Tinsley v. Seismic Explorations, Inc.

111 So. 2d 834, 12 Oil & Gas Rep. 70, 1959 La. App. LEXIS 946
CourtLouisiana Court of Appeal
DecidedMay 4, 1959
DocketNo. 9017
StatusPublished
Cited by2 cases

This text of 111 So. 2d 834 (Tinsley v. Seismic Explorations, 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
Tinsley v. Seismic Explorations, Inc., 111 So. 2d 834, 12 Oil & Gas Rep. 70, 1959 La. App. LEXIS 946 (La. Ct. App. 1959).

Opinion

HARDY, Judge.

This is an action in tort by plaintiff, as the owner of a valid and subsisting oil, gas and mineral lease on a 280 acre tract of land in Claiborne Parish, Louisiana, for the recovery of damages allegedly resulting from a trespass on the leased lands for the purpose of making geophysical explorations thereupon. Named as defendants are Seismic Explorations, Inc., a Delaware corporation, and W. A. McNeil, the crew chief in charge of the geophysical operations. From a judgment in favor of plaintiff awarding damages in the principal sum of $840, the defendants have appealed.

A plea to the jurisdiction originally interposed by defendants and overruled by the court, has not been urged on this appeal and is therefore considered to have been abandoned.

Plaintiff originally sued for damages in the amount of $14,000, but, upon the beginning of trial, plaintiff’s counsel formally abandoned and withdrew the claim to the extent of $8,400, which was based upon the alleged damages in the nature of depreciation of the value of plaintiff’s lease, and counsel announced that plaintiff’s demands were limited to the value of the information obtained, which was asserted to be not less than $10 per acre. The basis of valuation fixed by the district judge, as evidenced by his written opinion, represented plaintiff’s investment in the lease to the extent of the original consideration of $1 per acre and the payment of two annual renewals at the rate of $1 per acre.

The lease in question, containing the usual provisions, became effective on March 6, 1955, and had been continued in effect by the payment of rentals in the years 1956 and 1957.

Plaintiff’s action is predicated upon the contentions that under the terms of the lease he became vested with the exclusive right to the geophysical exploration of the leased property, which constituted a valuable property right; that defendants made unauthorized geophysical operations on the leased property without authority from plaintiff, which actions were wrongful, tor-tious and constituted a trespass upon plaintiff’s rights, for which he is entitled to compensation in the nature of damages.

Defendants contend, first, that plaintiff was not in possession of any property and that the asserted action cannot be maintained by one not in possession, and, second, that no damages were proved.

Defendant’s first proposition is in the nature of an exception of no right of action, and it was established on trial that, while the defendants had never attempted to make any contact with or obtain permission from the plaintiff to conduct their geophysical operations, the defendant, .McNeil, had contacted one of the co-owners of the property by telephone and obtained his permission. The burden of this defense, of course, is that a mineral lessee is not in possession until he has developed and reduced the minerals, on which he holds a lease, to possession, and, in support of this proposition, distinguished counsel cite Allison v. Maroun, 193 La. 286, 190 So. 408; Scheller v. Goode, La.App., 69 So.2d 96; Ware v. Baucum, 221 La. 259, 59 So.2d 182, and Reagan v. Murphy, 235 La. 529, 105 So.2d 210, 213.

We do not think the cited cases are authority for the proposition contended by counsel for defendants, and we believe, on the contrary, that the effect of the holdings in these cases is to support rather than deny plaintiff’s right of action. We think it necessary to make specific reference only to the able opinion of Mr. Justice McCaleb in the case of Reagan v. Murphy, cited supra.

In the course of the opinion both Act 205 of 1938, classifying oil and gas leases as real rights, and Act 6 of the Second Extra Session of 1950, enlarging the protection of the 1938 Act, were considered in the light of the jurisprudence prior to the adoption of the said acts. The principal effect of the opinion was the refusal by the court to accept the acts of the Legislature as effecting [836]*836a change in the essence of mineral lease contracts. However, the court made the following clear-cut and unambiguous declaration :

“It (the law), declares, in substance, that they (mineral leases) are to be classified as real rights and ‘may be asserted, protected and defended in the same manner’ as may be the ownership or possession of other immovable property.”

We think it desirable to quote the appropriate provision of the Statute, LSA-R.S. 9:1105, which reads as follows:

“Oil, gas, and other mineral leases, and contracts applying to and affecting these leases or the right to reduce oil, gas, or o ther minerals to possession, together with the rights, privileges, and obligations resulting therefrom, are classified as real rights and incorporeal immovable property. They may be asserted, protected, and defended in the same manner as may be the ownership or possession of other immovable property by the holder of these rights, without the concurrence, joinder, or consent of the landowner, and without impairment of rights of warranty, in any action or by any procedure available to the owner of immovable property or land. This Section shall be considered as substantive as well as procedural so that the owners of oil, gas and other mineral leases and contracts within the purpose of this Section shall have the benefit of all laws relating to the owners of real rights in immovable property or real estate. As amended Acts 1950, 2nd Ex.Sess., No. 6, § 1.”

In the Reagan case the opinion of the Supreme Court emphatically recognized the right of owners of mineral leases to the benefits of the laws relating to owners of immovable property in the protection of their rights.

Inasmuch as the lease in the instant case specifically vests the right of “exploring * * * for * * * oil, gas and other minerals,” we think there can be no question as to the conclusion that this plaintiff, as lessee, owned the right to explore the property under the specific terms of the lease, which right may be protected by whatever action would be available to the owner of immovable property. It follows that defendants’ first proposition must be rejected.

Proceeding to a consideration of the proof of damage, we are confronted with a somewhat difficult resolution. The Supreme Court has had this same question presented in a number of cases involving actions for the recovery of damages resulting from unauthorized geophysical surveys, among which we note particularly, Layne Louisiana Company v. Superior Oil Company, 209 La. 1014, 26 So.2d 20; Holcombe v. Superior Oil Company, 213 La. 684, 35 So.2d 457; and Franklin v. Arkansas Fuel Oil Company, 218 La. 987, 51 So.2d 600. In these cases the court has (1) designated the unauthorized surveys as constituting trespasses in the nature of quasi offenses; (2) declared that only compensatory and not punitive or exemplary damages are recoverable; (3) stated that much discretion is vested in the trial judge, and (4) declared that the damage must be certain and is to be ascertained from all the facts and circumstances of a particular case.

In fixing the actual damages allowed, the determination of the court was governed in the Layne case primarily by the deterioration in value of leases resulting from the apparently unfavorable geophysical explorations, and in the Holcombe and Franklin cases by the consideration paid other landholders in the same block for the privilege of conducting the exploration.

Neither of these elements of damage have been established in the instant case.

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Related

Musser Davis Land Co. v. Union Pacific Resources
201 F.3d 561 (Fifth Circuit, 2000)
Tinsley v. Seismic Explorations, Inc.
117 So. 2d 897 (Supreme Court of Louisiana, 1960)

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111 So. 2d 834, 12 Oil & Gas Rep. 70, 1959 La. App. LEXIS 946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tinsley-v-seismic-explorations-inc-lactapp-1959.