Perkins v. Long-Bell Petroleum Company

81 So. 2d 389, 227 La. 1044, 4 Oil & Gas Rep. 1517, 1955 La. LEXIS 1326
CourtSupreme Court of Louisiana
DecidedMay 23, 1955
Docket41905
StatusPublished
Cited by15 cases

This text of 81 So. 2d 389 (Perkins v. Long-Bell Petroleum Company) 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
Perkins v. Long-Bell Petroleum Company, 81 So. 2d 389, 227 La. 1044, 4 Oil & Gas Rep. 1517, 1955 La. LEXIS 1326 (La. 1955).

Opinion

McCALEB, Justice.

This suit was filed on September 10, 1953, under the provisions of LSA-R.S. SOBOl 1 by the owner of land situated in Allen Parish to cancel a mineral reservation contained in his deed of acquisition, dated April 20, 1943, for 10 years’ nonuser and for a $5,000 attorney’s fee. It is aver *1050 red that the right of action arises by reason of defendant’s refusal to execute and deliver an instrument directing the cancellation of its mineral servitude after having been requested to do so.

Defendant resisted the demand, asserting that prescription has not accrued because it was suspended'by-: the interposition of an obstacle by plaintiff- to the exercise of the servitude; that, further, plaintiff is es-topped by his conduct from now contending that the servitude has prescribed and, moreover, that plaintiff caused a legal interruption of the running of prescription by filing an earlier -suit against it in Allen Parish.

After a trial on these issues, the district judge decreed that defendant’s reservation -of mineral rights had prescribed, but rejected plaintiff’s demand for attorney’s fees. Defendant has appealed from the ■adverse decision and plaintiff has answered, praying that the judgment be amended to allow him the claimed attorney’s fees.

The evidence adduced at the trial establishes the following facts:

On April 20, 1943, plaintiff purchased the land from Long-Bell Farm Land Corporation and in this, deed the minerals were reserved- in favor of Long-Bell Petroleum Company, Inc., defendant herein.

On May 24, 1948, defendant executed a mineral lease covering this and other lands in favor of Magnolia Petroleum Company.

On June 8, 1949, there was placed of 'record in Allen Parish an instrument dated September 24, 1947, wherein 'plaintiff em-, ployed the law .firm of Plauche & Stock-well for the purpose of contesting the validity of the mineral servitude in favor of defendant and conveyed to. the firm one-fourth of the minerals. 2

On April 24, 1951, plaintiff granted a mineral lease covering the property to I. J. Goode, who assigned it on the same day to Magnolia Petroleum Company. The léás'e was for a primary term of five''y’ears’but Magnolia failed to pay the’firsí'iíeláy rental and the contract 'thus' expifM’tíff’-Ap'ril 24, 1952. On the same 'day th&T'this’'lease was granted, the attbrñéys for plaintiff anti Magnolia Petroleum Company entered ihto-an agreement to the effect that plaintiff was granting, a mineral lease to Magnolia, through Goode, so as not to interfere with Magnolia’s development of the- property. ■

On August 13, 1951, plaintiff instituted a jactitory action against defendant, claiming title to all of the minerals and, on August 21, 1951, defendant filed an exception of *1052 possession. 3 Nothing further was done in this suit until July 19, 1953, when plaintiff dismissed it without prejudice.

On October 20, 1952, the oil and gas lease given by defendant to Magnolia expired according to its terms.

On May 13, 1953, plaintiff granted to A. W. Hutchings an oil and gas lease, which was then assigned to H. L. Hunt. On June 1, 1953, defendant likewise gave a lease to H. L. Hunt. Hunt began drilling in the same month and, in July of 1953, a producing well was completed.

It was stipulated at the trial that there were no explorations for oil or gas on the land between April 20, 1943 and April 20, 1953 so that, unless prescription has been suspended or interrupted, as claimed by defendant, the mineral servitude became extinguished by nonusage. Articles 783 and 789 of the LSA-Civil Code.

Defendant’s principal contention is that the jactitation suit filed by plaintiff interposed an obstacle to its exercise of the servitude within the meaning of Article 792 of the LSA-Civil Code and that the ten-year prescription for nonuser was' therefore suspended from August 13, 1951 to June 19, 1953. It also invokes the equitable principle of estoppel, asserting that, by filing the jactitation suit and by recording the instrument in which he claimed title to the minerals, plaintiff cannot now be heard to contend that the ten-year prescription has accrued. To support its position, counsel for defendant depend on a long line of cases which hold that, when a lessor of a mineral lease files and prosecutes a lawsuit against his lessee for the annulment or forfeiture of the lease, he thereby deprives the lessee of the exercise of the rights granted to him by the lease and, if the lessee prevails, he is entitled to an extension of the lease equal to the period of the litigation. See Leonard v. Busch-Everett Co., 139 La. 1099, 72 So. 749; Standard Oil Co. of Louisiana v. Webb, 149 La. 245, 88 So. 808; Lieber v. Ouachita Natural Gas & Oil Co., 153 La. 160, 95 So. 538; Fomby v. Columbia County Development Co., 155 La. 705, 99 So. 537; Williams v. James, 188 La. 884, 178 So. 384; Knight v. Blackwell Oil & Gas Co., 197 La. 237, 1 So.2d 89 and Baker v. Potter, 223 La. 274, 65 So.2d 598.

The cited cases, which, as we have said, involve unsuccessful proceedings by a mineral lessor against his lessee for the cancellation of the lease, are founded upon the equitable principle that it would be manifestly unfair to permit a lessor, who is obligated under Article 2692 of the LSA-Civil Code “To cause the lessee to be in a peaceable possession of the thing during the continuance of the lease”, to violate his duty by seeking the annulment of the *1054 lease and yet insist that, during the pend-ency of the proceedings, the lessee is bound to comply with the obligation to drill or exercise its right to explore for minerals. But those authorities are without pertinence to this case because here is involved a mineral servitude which either has or has not become extinguished by operation of law. Indeed, the fundamental error in the argument of defense counsel stems from their attempt to assimilate a mineral servitude with a mineral lease and place them on the same plane. That they are different and produce diverse legal effects is no longer an open question in this court. See Milling v. Collector of Revenue, 220 La. 773, 57 So.2d 679 and Dixon v. American Liberty Oil Co., 226 La. 911, 77 So.2d 533, 537.

A mineral lease, though characterized as a real right under LSA-R.S. 9:1105, is, as stated in the last cited case, “merely a contract which permits the lessee to explore for minerals on the land of the lessor in consideration of the payment of a rental and/or bonuses.” To this, we may add that the lessee is not only accorded the right to explore but is obliged to do so in most cases, or pay a delay rental if he does not explore within the primary term of the lease. In a mineral lease, the lessor, being entitled to royalties in the event of production, is interested in requiring his lessee to explore. Not so with a landowner whose property is subjected to a minerál servitude. Being without interest in the minerals, he is without right, during the existence of the servitude, to insist upon development, and the only duty required of him is to permit the servitude owner to explore as long as the servitude remains in esse.

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Bluebook (online)
81 So. 2d 389, 227 La. 1044, 4 Oil & Gas Rep. 1517, 1955 La. LEXIS 1326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkins-v-long-bell-petroleum-company-la-1955.