Roy O. Martin Lumber Co. v. Pan American Petroleum Corp.

177 So. 2d 153, 24 Oil & Gas Rep. 104, 1965 La. App. LEXIS 4144
CourtLouisiana Court of Appeal
DecidedJuly 1, 1965
DocketNo. 1464
StatusPublished
Cited by1 cases

This text of 177 So. 2d 153 (Roy O. Martin Lumber Co. v. Pan American Petroleum Corp.) 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
Roy O. Martin Lumber Co. v. Pan American Petroleum Corp., 177 So. 2d 153, 24 Oil & Gas Rep. 104, 1965 La. App. LEXIS 4144 (La. Ct. App. 1965).

Opinion

SAVOY, Judge.

Defendants appealed from an adverse judgment of the district court. Plaintiff answered the appeal asking for an increase in the award.

The district judge has analyzed the facts and the law applicable to the instant case and we adopt his opinion as our own as-follows :

“This is an action arising out of a con tract between plaintiff and defendants.. Plaintiff executed an oil, gas and mineral' lease to defendant, Pan American Petroleum Corporation, on December 10, 1958,. covering 14,806.57 acres of cutover swampland in Avoyelles Parish, Louisiana. Besides the usual stipulations in such leases, this clause was typed in and as part of the lease contract:

“ ‘Lessee shall be responsible for and agrees to make payment of all damage to lands, crops, timber and improvements caused by its operations hereunder.’

“Pursuant to its rights under the oil, gas and mineral lease, defendant, Pan American, proceeded to stake out locations to drill and did drill for oil, gas and minerals. The other defendant, Justiss-Mears Oil Company, a sub-lessee of Pan American, by unrecorded letter agreement, also proceeded to stake out locations to drill for oil and gas and did drill out several wells upon plaintiff’s land. The lessee and sub-lessee followed existing logging roads across the land leased, as far as practicable, and then proceeded to cut and clear roadways from the existing logging roads to the staked well locations. In addition, there was cleared, at each location, an area for the derrick, pipe platforms, mud pits, etc.; this suit was instituted as alleged damages to plaintiff occasioned by six different well locations, some of which were productive and some unproductive. Many other well locations were staked out and drilled — some productive and some not, after the filing of this suit. Plaintiff reserved its right to claim damages for these subsequent locations and access roads thereto. This case, therefore, is quite important and construction of the above clause is entitled to very careful consideration.

“As originally filed, the suit claims a total of $7,710.00, and the figure is based [155]*155upon $200.00 an acre, on the area cleared and used by defendants as aforesaid. It is alleged that there was a verbal accord on that figure between plaintiff’s agent and one of Pan American’s agents.

“Defendants filed an exception of vagueness — to the original petition asking for the board feet of timber destroyed; the number of acres damaged and in what manner; and the value of the timber destroyed on an acreage basis. Plaintiff then amended its petition setting forth its alleged damages in greater detail, and in so doing, increased its original demand to the sum of $10,355.92.

“Each defendant filed separate answers. Each denied, generally, the extent of the damages claimed by plaintiff; each conceded liability for actual compensatory damages under the special clause inserted in the lease. Each affirmatively alleged that the actual damages caused by its operations had been appraised by independent experts. Each admitted liability to the extent determined by the said experts. Each tendered into Court this determined •amount of damage, plus interest and accrued costs to date of tender. There was deposited and tendered the sum of $342.17 as the total liability of defendants, Justiss-Mears Oil Co., Inc., the sub-lessee, putting up that amount.

“The cause then came up for trial and quite a voluminous record was made up by testimony, exhibits and pictures.

“The issue to be determined by the Court is the amount of compensation to be paid to plaintiff for its damages under the special clause inserted in the lease, which is quoted above. The obligation of defendants arises out of contract. It is not an action in tort; there is no conversion or illegal trespass. Lessee had the right, under its oil and gas lease, to go upon the premises, to gain access to staked locations, and generally to do all that was necessary toward the realization of production of oil and gas.

'“The' acreages involved were substantially as follows:

“ROY O. MARTIN #1: Location-21^ Acres; roadway 1J4 Acres— Total 2.75 Acres

“ROY O. MARTIN #11: Location— 2}/£ Acres; roadway Acres — Total 3.25 Acres

“ROY O. MARTIN #111: Location —2Acres; roadway 14 Acre — Total

2.75 Acres

“ROY O. MARTIN #IV: Location - And - roadway - Total 4.9 Acres

“ROY O. MARTIN #V: Location-214 Acres; roadway 1Y2 Acres — Total 4.00 Acres

“ROY O. MARTIN #VI: Location— 2Y2 Acres; roadway lj4 Acres — Total 3.75 Acres

One unnecessary roadway, later abandoned, is also involved. The acreage is not given but $999.88 is claimed. (1 Acre allowed) .

“In asserting its damages, plaintiff claims the value of saw logs — 12" in diameter and larger; the value of the pulpwood — 4" to 12" in diameter; the costs of appraisals; loss of projected growth of the young timber; and costs to restore the surface as was in refilling mud and slush pits and deep ruts cut into the surface of the access roads. Defendants, on the other hand, challenge the quantum of saw logs and pulpwood; they challenge plaintiff’s right to recover for projected growth of young trees; and they challenge as ridiculous, the high charges to restore the surface of the land to an ‘as was’ state, since this is low swamp, without improved roads, subject to overflow and cut up ‘naturally’ with all types of lakes, bayous, streams, canals, and by man made logging roads. It is stated that the costs of restoring the surface to its former condition, at $150.00 to $200.00 per location, would in fact be [156]*156more than the land itself is worth, in fee and timber, exclusive of minerals; and the minerals would still be available to the owner, regardless of the surface condition.

“The Court repeats again — the legal issue is a simple one — How much is owed to the plaintiff as damage, by reason of the special clause in the oil lease above quoted. The Court must award a sum based upon a contractual covenant, not an award in tort, in breach of contract, or what is sometimes allowed in condemnation suits. It is an agreement between the parties; the Court must give effect to this agreement.

“Able counsel prepared exhaustive briefs for the Court. These were not too helpful on the question of damage. Most of the authorities cited were damages in tort cases, trespass, and condemnation proceedings, involving lands or right-of-way easements. Here we have a conventional agreement; the defendants had the right to do what they did, by the written accord of plaintiff, and that changes the relations of the parties considerably and makes the ‘yardstick’ for damages different from that in the cited cases.

“In that section of our Civil Code which deals with the effect of obligations and particularly Article 1934, we find this language :

‘Measure of damages — exceptions and modifications. When the debtor has been guilty of no fraud or bad faith, he is liable only for such damages as were contemplated, or may reasonably be supposed to have entered into contemplation of the parties at the time of the contract. * * * In the assessment of damages under this rule, as well as in cases of offenses and quasi offenses and quasi contracts, much discretion must be left to the judge or jury, * * *.’

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Related

Prather v. Chevron U.S.A., Inc.
563 F. Supp. 1366 (M.D. Louisiana, 1983)

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Bluebook (online)
177 So. 2d 153, 24 Oil & Gas Rep. 104, 1965 La. App. LEXIS 4144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roy-o-martin-lumber-co-v-pan-american-petroleum-corp-lactapp-1965.