine lots were of equal value, each having a value of $1000. Lot 7, recited to contain 33.33 arpents was allotted to Cleopha Guidry.
The core issue in this litigation is the location of the North boundary of Lot 7 both as to its actual location on the ground and as it relates to the public road and to the township line separating T9S and T10S, R4E. The North boundary of Lot 7 recited in the partition is "public road" and the survey indicates "Public Road" as lying, immediately North of but not a part of Lot 7. Lamson contends that the location of the township line on the survey is incorrect; further, that a portion of the road was owned by the nine heirs in indivision and that because no portion of the road was included in Lot 7, the portion located South of the township line was not included in the partition and thereby remained in indivision.
The defendants assert that no part of the road lying North of Lot 7 was owned by Oneil Guidry and that the North boundary of Lot 7 was also the North boundary of the Oneil Guidry property. The parties agree that Oneil Guidry had not acquired any property North of the township line dividing T9S and T10S and that the North boundary of the Oneil Guidry property was the township line. However, the defendants contend that the road was located entirely North of the township line and, as stated above, the North boundary of Lot 7 was the North boundary of the Oneil Guidry property. Although not so indicated in the pleadings, the defendants further contend in argument that even if a portion of the road is South of the township line, that portion was a part of Lot 7 because the documents indicate that the heirs intended to partition all of the property owned in indivision. Lamson claims that a portion of the road was located South of the township line; further, that portion of the road was not partitioned; and further, that portion of the road is the .59 acres at issue.
The basis of Lamson's claim for 100% of the production attributable to it and its lessors is that the defendants are bad faith possessors under Civil Code Articles 487 and 488 and thereby not entitled to reimbursement of any of the expenses of production.

The trial court, after a trial on the merits, handed down judgment in favor of Lamson, agreeing that the original 1933 partition did not include the property at issue. Remaining as parties to the litigation at the time of trial were: Union Oil Company of California, PetroCorp Incorporated, CXY Energy, Inc., Duer Wagner & Company, States, Inc., Agricultural Methane, L.P., Colt Resources Corporation, James H. Echezabal, J.H. Echezabal, Inc., Michael Barnes, Gilbert Eppich, Linda Eppich, Raymond L. Noel, Bright Condos, James H. Dunbar, Jr., Ronald J. Guidry, Standard Mortgage Corporation, *43 Dusty James Guidry, Brandy Nicole Guidry, Daniel R. Muhs, Sunset Production Corporation, Future Realty, Inc., James C. Gresham, Jr., Mineral Investment Corporation, Adasair Copland, Oran Guidry, Jr., Harvey R. Guthrey, Constance B. Guthrey, Ellen Wagner, Lanscor Development Corporation, John D. Kirkland, Ernest Henry Groppe, Jr., Richard E. Agee and IDC Energy Corporation. Judgment was rendered against these parties. Also remaining as defendants were: James H. Echezabal, J.H. Echezabal, Inc., Michael Barnes, Gilbert Eppich, Linda Eppich, Raymond L. Noel, Bright Condos, James H. Dunbar, Jr., Ronald J. Guidry, Standard Mortgage Corporation, Dusty James Guidry, Brandy Nicole Guidry and Daniel R. Muhs, against whom default judgments were rendered.

The judgment recognized the Lamson leases, ordered that effective January 1, 1990, 100% of the oil, gas and other mineral production attributable to the interest of Lamson and its lessors is due and payable to them, that the Defendants render an accounting of that production and that the Defendants pay legal interest on all amounts due Lamson for past production accruing from the time each amount was received by Lamson, except insofar as the amounts were deposited into an escrow account established by the parties. Suspensive appeals were filed by the following Defendants: Union Oil Company of California, PetroCorp Inc., CXY Energy Inc., Duer Wagner & Co., States, Inc., Agricultural Methane, L.P., Colt Resources Corp., and M. Hampton Carver.

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Bluebook (online)
763 So. 2d 40, 99 La.App. 3 Cir. 1937, 146 Oil & Gas Rep. 129, 2000 La. App. LEXIS 1135, 2000 WL 573114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamson-petroleum-co-v-hallwood-petroleum-inc-lactapp-2000.