Standard Oil Co. of Louisiana v. Futral

15 So. 2d 65, 204 La. 215, 1943 La. LEXIS 1058
CourtSupreme Court of Louisiana
DecidedMay 17, 1943
DocketNo. 36835.
StatusPublished
Cited by48 cases

This text of 15 So. 2d 65 (Standard Oil Co. of Louisiana v. Futral) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Oil Co. of Louisiana v. Futral, 15 So. 2d 65, 204 La. 215, 1943 La. LEXIS 1058 (La. 1943).

Opinions

ODOM, Justice.

This is a concursus proceeding. Sam W. Futral owns in fee 266% arpents (approximately 226 acres) of land, all in one tract, in the Parish of St. Landry. On May 16, 1938, he, joined by others, leased the southern 100 acres of that tract to Smith & McDannald for the production of oil, gas and other 'minerals. The lessees, Smith & McDannald, or their successors, operating under their lease, began the drilling of a well on said land on or before May 15, 1939, and said well was completed as a producer in the month of August, 1939. They began the drilling of a second well on or about December 28, 1939, and this well was completed as a producer during the mo'nth of March, 1940. They began the drilling of a third well on said premises on or about October 17, 1940, and this well, like the first two, was completed as a producer.

In the execution of this lease by Futral, the fee owner of the land, he was joined by some 20 or 25 other individuals, the said Futral and the other individuals styling themselves “ ‘Lessor’ (whether one or more)”. The lease contract granted to the lessees the exclusive right and privilege of. developing the property for minerals, and contains the following clause as to royalty:

“The royalties to be paid by lessee, are: (a) on oil, one-eighth of that produced and saved from said land, the same to be delivered at the well or to the credit of lessor in the pipe line to which the wells may be connected * * *

*221 The Standard Oil Company of Louisiana purchased from the producers all of the oil which came from these wells on Futral’s land. A controversy arose as to who was entitled to the proceeds of the % of the oil reserved as royalty (or %i of all the oil produced). It seems to be conceded by all parties that Sam W. Futral, the fee owner of the land, was entitled to the proceeds of %4 of all the oil produced as his proportionate share of the %i reserved royalty. It is alleged, and not denied, that Futral notified the Standard Oil Company that certain parties were claiming the proceeds of %4 of the oil produced, and requested the Standard Oil Company to hold in its possession the proceeds of the %i interest until the controversy between himself and the other claimants as to who was entitled to the proceeds of the %i should be determined in a proper judicial proceeding.

The Standard Oil Company provoked this concursus proceeding on October 19, 1940, alleging that it had in its possession the sum of $5629.35, which represented -the proceeds of %i of the oil purchased by it and produced from a portion of the Sam W. Futral land, situated in St. Landry Parish-, which sum was claimed by two or more persons. It alleged that it had purchased all of the oil produced from said tract, amounting to 69,553.7 barrels; that said oil had a total value, after state severance taxes were deducted, of $72,055.79, and that the %i royalty interest therein amounted to $5629.35;

The Standard Oil Company alleged that it had no interest in said sum and asked to be permitted to deposit the amount in the registry of the court, to be distributed to the respective claimants as their interests might be determined by the court. It named the various claimants, set out the post office address of each, and asked that they be cited to appear and establish their claims, if any, according to law, and that, upon the deposit of said amount in the registry of the court, it be relieved from all liability on account thereof. It alleged that the proceeding was brought under Section 7, Act No. 123 of 1922.

On October 19, 1940, the district judge signed an order permitting the Standard Oil Company to deposit the amount in the registry of the court, and ordered all claimants to be cited and served. Each of the claimants, including Sam W. Futral and his attorneys, who were also made parties, accepted service, waived citation, and submitted themselves to the jurisdiction of the court.

Subsequently the Standard Oil Company filed two supplemental petitions,' one on March 13, 1941, and the other on August 4, 1941, alleging that, since the filing of the concursus proceeding, it had purchased additional quantities of oil from the wells, the value of %é interest amounting to $9,-096.99, which sum it, asked :to deposit along with the original deposit, the total of all deposits being $14,726.34. After the trial but prior to the rendition of the decree, there was an additional deposit made of $4,431.50; so that the total sum now on deposit amounts to $19,157.84.

Sam W. Futral, the fee owner of the land, came into court by way of answer and *223 alleged that the entire amount deposited should be paid to him and his attorneys. He admits that, of the proceeds of the % (or %i) royalty reserved under the lease, the Standard Oil Company had paid him %i, thus leaving only %4 of the proceeds in controversy.

The claimants other than Futral came into court and alleged that they were entitled to certain interests in the amounts deposited by the Standard Oil Company, under and by virtue of certain contracts which they and their authors in title had with the said Futral, the fee owner of the land.

There are two sets or groups of these claimants. The trial judge designated these claimants as “Class A” and “Class B”. The claimants grouped together as “Class A” alleged that they were entitled to be paid, jointly and in the proportions stated by them, %4 of the amount deposited. The other group, the “Class B” claimants, alleged that they were entitled to Ye4 of the amount.

In this connection, it is proper to state here that, as between the claimants grouped as “Class A”, there is no dispute among them as to what proportion of the %4 should be paid to each, and, as to the “Class B” claimants, there is no controversy among them as to what proportion of the Yet should be paid to each. And it is conceded by all parties that the claims of these two groups are not antagonistic. The controversy is between Futral, who claims the entire amount deposited, and all other claimants.

There was judgment against Futral, re-j ecting his demands and ordering the funds deposited to be paid.to the “Class A” and “Class B” claimants. From this judgment Futral appealed.

Those persons grouped as “Class A” ground their claims on a contract of sale of minerals and royalty interest executed by Sam W. Futral, the fee owner of the land, in favor of Jesse P. Barnett and Raoul LeBourgeois on September 11, 1926, and on a correction deed between the same parties, dated February 8, 1929. The original contract of sale recites that Futral, in consideration of the sum of $200 paid by Barnett and LeBourgeois, the receipt of which is acknowledged,

“ * * * has granted, sold and conveyed and by these presents, does grant, sell and convey unto said grantee an undivided (Ylb) One Sixteenth interest in and to all of the oil, gas and other minerals of every kind and character in, on or under that certain tract or parcel of land situated in the Parish of St. Landry, State of Louisiana, and described as follows:

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Bluebook (online)
15 So. 2d 65, 204 La. 215, 1943 La. LEXIS 1058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-oil-co-of-louisiana-v-futral-la-1943.