United Gas Public Service Co. v. Roy

147 So. 705, 1933 La. App. LEXIS 1654
CourtLouisiana Court of Appeal
DecidedApril 28, 1933
DocketNo. 4454.
StatusPublished
Cited by15 cases

This text of 147 So. 705 (United Gas Public Service Co. v. Roy) 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
United Gas Public Service Co. v. Roy, 147 So. 705, 1933 La. App. LEXIS 1654 (La. Ct. App. 1933).

Opinion

*706 TALIAFERRO, Judge.

Loye McDade held fee-simple title to W. ½ of iS. W. ½, section 13, township 17 north, range 12 west, in Bossier parish, La. On July 23, 1923, he sold to H. S. Skannal one-half of all the oil, gas, and other minerals on, in, and under said tract. On December 2, 1925, McDade executed a credit deed to Claude Durham, the description of the prop--erty therein conveyed being as follows:

“W. ½ of S. W. ¾ of Section 13, Township 17 N., Range 12, containing 80 acres, more or less;
“Reserving to this vendor an undivided one-half of all oil, gas or other mineral rights on or under 'the S. W. of the S. W. ⅛ of said section.”

It is well to state here that this suit arose from differences in interpretation of the meaning and effect of the above-quoted reservation, whether the one-half interest intended to be reserved by McDade was the same half interest he had formerly sold to Skannal, or whether he intended to reserve to himself the half interest remaining in him after the sale to Skannal.

On November 20, 1926, Claude Durham and Loye McDade gave a 3-year oil and gas lease to Skannal on the entire 80-acre tract, which provides for the customary payment to lessors of one-eighth of the market price of the gas produced from wells thereon, and carrying the further provision that, should the interest of the lessors in the subject of the lease be less than the whole thereof, then the royalties and rentals to be paid thereunder should be in the proportion which their actual interest bears to the whole and undivided fee.

Skannal also gave a lease to an oil company of the interest in the oil, gas, and mineral rights he acquired from McDade on July 23, 1923, and assigned to the same company the lease he acquired from Durham and Mc-Dade, above mentioned. All rights under the two leases were finally acquired by the plaintiff herein on September 15, 1931, and are now held by it.

On January 8,1927, Claude Durham sold to R. O. Roy one-eighth of the “oil, gas and other minerals in and under and that may be produced from” the W. ⅝ of S. Wl ½, section 13, township 17 north, range 12 west, containing 80 acres, for $175 cash.

On September 28, 1927, Durham reconvey-ed to McDade the entire 80-acre tract with no mention of minerals.

Two producing gas wells were brought in on said tract of land, one of which is located on the S. W. ½ of S. W. ¼ thereof, which is now owned by plaintiff.

Plaintiff alleges that one-eighth of the royalties due under said mineral leases, so far as the >S. W. ⅛ of S. W. ¾ is concerned, is in dispute between and being claimed by said R. O. Roy and Loye McDade; that the conflicting interest is disclosed by the public records of Bossier parish. It is further alleged that there is now in its hands $1,166.60 due to the rightful owner of the one-eighth royalty (one sixty-fourth of the whole) in dispute, and that petitioner desires to pay the same to the claimant adjudged to be entitled thereto; that other amounts will continue to accrue to such owner, as said well is now actively producing gas.

With permission of the court, the above-named amount was deposited in its registry, and Roy and McDade were interpleaded to litigate its ownership.

McDade denies that Roy has any interest in or right to said fund, and denies that the records of Bossier parish disclose a conflicting interest between him and Roy to the minerals and royalty in question; that said records disclose him to be the owner of one-half of the minerals of S. W. ⅛ of S. W, ¾, section 13, township 17, range 12 west, and H. L. Skannal owner of the other half thereof. He avers that he owned £he entirety of W. ½ of S. W. ⅛, section 13, township 17 north, range 12 west, by fee-simple title, and sold one-half of the minerals, including oil and gas, to H. L. Skannal on July 23, 1923, and on December 2, 1925, he sold to Claude Durham said tract of- land, but reserved to himself an undivided one-half of all the oil, gas, or other minerals in and on the S. W. ½ of S. W. of the tract; that, after this sale to' Durham, the ownership of the mineral rights in and to S. W. ⅛ of S. W. ⅛ of said section was vested in himself and Skannal equally; that the deed from Durham to Roy did not and could not have vested in him any interest in the mineral rights to said 40-acre tract, but could have conveyed and did only convey to him one-eighth interest in the minerals in N. W. ½ of S. W. ¼; that Durham acknowledged and recognized that he had no interest in said S. W. ⅛ of S. W. ½ by joining respondent in the execution of the lease to Skannal, November 20, 1926, of the entire 80-acre tract.

He prays to be decreed entitled to the deposited fund, and that his ownership of the royalty, which produced said fund, be recognized, and that Roy be decreed to have no valid interest therein, and that future accruals of royalty funds be ordered paid to him.

By amended petition this defendant avers that Roy has publicly acknowledged and rec-ognised that he had no interest whatsoever in the minerals in and under S. W. ¾ of S. W. ¾, section 13, as shown by another deed to him from Durham, on January 25, 1927, duly recorded, wherein and -whereby Roy acquired one-eighth of the minerals in and under the N. W. ⅛ of -S. W. ⅛ of said section 13, in addition to the one-eighth interest therein previously conveyed to him by Durham; that this deed of the additional one-eighth *707 interest in minerals under N. W. ⅛ of S. W. ½, section 13, was executed for the purpose of replacing the one-eighth interest in the S. IV. ¼ of S. IV. ⅛ of section 13 which said Durham had attempted to sell to said Roy; that Roy accepted same for that purpose and for the same consideration paid in the original deed to him hy Durham, no additional consideration being paid therefor.

Defendant Roy contends that he is owner of one-eighth of the minerals, including oil and gas, lying in and under S. IV. ⅛ of S. IV. ¼, section 13, township IT north, range 12 west, in contest herein, and as such entitled to one sixty-fourth of all the gas withdrawn from the well thereon, and that his ownership of said minerals and royalty interest is based upon the following chain of title:

(1) Sale to him from Claude Durham, here-inabove referred to, conveying one-eighth of the minerals in and to W. ½ of S. IV. ⅛, section 13, township 17 north, range 12 west.

(2) Sale from Loye McDade to Claude Durham, above mentioned, wherein W. ½ of S. W. ¼ of said section was conveyed, reserving to the vendor one-half interest of all oil, gas, and other minerals, on and under the S. W. ¾ of S. W. ¼ thereof.

(3) Sale from Loye McDade to H. L. Skan-nal, referred to above, of one-half of all his entire interest in and to the oil, gas, etc., on and under the W. ½ of S. W. ⅛ of said section 13.

(4) That said McDade had valid title to said 80-acre tract prior to January 1, 1023, hy mesne conveyances out of the United States government.

He averred that the sales above mentioned vested ownership of the mineral rights on, in, and under S. IV. ½ of S. W. ⅛ of said section 13 in the following proportions in the following persons: H. L. Skannal, one-half interest; Claude Durham, three-eighths interest; R. O. Roy, one-eighth interest.

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147 So. 705, 1933 La. App. LEXIS 1654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-gas-public-service-co-v-roy-lactapp-1933.