Nabors Oil & Gas Co. v. Louisiana Oil Refining Co.

91 So. 765, 151 La. 361, 1921 La. LEXIS 1586
CourtSupreme Court of Louisiana
DecidedApril 11, 1921
DocketNo. 22385
StatusPublished
Cited by53 cases

This text of 91 So. 765 (Nabors Oil & Gas Co. v. Louisiana Oil Refining 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
Nabors Oil & Gas Co. v. Louisiana Oil Refining Co., 91 So. 765, 151 La. 361, 1921 La. LEXIS 1586 (La. 1921).

Opinions

Statement of the Case.

MONROE, C. J.

Plaintiff (sometimes herein called Nabors Company) sues to annul a certain oil and gas lease, entered into by it and the defendant named in the title (hereafter called oil company) and assigned by the latter to the Southwestern Gas & Electric Company (hereafter called gas company), made codefendant. The matter comes before this court on appeals taken by plaintiff and the oil company, and an answer by the gas company. The litigation has arisen out of the following contracts, acts, and facts, to wit:

“On February 15, 1904, S. G. Sample” sold “to the Louisiana Coal & Lumber Company (hereafter called coal company) all the oil and gas and coal and other minerals, in and under the following described lands, situated in De Soto parish, together with the rights of ingress and egress, at all times, for the purpose of drilling, mining, and operating for minerals and to conduct all operations and to lay all pipes necessary for the production, mining and transportation of the oil, gas, water, coal and other minerals, with the right to use sufficient water, gas or oil to operate said property, etc.”

Then follow descriptions of various subdivisions of land, aggregating 1,260 acres, including the E. % of S. W.% of section 9, township 12 N., range 12 W., containing 80 acres, the minerals beneath which, alone, are involved in this suit.

On April 15, 1905, the same vendor sold to Hill Moseley the 80 acres thus mentioned, “saving and excepting and reserving unto the said vendor, his heirs and assigns, all oil, gas and other valuable minerals that may be under the surface of said land with the right to mine them, or otherwise bring them to the surface of said land and remove or market them therefrom, at any time hereafter.”

On January 22, 1911, the coal company, acting through S. G. Sample and H. T. Liver-man, its liquidating commissioners, sold the minerals so acquired by it to J. M. Nabors, by whom on August 11, 1911, they were sold to the Nabors Oil & Gas Company, plaintiff herein; which company, on May 6, 1911, entered into the contract here sought to be annulled, and which contains, with others, the following stipulations and provisions, to wit:

“That said lessor does hereby lease unto said lessee all the gas and other minerals in and under the * * * E. y2 of S. W. of see. 9, T. 12 N., R. 12 W., containing 80 acres, more or less, and lying * * * in De Soto parish. * * * saj,j iease * * * of saicL mineral rights in and under said land is hereby made for the sole and only purpose of drilling and boring for oil and gas thereon and for producing and extracting oil and gas therefrom, with the exclusive right to said lessee of drilling and operating thereon in order to produce oil and gas therefrom, under the terms, obligations, stipulations and conditions as herein set forth, with the right to use and occupy such rights of way, over and across said lands as may be necessary for the purpose of conveying water, oil and gas from said lands as may be necessary to drill wells thereon for such purposes, and to operate such wells as said lessee may bore or drill thereon, and with such rights of occupancy of, and ingress and egress to, and from, said lands, and with such other rights and privileges as may be reasonably requisite and necessary for the conducting of the operations of boring and drilling and exploring said lands for the production of oil and gas therefrom, as hereinafter provided. * * *
“The main and primary object of this lease is for the exploration and development of said lands for oil and the exploration and development thereof and for the boring and drilling of a well or wells thereon for the production of oil therefrom, and, secondarily and incidentally, for the production of gas therefrom as aforesaid.
“Said lessee agrees and obligates himself to begin the boring and drilling of the first well under this lease on said lands not later than June 1st, 1914, and prosecute and continue the said work, with, due and uninterrupted diligence, until the same shall be completed, as a successful well, producing oil or gas, in paying quantities, or abandoned, as an unsuccessful well after a bona fide effort to complete it as a successful well.
[367]*367“After the said first well shall be completed, or abandoned, as aforesaid, then, the said lessee shall have the right, if he so desires, to bore and drill and complete as many more wells, for oil and gas, on said lands, as he may deem proper; provided, that, the boring and drilling of each succeeding well shall be commenced not later than 30 days after the completion or abandonment of the next preceding well,' and the work thereof prosecuted and continued with uninterrupted diligence until the same shall be completed or abandoned.”

It is stipulated that, in the event of the production of oil in paying quantities, the lessee shall deliver one-eighth thereof to the lessor, without expense to the lessor; and in the event of the production of gas, in paying quantities, shall pay to the lessor, as royalty, or rental, or price therefor, at the rate of $200 per annum for each gas well, payable at the end of each year from the date of the completion of each gas well; that—

“Each successful gas or oil well * * * shall hold five acres of said lands, adjacent thereto, or around the same; and if lessee shall bore or drill eight succes'sful wells, * * * then the same shall hold the whole of the 80 acres” (with a proviso in regard to necessary offsets).

That — .

“A failure on the part of the lessee to fulfill or comply with the terms, obligations, stipulations, provisions, or conditions of this contract of lease shall, ipso facto, operate a forfeiture of all the rights and privileges of lessee under this contract of lease without any notice, demand, or putting in default; and the lessor shall, in no event, be under any obligation to restore, or reimburse, to the lessee any sums of money paid to, or received by, the lessor for royalties, or rentals, under this lease, or for the price and consideration thereof, or forfeitures thereunder, or otherwise; nor, shall the lessor be under any obligation whatever, in any event, to restore or reimburse to lessee any sums, or charges, or expenses, paid, incurred or expended by lessee in the effort to develop said lands, herein described, for oil and gas under this lease.”

It is further stipulated that, whenever the lessee abandons a well or discontinues operations, under the lease, it shall have the right to remove its machinery and pull up and remove its pipings and casings; that, if oil oi-gas is produced in paying quantities, the life of the lease shall be extended for 25 years, or as long as such production shall continue — ■

“If the same and all the obligations, stipulations, provisions and conditions thereof shall have been fully carried out, complied with and fulfilled by the lessee. * * *
“Any assign, or assigns, or transferee or transferees, or legal heirs, or legal representatives, of either the lessor or lessee shall assume and have the same rights and obligations under this lease as the original lessor and lessee have thereunder.”

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Bluebook (online)
91 So. 765, 151 La. 361, 1921 La. LEXIS 1586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nabors-oil-gas-co-v-louisiana-oil-refining-co-la-1921.