Spears v. Nesbitt

2 So. 2d 650, 197 La. 931, 1941 La. LEXIS 1095
Supreme Court of Louisiana·Decided April 28, 1941·No. Nos. 35979 and 35980.·Published·Cited by 29 cases

Opinion

FOURNET, Justice.

These two jactita'tion or slander of title suits were consolidated for the purposes of trial, having a common object, i. e., the cancellation of two transfers of mineral rights, and the subsequent mesne conveyances thereof affecting property owned by the plaintiff, because of their nonuse for a period of ten years.

Both cases were converted into petitory actions, the defendants asserting that A. W. Mosely, from whom they, as well as the plaintiff, deraigned their titles, joined them (the defendants) and the other land and mineral owners in Section 29, Township 20 North, Range 5 West of Claiborne Parish, in executing, on August 25, 1933, two joint leases commonly known as unitized or integrated lease contracts, one covering the west half of the section and the other the east half thereof, under the provisions of which gas was being produced in paying quantities from a well drilled on the west half of the section at the time of the institution of these suits, the effect of which interrupted the prescription then ac-' cruing on the respective servitudes. The defendants also interposed pleas of estoppel.

Both cases were submitted, after the introduction of documentary evidence on _ agreed statements of facts and from a judgment rejecting plaintiff’s demands in both instances, she has appealed.

On January 20, 1925, A. W. Mosely, who was then the owner of the N. % of the N.W. i/4 and the N.W. i/4 of the N.E. % of Section 29, Township 20 North, Range 5 West, Claiborne Parish, transferred a “one-half (%) of the oil, gas and other minerals” thereunder to G. L. Shields, from whom the defendant Trinity Royalty Company, Inc., deraigns its title, and on July 10, 1929, he (Mosely) transferred a “one-fourth (%) of the oil, gas and other minerals” in the N.W. % of the N.W. % of the same section to G. G. Nesbitt, Sr., from whom the defendant G. G. Nesbitt, Jr-, acquired his title.

It is admitted that the accruing prescription on both servitudes was interrupted and began running anew on September 13, 1929, by the drilling of a well on that portion of the land affected by both servitudes under a joint lease contract executed by the land owner and the mineral owners. On August 25, 1933, Mosely, together with the other owners in fee of the.land in Section 29, joined by the owners of the mineral interests thereunder, including the defendants in both suits, executed two lease con *935 tracts in favor of F. F. Meadows, one affecting the east half and the other affecting the west half of Section 29. The defendant G.G. Nesbitt, Jr., did not sign the lease affecting the western half of the section, in which the land affected by his mineral interest was located, but he ratified the lease by an instrument dated September 10, 1936. On June 20, 1938, the Standard Oil Company of Louisiana, the Union Producing Company, and the Sugar Creek Refinery Company, having acquired the leases, commenced the drilling of a well on the west half of Section 29, on property other than that affected by either of the servitudes owned by the defendants in this case. The well was completed in October of 1938, producing gas in paying quantities, out of the proceeds of which Mosely and the other land owners in the western half of Section 29, including the defendants, were paid royalties monthly under the express provisions of the lease contract of August 25, 1933, and according to the ratio their respective mineral acreage bore to the whole tract. In each instance the royalty payments were accompanied by a statement showing a full and complete distribution of the royalties. These royalties were paid to Mosely until his death and thereafter to the plaintiff and her brother, Mosely’s heirs. After November 25, 1939, plaintiff having acquired her brother’s interest in the particular land in controversy here by partition, received the entire royalty payments herself.

The record shows that there were no drilling operations conducted on any part of the premises covered by the lease on the eastern half of Section 29, which terminated under its terms on August 25, 1939, although the lease had been kept alive during its primary term by the payment of delay rentals provided for therein, of which rentals Mosely received his pro rata share.

On March 23, 1940, plaintiff instituted both of these suits, specially pleading in each case the prescription of ten years liberandi causa.

The lease contracts in the cases under consideration here contain provisions similar to those involved in the cases of Robinson v. Horton et al. (Robinson v. Schnitt et al), La.Sup., 2 So.2d 647, whereby the land owners and the mineral owners pooled their mineral interests, thus unitizing or integrating the same into a whole for the purposes of developing the lease and were to receive royalties from any of the oil or gas produced from any portion of the tract in the proportion that their respective mineral rights bore to the whole, which the lessee was obligated to pay as long as oil or gas was produced in paying quantities. It therefore follows that our decision in those two cases, being handed down this day, controls the issues involved with respect to the western half of Section 29.

We therefore conclude that the defendants are entitled to receive their royalties in accordance with the provisions of the contract of August 25, 1933, as long as qil or gas is produced tinder the provisions thereof in paying quantities.

*937 Plaintiff contends that inasmuch as there were no actual drilling operations under the lease covering the eastern half of Section 29, and more than ten years have elapsed since any drilling operations were conducted on the property affected by the servitude of the defendant Trinity Royalty Company in the eastern half, that that portion of the company’s mineral interest is prescribed and should be decreed extinguished and the titles to that extent can-celled from the conveyance records.

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Spears v. Nesbitt, 2 So. 2d 650, 197 La. 931, 1941 La. LEXIS 1095 (La. 1941).

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