Ortego v. Sevarg Co., Inc.

550 So. 2d 340, 1989 WL 116155
CourtLouisiana Court of Appeal
DecidedOctober 4, 1989
Docket88-605
StatusPublished
Cited by3 cases

This text of 550 So. 2d 340 (Ortego v. Sevarg Co., Inc.) 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
Ortego v. Sevarg Co., Inc., 550 So. 2d 340, 1989 WL 116155 (La. Ct. App. 1989).

Opinion

550 So.2d 340 (1989)

Rita ORTEGO, Austin Wyble, Jr. and Arthur Wyble, Plaintiffs-Appellees,
v.
SEVARG COMPANY, INC., Defendant-Appellant.

No. 88-605.

Court of Appeal of Louisiana, Third Circuit.

October 4, 1989.

*341 Thomas DeJean, Opelousas, for plaintiffs-appellees.

Darryl J. Hebert, Eunice, for defendant-appellant.

Before GUIDRY, LABORDE and KNOLL, JJ.

KNOLL, Judge.

Sevarg Company, Inc. (hereafter Sevarg), a mineral lessee, appeals the judgment of the trial court which found a pipeline located on lands of the mineral lessors, Rita Ortego, Austin Wyble, Jr., and Arthur Wyble, was owned by the lessors because of ambiguous language in the mineral lease and ten years non-use by the lessee of the pipeline. Accordingly, it found that the mineral lessors were entitled to trespass damages of $5,000, and $4,500 for the lessee's unlawful use of the pipeline.

Sevarg contends on appeal that the trial court erred: (1) in concluding Sevarg did not have the right to use the pipeline under authority of the oil, gas, and mineral lease; (2) in its determination that Sevarg's use of the pipeline constituted a trespass; (3) in *342 awarding damages; and, (4) in dismissing Sevarg's reconventional demand.

FACTS

On March 16, 1959, Mrs. Belle Budd Lalonde, as lifetime usufructuary, and Austin Wyble, Arthur Wyble, and Edward Wyble, as owners in indivision, granted Flippen McLean an oil, gas, and mineral lease on 38 acres in St. Landry Parish. On March 18, 1959, McLean assigned the mineral lease to Colorado Oil and Gas Corporation.

The original lease provided, in pertinent part:

"Lessor, in consideration of the sum of FIVE HUNDRED AND NO/100 DOLLARS & O.V.C. ($500.00), hereby leases and lets unto Lessee, the exclusive right to enter upon and use the land hereinafter described for the exploration for, and production of oil, gas, sulphur and all other minerals, together with the use of the surface of the land for all purposes incident to the exploration for and production, ownership, possession, storage and transportation of said minerals (either from said land or acreage pooled therewith), and the right to dispose of salt water, with the right of ingress and egress to and from said lands at all times for such purposes, including the right to construct, maintain and use roads, pipelines, and/or canals thereon for operations hereunder or in connection with similar operations on adjoining land, and including the right to remove from the land any property placed by Lessee thereon and to draw and remove casing from wells drilled by Lessee on said land;..."

On July 1, 1960, Colorado Oil and Gas obtained a written right of way from Mrs. Lalonde and the Wybles for the placement of a pipeline across their property at a specific location. This pipeline was constructed to serve the W. Miller No. 1 well, a gas well located east of the Lalonde/Wyble property, which connected that gas well with storage tanks situated west of the Lalonde/Wyble property.

On March 31, 1961, Austin, Arthur, and Edward Wyble partitioned the property into three equal tracts. Austin Wyble was allotted the easternmost lot; Edward Wyble the westernmost lot; and, Arthur Wyble the middle lot.

It was undisputed at trial that the W. Miller No. 1 gas well was plugged and abandoned on July 16, 1971, and at the time of the initiation of this lawsuit the pipeline across the Wyble property had not been in use for a period in excess of 10 years. It was also undisputed that the original mineral lease was still in effect due to the inclusion of the property in a unit which had producing wells located off the Wyble tract.

In December 1982, Coastal Oil & Gas Corporation (formerly known as Colorado Oil and Gas Corporation)[1] assigned its interest in the Lalonde/Wyble lease and mineral leases on surrounding property to Brown-McKenzie, Inc.[2] and Sevarg. During that same month, Sevarg constructed a new pipeline from a new gas well on the Courville property, a tract of land located east of the Lalonde/Wyble property. The new pipeline ran west across the Leonville Road onto Austin Wyble's property; it then went northward along Austin Wyble's eastern boundary, parallel to the Leonville Road, and tied into the gas pipeline which was installed in 1960. In September 1986, Arthur Wyble refused to allow Sevarg's employees onto the three partitioned tracts of the Lalonde/Wyble property to repair a leak which developed in the old pipeline which had been constructed in 1960. As a result, the well which was serviced by the pipeline was shut down until January 1987 when the pipeline was repaired.

*343 On January 11, 1987, Arthur Wyble, Austin Wyble, and Rita Ortego, apparently a successor in title to Edward Wyble, instituted this lawsuit against Sevarg for damages.

1959 MINERAL LEASE

Sevarg contends that the trial court erred when it found the 1959 mineral lease ambiguous and utilized the 1960 pipeline right of way to ascertain the parties' intent.

A mineral lease is a contract by which the lessee is granted the right to explore for and produce minerals. LSA-R.S. 31:114. Louisiana mineral leases are construed as leases generally, and wherever pertinent, codal provisions applicable to ordinary leases are applied to mineral leases. St. Romain v. Midas Exploration, Inc., 430 So.2d 1354 (La.App. 3rd Cir.1983). A lease contract is the law between the parties and it defines their legal rights and obligations. Odom v. Union Producing Company, 243 La. 48, 141 So.2d 649 (1962).

When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent. LSA-C.C. Art. 2046. The pertinent language of the 1959 mineral lease states:

"Lessor ... hereby leases and lets unto Lessee, the exclusive right to enter upon and use the land hereinafter described for the exploration for, and production of oil, gas, sulphur and all other minerals, together with the use of the surface of the land ... including the right to construct, maintain and use ... pipelines ... thereon for operations hereunder or in connection with similar operations on adjoining land...." (Emphasis added.)

The trial court determined that this contract language did not permit Sevarg to transport other property owners' minerals through lessors' land by use of the pipeline. It also found that the assignment from Coastal Oil and Gas to Sevarg did not include the 1960 right of way, executed subsequent to the lease. In reaching its conclusion, the trial court found that the lease provision cited above was ambiguous and would be construed in light of the interpretation given by the parties. Furthermore, the trial court specifically found that the right of way demonstrated the parties' intent to restrict the pipeline provision of the mineral lease to production from lessors' property.

We agree, but for different reasons, with the trial court's conclusion that Sevarg did not have the right to extend the pipeline through Austin Wyble's property, and use the existing pipeline to transport gas from the new gas well located to the east of the Wybles' property.

Contrary to the trial court's findings, we find the language of the mineral lease clear and unambiguous; accordingly, we find it unnecessary to search for the parties' intent. The contract specifically provides that pipelines may be constructed and used across lessors' property even if mineral production is not on lessors' property, if such operations are conducted on adjoining

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Cite This Page — Counsel Stack

Bluebook (online)
550 So. 2d 340, 1989 WL 116155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortego-v-sevarg-co-inc-lactapp-1989.