Mire v. Chevron Oil Co.

353 So. 2d 462
CourtLouisiana Court of Appeal
DecidedFebruary 24, 1978
Docket6217
StatusPublished
Cited by6 cases

This text of 353 So. 2d 462 (Mire v. Chevron 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
Mire v. Chevron Oil Co., 353 So. 2d 462 (La. Ct. App. 1978).

Opinion

353 So.2d 462 (1977)

Clyde J. MIRE et al., Plaintiffs-Appellees,
v.
CHEVRON OIL COMPANY et al., Defendants-Appellants.

No. 6217.

Court of Appeal of Louisiana, Third Circuit.

December 20, 1977.
Rehearing Denied January 12, 1978.
Writ Refused February 24, 1978.

*463 William H. Mouton, Lafayette, Aaron, Aaron & Chambers by Noble M. Chambers, Jr., Crowley, for defendants-appellants.

Edwards, Stefasnki & Barousse by Homer Ed Barousse, Jr., Crowley, Pugh, Buatt, Landry & Pugh by Lawrence G. Pugh, Jr., Crowley, for plaintiffs-appellees.

Before CULPEPPER, GUIDRY and FORET, JJ.

FORET, Judge.

This is an action for cancellation of an oil, gas and mineral lease, for recovery of royalties, and for damages. Suit was filed by Clyde J. Mire, Melvin Mire, Nellie Jane Mire Holloway, Bonnie Mire Miller, and Gloria Boudreaux Hanks against Chevron Oil Company, Exxon Corporation, Curtis Mire, Melteris Mire, Percy Mire, and Erick M. Mire.[1]

After answering the petition, Chevron and Exxon filed a motion for summary judgment which was overruled by the trial judge. Trial was held before a civil jury which rendered the following verdict:

"We, the Jury, find: in favor of Clyde J. Mire, et al, and further:
(1) Confusion did not take place in 1965: 12-0 vote
(2) In 1967, each owned 100% of mineral rights under whatever land he owned—vote: 12-0
*464 (3) Cancel lease due to bad faith on Chevron—vote: 12-0
(4) Damages in amount of $100,000 to plaintiff—vote: 11-0, with one abstention."

Judgment in accordance with the jury verdict was rendered and signed, and defendants have perfected this appeal. We reverse.

The record reveals that Erise Mire, father and grandfather of the individual plaintiffs and defendants herein, executed a donation inter vivos on December 14, 1957, to Cleveland Mire, Curtis Mire, Melteris Mire, Percy Mire, Curley Mire, Mable Mire, Clyde Mire and Erick Mire donating to them the following:

". . . the following mineral interests in the proportions of an undivided one-eighth (1/8) interest therein to each, to-wit: (a) Eight-ninths (8/9) of the oil, gas, and other minerals, in, on, under and that may be produced from the following described land, to-wit:
A certain tract of land, situated in Section Five, Township Nine South, Range Three East, (Sec. 5, T. 9 S., R. 3 E.), Louisiana Meridian, Acadia Parish, Louisiana, containing One Hundred Twenty-six (126) acres, more or less, bounded, now or formerly, North by Sully Babineaux and Joseph Lantier, South by the tract next hereinbelow described, East by Joseph Lantier and Francois Thibodeaux and West by Veon Mire, Dupre Mire and Isidore Prejean.
(b) One-half (½) of the oil, gas and other minerals, in, on, under and that may be produced from the following described land, to-wit:
A certain tract of land, situated in Section Five, Township Nine South, Range Three East (Sec. 5, T. 9 S., R. 3 E.), Louisiana Meridian, Acadia Parish, Louisiana, containing Sixty (60) acres, more or less, bounded, now or formerly, North by the tract of land next hereinabove described, South by Francois Thibodeaux and Onezia Mire Credeur, East by Francois Thibodeaux and West by Veon Mire, Dupre Mire and Isidore Prejean."

Subsequently, on June 4, 1965, Erise Mire executed another donation inter vivos by which he donated unto the above named eight children the surface rights to 153.644 acres, the same property which was involved in the mineral right donation hereinabove mentioned. In the June 4 donation, however Erise Mire reserved and excepted from the donation, all of the oil, gas, and other minerals and mineral royalties, in, under, and pertaining to the donated property, specifically stating that this was a full and complete mineral reservation as distinguished from a simple royalty reservation. Of course, he could not reserve in 1965 more than the mineral interest he had reserved in the 1957 donation; viz, 1/9 on one tract and ½ on the other.

On the same day, that is June 4, 1965, before the same notary, the eight children of Erise Mire partitioned the property donated to them by their father. The donated tract was divided into eight lots numbered respectively lots one through eight as shown by a plat of survey dated May 27, 1965. Melteris Mire received Lot 1; Percy Mire, Lot 2; Curtis Mire, Lot 3; Curley Mire, Lot 4; Cleveland Mire, Lot 5; Erick Mire, Lot 6; Mable Mire, Lot 7; and Clyde Mire, Lot 8. In that partition agreement amongst the eight children was the following provision concerning the minerals underlying the property partitioned:

"This exchange and partition is made subject to and in accordance with the following reservations, stipulations and conditions, to-wit:
The parties hereto do not divide or partition the oil, gas, or other minerals and mineral royalties in, under, and relating to said tract of land but on the contrary leave same in indivision with each party hereto retaining his or her virile and prorata [sic] interest therein without change."

On May 31, 1968, the eight children, along with their father Erise Mire, executed a mineral lease, unto one Jesse E. Tyra, on the property involved herein. That lease *465 was subsequently assigned to Chevron, which subsequently assigned part of its interest to Exxon. Oil and gas were discovered in the area, and on January 18, 1970, by order of the Louisiana Commissioner of Conservation, a compulsory drilling unit was created known as the Guilbeau-Kahn Unit. A pre-existing well, which was off of the 160-acre tract, and which produced minerals in paying quantities, was the unit well. However, only part of the original 160-acre tract of land owned by the litigants herein was included in the unit. Some of the children had more acreage in the unit than others, and this is the fact which has caused this dispute.

In their petition, plaintiffs allege that they are entitled to a greater share of the production from the unit than their brothers and uncles named as defendants, and prayed for lease cancellation and damages due to Chevron's and Exxon's failure to pay them their proper share of the royalties. Chevron and Exxon had paid to each of the owners of the eight tracts of land an equal amount of mineral royalties from the production of the unit. Plaintiffs claim that the mineral servitude created in their favor by the act of donation of 1957, prescribed for ten years non-user in 1967; and since production did not commence until after 1967, that each owner of the eight lots of land is the sole owner of the surface and mineral rights of their respective properties; and that the owners of the other lots are not entitled to participate in the oil revenues produced from the plaintiffs' properties.

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Bluebook (online)
353 So. 2d 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mire-v-chevron-oil-co-lactapp-1978.