Texas Co. v. State Mineral Board

44 So. 2d 841, 216 La. 742, 1949 La. LEXIS 1074
CourtSupreme Court of Louisiana
DecidedDecember 9, 1949
DocketNo. 39643.
StatusPublished
Cited by46 cases

This text of 44 So. 2d 841 (Texas Co. v. State Mineral Board) 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
Texas Co. v. State Mineral Board, 44 So. 2d 841, 216 La. 742, 1949 La. LEXIS 1074 (La. 1949).

Opinion

McCALEB, Justice.

This is one of several suits instituted by mineral lessees of the tidelands of this State demanding recognition of certain rights under the mineral leases which have allegedly arisen by reason of an action filed, on December 21st, 1948, in the Supreme Court of the United States by the Federal Government against the State in which the former is claiming a paramount right or title to the leased property. 70 S.Ct. 422. Invoking the provisions of Act 22 of the Extra Session of 1948, plaintiff seeks a judgment against the State Mineral Board and Register of the State Land Office declaring that a number of mineral leases for tidelands of this State, secured by it in competitive bidding, contain an implied condition that, in the event the title of the State is questioned by the Federal'Government, any obligation for payment of rentals (delay or otherwise) is suspended during the pendency of litigation and do not again become effective until a final successful determination or disposition of the suit in favor of the State.

The defendants excepted to the jurisdiction of the court ratione personae and materiae on the ground that the suit was one against the State without its consent.' They also filed an exception of no right or cause of action based upon the provisions of the *747 mineral leases which were annexed to and made part of the petition. And, forasmuch as none of the allegations of fact contained in the petition was disputed, the parties entered into a stipulation that the exceptions be considered as an answer on the merits so that the judge’s action on those pleas would necessarily he a final disposition of the case.

After a hearing conformable to the agreement of the parties, the judge dismissed the suit maintaining the plea to the jurisdiction ratione materiae and the exception of no right or cause of action. Plaintiff has appealed and defendants have answered, praying for an affirmance and also that the plea to the jurisdiction ratione personae be sustained.

The pleas to the jurisdiction ratione personae and materiae are premised on the same ground — viz., that this is essentially an unauthorized suit against the state and, therefore, not cognizable in the courts. The doctrine that a sovereign may not be sued without its consent is not open to question. State ex rel. Cunningham v. Lazarus, 40 La.Ann. 856, 5 So. 289; State v. Liberty Oil Co., 154 La. 267, 97 So. 438; Lewis v. State, 207 La. 194, 20 So.2d 917. But it is without application where the Legislature has designated an agency to administer State property with power to sue and be sued. Louisiana Navigation Co. v. Oyster Commission, 125 La. 740, 51 So. 706; Seibert v. Conservation Commission, 181 La. 237, 159 So. 375.

The State Mineral Board was created by Act 93 of 1936 as a body corporate with the usual powers incident to corporations including the right to sue and be sued; it was also vested with authority to lease State lands for mineral development and production 1 “under such terms and conditions as to the Board may seem proper” (Section 7) and was given supervision of all mineral leases granted by the State (Section 9). Since plaintiff has contracted with the State Mineral Board, it seems manifest that any cause arising under those contracts (mineral leases) would be actionable against the board — for, to say that plaintiff is bound by the leases and yet obtains no enforceable rights thereunder (because the State as the real party at interest is exempt from suit) would provide an avenue for the State to escape its just obligations even though it be contracting in its proprietary capacity. This is exactly what this Court refused to countenance in State ex rel. Shell Oil Co. v. Register of State Land Office, 193 La. 883, 192 So. 519 and in Begnaud v. Grubb & Hawkins, 209 La. 826, 25 So.2d 606, 608. 2

*749 We conclude that the exceptions to the jurisdiction ratione personae and materiae should have been overruled.

The Attorney General, representing the defendants, has advanced a number of theories for the maintenance of the exception of no right or cause of action. But, since we are convinced that the exception of no cause of action is well founded because the mineral leases furnishing the basis of the action do not impliedly authorize a suspension of rentals, consideration of the other arguments will be prescinded. ■

The contracts in suit are ordinary mineral leases executed on printed commercial forms. A cash consideration was paid for each lease by plaintiff “for the right to begin the drilling of a well on the herein leased premises at any time within one year from the date hereof, said sum also being part consideration for Lessee’s right to delay drilling operations under the conditions hereinafter provided.” Following this is the usual provision that, if the lessee fails within a year to begin the drilling of a well, its rights may be extended for an additional twelve months'by the payment of a stipulated delay rental and “In like manner and upon like payments annually, the commencement of drilling operations may be further deferred for successive periods of 12 months each during the primary term of this lease, which primary term is hereby declared to be 5 years from the date hereof.”

It is plaintiff’s contention that these mineral leases imply that, should the title of the State to the tidelands upon which the.leases are granted be attacked by the Federal Government, the delay rentals and all other payments falling due are to be .suspended during the pendency of litigation and that this Court should so declare. This argument is advanced on an alleged equitable premise, the postulate being that, if the State is denied ownership of the tidelands, plaintiff could not retrieve any monies paid under the leases by ordinary suit but would be required to obtain the refund by legislative act.

We find no merit in the contention. In the first place, the application of equity to the mineral leases sought to be reformed (although plaintiff protests vehemently that it is seeking only a declaration of its rights under the leases the effect of the plea, if *751 granted, would be to supplement and reform the contract) would not be appropriate as they are free from ambiguity and state explicitly the entire agreement of the parties.

Article 1901 of the Civil Code provides that agreements legally made have the effect of law upon the contracting parties and “ * * * can not be revoked, unless by mutual consent of the parties, or for causes acknowledged by law. * * * ” And, as observed in Moriarty v. Weiss, 196 La. 34, 198 So. 643, 656, 3 “It is not the province of the court to alter by construction or to make new contracts for the parties. The duty of the court is confined to the interpretation of the agreements the parties have made for themselves, and, in the absence of any ground for denying enforcement, to give effect to the agreements as made.”

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Bluebook (online)
44 So. 2d 841, 216 La. 742, 1949 La. LEXIS 1074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-co-v-state-mineral-board-la-1949.