Lamson v. Austral Oil Co.

712 So. 2d 1081, 97 La.App. 3 Cir. 1596, 140 Oil & Gas Rep. 38, 1998 La. App. LEXIS 1531, 1998 WL 300103
CourtLouisiana Court of Appeal
DecidedJune 10, 1998
DocketNo. W97-1596
StatusPublished
Cited by1 cases

This text of 712 So. 2d 1081 (Lamson v. Austral Oil 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
Lamson v. Austral Oil Co., 712 So. 2d 1081, 97 La.App. 3 Cir. 1596, 140 Oil & Gas Rep. 38, 1998 La. App. LEXIS 1531, 1998 WL 300103 (La. Ct. App. 1998).

Opinion

1 iPETERS, Judge.

Gary and Theresa C. Lamson, husband and wife, and Alfred and Helen M. Lamson, also husband wife, instituted this suit seeking payment of royalties under an oil, gas, and mineral lease and requesting that the lease be partially canceled. This matter is now before us because Triton Oil & Gas Corp. (Triton), a Delaware corporation, sought relief from a trial court judgment rejecting certain exceptions which addressed the sufficiency of the notice requirements of La.R.S. 31:132 and La.R.S. 31:137. For the following reasons, we reverse the trial court’s judgment and grant Triton’s exception of prematurity.

laDISCUSSION OF THE RECORD

On December 14, 1989, the Lamsons granted an oil, gas, and mineral lease covering the minerals under immovable property situated in Lafayette Parish, Louisiana, to Petroleum Land Services, Inc. (Petroleum Land Services), a Louisiana corporation. By an assignment dated March 13, 1990, Petroleum Land Services assigned all of its interest as lessee under the lease to EM Nominee Partnership Company (represented by Qui-noco Energy Inc. as general partner) and Quinoco Consolidated Partners, L.P. (represented by Quinoco Oil and Gas Inc. as general partner). EM Nominee Partnership Company was assigned seventy percent of the lessee’s interest, and Quinoco Consolidated Partners, L.P., was assigned the remaining thirty percent.

[1083]*1083On November 12, 1990, these assignees executed an act of partial assignment which resulted in the following division of the working interest under the lease:

EM Nominee Partnership Company 24.3250%
Hailwood Consolidated Partners,
L.P. (formerly Quinoco Consolidated Partners, L.P.) . 10.4250%
Unocal Exploration Corporation 40.0000%
TOC Acquisition Corp. 20.0000%
Triton Oil & Gas Corp. 4.9900%
Arlington Exploration Co. 0.2600%

Effective January 1, 1993, Triton transferred its assigned interest to PetroCorp Incorporated (PetroCorp), a Texas Corporation.

For various reasons set forth in the pleadings, on February 16, 1994, Gary Lamson and Alfred Lamson made separate written demands on Unocal Exploration Corporation (Unocal) and Hailwood Petroleum, Inc. (Hall-wood) on behalf of themselves and their spouses “for the prompt and proper payment and accounting of all royalties due [them].” Attached to each of these demand letters was a copy of the |3partial act of assignment of the oil and gas leases dated November 12, 1990, referred to above. The copies reflected that the instrument had been recorded as File Number 91-4042 in the Lafayette Parish Clerk of Court’s office.

On November 4,1994, the Lamsons filed a petition seeking payment of royalties due under the December 14, 1989 lease. They named the following parties as defendants:

Austral Oil Company, Incorporated (Austral), a Delaware Corporation
Union Oil Company of California (Union Oil), a California Corporation
EM Nominee Partnership Company, a foreign partnership
Hailwood Consolidated Partners, L.P., a foreign partnership
Triton Oil & Gas Corp., a Delaware Corporation
Arthur C. LeBlanc, Jr., CPL & Associates, Inc. (formerly Petroleum Land Services, Inc.)

In the petition, the Lamsons sought a full accounting and payment of the royalties under the lease, together with penalties and attorney fees.

In response to the petition, on December 29,1994, Triton filed exceptions of prematurity, no right and cause of action, failure to join a necessary or indispensable party, and lis pendens. These were filed on December 29, 1994. The other defendants also filed responsive pleadings to the petition. On July 2, 1996, the trial court entered an order which dismissed with' prejudice all of the defendants except Austral, Union Oil, and Triton. This order was issued pursuant to a joint motion to dismiss filed by the affected parties on the previous day.

The Lamsons then amended their original petition on May 27, 1997, adding to their prayer for relief a request that the lease be partially canceled. In this amended petition, Triton and Union Oil were listed as defendants and PetroCorp was added as a defendant. Austral was not mentioned. Petro-Corp was listed as the assignee of Triton’s interest effective January 1, 1993. Triton responded to this amendment on June 19, 1997, by filing the same exceptions it had filed to the original petition. Union LOil and PetroCorp also filed responsive pleadings.

After a hearing on September 15,1997, the trial court took Triton’s exceptions under advisement. On September 19, 1997, the trial court rendered written reasons for judgment, denying Triton’s exceptions and stating the following:

The basis of Triton’s exceptions center [sic] around plaintiffs’ alleged failure to comply with the provisions of the Louisiana Mineral Code, requiring that [the plaintiffs] provide written notice to Triton of the alleged non-payment of royalties prior to instituting suit, and the fact that Triton no longer owned the leasehold interest in question at the time of the alleged non-payment.
After consideration of the matter, the Court finds that the Lamson letter dated February 16, 1994 to Unocal Exploration Company was sufficient notice insofar as Triton was concerned. LSA-R.S. 31:137, LSA-R.S. 31:132. Additionally,- the Court finds that Triton is the real'party in interest in this matter, as the Lamsons 'are seeking any and all royalties ■ due, which includes a period of time prior to January [1084]*10841, 1993, the date that Triton divested itself of all interest in the subject property.
Accordingly, the Court denies Triton’s exceptions.

In a footnote, the trial court further stated:

Notwithstanding the Lamsons’ actual knowledge of the November 12, 1990 partial assignment, under LSA-R.S. 31:132, it was incumbent upon Triton to directly give the Lamsons written notice of the partial assignment in order to exercise its rights under LSA-R.S. 31:137. There is no evidence that this was done.

Triton then applied to this court for supervisory writs requesting review of the trial court’s September 19, 1997 rejection of its exceptions. On January 7, 1998, this court issued an order staying the trial court proceedings and calling the case for argument.

OPINION

A mineral lease grants the lessee “the right to explore for and produce minerals.” La.R.S. 31:114. All or part of the lessee’s interest in the mineral lease may be assigned by the lessee. La.R.S. 31:127. The assignee acquires the rights and powers of the lessee and becomes directly responsible to the lessor for performance of the lessee’s _jBpbligation. La.R.S. 31:128. However, the assignment does not release the original lessee from his responsibility under the lease, absent a written discharge from those obligations executed by the lessor. La.R.S. 31:129.

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

Related

Freeport-McMoran Energy, LLC v. Cedyco Corp.
54 So. 3d 813 (Louisiana Court of Appeal, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
712 So. 2d 1081, 97 La.App. 3 Cir. 1596, 140 Oil & Gas Rep. 38, 1998 La. App. LEXIS 1531, 1998 WL 300103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamson-v-austral-oil-co-lactapp-1998.