Petro-Hunt, L.L.C. v. United States

365 F.3d 385, 2004 WL 628657
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 31, 2004
Docket02-30760, 02-30786
StatusPublished
Cited by154 cases

This text of 365 F.3d 385 (Petro-Hunt, L.L.C. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petro-Hunt, L.L.C. v. United States, 365 F.3d 385, 2004 WL 628657 (5th Cir. 2004).

Opinion

*388 DENNIS, Circuit Judge:

Petro-Hunt, L.L.C., Hunt Petroleum Corporation, and Kingfisher Resources, Inc., (collectively “Plaintiffs”) filed a declaratory judgment action seeking to quiet title to mineral rights in approximately 180,000 acres of federally owned land within the Kisatchie National Forest. Plaintiffs claim those rights as successors in interest to 96 mineral servitudes that were created before the United States purchased the land in the 1930s. The district court granted summary judgment in favor of Plaintiffs on the grounds of res judicata and denied Plaintiffs request for attorneys’ fees. The United States timely appeals the district court’s grant of summary judgment and Plaintiffs cross-appeal on the issue of attorneys’ fees. Because we reverse district court’s summary judgment ruling and remand for further proceedings not inconsistent with this opinion, we need not reach the merits of Plaintiffs’ cross appeal regarding attorneys’ fees since plaintiffs are no longer prevailing parties. 1

I.BACKGROUND

In order to give the proper context to our discussion of the merits of this factually dense case, we begin with a brief discussion on Louisiana mineral law, the servi-tudes in question, and the applicability of certain Louisiana laws to property owned by the United States.

A. Mineral Servitudes Under Louisiana Law

Louisiana law governing mineral servitudes does not recognize a separate mineral estate in oil and gas. 2 Mineral rights can be owned separate from the surface land only in the form of a mineral servitude. 3 Hence, any attempt to sell or reserve the ownership of oil and gas results in the creation of a mineral servitude, and the holder of that servitude has the right to enter the property and extract the minerals. 4 Louisiana law has long provided that a mineral servitude is extinguished by prescription resulting from ten years’ nonuse. 5 The period of prescription on mineral servitudes begins to run on the date a servitude is created, 6 and is interrupted only by “good faith operations for the discovery and production of minerals.” 7

Because the rule of prescription reflects a public policy favoring “the timely return of outstanding minerals to the owner of the land,” 8 the rule may not be abrogated by contract. 9 The Louisiana *389 Supreme Court has declared that “it is against the public policy of this state to allow ... servitudes to remain alive for a longer period than 10 years without use,” and that any contracts to the contrary are void as against public policy. 10

B. Creation of Mineral Servitudes

In 1932, five Louisiana lumber companies — Good Pine Lumber, Trout Creek Lumber, Tall Timber Lumber, Bodcaw Lumber, and Grant Timber — entered an agreement to pool the mineral rights on their respective land holdings in central Louisiana. 11 As part of the pooling agreement, the companies created a joint venture called the “Good Pine Oil Company” and separately conveyed to that company the rights to explore and develop their property for the production of oil, gas, and sulphur. 12 Of these conveyances, six that Bodcaw Lumber and Grant Timber made to Good Pine Oil between November 12, 1932, and May 3, 1934, are relevant to this case. All of these six conveyances involved multiple parcels of land, many of which were non-contiguous, and thus resulted in multiple mineral servitudes. 13

Each of the six deeds conveying mineral rights to Good Pine Oil contained a clause providing that the ten year period of liber-ative prescription applied. Five of the deeds expressly stipulated that “none of said [mineral] rights in any of said lands shall be prescribed unless there shall elapse a full period of ten (10) years in-which there shall be no exercise of any of the foregoing rights or user of any -of the lands aforesaid under and by virtue hereof.” The sixth contained strikingly similar language. Because the prescriptive period described' in these instruments is equivalent to the liberative prescription period of ten years, the contract provision applying a prescriptive period of ten years is enforceable.

C. Acquisition by the United States

In. the late 1930s, the United States acquired approximately 180,000 acres of land in three Louisiana parishes (Grant Parish, Natchitoches Parish, and- Winn Parish) from Bodcaw Lumber and Grant Timber for inclusion in the Kisatchie National Forest. The United States acquired the lands under the Weeks Forestry Act 14 through nine acts of sale and two judgments in condemnation. 15 Each of these eleven conveyances came after the six transactions in which Bodcaw Lumber and Grant Timber conveyed mineral rights on the lands to Good Pine Oil. Consequently, at the time of acquisition, the approximately 180,000 acres of land that the United States acquired was burdened by 96 separate mineral servitudes in favor of Good Pine Oil.

The eleven instruments of transfer (nine deeds and two judgments) conveying the lands to the United States addressed the pre-existing mineral servitudes in different ways. All but one of the instruments con *390 tained language stating that the conveyances were “subject to” one or more of the mineral deeds granting rights to Good Pine Oil. Most of these transfer instruments contained an additional clause stating that the “mention” of the earlier mineral reservation was “made solely for the purpose of limiting vendor’s warranty to the United States in present sale, and the recital of the said Mineral Sale shall in nowise extend or enlarge the same in point of time.”

Five of the instruments (four deeds and one judgment) also contained additional mineral reservations in the name of Bod-caw Lumber or Grant Timber, which were to become effective upon the prescription of the relevant servitudes held by Good Pine Oil. For example, the February 11, 1936 deed conveying 24,943.93 acres owned by Bodcaw Lumber “specially reserved” unto Bodcaw Lumber “all of the oil, gas and other minerals ...

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Bluebook (online)
365 F.3d 385, 2004 WL 628657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petro-hunt-llc-v-united-states-ca5-2004.