Shell Oil Co. v. Bd. of Com'rs of Pontchartrain Dist.

336 So. 2d 248
CourtLouisiana Court of Appeal
DecidedNovember 16, 1976
Docket10699
StatusPublished
Cited by11 cases

This text of 336 So. 2d 248 (Shell Oil Co. v. Bd. of Com'rs of Pontchartrain Dist.) 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
Shell Oil Co. v. Bd. of Com'rs of Pontchartrain Dist., 336 So. 2d 248 (La. Ct. App. 1976).

Opinion

336 So.2d 248 (1976)

SHELL OIL COMPANY et al., Plaintiffs-Appellees,
v.
BOARD OF COMMISSIONERS OF PONTCHARTRAIN LEVEE DISTRICT et al., Defendants-Appellants.

No. 10699.

Court of Appeal of Louisiana, First Circuit.

June 30, 1976.
Rehearing Denied August 27, 1976.
Writ Refused November 16, 1976.

*249 Victor A. Sachse, III, Baton Rouge, George C. Schoenberger, Jr., New Orleans, John T. McMahon, Houma, E. Leland Richardson, Baton Rouge, for defendants-appellants.

Jules A. Carville, III, La Place, for plaintiffs-appellees.

Before SARTAIN, ELLIS and EDWARDS, JJ.

SARTAIN, Judge.

At issue in this cause is the ownership of mineral rights in and to certain lands situated in Iberville Parish, Louisiana. The parties claiming exclusive rights thereto are Pontchartrain Levee District (Levee District), through its Board of Commissioners, on the one hand, and Lewis Gottlieb, Rosalie Gottlieb Moise, J. Burton LeBlanc, Jesse E. LeBlanc, and William Hardee LeBlanc, appellants, on the other hand.

Shell Oil Company, and others, (Shell) as mineral lessee of the Levee District and appellants produced minerals thereunder from 1952 through 1965, accumulating as royalties the sum of $48,823.07. Shell deposited this amount in the Registry of the Court and provoked the instant concursus proceeding.

Appellants seek reversal from the judgment of the district court which held that the Levee District was prohibited by Section 2, Article IV, of the Constitution of Louisiana (1921) from divesting itself of the minerals when it conveyed the property without reservation to appellants' ancestor in title.

The Louisiana Constitution of 1921, Section 2, Article IV, in pertinent part, provides:

"* * * In all cases the mineral rights on any and all property sold by the State shall be reserved, except where the owner or other person having the right to redeem may buy or reclaim property sold or adjudicated to the state for taxes. * * *"

In his written reasons for judgment, the trial court held that the Levee District is an "arm" of the state and subject to the *250 prohibition contained in the above quoted section of the Constitution.

Appellants argue that the Levee District is a separate and distinct legal entity from the state, with specific powers including the right to sue and be sued, buy or sell real estate, etc., and does not fall within the purview of Section 2, Article IV, above.

For reasons hereinafter stated, we concur in the result reached by the trial judge and affirm.

At the outset, it should be noted that the facts are not in dispute. The record consists entirely of documentary evidence placed therein by stipulation of counsel for both parties. Further, the Levee District does not contest appellants' ownership of the surface rights to the subject property, which is more particularly described as follows, to-wit:

"The East half of the Northeast quarter of Section 7, Township 9 South, Range 2 East, in Iberville, Louisiana."

This property was included in acreage acquired by the State of Louisiana on December 4, 1909, from the United States of America under the provisions of the "Swamp Land Act" approved by Congress on September 28, 1850. 43 U.S.C.A., Section 982, et seq.

The Levee District was created by Act 95 of 1890. This act also transferred the subject property from the state to the Levee District.

Appellants' ancestor in title obtained the property from the Levee District on March 24, 1926. Patent and conveyance executed under the provisions of Act 215 of 1908 dated March 29, 1926, were filed for record on April 17, 1926. Neither appellants' deed of acquisition nor the patent and conveyance contained any reservation of the mineral rights.

We shall primarily center our discussion around four cases, namely: Tensas Basin Levee District v. Grace, 161 La. 1039, 109 So. 830 (1926); Board of Commissioners of Caddo Levee District v. Pure Oil Company, 167 La. 801, 120 So. 373 (1929); Stokes v. Harrison, 238 La. 343, 115 So.2d 373 (1959); and, King v. Board of Commissioners for Atchafalaya Basin Levee District, 148 So.2d 138 (3rd La.App., 1962), writ denied, 244 La. 118, 150 So.2d 585 (1963).

In Grace, the Legislature, by Act 103 of 1892, granted to the Levee District certain lands received from the United States Government. When mandamus was sought in 1926 to require transfer of these lands to the Levee District, the defendant-officials objected on the grounds that Section 2, Article IV, of the Constitution (1921) prohibited the state from alienating the minerals, hence the state could not transfer the property. In affirming the issuance of the requested writ, the court stated:

109 So. 830, 831, 832:

"We think that the auditor and the register are in error when they say that the constitutional provision, cited, repeals, even partially, Act 103 of 1892, in so far as relates to the making of the grant, made in that act, or that it revokes to any extent that grant. The Tensas Basin levee district was created and organized by the state as a means of discharging its duty to protect the lands in said district from inundation. The district is a state agency, created and continued in existence by the state with the foregoing purpose in view. The state, should it transfer the land to the district, including the mineral rights, in accordance with the grant made by it, would not be parting with the property within the meaning of the constitutional section cited, but would only be placing it under the control of one of its agencies for the purpose of constructing and maintaining levees. The land would, to all practical intents and purposes, still be the property of the state. The district could not sell it without reserving to itself *251 the mineral rights, for the reason that its creator, for whom it holds, could not do so. We see no reason, therefore, in so far as the section of the Constitution, cited, is concerned, why the auditor and the register should not execute the conveyance." (Emphasis ours)

See Lum Chow v. Board of Commissioners for Lafourche Basin Levee District, 203 La. 268, 13 So.2d 857, where the language emphasized in the above quote was cited with approval.

In Caddo, while the issue therein presented did not relate to the subject constitutional prohibition but was concerned solely with the question of prescription under C.C. Art. 3521, the court stated:

"It appears, therefore, from the foregoing, that the plea of prescription presented is one pleaded against an agency of the state, created by the Legislature, to accomplish certain public purposes, devolving primarily upon the state, in bar of a demand for royalties, under a mineral lease, granted by that agency, on land conveyed to it by the state, to aid it in accomplishing those purposes. It also appears that the first question presented is whether prescription runs against an agency of the state on such a demand. If the question presented involved the loss by prescription of the mineral rights themselves, on land conveyed or certified to a levee district, under the Constitution of 1921, we should most likely hold, in view of the conclusion reached in State ex rel. Board of Commissioners of Tensas Basin Levee District v. Grace, 161 La. 1039, 109 So. 830, that, as the levee district must retain such mineral rights, it could not lose them by prescription, for a state agency cannot lose by prescription that which it must retain, and cannot alienate. Mayor v.

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336 So. 2d 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-oil-co-v-bd-of-comrs-of-pontchartrain-dist-lactapp-1976.