Shell Oil Co. v. Pitman

476 So. 2d 1031, 88 Oil & Gas Rep. 63, 1985 La. App. LEXIS 9992
CourtLouisiana Court of Appeal
DecidedOctober 10, 1985
Docket84-611
StatusPublished
Cited by6 cases

This text of 476 So. 2d 1031 (Shell Oil Co. v. Pitman) 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. Pitman, 476 So. 2d 1031, 88 Oil & Gas Rep. 63, 1985 La. App. LEXIS 9992 (La. Ct. App. 1985).

Opinion

476 So.2d 1031 (1985)

SHELL OIL COMPANY, Plaintiff-Appellee,
v.
Katharine S. PITMAN, et al., Defendants-Appellants.

No. 84-611.

Court of Appeal of Louisiana, Third Circuit.

October 10, 1985.

*1032 Onebane, Donohoe, Bernard, Torian, Diaz, McNamara & Abell, Edward C. Abell, Jr., Lafayette, for defendants-appellants.

Larry M. Roedel and Howard Smith, Liskow and Lewis, New Orleans, for plaintiffappellee.

John M. Roper, New Orleans, Jacques J. Cousin, New Iberia, Ogden, Ogden and McCune, William B. Ogden, Doyle, Doyle and Doyle, Donald W. Doyle, New Orleans, for defendants-appellees.

Before GUIDRY, LABORDE and KING, JJ.

KING, Judge.

The issues presented on this appeal are the correctness of the trial court's finding of fact that a waterway traversing contiguous tracts of land, which waterway physically divided the tracts of land, is not navigable and that mineral production on one contiguous tract of land interrupted prescription on the mineral royalty interest on the other contiguous tract of land where there was one royalty deed covering both tracts of land.

Shell Oil Company (hereinafter Shell) filed a petition in concursus to obtain a resolution of a dispute over ownership of royalties from certain drilling operations conducted by Shell. Shell named many defendants, all of whom were considered to be members of one of two groups; namely, the purchasers of certain royalty interests or their legal successors (hereinafter referred to as the McSpadden Group), and the sellers of certain royalty interests or their legal successors (hereinafter referred to as the Smith Group).

After a trial on the merits the trial court rendered judgment in favor of the McSpadden Group, defendants-appellees, and against the Smith Group, the defendantsappellants. The trial court found that the waterway traversing the property was not presently navigable and that there was no evidence of its existence or navigability in 1812, thus the State of Louisiana did not own the waterbottom. The trial court further found that even had the waterway been navigable, the jurisprudence prior to the enactment of the Louisiana Mineral Code was such that unit production from a portion of the royalty tract, on the land north of the waterway, was sufficient to interrupt prescription with regard to the entire royalty tract and that the Louisiana Mineral Code could not be applied retroactively to divest the owners of this vested royalty interest acquired under the jurisprudence.

The Smith Group, defendants-appellants, timely appeal assigning as error that the trial court erred in:

(1) Finding that the waterway was presently non-navigable; and
(2) Finding that the waterway was non-navigable in 1812; and
(3) Basing its determination of navigability, for the purpose of determining contiguity of tracts of land, on the present navigability of the waterway rather than on its navigability in 1812; and
(4) Applying the jurisprudential rule of Crown Central Petroleum Corporation v. Barousse, 238 La. 1013, 117 So.2d 575 (La.1960), rather than retroactively applying Article 89 of the Louisiana Mineral Code.

We affirm the decision of the trial court for the reasons hereinafter set forth.

FACTS

Shell purchased a mineral lease from John Augustine Smith, et al., as lessors, (predecessors in title to the Smith Heirs hereinafter referred to as the Smith Group) on December 7, 1934, which covered in part the following described property in Iberia Parish, Louisiana, to-wit:

(a) The West Half of the Southwest Quarter of Section 20, Township 14 South, Range 7 East, and the South Half of the Southeast Quarter of fractional Section 19, Township 14 South, Range 7 East; and
(b) The East Half of the Southwest Quarter of Section 20, Township 14 South, Range 7 East.

*1033 Subsequent to the above described lease of minerals to Shell, the Smith Group sold portions of their undivided royalty interest, primarily in the years 1945 through 1949, which the Smith Group had retained under the terms of their lease to Shell, to C.C. McSpadden (predecessor in title to the royalty owners hereinafter referred to as the McSpadden Group).

Two voluntary units were formed on the lands covered by the original Shell lease from the Smith Group. In April, 1949 a voluntary unit was formed which was designated as Unit D. This unit included the Northern portion of the West Half of the Southwest Quarter of Section 20 and the Southeast Quarter of Section 19. In February, 1951 another voluntary unit was formed which was designated as Unit E, south of and contiguous to Unit D, and included the Southwest Quarter of Section 20 and the Southeast Quarter of Section 19. Unit D is completely traversed by a waterway that generally runs in an east-west direction. The remainder of the land contained in Unit D and the entirety of the land contained in Unit E lie south of this waterway.

In 1954 production in Unit D began. All of the wells in Unit D are located in or on the north side of the waterway traversing the Unit. All of the parties agreed that this production on Unit D clearly interrupted prescription on the royalty interest sold by the Smith Group to the McSpadden Group insofar as the royalty interest under the lands included in Unit D. The production of minerals from Unit D began in 1954 and continues to this date.

The production of minerals from Unit E began in October, 1960 and continues to this date. For a number of years royalties on the production from the lands contained in Unit E were paid to and received by the various record owners without controversy until the filing of this concursus proceeding in 1982. Subsequent thereto, the royalties have been deposited in the registry of the court in this concursus proceeding. After the decision of the Louisiana Supreme Court in Gulf Oil Corporation v. State Mineral Board, 317 So.2d 576 (La.1975), which changed the previous Louisiana jurisprudence regarding ownership of navigable waterbottoms, the Smith Group first began to contend that the royalty interest which they had sold to the McSpadden Group some thirty years before had prescribed for non-use as to that part of the royalty interest under the lands included in Unit E and lying south of the waterway. The Smith Group contends that there has been no production from the lands included in Unit E, or from land contiguous thereto south of the waterway, for a period in excess of ten years or at any time prior to October, 1960. They make this argument on the theory that there exists and has existed since 1812, a navigable waterway that allegedly completely traverses Unit D, in an east-west direction, and that the title to this waterway is vested in the State of Louisiana. The Smith Group argues that state ownership of this waterway had the effect of destroying contiguity between the royalty interest for the land encompassed in Unit D and the royalty interest for the land now encompassed in Unit E. The Smith Group argues that there was no use of the mineral interest for the land in Unit E until production began in October 1960, more than ten years after the mineral interest on this land was created in the McSpadden Group, because the Unit D wells were located on non-contiguous lands in or on the north side of the waterway which separated the lands located in Unit E from the lands located in Unit D.

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Bluebook (online)
476 So. 2d 1031, 88 Oil & Gas Rep. 63, 1985 La. App. LEXIS 9992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-oil-co-v-pitman-lactapp-1985.