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

179 F. Supp. 2d 669, 155 Oil & Gas Rep. 237, 2001 U.S. Dist. LEXIS 23020, 2001 WL 1715977
CourtDistrict Court, W.D. Louisiana
DecidedDecember 18, 2001
DocketCiv.A.00-0303
StatusPublished
Cited by5 cases

This text of 179 F. Supp. 2d 669 (Petro-Hunt L.L.C. v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana 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, 179 F. Supp. 2d 669, 155 Oil & Gas Rep. 237, 2001 U.S. Dist. LEXIS 23020, 2001 WL 1715977 (W.D. La. 2001).

Opinion

MEMORANDUM RULING

WALTER, District Judge.

Before this Court is a Motion for Summary Judgment [Doc. 85] and a Reply to Defendant’s Opposition to Plaintiffs Motion for Summary Judgment [Doc. 142], filed on behalf of the Plaintiff, Petro-Hunt, L.L.C., Hunt Petroleum Corporation, and *671 Kingfisher Resources, Inc. (Petro-Hunt), pursuant to Federal Rule of Civil Procedure 56. Defendants, United States of America, et al., oppose the Motion [Doe. 133]. 1 For the reasons assigned herein, Plaintiffs motion is GRANTED and Plaintiffs, Petro-Hunt, L.L.C., Hunt Petroleum Corporation and Kingfisher Resources, Inc. are hereby declared the exclusive owners in perpetuity of the approximately 180,000 acres of mineral servitudes at issue in this case and being more fully described in Plaintiffs Complaint [Doc. 1].

BACKGROUND

The case at bar cannot be properly framed without an examination of the Fifth Circuit’s United States v. Nebo Oil Co. 2 opinion, as it provides both the historical backdrop and the grounds for Petro-Hunt’s pivotal assertion of res judicata and/or claim preclusion. 3 This Court includes the following lengthy, but relevant, quotations because it reflects the view of a panel of judges much closer in time and in possession of the full record:

This suit was brought by the appellant, United States of America, against the appellee, Nebo Oil Company, Inc., for a judgment declaring that appellant is the owner of the minerals ... underlying approximately eight hundred acres of land located in the Parish of Natchi-toches, States of Louisiana. A trial was had by the court without a jury and judgment was entered dismissing the complaint.
The undisputed facts are these: In the year 1932 five lumber companies decided to pool the mineral rights in their lands in order to secure more favorable exploration and development thereof, it being agreed by the parties that each would share in any production obtained from the pooled acreage in proportion to the acreage which each lumber company contributed to the pool. *672 For that purpose, the Good Pine Oil Company was organized....
One of these conveyances to Good Pine Oil was by recorded deed from the Bodcaw Lumber Company, dated November 12, 1932, covering all of the oil, gas and sulphur underlying a tract of land containing 37, 532.13 acres of which the 800 acres of land here involved was a part.
Prior to the year 1936 the United States was interested in purchasing lands in Louisiana for national forest purposes and had found that owners of large tracts of land were unwilling to sell their lands because of court decisions holding that the sale or reservation of mineral rights in Louisiana created only a right in the nature of a servitude which was subject to prescription by ten years nonuser [sic]. However, the United States Department of Agriculture, Forest Service, was not in accord with this view and on May 29, 1935, submitted to Bodcaw Lumber Company an opinion of the Assistant Solicitor of the Department of Agriculture to the effect that the prescriptive provisions of the Louisiana Civil Code would not apply to lands sold to the United States for national forest purposes.
Thereafter, on February 11, 1936, Bodcaw sold to the United States a tract of timber land containing 24,943.93 acres, of which the 800 acre tract whose minerals had previously been conveyed to Good Pine Oil formed a part....
At the time the sale was made, the officers and directors of Bodcaw believed that the mineral rights in the lands sold were valuable and the price of $1.75 per acre paid by appellant for the timber lands acquired under the 1936 deed did not reflect the value of any mineral rights. Moreover, the uncontra-dicted testimony is that Bodcaw would not have sold the timber lands to the United States had its representatives then taken the position, as they do now, that the prescriptive provisions of the Louisiana Civil Code would be applicable to the lands sold.
In December 1941 the Good Pine Oil Company was dissolved .... [and] Nebo Oil Company, was organized and by mesne conveyances acquired all of the mineral rights formerly held by Good Pine Oil.
It was stipulated by and between the parties that no drilling operations have been conducted on the 800 acres of land involved or on lands contiguous thereto. However, it appears that the mineral rights acquired by Good Pine Oil by virtue of the 1932 deed from Bodcaw were exercised by the drilling of five separate wells between October 1941 and October 1948, three of which were located on lands conveyed to the United States under the 1936 deed from Bod-caw. ...
The gravamen of the complaint is that no drilling operations were conducted on the lands in suit during the ten years period beginning November 12, 1932; and that consequently any mineral rights owned by Good Pine Oil or its successor, Nebo Oil, had prescribed by ten years of nonuser [sic] of the servitude. For answer, Nebo Oil denied that the mineral rights had prescribed and set up the defenses, among others, that there had been an interruption of the ten year prescriptive period for the reason that the minerals underlying the 800 acre tract were pooled with other minerals which had been developed, and exercise of the servitude on any part of the pooled acreage interrupted prescription with respect to all of the minerals included in the pool; and that the mineral rights were imprescriptible by virtue of *673 Act 315 of the Louisiana Legislature of 1940. 4

The Court first rejected Nebo Oil’s defense that the pooling of the lands interrupted prescription, finding that the pooling agreement was never recorded and thus could not affect third parties. 5

Next, the Court addressed the Constitutionality of Act No. 315 of 1940, which derogated from the default rules applicable to the extinguishment of mineral servi-tudes and established a rule of impres-criptability for those servitudes burdening lands purchased or expropriated by the United States. 6 The Court found that Act 315 was retroactively applicable, “because of the general rule of law established by the jurisprudence of this State that laws of prescription and those limiting the time within which actions may be brought are retrospective in their operation.” 7 The Court further found that the scheme of acquisitive prescription cannot give rise to a vested right and is “nothing more than a mere expectation, or hope, based upon an anticipated continuance of the applicable general laws.” 8

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Related

Petro-Hunt, L.L.C. v. United States
862 F.3d 1370 (Federal Circuit, 2017)

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Bluebook (online)
179 F. Supp. 2d 669, 155 Oil & Gas Rep. 237, 2001 U.S. Dist. LEXIS 23020, 2001 WL 1715977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petro-hunt-llc-v-united-states-lawd-2001.