Parten v. Webb

18 So. 2d 198, 205 La. 799, 1944 La. LEXIS 710
CourtSupreme Court of Louisiana
DecidedApril 17, 1944
DocketNo. 37267.
StatusPublished
Cited by3 cases

This text of 18 So. 2d 198 (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, 18 So. 2d 198, 205 La. 799, 1944 La. LEXIS 710 (La. 1944).

Opinion

PONDER, Justice.

On November 26, 1921, John Babb executed a mineral lease in favor of Robert D. Webb on 360 acres of land which he owned in Webster Parish for a primary term of five years and as long hereafter as oil or gas was produced. Under its terms, Babb was to receive one-eighth royalty of the oil and $200 per year from each well producing gas during the time the gas was used off the premises.

On March 13, 1922, Babb sold to Webb all the minerals under 120 acres of the land covered by the lease, thereby extinguishing the lease insofar as the 120 acres were concerned. Thereafter, the lease covered the remaining 240 acres of land.

On January 17, 1924, Webb subleased to the Humble Oil and Refining Company his lease on this property and leases on other property for $200,000 cash and other considerations.

The Humble Oil and Refining Company went upon the leased premises and produced oil and gas. Babb was paid royalties in conformity with the original lease, and Webb was paid the overriding royalties called for in the sublease insofar as production permitted.

On April 17, 1926, Babb sold J. R, Parten the fee title to the 360 acres of land covered by the original lease subject to all surface leases and contracts of record.

On October 19, 1927, the Humble Oil & Refining Company and the mineral owners of 40 acres of the land covered by the lease entered into an agreement purporting to change the royalty provisions of the original lease insofar as the forty acres were concerned. It is stated in this agreement that the changes are made in keeping with the original lease. The agreement provides for a royalty of one-eighth of the oil produced and one-eighth of the amount realized from the sale of gas taken from the land, etc. The original lessee, Robert D. Webb, was not a party to this agreement.

It appears that shortly after this agreement was entered into, the Humble Oil and Refining Company drilled on the forty acres of land and brought in a gas well.

On May 25, 1929, the Humble Oil & Refining Company assigned to the Standard *803 Oil Company of Louisiana its sublease on this property and other properties for a consideration of $442,625 cash and other valuable consideration. The assignment was made subject to the provisions of the sublease from Robert D. Webb to the Humble Oil & Refining Company. Thereafter, Webb, the original lessee, and the Standard Oil Company entered into three separate agreements amending the sublease.

On January 28, 1938, J. R. Parten, the owner of the fee title to the land, wrote the following letter to the Standard Oil Company:

“Woodley Petroleum Company
“Houston, Texas, January 28, 1938
“Standard Oil Co. of Louisiana
“Shreveport, Louisiana
“In re: Babb Farm: SEJ4 of NW^; NE14 of SWy4; NWJ4 of SE14; SWy, of NEy,; NEi/4 of SE%; SEi/4 of NEy4; SEi/4 of SEy— all in sec. 14; and NW% of SWj4 and SWy4 of SWi/4 of sec 13, all in Twp. 21 N., Range 10 West, Webster Parish, La., 360 acres more or less.
“Gentlemen:
“Your attention is invited to the situation which obtains with reference to the lease claimed by your company on my fee property, above described, in the Cotton Valley oil field.
“As you are well aware, this property was leased by the owner in 1921 before its purchase by me and that, although at one time the property produced oil and gas in paying quantities, the production now had by your company on this large acreage is so small as not to be in paying quantities.
“We therefore take it that there is not sufficient production on the land to extend the lease any further.
“However that may be, I as the owner of the said property do not desire to declare a forfeiture of the said lease without giving your company an opportunity to drill the property to the presently producing horizon known as the Bodcaw sand in the Cotton Valley field.
“All indications point to the existence of this producing sand under the property in question and it is common knowledge that the other nearby wells producing from this sand are draining these lands.
“Accordingly, I wish to demand that you either drill the property to the Bodcaw sand or surrender the lease. In the absence of compliance with this demand within a reasonable time, I, of course, reserve the right to pursue my remedy either for forfeiture, cancellation or damages as are reserved to me by law.
“Very truly yours,
“J. R. Parten”

On February 9, 1938, the Standard Oil Company, Robert D. Webb and the Hunt Oil Company entered into an agreement whereby the Hunt Oil Company obligated itself to drill for oil. In this agreement, the Standard Oil Company transferred all of its rights and interest in the original lease to the Hunt Oil Company.

On February 10, 1938, the Hunt Oil Company began drilling operations on the leased premises.

*805 On February 25, 1938, while the Hunt Oil Company was engaged in drilling operations, Parten addressed the following letter to the Standard Oil Company:

“Woodley Petroleum Company
“Houston, Texas
“February 25, 1938
“Standard Oil Co. of Louisiana
“Shreveport, Louisiana
“In re: Babb Farm: SE% of NW%; NEJ4 of sw%; NW% of SE%; SWy4. of NE%; NEy4 of SEi/4; SE%, of NE%; SEy4 of SE% — all in sec. 14; and NW% of SW% and SW% of SWi/4 of sec. 13, all in Twp. 21 N., Range 10 West, Webster Parish, La., 360 acres more or less.
“Gentlemen:
“Your attention is invited to my previous letter of January 28th. regarding my property above described.
“Since nothing further has been done, and I have not received a reply from you, and since you are not now producing oil or gas from the property in paying quantities, I wish to inform you that your lease is not now alive.
“I wish to make demand upon you to give me a release as provided by the laws of the State of Louisiana.
“If such release is not forthcoming in due course, I will of necessity hold you responsible for all ensuing damages.
“Very truly yours,'
“J. R. Parten”

On February 28, 1938, the Standard Oil Company of Louisiana replied as follows:

“Standard Oil Company of Louisiana
“Shreveport, Louisiana
“February 28, 1938
“Re: Babb Farm, Cotton Valley Area,
Webster Parish, Louisiana

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Bluebook (online)
18 So. 2d 198, 205 La. 799, 1944 La. LEXIS 710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parten-v-webb-la-1944.