Nunez v. Wainoco Oil and Gas Co.

606 So. 2d 1320, 1992 La. App. LEXIS 2818, 1992 WL 275256
CourtLouisiana Court of Appeal
DecidedOctober 6, 1992
Docket91-532
StatusPublished
Cited by3 cases

This text of 606 So. 2d 1320 (Nunez v. Wainoco Oil and Gas 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
Nunez v. Wainoco Oil and Gas Co., 606 So. 2d 1320, 1992 La. App. LEXIS 2818, 1992 WL 275256 (La. Ct. App. 1992).

Opinion

606 So.2d 1320 (1992)

Adam G. NUNEZ, Plaintiff-Appellant,
v.
WAINOCO OIL AND GAS COMPANY, et al., Defendants-Appellees.

No. 91-532.

Court of Appeal of Louisiana, Third Circuit.

October 6, 1992.
Writ Denied November 30, 1992.

*1322 Adam G. Nunez, Sulphur, for plaintiff/appellant.

Jones, Jones & Alexander, Jerry Jones, Cameron, for defendant/appellee— Williams Exploration.

Liskow & Lewis, Lawrence Simon, Lafayette, for defendants/appellees.

Before STOKER, KNOLL and MARCANTEL,[*] JJ.

BERNARD N. MARCANTEL, Judge Pro Tem.

The issues presented by this appeal are (1) whether the trial judge gave proper jury instructions; (2) whether defendants were entitled to utilize plaintiff's land in the unit operations of an oil well; (3) whether the jury was correct in finding that plaintiff had suffered no damages; and, (4) whether the trial judge was correct in granting defendants' Motion for Judgment Notwithstanding the Verdict.

FACTS

This case is a companion case to the Supreme Court decision, Nunez v. Wainoco Oil & Gas Co., 488 So.2d 955 (La.1986), appeal dismissed, cert. den., 479 U.S. 925, 107 S.Ct. 391, 93 L.Ed.2d 345 (1986), which held that the intrusion into the subsurface two miles beneath the tract owned by Adam G. Nunez (hereinafter plaintiff) was an authorized unit operation. The Supreme Court has previously set forth the facts in that case and we reiterate those facts which are pertinent to the present case on appeal.
"On July 8, 1980, R.T. Sutton, the Commissioner of Conservation at that time, signed Order Nos. 1095 and 1016-B-2 to establish rules and regulations in the creation of three drilling and production units for the Lower Abbeville A Sand, Reservoir A, in the West Cameron Block 10 Field and Ocean View Beach Field, Cameron, Louisiana. * * * These orders followed a public hearing during which the geology of the area was discussed with regard to varying proposals for the creation of units as well as the optimum location for drilling wells within the units. * * * At the hearing, it was established that the highest structural position within Sand Unit F, and therefore the optimum position for location of the well which would be drilled within Sand Unit F, was in the western portion of the 350 acre unit and included the area of a small unleased tract owned by plaintiff, Adam Nunez. Although Wainoco Oil Company, which had begun exploring the Lower Abbeville A sand in 1977, had leased several tracts within Sand Unit F, the company had not acquired a lease on the Nunez tract. In declining to lease his land, Adam Nunez had opted to bear personally the financial risk of paying his share of drilling in return for the right to recover 100% of the production attributable to his tract's participation in the unit, rather than just a fractional royalty interest.
On August 25, 1980, Wainoco filed an application with the Office of Conservation to drill the R.R. Stone No. 1 well within the surface boundaries of the recently created unit. The permit was granted on September 23, 1980. Although Wainoco proposed to drill on the Stone tract on which they possessed a lease, the company contacted all owners in Sand Unit F prior to commencing operations to offer insurance coverage for the drilling and to submit an authority for expenditure setting forth the anticipated *1323 cost of drilling. All owners, including plaintiff Adam Nunez, agreed to advance proportionate shares of the costs for the Stone well.
* * * * * *
The location of the Stone well, according to the original permit, was in accordance with the optimum position for the Sand unit F well as determined by the pre-unitization public hearing. * * * The actual location of the well, also considered an optimum location, was one foot farther north and 22 feet to the west of the permitted site, which placed it approximately 20 feet from a boundary of the Nunez tract. (It should be noted that the proximity of either site to Nunez property would have violated Order No. 29-E and prevented production should a unit not have been created.) Allegedly, the movement of the well was prompted by the proximity of the Boudreaux residence. * * * The drilling permit was not amended, however, until February 11, 1982, to reflect the well's actual location. * * *
* * * * * *
Before the well could be completed and production begun, it was necessary that it be designated the unit well for Sand Unit F, which as noted earlier had been created on July 8, 1980 by Order Nos. 1095 and 1016-B-2. Consequently, after determining that the well could be produced from the unitized sand, Wainoco applied to the Department of Conservation to amend the well name from R.R. Stone to L ABB A RA SUF, Stone No. 1. An amended permit was issued on December 8, and on December 23, 1980, the well was completed. It thereupon began producing as the unit well for Sand Unit F. * * * " (Footnotes omitted.)

Nunez, supra, at pages 956-958.

On October 14, 1981, plaintiff filed suit in the Thirty-eighth Judicial District Court, Parish of Cameron, against Wainoco Oil Company (hereinafter Wainoco) and other owners within Sand Unit F. He alleged that the Stone No. 1 well was located on or immediately adjacent to his property and the mud pit, ring levee, water pit, water well, machinery, pipe, board road, derrick and other equipment necessary for drilling were located on his property and that this constituted a trespass. Plaintiff also claimed that the chemicals and drilling mud were placed on his property.

Defendants filed exceptions claiming that there was improper venue, lack of jurisdiction over the subject matter, and nonjoinder of the Commissioner of Conservation as a defendant. On November 19, 1986, the trial court overruled the exceptions. Defendants answered plaintiff's petition denying that they owed any liability to plaintiff.

A trial was conducted before a jury on May 22-31, 1989. The jury found that plaintiff had given implied permission to Wainoco to utilize his land in the drilling of the Stone No. 1 well and that it was necessary for Wainoco to utilize the surface of plaintiff's property in order to comply with the orders of the Commissioner of Conservation. The jury also found that plaintiff's land was not in need of further restoration. Additionally, the jury found that an implied contract existed between plaintiff and defendants for rental and awarded $57,000.00 as rent. A formal written judgment was signed on October 12, 1989.

Defendants filed a Motion for Judgment Notwithstanding Verdict and/or for New Trial on October 21, 1989, claiming that the jury's finding of an implied contract for rent between the parties was contrary to both the law and the evidence. Plaintiff also filed a Motion for Judgment Notwithstanding Verdict and/or for a New Trial on December 5, 1989. Plaintiff's motion was dismissed because it was not timely filed. The trial judge granted defendants' Motion for Judgment Notwithstanding Verdict, finding that the evidence presented did not show that there was a contract between the parties and, also, the jury's determinations that the defendants were within their *1324 rights to continue operations on the Stone No. 1 well was inconsistent with its finding that there was a rental contract entered into after the fact. A formal written judgment was signed on January 23, 1991.

It is from these two judgments that plaintiff has appealed.

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Bluebook (online)
606 So. 2d 1320, 1992 La. App. LEXIS 2818, 1992 WL 275256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nunez-v-wainoco-oil-and-gas-co-lactapp-1992.