Nelson v. Young

223 So. 2d 218, 34 Oil & Gas Rep. 399, 1969 La. App. LEXIS 4978
CourtLouisiana Court of Appeal
DecidedApril 29, 1969
DocketNo. 11204
StatusPublished
Cited by7 cases

This text of 223 So. 2d 218 (Nelson v. Young) 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
Nelson v. Young, 223 So. 2d 218, 34 Oil & Gas Rep. 399, 1969 La. App. LEXIS 4978 (La. Ct. App. 1969).

Opinion

DIXON, Judge.

Plaintiffs in this case allege that they are the owners of all the minerals under a tract of land in Sections 31 and 32, Township 13 North, Range 10 West in Red River Parish, Louisiana, and pray for a judgment recognizing their ownership and ordering an accounting and a return of monies received by the defendants under certain mineral leases and oil and gas operations. The defendants, alleged to be the owners of the surface of the lands involved, filed peremptory exceptions which outlined their position: that plaintiffs’ mineral ownership had prescribed and the acts which the plaintiffs contend have interrupted prescription liberandi causa did not, in fact, do so. The judgment signed sustained “the exception of no cause of action” filed by the defendants and dismissed the plaintiffs’ suit.

Plaintiffs are the heirs of Raymond and Ross B. Nelson, Sr. who once owned all the minerals under the land involved. There were mineral reservations prior to 1920 and continuous production of hydrocarbons until the year 1943. Thereafter a dry hole was abandoned on January 2, 1952; since then the plaintiffs have taken no steps toward good faith exploration or production of minerals. The defendants executed leases covering the properties involved on December 18, 1957. Two wells were drilled under these “top-leases.” One well was commenced May 1, 1959, produced 1181 barrels of oil and was plugged and abandoned on May 12, 1964. The other well was completed as a dry hole on August 22, 1959. The exploration was done by the assignees of leases executed by defendants and their mother to H. M. Doss.

Plaintiffs had nothing to do with the execution of the leases, but attempt in their pleadings to “ratify” the leases and adopt them as their own. This suit was filed October 16, 1967. Since ten years had not elapsed between the last good faith effort to produce by a lessee of the plaintiffs (January 2, 1952) the plaintiffs contend that the exploration and production beginning in May of 1959 and ending in May of 1964 was user of the mineral servitude and interrupted prescription, preserving the plaintiffs’ rights to the minerals.

Defendants maintain that the exploration performed under a lease from the landowner could not avail the plaintiffs; that in order to interrupt prescription, the exercise of the servitude must have been by the owner of the servitude or someone acting for him on his behalf.

In Sample v. Louisiana Oil Refining Corp. et al., 162 La. 941, 111 So. 336 (1927)., the Supreme Court decided a case which involved, at least in part, the question here presented. There Mr. Sample claimed to own certain mineral rights during a period from February 15, 1914 to April 15, 1915. He sought to recover money, to cancel a lease, and to have recognized his exclusive right to exploit minerals on the land involved. Apparently there had been production from the mineral servitude under a lease executed by a corporation of which Mr. Sample was a shareholder; Sample apparently depended on the mineral development under that lease to sustain his claim that liberative prescription was interrupted, preserving his mineral servitude. The Court held that Mr. Sample’s rights had prescribed, stating:

“ * * * If he was no party to that contract, the development under the contract was not development by him, and his mineral rights prescribed on April 15, 1915. The plea of prescription of 10 [220]*220years is good on this score for nonuser of a servitude.” (111 So. 337).

The opinion on this point in the Sample case is so brief and the background so obscure that it might have gone unnoticed in the absence of a note at 26 Tulane Law Review 23, 28, where the late Eugene A. Nabors (who was no doubt familiar with the factual situation giving rise to the Sample case) commented that the Sample case held that:

“drilling and producing operations by the lessee of another person have no effect on prescription.”

Mr. Nabors observed that Civil Code Articles 793 and 794 might have been employed. These code articles were mentioned in Frost Lumber Industries v. Republic Production Co., 112 F.2d 462, 465 (CCA 5 1940). Civil Code Articles 793 and 794 were included in a list of citations to support the following statement by the Court:

“(8) To preserve the right of servitude and prevent prescription from running against it, it is not necessary that it should be exercised exclusively by the owner to whom it is due, or by those who use his rights or who represent him directly, as the usufructuary, lessee or tenant, the attorney in fact or agent. It suffices if the servitude has been exercised by workmen employed by the owner, by someone acting in his right, ‘or by his friends, or those who come to see him.’ ”

This paragraph was among those which laid out general principles of mineral 'law in Louisiana and did not seem to be essential to a decision of the issues presented to the Court.

The problem seems to have been mentioned in another case more recently decided. It was stated in Pan American Petroleum Corp. v. O’Bier, La.App., 201 So.2d 280 (1967) that:

“(3) Inherent in our jurisprudence bearing upon the interpretation of mineral servitude doctrines with reference to public policy is the requirement that the use of the servitude be exercised by or on behalf or in the interest of the owner of such rights.” (201 So.2d 284)

Here again, however, if the statement was intended to say that only the owner or one acting on his behalf has the power to use a mineral servitude in order to interrupt prescription, the remarks were almost gratuitous. In the Pan American case the questions were: (1) was the domestic use of a small amount of wellhead gas by a dwelling on the leased premises user of the servitude ? and (2) did the payment of shut-in royalty constitute user which’ would interrupt prescription? Again, Civil Code Articles 793 and 794 were mentioned; the Court concluded that “the use contemplated [by these articles] must be accomplished by the intent to relate the act to the exercise of the servitude.” The Court held that domestic use of wellhead gas in one dwelling from a capped well did not constitute user of the mineral servitude. The Court apparently predicated its holding more upon the nature of the use than the identity of the person who was said to be using the servitude.

The provisions of Civil Code Articles 793 and 794 are as follows:

“Article 793. To preserve the right of servitude and prevent prescription from running against it, it is not necessary that it should be exercised exclusively by the owner to whom it is due, or by those who use his rights, or who represent him directly, as the usufructuary, the lessee or tenant, the attorney in fact or agent. It suffices if the servitude has been exercised by workmen employed by the owner, or by his friends, or those who come to see him.”
“Article 794. The servitude is preserved to the owner of the estate to which it is due, by the use which any one, even a stranger, makes of it, provided it be used as appertaining to the estate.
“Thus the servitude is preserved to the owner by the use which a possessor in [221]*221bad faith, who is in possession of the estate to whom (which) it is due, makes of the servitude.

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Nelson v. Young
223 So. 2d 867 (Supreme Court of Louisiana, 1969)

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Bluebook (online)
223 So. 2d 218, 34 Oil & Gas Rep. 399, 1969 La. App. LEXIS 4978, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-young-lactapp-1969.