Ultramar Oil & Gas Ltd. v. Fournet

598 So. 2d 645, 120 Oil & Gas Rep. 49, 1992 La. App. LEXIS 1110, 1992 WL 76713
CourtLouisiana Court of Appeal
DecidedApril 16, 1992
DocketNo. 90-1245
StatusPublished
Cited by3 cases

This text of 598 So. 2d 645 (Ultramar Oil & Gas Ltd. v. Fournet) 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
Ultramar Oil & Gas Ltd. v. Fournet, 598 So. 2d 645, 120 Oil & Gas Rep. 49, 1992 La. App. LEXIS 1110, 1992 WL 76713 (La. Ct. App. 1992).

Opinion

WARREN E. HOOD, Judge Pro Tem.

This is a concursus proceeding initiated by Ultramar Oil and Gas, Ltd., to resolve a dispute concerning the ownership of certain mineral royalty payments which have been deposited into the registry of the court. The dispute is between the legal heirs of the property owner, hereinafter referred to as the Goldberg Heirs, on the one hand, and those parties claiming royalty interests in the land by virtue of various transactions, on the other hand. These parties are the appellants and are hereinafter referred to as the Royalty Vendees.

The Goldberg Heirs are Shirley Bee Savage Fournet and Joelle Alexa Goldberg Rupert, children and sole heirs of Lenore Schlessinger (also known as Lenore Schles-singer Goldberg).

The Royalty Vendees include Vermilion Bay Land Company, David Paul Dykes, Sally Dykes Smith, Rosemary Bulling Dykes, Thomas A. Durham, executor of the estate of C.R. Pope, Ella Ruth Pope, Patricia Shield Ayres and Robert M. Ayres, trustees of the Robert Atley Ayres and Vera Patricia Ayres trusts U/T/A dated December 15, 1964, H.A. deCompiegne, Jr., Gary Wayne Stelzig, Marsha K. Stelzig, Dale Edward Kearney, Sheryl Lynn Kear-ney, J.L. Pritchett, Janet B. Pritchett, Team Bank, N.A. (formerly Southern National Bank of Houston) agent, Maryann Bryan Hoffmann, wife of Briggs A. Hoff-mann, Jr., who is the same person as Maryann B. Sadler, Dickerman C. Sadler, Jr., Christy B. Sadler, A.D. Pyka, Effie Lou Pyka, R.M. Sikes, individually and as trustee under the will of Jeanette S. Sikes, Bayou Energy, Inc., Drei, Inc., F.F. Ainsworth, C.T. Carden, Edna Mae Carden, Darrell M. Fink, Norma J. Fink and Bobbie Barber Chapman.

The parties submitted a stipulation of facts to the trial court. The trial judge awarded the proceeds of the mineral royalty payments to the Goldberg Heirs.

Lenore Schlessinger, mother and ancestor in title of the Goldberg Heirs, owned a tract of land containing 518.30 acres. This tract of land is completely bisected by a canal (referred to by the parties as the canal strip) which physically divides the land into a northern tract and a southern tract. All of the parties have stipulated that the canal strip, at all times pertinent to the litigation, has been owned by third parties.

Between April 25, 1972, and March 7, 1973, Schlessinger and the Goldberg Heirs executed several royalty deeds through which the Royalty Vendees claim their interests. The instruments creating the royalty interests described the 518.30 acres as one tract of land. There was no distinction made therein regarding the canal or the fact that the canal strip was owned by third parties.

Production was obtained within one year of the conveyances from three oil wells situated north of the canal strip. This was well within the ten year prescriptive period. However, no production was obtained south of the canal until Ultramar began its production on May 1, 1989. This production started more than sixteen years after Schlessinger executed the last of the royalty deeds in question.

The Camerina Sand Reservoir C Unit was created by the Office of Conservation Order No. 155-U-4. Unit tract 19 contains a portion of the Schlessinger land located south of the canal. The present royalty dispute concerns payments attributable to this portion of land.

After considering the Mineral Code and the prior jurisprudence, the trial court ruled that two separate royalty interests were created, one north of the canal and the second south of the canal. The trial court found that prescription was interrupted as to the mineral royalties north of the canal. However, there was no production south of the canal which would have interrupted the running of liberative prescription. Therefore, the trial court rendered judgment in favor of the Goldberg Heirs and awarded them the proceeds of the production south of the canal.

[647]*647The Royalty Vendees appeal alleging two assignments of error. First, the Royalty Vendees claim the trial court erred by its failure to hold that the Goldberg Heirs were estopped from asserting that the tract was divided by the canal strip. Second, the Royalty Vendees assert that the trial court erred in holding that Article 73 of the Mineral Code precluded estoppel. We find no merit in either of appellants’ contentions.

It should be noted at the outset that the Royalty Vendees lost their mineral royalty on the portion of the tract south of the canal by operation of law. As noted by this circuit in Shell Oil Co. v. Pitman, 476 So.2d 1031 (La.App.3d Cir.1985):

“The law in Louisiana is clear that use of any part of a mineral servitude reserves the servitude in its entirety. Lenard v. Shell Oil Company, 211 La. 265, 29 So.2d 844 (1947). It has long been recognized that although a mineral royalty interest is not a servitude, per se, it is a real right in the nature of a servitude and is subject to the same laws of libera-tive prescription, including the rule that use of the part constitutes use of the whole. Vincent v. Bullock, 192 La. 1, 187 So. 35 (1939). Production from one part of a tract burdened by a mineral royalty interrupts prescription as to the entire tract. Exchange Oil & Gas Company v. Foster, 237 So.2d 904 (La.App. 1st Cir.1970), writ den. 256 La. 884, 239 So.2d 541 (1970); Lavergne v. Savoie, 221 So.2d 71 (La.App.1969). A lack of contiguity between tracts of land subject to one royalty interest is sufficient to defeat an interruption of prescription. See Lee v. Giauque, 154 La. 491, 97 So. 669 (1923); Vincent v. Bullock, supra; Continental Oil Co. v. Landry, 215 La. 518, 41 So.2d 73 (1949); and Whitehall Oil Co., Inc. v. Heard, 197 So.2d 672 (La.App.3d Cir.1967), writ den. 250 La. 924, 199 So.2d 923 (1967).”

The parties have stipulated that the 518.30 acre tract which was burdened by the mineral royalty was completely bisected by a canal owned by third parties. Therefore, the tract of land north of the canal and the tract south of the canal were non-eontiguous. Mineral Code Articles 64 and 73; Lee v. Giauque, supra; Calhoun v. Ardis, 174 La. 420, 141 So. 15 (La.1932); Hunter v. Ulrich, 8 So.2d 531 (La.1942); Continental Oil Co. v. Landry, supra; Whitehall v. Heard, supra; Shell Oil v. Pitman, supra. Accordingly, the use on the portion north of the canal was insufficient to interrupt prescription on the portion south of the canal, even though both portions were granted under one deed.

Appellants cite Civil Code Article 2501 and Hodges v. Long-Bell Petroleum Company, 240 La. 198, 121 So.2d 831 (La.1960), for their theory .of estoppel. Appellants contend that the Goldberg Heirs are estopped from relying on their failure of title as to the canal strip to prove that prescription has run on the portion of the property south of the canal. We believe that the Royalty Vendees’ reliance on es-toppel is misplaced.

First of all, Hodges v. Long-Bell Petroleum Co., supra, dealt with a much different situation than what is at issue here. In Hodges, two servitudes were at issue. First, there was a 1931 servitude which covered 100,000 acres. Defendant, Long-Bell Petroleum Co., joined the surface owner as vendor in the sale of forty acres to Hodges. In this sale a second mineral servitude was reserved. The act of sale did not disclose the existence of the 1931 servitude. No drilling took place on the forty acres bought by Hodges until more than ten years had passed.

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598 So. 2d 645, 120 Oil & Gas Rep. 49, 1992 La. App. LEXIS 1110, 1992 WL 76713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ultramar-oil-gas-ltd-v-fournet-lactapp-1992.