STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT
CA 14-724
STEVE H. CROOKS, ET UX.
VERSUS
LOUISIANA PACIFIC CORP., ET AL.
**********
APPEAL FROM THE TWENTY-EIGHTH JUDICIAL DISTRICT COURT PARISH OF LASALLE, NO. 38355 HONORABLE J. CHRISTOPHER PETERS, DISTRICT JUDGE
BILLY HOWARD EZELL JUDGE
Court composed of Marc T. Amy, Elizabeth A. Pickett, and Billy Howard Ezell, Judges.
REVERSED AND REMANDED. James J. Davidson, III Christopher Joseph Piasecki Davidson, Meaux, Sonnier, McElligott, Fontenot, Gideon & Edwards P. O. Drawer 2908 Lafayette, LA 70502 (337) 237-1660 COUNSEL FOR PLAINTIFFS/APPELLANTS: Steve H. Crooks Era Lea Henderson Crooks
Virgil Russell Purvis, Jr. Smith, Taliaferro & Purvis P.O. Box 298 Jonesville, LA 71343 (318) 339-8526 COUNSEL FOR PLAINTIFFS/APPELLANTS: Steve H. Crooks Era Lea Henderson Crooks
Richard Joseph Wilson Wilson & Wilson P. O. Box 1346 Jena, LA 71342 (318) 992-2104 COUNSEL FOR DEFENDANT/APPELLEE: L. P. Mineral Owners, LLC
Sarah Anne Kirkpatrick Bradley Murchison Kelly & Shea 401 Edwards Street, Suite 1000 Shreveport, LA 71101-5529 (318) 227-1133 COUNSEL FOR DEFENDANT/APPELLEE: Urania Minerals, LLC EZELL, Judge.
This appeal presents the issue of whether a suit filed by the owner of land
against the mineral servitude owner for damages caused by drilling operations is
premature when oil and gas operations are ongoing. The trial court granted an
exception of prematurity filed by the owner of a mineral servitude and dismissed
the plaintiffs’ suit without prejudice. The plaintiffs seek reversal of this ruling on
appeal.
FACTS
The land involved in this case consists of approximately 200 acres in
LaSalle Parish. On July 26, 2000, Louisiana Pacific Corporation sold the land to
Temco Enterprises, Inc., while reserving a full mineral servitude over the property.
Subsequently, on August 10, 2000, Temco sold the property to Era and Steve
Crooks, subject to the mineral reservation in favor of Louisiana Pacific. In 1968 a
portion of the mineral rights was previously conveyed to Urania Lumber Company,
Ltd., now known as Urania Minerals, L.L.C. This mineral servitude remained in
effect when the Crooks purchased the property. On September 1, 2003, Louisiana
Pacific conveyed its mineral rights in the property to LP Mineral Owners, LLC
(LPMO).
In 2005, LPMO granted an oil and gas lease to Belle Exploration, Inc. No
drilling operations were conducted, so the lease expired by its own terms. In 2009,
LP granted an oil and gas lease to Drayco Exploration, LLC. Pursuant to this lease,
two wells were drilled and completed. In 2010, SR Acquisition I, LLC acquired
the Drayco Lease. This lease is presently an active lease and maintained by oil
production. In 2012, the Crooks filed suit against Louisiana Pacific, LPMO, and Urania
for contamination to their property caused by the oil and gas operations. In
response, LPMO filed an exception of prematurity. A hearing on the exception
was held on May 12, 2014. The trial court sustained LPMO’s exception and
dismissed the Crooks’ claim against LPMO. In sustaining LPMO’s exception of
prematurity, the trial court held that suit could not be instituted until oil and gas
operations ceased on the property. The Crooks appealed this ruling.
PREMATURITY
The Crooks claim that the trial court erred in granting the exception of
prematurity. The Crooks argue that there is no law requiring them to wait until
completion of all mineral production before they can enforce the restoration
obligations and demand that the defendants clean up their land.
The relationship between a landowner and the owners of mineral rights is
specifically provided for in the Louisiana Mineral Code. The “[o]wnership of land
does not include the ownership of oil, gas, and other minerals occurring naturally
in liquid or gaseous form” and “[t]he landowner has the exclusive right to explore
and develop his property for the production of such minerals and to reduce them to
possession and ownership.” La.R.S. 31:6. “A landowner may convey, reserve, or
lease his right to explore and develop his land for production of minerals and to
reduce them to possession.” La.R.S. 31:15. A mineral right is an incorporeal
immovable that is alienable and heritable. La.R.S. 31:18; La.Civ.Code art. 470.
These mineral rights that may be conveyed by a landowner are (1) the mineral
servitude; (2) the mineral royalty; and (3) the mineral lease. La.R.S. 31:16.
“A mineral servitude is the right of enjoyment of land belonging to another
for the purpose of exploring for and producing minerals and reducing them to
2 possession and ownership.” La.R.S. 31:21. Pursuant to La.R.S. 31:22, a mineral
servitude owner can “use only so much of the land as is reasonably necessary to
conduct his operations” and “[h]e is obligated, insofar as practicable, to restore the
surface to its original condition at the earliest reasonable time.” Furthermore, the
landowner and the owner of a mineral right “must exercise their respective rights
with reasonable regard for those of the other.” La.R.S. 31:11. Pursuant to these
mutual obligations between the landowner and the mineral rights’ owners, a
mineral servitude owner is liable to the surface owner for damages caused by its
lessee’s oil and gas operations on the leased property. Dupree v. Oil, Gas & Other
Minerals, 31,869 (La.App. 2 Cir. 5/5/99), 731 So.2d 1067.
“The dilatory exception of prematurity provided in La.Code Civ. Proc. art.
926 questions whether the cause of action has matured to the point where it is ripe
for judicial determination, because an action will be deemed premature when it is
brought before the right to enforce it has accrued.” LaCoste v. Pendleton
Methodist Hosp., L.L.C., 07-8, 07-16, p. 5 (La. 9/5/07), 966 So.2d 519, 523. The
function of an exception of prematurity is to determine whether a judicial cause of
action is not available yet because of some unmet prerequisite condition. Rico v.
Cappaert Manufactured Hous., Inc., 05-141 (La.App. 3 Cir. 6/1/05), 903 So.2d
1284. When the determination of whether an exception of prematurity should have
been granted involves a question of law, then the appellate court must determine
whether the trial court was legally correct or incorrect. Id. Interpretation of
statutes involves a question of law. Thibodeaux v. Donnell, 08-2436 (La. 5/5/09),
9 So.3d 120.
In Marin v. Exxon Mobil Corp., 09-2368, 09-2371 (La. 10/19/10), 48 So.3d
234, the supreme court held that a lessor of his mineral interests need not wait until
3 the end of a lease to sue a mineral lessee for soil and groundwater damage to his
property, because the legal obligations imposed on a lessee did not contain a
provision that the lessor had to wait until termination of the lease, aside from
La.Civ.Code art. 2683, which contains obligations that arise at the termination of
the lease. This court followed this ruling in Dietz v. Superior Oil Co., 13-657, p. 6
(La.App. 3 Cir. 12/11/13), 129 So.3d 836, 841, and held that “while the leases may
still be in effect, these claims are not premature because there is no language in the
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STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT
CA 14-724
STEVE H. CROOKS, ET UX.
VERSUS
LOUISIANA PACIFIC CORP., ET AL.
**********
APPEAL FROM THE TWENTY-EIGHTH JUDICIAL DISTRICT COURT PARISH OF LASALLE, NO. 38355 HONORABLE J. CHRISTOPHER PETERS, DISTRICT JUDGE
BILLY HOWARD EZELL JUDGE
Court composed of Marc T. Amy, Elizabeth A. Pickett, and Billy Howard Ezell, Judges.
REVERSED AND REMANDED. James J. Davidson, III Christopher Joseph Piasecki Davidson, Meaux, Sonnier, McElligott, Fontenot, Gideon & Edwards P. O. Drawer 2908 Lafayette, LA 70502 (337) 237-1660 COUNSEL FOR PLAINTIFFS/APPELLANTS: Steve H. Crooks Era Lea Henderson Crooks
Virgil Russell Purvis, Jr. Smith, Taliaferro & Purvis P.O. Box 298 Jonesville, LA 71343 (318) 339-8526 COUNSEL FOR PLAINTIFFS/APPELLANTS: Steve H. Crooks Era Lea Henderson Crooks
Richard Joseph Wilson Wilson & Wilson P. O. Box 1346 Jena, LA 71342 (318) 992-2104 COUNSEL FOR DEFENDANT/APPELLEE: L. P. Mineral Owners, LLC
Sarah Anne Kirkpatrick Bradley Murchison Kelly & Shea 401 Edwards Street, Suite 1000 Shreveport, LA 71101-5529 (318) 227-1133 COUNSEL FOR DEFENDANT/APPELLEE: Urania Minerals, LLC EZELL, Judge.
This appeal presents the issue of whether a suit filed by the owner of land
against the mineral servitude owner for damages caused by drilling operations is
premature when oil and gas operations are ongoing. The trial court granted an
exception of prematurity filed by the owner of a mineral servitude and dismissed
the plaintiffs’ suit without prejudice. The plaintiffs seek reversal of this ruling on
appeal.
FACTS
The land involved in this case consists of approximately 200 acres in
LaSalle Parish. On July 26, 2000, Louisiana Pacific Corporation sold the land to
Temco Enterprises, Inc., while reserving a full mineral servitude over the property.
Subsequently, on August 10, 2000, Temco sold the property to Era and Steve
Crooks, subject to the mineral reservation in favor of Louisiana Pacific. In 1968 a
portion of the mineral rights was previously conveyed to Urania Lumber Company,
Ltd., now known as Urania Minerals, L.L.C. This mineral servitude remained in
effect when the Crooks purchased the property. On September 1, 2003, Louisiana
Pacific conveyed its mineral rights in the property to LP Mineral Owners, LLC
(LPMO).
In 2005, LPMO granted an oil and gas lease to Belle Exploration, Inc. No
drilling operations were conducted, so the lease expired by its own terms. In 2009,
LP granted an oil and gas lease to Drayco Exploration, LLC. Pursuant to this lease,
two wells were drilled and completed. In 2010, SR Acquisition I, LLC acquired
the Drayco Lease. This lease is presently an active lease and maintained by oil
production. In 2012, the Crooks filed suit against Louisiana Pacific, LPMO, and Urania
for contamination to their property caused by the oil and gas operations. In
response, LPMO filed an exception of prematurity. A hearing on the exception
was held on May 12, 2014. The trial court sustained LPMO’s exception and
dismissed the Crooks’ claim against LPMO. In sustaining LPMO’s exception of
prematurity, the trial court held that suit could not be instituted until oil and gas
operations ceased on the property. The Crooks appealed this ruling.
PREMATURITY
The Crooks claim that the trial court erred in granting the exception of
prematurity. The Crooks argue that there is no law requiring them to wait until
completion of all mineral production before they can enforce the restoration
obligations and demand that the defendants clean up their land.
The relationship between a landowner and the owners of mineral rights is
specifically provided for in the Louisiana Mineral Code. The “[o]wnership of land
does not include the ownership of oil, gas, and other minerals occurring naturally
in liquid or gaseous form” and “[t]he landowner has the exclusive right to explore
and develop his property for the production of such minerals and to reduce them to
possession and ownership.” La.R.S. 31:6. “A landowner may convey, reserve, or
lease his right to explore and develop his land for production of minerals and to
reduce them to possession.” La.R.S. 31:15. A mineral right is an incorporeal
immovable that is alienable and heritable. La.R.S. 31:18; La.Civ.Code art. 470.
These mineral rights that may be conveyed by a landowner are (1) the mineral
servitude; (2) the mineral royalty; and (3) the mineral lease. La.R.S. 31:16.
“A mineral servitude is the right of enjoyment of land belonging to another
for the purpose of exploring for and producing minerals and reducing them to
2 possession and ownership.” La.R.S. 31:21. Pursuant to La.R.S. 31:22, a mineral
servitude owner can “use only so much of the land as is reasonably necessary to
conduct his operations” and “[h]e is obligated, insofar as practicable, to restore the
surface to its original condition at the earliest reasonable time.” Furthermore, the
landowner and the owner of a mineral right “must exercise their respective rights
with reasonable regard for those of the other.” La.R.S. 31:11. Pursuant to these
mutual obligations between the landowner and the mineral rights’ owners, a
mineral servitude owner is liable to the surface owner for damages caused by its
lessee’s oil and gas operations on the leased property. Dupree v. Oil, Gas & Other
Minerals, 31,869 (La.App. 2 Cir. 5/5/99), 731 So.2d 1067.
“The dilatory exception of prematurity provided in La.Code Civ. Proc. art.
926 questions whether the cause of action has matured to the point where it is ripe
for judicial determination, because an action will be deemed premature when it is
brought before the right to enforce it has accrued.” LaCoste v. Pendleton
Methodist Hosp., L.L.C., 07-8, 07-16, p. 5 (La. 9/5/07), 966 So.2d 519, 523. The
function of an exception of prematurity is to determine whether a judicial cause of
action is not available yet because of some unmet prerequisite condition. Rico v.
Cappaert Manufactured Hous., Inc., 05-141 (La.App. 3 Cir. 6/1/05), 903 So.2d
1284. When the determination of whether an exception of prematurity should have
been granted involves a question of law, then the appellate court must determine
whether the trial court was legally correct or incorrect. Id. Interpretation of
statutes involves a question of law. Thibodeaux v. Donnell, 08-2436 (La. 5/5/09),
9 So.3d 120.
In Marin v. Exxon Mobil Corp., 09-2368, 09-2371 (La. 10/19/10), 48 So.3d
234, the supreme court held that a lessor of his mineral interests need not wait until
3 the end of a lease to sue a mineral lessee for soil and groundwater damage to his
property, because the legal obligations imposed on a lessee did not contain a
provision that the lessor had to wait until termination of the lease, aside from
La.Civ.Code art. 2683, which contains obligations that arise at the termination of
the lease. This court followed this ruling in Dietz v. Superior Oil Co., 13-657, p. 6
(La.App. 3 Cir. 12/11/13), 129 So.3d 836, 841, and held that “while the leases may
still be in effect, these claims are not premature because there is no language in the
mineral or civil codes to suggest these claims for damages only arise upon lease
termination.”
As indicated by LPMO, both Marin and Dietz dealt with claims against a
mineral lessee as opposed to a mineral servitude owner. However, we find nothing
in the mineral code that requires a landowner to wait until completion of all
mineral production before he can bring a suit to enforce the mineral servitude’s
restoration obligations. The only time limitation found in the mineral code is “at
the earliest reasonable time.” La.R.S. 31:22. Obviously the legislature recognized
that it would be better to remedy any damage sooner rather than later. As in Marin,
there is no requirement under the law that a landowner has to wait until the end of
a lease to sue the mineral servitude owner for damage to his property. There is no
reason that a landowner should have to wait to sue for damages to his land prior to
the termination of a lease when a lessor, who is also the landowner, does not have
to wait for termination of a lease before filing suit. It will be the trier of fact’s job
to determine whether there is contamination and damage on the land which can be
remedied now, just as a trier of fact would be required to do between a lessor and
lessee of mineral interests. Therefore, we find that the trial court erred in
maintaining LPMO’s exception of prematurity.
4 The judgment of the trial court granting LP Mineral Owners’ exception of
prematurity and dismissing Era and Steve Crooks’ suit without prejudice is
reversed. This case is remanded to the district court for further proceedings. Costs
of this appeal are assessed to LP Mineral Owners.
REVERSED AND REMANDED.