Terrebonne Parish School Board v. Texaco, Inc.

178 So. 2d 428
CourtLouisiana Court of Appeal
DecidedNovember 23, 1965
Docket6306
StatusPublished
Cited by8 cases

This text of 178 So. 2d 428 (Terrebonne Parish School Board v. Texaco, Inc.) 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
Terrebonne Parish School Board v. Texaco, Inc., 178 So. 2d 428 (La. Ct. App. 1965).

Opinion

178 So.2d 428 (1965)

TERREBONNE PARISH SCHOOL BOARD, for the Use and Benefit of the PUBLIC SCHOOLS OF TERREBONNE PARISH et al.
v.
TEXACO, INC.

No. 6306.

Court of Appeal of Louisiana, First Circuit.

July 1, 1965.
Rehearing Denied September 27, 1965.
Writ Refused November 23, 1965.

*429 Wiley G. Lastrapes, Daniel P. Hurley, New Orleans, Helm, Simon, Caffery & Duhe, New Iberia, Charles F. Bailey, of Bailey & Mouton, Lafayette, for appellants.

Lloyd J. Cobb, of Cobb & Wright, Mettery I. Sherry, Jr., New Orleans, Wilmore J. Broussard, Jr., Houma, Herbert W. Christenberry, Jr., New Orleans, for appellees.

Jack P. F. Gremillion, Atty. Gen., State of Louisiana, Baton Rouge, Edward M. Carmouche, Asst. Atty. Gen., Lake Charles, John L. Madden, John A. Bevins, Asst. Attys. Gen., Baton Rouge, for intervenors.

Milling, Saal, Sanders, Benson & Woodward, New Orleans, amicus curiae.

Before ELLIS, LOTTINGER, LANDRY, REID, and BAILES, JJ.

REID, Judge.

This is a suit for the cancellation of a mineral lease granted by the State Mineral Board to Union Oil Company of California, which was subsequently assigned to Texaco, Inc., insofar as such lease affects or may affect any and all rights of petitioners. The area in dispute is Section 16, Township 21 South, Range 14 East, Parish of Terrebonne, Louisiana. The petitioners are the Terrebonne Parish School Board and its lessees, Robert D. Sterling, Ruth L. Sterling and Robert W. O'Meara. The defendant is Texaco, Inc. The State of Louisiana and the State Mineral Board have intervened and have adopted the position of Texaco, Inc., including the adoption of all evidence offered by Texaco, Inc., without offering any other evidence on their own behalf.

The Lower Court awarded judgment in favor of the petitioners and against the defendant *430 and intervenors, the defendant and intervenors have each taken a suspensive appeal.

On March 25, 1946, a mineral lease designated as "State Mineral Lease No. 725" was granted by the State of Louisiana to Union Oil Company of California covering a large area known as Tract 586, the description of which specifically excluded from said lease "school and tax lands." This mineral lease was subsequently assigned to Texaco, Inc., who now is the exclusive owner thereof. Although at the outset of this suit both Union Oil Company of California and Texaco, Inc. owned an interest in said lease, and were both named defendants, the interest of Union Oil Company of California has subsequently been assigned to Texaco, Inc., who now is the sole owner of the said mineral lease, and Union Oil Company of California has been allowed to withdraw as a defendant in this suit.

Subsequently, on January 6, 1948, the Terrebonne Parish School Board granted a mineral lease to Union Oil Company of California on Section 16, Township 21 South Range 14 East. This lease was approved by the State Mineral Board and the Attorney General's Office as to form and legality. This mineral lease was released by the lessee on January 31, 1950.

On January 10, 1953 the Terrebonne Parish School Board granted a mineral lease on the same property to Robert B. Prentiss and M. H. Marr which lease was subsequently acquired in full ownership by mesne conveyances by Robert D. Sterling, Ruth L. Sterling and Robert W. O'Meara. This lease was approved on January 14, 1953 by the State Mineral Board and by the Attorney General's Office as to form and legality, and in due course a well was successfully drilled on the property covered by this lease. Shut-in royalties were paid the School Board until subsequent to the institution of the present suit when the well was put on production. On March 24, 1959 the School Board and its mineral lessees, who hereafter will collectively be referred to as petitioners, instituted this proceeding to cancel the lease above mentioned from State to Union Oil Company of California as it affects the 16th Section involved.

On May 13, 1959 the State of Louisiana and the State Mineral Board intervened in this suit, uniting with defendants, as the defense and the prayer of the State of Louisiana and the State Mineral Board are identical to that of Texaco Inc. they will all hereafter be referred to as defendants.

The request made by the State and the Mineral Board to withdraw was denied after which they applied to this Court for supervisory writs on March 18, 1962. This application was denied on April 16, 1962. The Supreme Court of Louisiana on May 24, 1962, denied their application for remedial writs.

The defendants contend that the 16th Section involved herein, or a part thereof, was the bed of a navigable waterway in the year 1812 when Louisiana became a State, or since that time said waterway has become navigable, and, therefore, the title rests in the State of Louisiana by virtue of its inherent sovereignty, and only the State Mineral Board has the right to lease water bottoms in a 16th Section. The petitioners, on the contrary, assert that the Louisiana Legislature has granted School Boards full authority over 16th Sections regardless of the physical characteristics of said sections, and therefore, that 16th Sections were dedicated by the United States and reserved for public schools as a sacred trust prior to Louisiana's Statehood. Louisiana became a State subject to, and charged with, the prior trust and therefore, while legal title to this 16th Section is in the State of Louisiana as trustee, by virtue of the Acts of Congress of April 21, 1806 (2 Stat. 391, Ch. 39) March 3, 1811 (2 Stat. 662, 665, Ch. 46, Sec. 10) and the Louisiana Protraction Statute of April 23, 1912 (37 Stat. 90, Ch. 88) such title is held in trust for the benefit of the public schools, which trust has been recognized and acknowledged *431 by State laws. In substance, the petitioners maintain that it is immaterial whether or not this 16th Section, or any part thereof, was the bed of a navigable waterway in 1812 or thereafter.

The District Court, after trial thereof, rendered judgment in favor of petitioners and against defendants. The defendants have taken suspensive appeal.

The property in question concerns the bed of what is known as Mud Hole Bay and Mud Hole Bayou situated in Section 16, Township 21 South, Range 14 East. Mud Hole Bay and Mud Hole Bayou are situated along the Louisiana Coast line. The Bay comprises the greater portion of Sections 15 and 16 of said township and range and Mud Hole Bayou runs in a southerly direction to Mud Hole Bay. The defendants have agreed that the high lands situated in Section 16 are owned by the State of Louisiana, but held in trust for the schools.

On November 3, 1762 Louis XV ceded the entire Province of Louisiana to the King of Spain by the Treaty of Fontainebleau. Subsequently, on October 1, 1800 Spain transferred the Territory to France by Treaty of St. Ildefonso, to be delivered on October 18, 1802. The United States acquired the territory from France by the Treaty of Cession on April 30, 1803, and on that date the title to the entire Louisiana Territory so purchased vested in the United States.

During the year 1785 the Continental Congress adopted an ordinance which reserved and set aside the 16th Section of every township for the public schools within the said township. (1 Stat. § 563).

The Constitution of the United States was adopted in 1789 and Article IV, Sec. 3, Clause 2 thereof provides as follows:

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Bluebook (online)
178 So. 2d 428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrebonne-parish-school-board-v-texaco-inc-lactapp-1965.