Parten v. Webb

1 So. 2d 76, 197 La. 197, 1941 La. LEXIS 1029
CourtSupreme Court of Louisiana
DecidedMarch 3, 1941
DocketNo. 36064.
StatusPublished
Cited by11 cases

This text of 1 So. 2d 76 (Parten v. Webb) 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
Parten v. Webb, 1 So. 2d 76, 197 La. 197, 1941 La. LEXIS 1029 (La. 1941).

Opinion

LAND, Justice.

From a judgment sustaining an exception of no cause or right of action and dismissing the suit, the plaintiff prosecutes this appeal. An exception of no cause or right of action admits as true all of the well-pleaded facts contained in the petition..

(1) Plaintiff avers that he is the owner of 200 acres of land in, Webster Parish, Louisiana, under which land he owns certain proportions of the mineral rights. (Tr. pp. 3 and 4.)

That defendant, Webb, notwithstanding plaintiff’s ownership of the said proportionate part of the oil, gas and other minerals in the 200 acres, claimed to be the owner of a mineral lease thereon and executed a purported sublease thereof in favor of Hunt Oil Company wherein defendant, Webb, attempted to reserve for himself as the price for said purported sublease a proportion of all of the oil and gas that may be produced from the 200 acres. (Tr. pp. 4 and 5.)

That at the time of the execution of the purported sublease the defendant, Webb, had no right, title or interest in either the lease or in the minerals or in the fee in and under the 200 acres but that, to the contrary, plaintiff was at that time the owner of the proportionate part of the oil, gas and other minerals set forth in his petition, and that defendant, Webb, had no right to attempt to sublease said lands and did so subject to plaintiff’s prior rights as owner of the said minerals. (Tr. p. 5.)

Petitioner then sets up that the sole claim of the said Webb at the time of the attempted sublease arose out of an old oil and gas lease executed on November 26, 1921 — some 19 years ago (Tr. p. 6); this old lease covering the 200 acres referred to in paragraph (1) of the petition and also another '40-acre tract referred to in paragraph (6) of the petition (Tr. p. 8) and the lease was amended by all of the mineral owners in this other 40-acre tract and the then sublessee of defendant, Webb, the effect of this amendment being to separate the original lease into two separate and distinct lease agreements, one covering the original lease on the 200 acres referred to in paragraph (1) of the petition, and the other being covered by the amended agreement covering the 40-acre tract referred to in paragraph (6) of the petition. (See Tr. p. 22 for the separate agreement.) Petitioner averred that the original lease of November 26, 1921, was for a term of five years from its date and as long thereafter as oil or gas or either of them be produced *201 from the said land (Tr. top p. 6), and there had been no production from the land covered by the original lease of either oil or gas during the last eight years and, as a consequence, the said lease to defendant, Webb, had lapsed more than eight years ago (Tr. p. 8 par. 7).

Petitioner further averred that, after the separate contract covering the 40 acres referred to in paragraph (6) of the petition was executed, a gas well was drilled under this separate contract on said 40-acre tract and that said gas well produced gas “until the production thereon was so small that said lease contract ceased to remain alive.” (Tr. 9, par. 9.) Petitioner alleged that the royalties from the said gas well were paid under the provisions of the separate lease contract covering the 40 acres on which said well was located and only to the mineral owners interested in said 40 acres. Petitioner attached a statement showing that the royalties from this gas well averaged less than 50 cents a day during the latter half of 1937, and the first two months of 1938. (Tr. p. 12.)

Accordingly, the allegations of the petition show that there has been no production under the original lease during the last eight years, and that the production under the separate lease covering the separate 40 acres (which 40 acres is not involved here) was so small that the separate lease, even as to these 40 acres, had expired according to its own terms for want of sufficient production to keep it alive.

After the primary-term of a mineral ■ lease has expired and there is no production, or not enough thereon to keep it alive, the lease simply lapses according to its own terms. The term of this lease expires. Talley v. Lawhon, 150 La. 25, 90 So. 427; Smith v. Sun Oil Company, 172 La. 655, 135 So. 15; Logan v. Tholl Oil Company, 189 La. 645, 180 So. 473.

In Logan v. Tholl Oil Company, the lease there considered was for the primary term of eight months and as long as one of said minerals — referring to oil, gas and other minerals — can be produced in paying quantities. The court was called upon to consider whether production which yielded plaintiff a royalty slightly over $5 a month was sufficient to keep the lease alive, and stated in its answer as follows: “Our answer is ‘No/ and we therefore conclude that the leased property had ceased to produce oil in paying quantities within the meaning and terms of the lease, and consequently had terminated at the time of the filing of the suit.” Page 651 of 189 La., page 475 of 180 So.

Petitioner further averred that defendant, Webb, although the lease he claimed to own had expired according to its own terms, purported to sublet the oil, gas and minerals and the exclusive right to reduce same to possession to the Hunt Oil Company (Tr. p. 4), and that the said Hunt Oil Company had drilled two producing wells on the property referred to in paragraph (1) of the petition. Petitioner then stated that he had informed the said Hunt Oil Company that the said Webb had no right to execute the purported sublease and that he, petitioner, would assert in appropriate proceedings that he is entitled to receive from whoever produces oil on the *203 said premises the proportionate part of the benefits that the said Webb attempted to reserve to himself in transferring the purported rights to Hunt Oil Company. (Tr. 9 and 10, par. 10.)

Petitioner then prayed for the usual citation ■ and for a decree against the said Webb and Hunt Oil Company holding that petitioner is entitled to receive such proportion of the benefits that the Hunt Oil Company agreed to pay the said Webb as his mineral interest bears to the full mineral interest in the property (Tr. p. 9). Petitioner further prayed for judgment decreeing that, upon the payment to him by Hunt Oil Company of his proportionate part of the price and benefits reserved by the said Webb, said Hunt Oil Company be decreed to be in possession and operating the premises directly under your petitioner “just as though petitioner executed” the said sublease to Hunt Oil Company. (Tr. p. 11.)

The defendant, Webb, contended below, and in this view he was sustained by the trial judge, that plaintiff, could not elect to ratify the attempted transfer from defendant, Webb, to Plunt Oil Company and claim the benefits thereof. Defendant urged that the lease which he purported to transfer to Hunt Oil Company was either a valid lease or nonexistent: that if it were a valid lease, defendant, Webb, had the right to transfer it to Hunt Oil Company and plaintiff was without cause to complain or to seek to benefit thereby; that if it were a dead lease, there was nothing that plaintiff could ratify in such a way as to entitle him to receive what the defendant reserved when he transferred to Hunt Oil Company.

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Bluebook (online)
1 So. 2d 76, 197 La. 197, 1941 La. LEXIS 1029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parten-v-webb-la-1941.