Rives v. Gulf Refining Co.

62 So. 623, 133 La. 178, 1913 La. LEXIS 2020
CourtSupreme Court of Louisiana
DecidedApril 28, 1913
DocketNo. 19,452
StatusPublished
Cited by59 cases

This text of 62 So. 623 (Rives v. Gulf Refining Co.) 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
Rives v. Gulf Refining Co., 62 So. 623, 133 La. 178, 1913 La. LEXIS 2020 (La. 1913).

Opinion

SOMMERVILLE, J.

Plaintiffs declare upon a contract of lease to defendant of oil land in the Caddo oil field; and they attach to and make part of their petition the said contract.

The contract employs terms indicating that it is both a lease and a sale. It has features common to either or both of said contracts; and at times plaintiffs and defendants argue that it is a lease, and at other times that it is a sale. The nature of the contract indicates that it is neither a lease nor a sale.

Defendant in its answer refers to the contract as a mineral contract. It further answers that plaintiffs failed to deliver to it all of the land which they had undertaken to deliver under the contract between them; that the two wells for which plaintiffs are claiming royalties in this suit are located upon portions of land which the plaintiffs failed to deliver into the possession of the defendant; that of one portion of said land S. W. Mason and W. W. Mason had taken actual possession before the date of the contract between plaintiffs and defendant; and that J. G. Gibbs and others had taken possession of the other portion; that the Masons and Gibbs were locators under the placer mining laws of the United States; that said locators claimed that the property upon which they had located belonged to the United States, and that it is subject to mineral locations as such; that it, defendant, entered into separate contracts with the Masons and Gibbs, and that oil has been produced from said land. Defendant further alleges that it paid $50,000 in cash to plaintiffs under the contract, that plaintiffs agreed to deliver into its possession 100.42 acres of land, and that only 79 acres were delivered to it.. Defendant reconvenes, and claims from plaintiffs the sum of $10,665.23 [181]*181for failure on their part to deliver all of the land contracted for.

The Masons and Gibbs intervened, and asked that plaintiffs’ demand be rejected, and that they be recognized as owners of the respective portions of land claimed by them under their locations; and, further, asked that defendant be declared to possess the pieces of property as their tenant, and that they be quieted in the possession of the said lands.

Plaintiffs moved to dismiss the petitions of interveners, to strike them from the record, and excepted to the petitions on the ground that they showed no cause or right of action. The motions and exceptions were overruled; and plaintiffs answered, asking that interveners’ demands be rejected, and that they be forever barred from setting up any claim or title to the property, or to any of the royalty of minerals accruing therefrom.

There was judgment in favor of the defendant and interveners rejecting plaintiffs’ demands; there was further judgment in favor of the defendant, and against plaintiff, on the reconventional demand, for $10,665.-23. Plaintiffs have appealed.

[2] Gas and oil leases and contracts, are a part by themselves. There is scarcely any comparison between them and the ordinary farm or house lease, although there is some resemblance in them to coal or solid mineral leases. The Code is silent as to such contracts; for the reason, doubtless, that minerals under and within the soil of Louisiana were not in the contemplation of the lawmakers at the time that the Code was adopted. The Legislature up to this time has been silent upon the subject of mineral rights and contracts. The law with reference to sales and leases found in the Oode cannot be unreservedly applied to these contracts. Such contracts partake of the nature of both sale and lease, and they have features which are not applicable to either.

The lease or contract under consideration has all of the features of the ordinary oil or gas lease or sale — the right of the one party to go upon the land of another party for as long a time as gas or oil may be found in paying quantities; the paying of royalties, or a part of the oil produced, as a consideration; and so much for each gas well, with the right of the lessee or grantee to drill wells to lay pipes and carry off the gas and oil, and to do other acts not necessary to be mentioned here.

In determining the scope and legal effect of an instrument giving rights and privileges to mine or take minerals, oil, or gas, it is immaterial by what name it is called; whether a lease, license, sale, contract, grant, deed of conveyance, a real right, an incorporeal hereditament, a chattel interest, a chattel real, a right in land, or other name; the court will look to the language used in the instrument, aside from these terms so used, and determine its legal effect. The most commonly used term is the word “lease,” although the other terms given above have been used by the courts.

In the case of Cooke v. Gulf Refining Co., 127 La. 592, 53 South. 874, we considered a contract like the one under consideration, for the purposes of that case, as a lease. In the case of R. F. Wadkins v. Atlanta & Shreveport Oil & Gas Co., we held the contract therein denominated a sale as a real right, and sustained a plea of prescription for nonuser; this latter finding is in line with the decision of the Supreme Court of the United States in Ohio Co. v. Indiana, 177 U. S. 190, 212, 20 Sup. Ct. 576, 585 (44 L. Ed. 729), which says:

“In view of the fact that regulations of natural deposits of oil and gas and the right of the owner to take them as an incident of title in fee to the surface of the earth, as said by [183]*183the Supreme Court of Indiana, is ultimately but a regulation of real property,” etc.

[3] Oil and gas, until severed from the realty, are as much a part of it as coal or stone. So long as they remain in the ground outside of an artificial receptacle at least, as the casing of a well or a pipe line, they must be treated as a part of the realty underneath the surface where they lie. The owner of the surface is the owner of the oil and gas beneath it; but, if they escape into the land of another, he ceases to be the owner of them. They are the subjects of contract, very similar to grants or conveyances of coal or stone buried in the soil of the same tract of land.

In seeking for analogous conditions in the law, courts have compared natural gas and oil to that of animals feraj naturas. The Supreme Court of Pennsylvania made this comparison in a case that has become a leading authority wherever the subject of gas and oil is discussed.

“Water and oil,” said the court, “and still more strongly gas, may bo classed by themselves, if the analogy be not too fanciful, as minerals ferse naturas. In common with animals, and unlike other minerals, they have the power and tendency to escape without the volition of the owner. Their ‘fugitive and wandering existence within 'the limits of a particular tract is uncertain.’ They belong to the owner of the land, and are a part of it, and are subject to his control; but when they escape, and go into other land, or come under another’s control, the title of the former owner is gone. Possession of the land, therefore, is not necessarily possession of the gas. If an'adjoining or even a distant owner drills his own land, and takes your gas, so that it comes into his well and under his control, it is no longer yours but his.”

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Cite This Page — Counsel Stack

Bluebook (online)
62 So. 623, 133 La. 178, 1913 La. LEXIS 2020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rives-v-gulf-refining-co-la-1913.