Sinclair Oil & Gas Company v. Delacroix Corporation

285 So. 2d 845, 1973 La. App. LEXIS 5684
CourtLouisiana Court of Appeal
DecidedNovember 16, 1973
Docket5251, 5252
StatusPublished
Cited by6 cases

This text of 285 So. 2d 845 (Sinclair Oil & Gas Company v. Delacroix Corporation) 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
Sinclair Oil & Gas Company v. Delacroix Corporation, 285 So. 2d 845, 1973 La. App. LEXIS 5684 (La. Ct. App. 1973).

Opinion

285 So.2d 845 (1973)

SINCLAIR OIL & GAS COMPANY
v.
DELACROIX CORPORATION et al. (two cases).

Nos. 5251, 5252.

Court of Appeal of Louisiana, Fourth Circuit.

November 16, 1973.

*846 William J. Guste, Jr., Atty. Gen., of La., Edward M. Carmouche, Asst. Atty. Gen., Charles Romano, Sp. Asst. Atty. Gen., for appellant, State Mineral Board.

Charles H. Livaudais, Chalmette, for defendant-appellees.

Hugh M. Wilkinson, Jr., New Orleans, for Delacroix Corp., Alice Aby, and others, Royalty Owners, Adam Gonzales, Carroll C. Quatroy and Hazel M. Quatroy.

James Wilkinson, III, New Orleans, for C. Henry Adams, Jr., and others, Royalty Owners.

Melvyn Perez, Chalmette, for Louis Carmadelle and Gustave W. Carmadelle, Joseph Menesses and Ernest Melerine.

F. Rivers Lelong, New Orleans, for Frank A. Ashby, Jr., Frank R. Bailey, C. T. Cardin and James E. Grady.

*847 Emile E. Martin, III, Belle Chasse, for Boyd & Company, and others.

Sidney C. Schoenberger, New Orleans, for Pubco Petroleum Corp.

Darryl W. Bubrig, Sr., Buras, for Jean Mason Bowles.

Thomas M. McBride, III, Chalmette, for Omeadow Robin, Eva R. Mones, Herman Robin and Eleanor Robin.

Before REDMANN, STOULIG and BOUTALL, JJ.

BOUTALL, Judge.

The State Mineral Board appeals from two judgments in consolidated cases, which recognized the private ownership claims to minerals production royalties from certain unitized acreage, including water bottoms, and rejected claims of the State of Louisiana to production royalties allocable to the water bottoms.

The consolidated concursus proceedings were separately filed, one for Sand Unit A and one for Sand Unit B, by petitioner Sinclair Oil & Gas Company following completion of two gas distillate wells in an isolated marshland area of Plaquemines Parish lying some two miles south of Lake Lery, something over a mile west of a waterway called Bayou Gentilly and something over a mile north and northwest of Grand Lake.

Because the wells were found to be producing from reservoirs including multiple ownership the Louisiana Conservation Commissioner had previously created permanent production units for each well. Said unit areas abut each other, each unit area actually being two production units, as each well produces from dual completions and the two producing sands were determined to be coextensive in each well.

Sinclair (now merged into Atlantic Richfield Company) holds multiple mineral leases from private owners and further holds a mineral lease from the State Mineral Board purporting to cover all State owned water bottoms in a defined area which includes the full extent of the units.

The aggregate of the said production units includes portions of Sections 5, 7, 8, 17 and 18 in Township 15 South, Range 14 East, Plaquemines Parish, Southeastern Land District of Louisiana.

All of the area in question consists of Sections certified to the United States by the State of Louisiana as sections of swamp and overflowed lands for acquisition under the Swamp Land Grants. The State of Louisiana in turn transferred the sections to the Lake Borne Basin Levee District. The Lake Borne Basin Levee District sold these and other sections to one Fernando Estopinal, and the private claimants all deraign their title and claim of ownership from Estopinal. Thus the basic issue to be decided is whether the State divested itself of its title to all, or any portion of the area in question. The Mineral Board had originally urged that the sale from the Levee District to Estopinal was fraudulent, but it has abandoned that claim. The issue is thus narrowed to whether the State effectively divested itself of the water bottoms located within the area. The Mineral Board contends that the State could not have transferred title for two reasons: (1) that the water bottoms are navigable waterways and the title must remain in the public domain, and (2) that the water bottoms are suitable for oyster cultivation, and hence certain Oyster Statutes, namely Act 153 of 1902 and Act 189 of 1910, would prohibit the transfer of title to such water bottoms.

We have been furnished several maps and plats showing the area in question and detailing the water bottoms claimed herein, but it might be well for the court to here give a brief general description of the area. The two units are approximately equal in area and abut along a straight east-west base line, or section line. The north unit is called Sand Unit B, consisting of portions of Sections 5, 7 and 8, and is roughly wedge-shaped with an area of *848 622.96 total acres, of which 233.3 acres are water bottoms. The major portion of these water bottoms consists of the southern portion of Lost Lake, and a large unnamed lagoon connected to the southeast portion of Lost Lake and connected through the north fork of Bayou Sabine to Bayou Gentilly. The unit south of the section line is Sand Unit A and consists of portions of Sections 17 and 18, is semi-elliptical in shape, and contains 623.02 total acres, of which 323.7 acres are water bottoms. The water bottoms in this unit are called the Marretta Congo, and they are connected to Bayou Gentilly through the south fork of Bayou Sabine, and there is also a connection through an unnamed bayou into Lake Petit. It should be further noted that access to the area is also had by a channel dredged along the western side of the area to provide access to drill oil wells in the general vicinity, and from which another channel was dredged to drill the particular wells in these two units. Also on the east side of the area there is a pipeline canal dredged for service of the general area. There are also two other canals which connect with waterways in the area.

It should be noted at this time that there are other water bottoms within the disputed area, some of them connected to the claimed water bottoms and others apparently with no connection, and that the State does not claim the ownership of these water bottoms. As noted above the State's claim appears to rest upon the two-fold base of navigability of the waters, and suitability for use in oyster production. We assume therefore that these uncontested water bottoms do not meet the test imposed by these two bases and hence are either nonnavigable or nonsuited for oyster cultivation.

Primarily, the private claimants insist that it makes no difference under the present law whether the water bottoms are navigable or not because the State is without right to assail the title of these claimants, being barred by the limitation of six years prescribed by Act 62 of 1912 (LSA-R.S. 9:5661). They contend the existing jurisprudence is declarative of the principle that this limitation is imposed without regard to the navigability of the waters. Nonetheless, they do strongly urge to us, and have produced evidence in support thereof, that the water bottoms are in fact nonnavigable, and always have been.

The private claimants deraign their title from a conveyance by Lake Borne Basin Levee District to Fernando Estopinal in a Notarial Act of Conveyance before James D. St. Alexander, Notary Public for St. Bernard Parish, dated December 19, 1902 and registered December 24, 1902 in Plaquemines Parish in Conveyance Book 37, Folio 67 (Delacroix Exhibit 11). That act exhibits nothing that would cause us to say it is null and void on its face. No judicial attack has been made by the State on the validity of this Act of Conveyance until the present suit. There is no question but that the time period imposed by Act 62 has long since passed insofar as the subject property is concerned.

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