McCoy v. Arkansas Natural Gas Corporation

185 So. 274, 191 La. 332, 1938 La. LEXIS 1374
CourtSupreme Court of Louisiana
DecidedOctober 31, 1938
DocketNo. 34756.
StatusPublished
Cited by7 cases

This text of 185 So. 274 (McCoy v. Arkansas Natural Gas 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
McCoy v. Arkansas Natural Gas Corporation, 185 So. 274, 191 La. 332, 1938 La. LEXIS 1374 (La. 1938).

Opinion

ODOM, Justice.

This is a damage suit brought by twenty-one landowners of Richland Parish against the defendant, a corporation engaged in the production of natural gas. On June 20, 1932, we held that plaintiffs’ original petition failed to state a cause of action. McCoy v. Arkansas Natural Gas Co. et al., 175 La. 487, 143 So. 383, 85 A.L.R. 1147.

Within one year from the date on which our judgment became final, plaintiffs filed the present suit, in which they reiterated the allegations they made in their former suit and in addition thereto made certain other allegations which were thought necessary to meet our ruling in the former suit. The defendant again excepted to plaintiffs’ petition on the ground that it set out no cause of action and later filed pleas of prescription and res adjudicata. The exception and the pleas were sustained by the trial judge, and plaintiffs appealed.

We reversed the judgment of the lower court and sent the case back for answer and trial on its merits. McCoy v. Arkansas Natural Gas Co. et al., 184 La. 101, 165 So. 632.

Plaintiffs alleged in their original petition that on January 30, 1928, the defendant completed a gas well which had an open flow capacity of 65,000,000 cubic feet per day, with 1,125 pounds gas pressure; that, through the fault and negligence of the defendant and its employees, the well “blew out”, cratered, and ran wild for more than three years, during all of which time immense quantities of gas escaped. They further alleged that they owned lands within a radius of one mile from the wild well and that immense quantities of gas escaped from their lands into the crater and thence into the air; that they were damaged to the extent of the value of the gas which had escaped from their lands. They alleged that, during the 1,165 days which intervened between the date on which the defendant negligently permitted its gas well to crater and the date on which the well was finally brought under control, there escaped and was wasted from their lands an average of 40,000,000 cubic feet of gas per day; and alleged that, in order to bring the wild well under control,, defendants had drilled relief wells on the same tract of land, which wells drew an average of 5,-000,000 cubic feet of gas per day over and beyond what would have been produced from the 93 acres of land. They further alleged that the market value of the gas at the well was 10(é per thousand cubic feet and that in the aggregate they had suffered damages amounting to $1,-055,312.50.

It is unnecessary to state here the specific allegations of negligence relied upon by plaintiffs, because these are set forth in detail in our first opinion, handed down June 20, 1932. In that opinion we said, 143 So. 384:

*335 “The plaintiffs do not charge that there was any willful or intentional wrongdoing on the part of the defendant in allowing the gas to escape • from its well. . The charges .of negligence amount to nothing more than that the employees in charge of the drilling operations for the defendant used what the plaintiffs deem had judgment in drilling the well, in allowing the gas pressure to burst the casing, and in failing to bring the escaping gas under control soon after the-casing burst.”

In that case we said further:

“The fact that the plaintiffs in this case are the owners of all of the lands within a radius of a mile from the well complained of does not except the suit from the rule stated in Louisiana Gas & Fuel Co. v. White Bros., 157 La. 728, 103 So. 23; that is, that a landowner has no right or cause of action for damages against an owner, of adjoining land for negligently permitting a .well near the line to blow out and allowing the gas to escape; the only remedy being an action to enjoin the waste. In that case the plaintiff claimed damages for the same cause of action that is set forth by the plaintiffs in this case; and the court said:
“ ‘The defendant filed an exception of no cause of action, which was overruled by the court below and renewed in this court. This exception is well founded.’ ”

We quoted at length from the case of Louisiana Gas & Fuel Co. v. White Bros., 157 La. 728, 103 So. 23, where it was held that the owner of land is not the owner of the fugitive minerals, such as oil and gas, beneath the surface of the land, and further that, even if the landowner did own such minerals, it would be impossible for him to prove the damage in case another had negligently caused or permitted gas or oil to escape from his land, the reason being that it would be impossible to make proof of the exact quantity which had escaped.

But in the course of our opinion, after expressing the view that plaintiffs could not prove any specific amount of damage under the allegations of their petition, we said further:

“It is conceivable, therefore, that a case might be presented where a landowner would be entitled to damages ‘for loss or impairment of his oil or gas rights by some fault of a neighbor on his own land. But the fault in such a case would have to consist of something more than a mere exercise of bad judgment on the part of the neighbor in drilling on his own land, and the loss sustained by the complaining neighbor would have to be measurable, approximately, if not exactly, in money. An illustration of a case where such damages could be estimated would be one where the market value of the plaintiff’s land or mineral rights is impaired by the fault of his neighbor.”

In their second suit plaintiffs reiterated the allegations of negligence made in the first suit and added that defendant was •guilty of willful and intentional faults and neglects. They specifically alleged that the defendant deliberately and intentionally used second-hand casing which it knew had deteriorated and was weak; and which it knew was not of sufficient *337 strength to withstand the gas pressure, and that, after gas began to escape from around the casing, defendant knew there was danger and willfully and intentionally failed to take any action to.prevent the explosion and crater. which soon followed ; that defendant willfully and intentionally employed drillers whom it knew to be incompetent and inexperienced in handling drilling operations in the Richland field; that, after the well got out of control and went wild, defendant willfully and intentionally failed to take steps- to control or kill it.

In other words, according to the second petition, the defendant willfully, deliberately and intentionally inflicted upon plaintiffs the enormous hurt and damage which they alleged they had sustained. Plaintiffs made another drastic change in their pleadings. Instead of basing their quantum of damage on the value of the gas drained from their lands, they alleged as a basis for the amount of damage that the commercial value of their lands for mineral purposes had been practically destroyed.

In its answer defendant denied that it had been guilty of. negligence in any respect. It especially averred that it had made timely and diligent efforts to save the well, pursuing the best known and recognized methods for stopping the flow of gas after it became known that something unforeseen and unusual had happened to the well.

The case finally went to trial on its merits before a jury.

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Bluebook (online)
185 So. 274, 191 La. 332, 1938 La. LEXIS 1374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccoy-v-arkansas-natural-gas-corporation-la-1938.