Riceland Petroleum Company v. North American Land Co., Inc.

CourtLouisiana Court of Appeal
DecidedFebruary 18, 2004
DocketCA-0003-0241
StatusUnknown

This text of Riceland Petroleum Company v. North American Land Co., Inc. (Riceland Petroleum Company v. North American Land Co., Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riceland Petroleum Company v. North American Land Co., Inc., (La. Ct. App. 2004).

Opinion

STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT

CA 03-241

RICELAND PETROLEUM COMPANY

VERSUS

NORTH AMERICAN LAND COMPANY, INC., STREAM FAMILY LIMITED PARTNERSHIP, ET ALS, AND THE STATE MINERAL BOARD OF THE STATE OF LOUISIANA

********** APPEAL FROM THE THIRTY-EIGHTH JUDICIAL DISTRICT COURT PARISH OF CAMERON, NO. 10-15672 HONORABLE H. WARD FONTENOT, DISTRICT JUDGE **********

ARTHUR J. PLANCHARD JUDGE PRO TEMPORE

**********

Court composed of Billie Colombaro Woodard, and Jimmie C. Peters, Judges and Arthur J. Planchard, Judge Pro Tempore.

REVERSED AND RENDERED

William E. Shaddock William Boyce Monk P. O. Box 2900 Lake Charles, LA 70602 Counsel for: Defendant-Appellant State Mineral Board of the State of Louisiana

A. J. Gray, III P. O. Box 1467 Lake Charles, LA 70602-1467 Counsel for: Defendant-Appellee North American Land Co., Inc. and Matilda Gray Stream

Randall Charles Songy 102 Versailles Blvd, Suite 600 Lafayette, LA 70502-3507 Counsel for: Defendant-Appellee North American Land Co., Inc. and Matilda Gray Stream John M. McCollam 201 St. Charles St. Suite 4000 New Orleans, LA 70130-4000 Counsel for: Plaintiff-Appellee Riceland Petroleum Company PLANCHARD, Judge

This matter came before the district court as a concursus filed by Riceland

Petroleum Company to determine the ownership of royalties owed under mineral

leases affecting land within two conservation units. The ownership of that land is

disputed. Under Louisiana law title to property can be decided in a concursus

proceeding. The contest in this case is between a group of private parties and the State

of Louisiana. The private parties are the North American Land Company, Inc.;

Mathilda Gray Stream; Stream Family Limited Partnership; HHS Naked Ownership

Trust; SGSL Naked Ownership Trust; WGS Naked Ownership Trust; Harold Stream

Investment Trust; Sandra Stream Investment Trust; and Gray Stream Investment

Trust. The State of Louisiana appears through the State Mineral Board. In this

opinion we will refer to the private parties collectively as North American-Stream, and

to the State of Louisiana as the State.

The disputed property is located in Cameron Parish along the shore of the Gulf

of Mexico about seven miles east of Sabine Pass, the border between Louisiana and

Texas. It is an undeveloped part of the physical environment known as the Chenier

Plain. According to the experts, the coast there has enjoyed an irregular but net

accretion over the last two centuries, though at declining rates, the decline becoming

more rapid since the middle of the 20th century. The disputed property is the

accretion. The north boundary of the disputed property is the southern boundary of

Township 15 South, Range 14 West (T15S, R14W), Cameron Parish, Louisiana, as

laid out in the field survey of Thomas Bilbo, a United States Deputy Surveyor, in

1838 and retraced in 1999 by a survey of Michael P. Mayeux, a Registered Louisiana

Surveyor. The south boundary of the disputed property is the seashore of the Gulf of

-1- Mexico. The focus of the dispute is the several hundred feet of accreted property

between fractional Section 23 of the township and the present shoreline of the Gulf.

There is no dispute that North American-Stream is the present owner of platted

Sec. 23, T15S, R14W. There can be no dispute that the State owns the seashore

(herein sometimes tidelands, sometimes shore lands) south of it. The trial court held

that the owner of the several hundred feet of accretion that lies in between is North

American-Stream. In effect, the trial court reasoned that because the plat of survey

by which the State acquired Section 23 in the year 1850 from the United States

showed a meander line along the coast as the southern boundary of the section, the

coast necessarily became the ambulatory southern boundary for all time, and the

owner of Section 23 will always own to the water’s edge. In so ruling, the trial court

held that Louisiana Civil Code Article 500, which provides that there is no right to

alluvion or dereliction on the shore of the sea or of lakes, and Louisiana case law

which holds that the State owns accretion on the seashore, must give way to

controlling federal law as announced in Hughes v. State of Washington, 389 U.S. 290,

88 S.Ct. 438 (1967). That case held that coastal boundary questions where accretions

had extended the shoreline seaward are resolved by applying the federal common law

rule which gives the right to the accretions to the federal grantee.

The State appeals. For reasons which we will now explain, we reverse and

render judgment in favor of the State of Louisiana recognizing the State as the owner

of the disputed property. We find that Hughes does not apply to this case.

The issues in this case revolve around two ancient conveyances of Section 23.

The first conveyance was a grant from the United States to Louisiana by means of the

Swamp Lands Acts of Congress of 1849 and 1850. The second was a sale by the State

to Jabez B. Watkins in the year 1883. The extent of the title passed by these two

-2- conveyances are important questions that must be examined to determine the ultimate

issue of ownership of the accretion today.

The history of Section 23 began in 1838 when Thomas Bilbo, a United States

Surveyor, mapped T15S, R14W, Southwestern Land District (now part of Cameron

Parish) on the ground. The 1838 Bilbo Survey was the official United States General

Land Office survey which actually created the township and its sections and from

which the Official Township Plat was made.

THE SWAMP LANDS ACQUISITION

In 1849 and 1850, Congress adopted the Swamp Lands Acts which granted to

Louisiana swamp and overflowed lands for the purpose of aiding in the reclamation

of those lands. The Acts required that before title could pass to the State there had to

be a survey done under authority of the United States and a selection of lands by the

State. The Bilbo Survey of the township related to where our disputed property lies,

had already been done in 1838. By that survey the township and section corners were

established, and the township and section lines were run, except that the north-south

lines on some of the bottom sections were run only to the margin of the Gulf. The

contour of the Gulf, relatively straight at this point, was meandered on the survey.

From Bilbo’s field notes and sketch came the plat. This plat became the official plat

of the survey of the lands on file in the Louisiana State Land Office.

Because of the Gulf this township was a fractional township and Section 23

was a fractional section. According to the Official Township Plat it contained just 38

acres. This was not just the upland, but all the land in the section. It was not called

a fractional section but the area given, 38 acres, in comparison with the 640 acres in

a regular section, shows that Section 23 was in fact a fractional section. State v.

Aucoin, 20 So.2d 136, 206 La. 787 (1944). Along with other sections in the township,

-3- fractional Section 23 was selected by the State under the Swamp Lands Act on

December 7, 1850. Title became vested in the State at that time. The State Tract

Book records, which are the official records reflecting this selection and approval,

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