Wehran v. Helis

152 So. 2d 220, 19 Oil & Gas Rep. 21, 1963 La. App. LEXIS 1518
CourtLouisiana Court of Appeal
DecidedApril 1, 1963
DocketNo. 941
StatusPublished
Cited by5 cases

This text of 152 So. 2d 220 (Wehran v. Helis) 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
Wehran v. Helis, 152 So. 2d 220, 19 Oil & Gas Rep. 21, 1963 La. App. LEXIS 1518 (La. Ct. App. 1963).

Opinion

HALL, Judge.

The plaintiffs, John G. Wehran and Lawrence A. Chehardy, owners of an undivided V20 interest each in and to Sections. 66 and 71, Township 15 South, Range 18-East, situated in Lafourche Parish, executed separate 5 year primary term oil, gas and mineral leases in favor of Helis Petroleum Corporation, each dated July 20, 1953. The leases are identical in their provisions, and each covers the undivided interest of the respective lessors in the described property. The remaining co-owners of this property, Acme Land & Timber Co.,. Ltd. and Mrs. Laura Serpas Brady, each likewise executed identical leases on the same date to the same corporation.

Plaintiffs filed this suit in the 24th Judicial District Court for the Parish of Jefferson on August 26, 1958. In it they sought cancellation of their respective mineral leases on the ground that they had expired, for statutory damages and attorney’s fees as provided in LSA-R.S.. 30:102, and for damages resulting from the drilling of a “dry hole” which they allege to have been commenced subsequent to the expiration of the leases. Made parties defendant are Helis Petroleum Corporation, the original lessee, and nine others-alleged to have an interest in the lease as assignees and sub-assignees of that corporation. Included in this number is-Frankfort Oil Company, a division of the Calvert Distilling Company, which is alleged to have been the operator which drilled the dry hole. Plaintiffs additionally named- as defendants, Acme Land and Timber Co., Ltd. and Mrs. Laura Serpas. Brady although no demand was made on these parties for any relief and they filed no pleadings. No judgment affecting them has been rendered in these proceedings and' their appeals have been dismissed. (See Werhan et al. v. Helis et al., La.App., 147 So.2d 260.) Whenever reference is made herein to “the defendants” it will be understood that the latter two parties are not included.

Various exceptions were filed on the part of the defendants, including an exception to the jurisdiction of the Jefferson [222]*222Parish Court rationae personae (venue) all of which were overruled by the District Judge.

Prior to the trial on the merits, which commenced on February 27, 1961, the leases and assignments were released by the defendants and the question of ordering their cancellation became moot, leaving for consideration only the question of damages and attorney’s fees. After trial on the merits which consumed ten days, the District Judge, holding that the leases expired at midnight on July 19, 1958 and that the well drilled by Frankfort Oil Company was wrongfully commenced after the lease had expired, rendered judgment in favor of the plaintiffs as follows:

1) Against all defendants in solido for the sum of $18,000.00 as statutory damages representing loss of lease bonus.
2) Against all defendants in solido for the sum of $20,000.00 as statutory damages representing attorney’s fees.
3) Against Frankfort Oil Company, a division of Calvert Distilling Co., for the sum of $172,095.00 as damages for the wrongful drilling of a “dry hole” on plaintiffs’ property.
4) (The judgment stipulated that all amounts were to bear legal interest from the date of judgment until paid.)

Each of the defendants appealed. Plaintiffs answered the appeals and seek to have the judgment against Frankfort Oil Company made solidary against all defendants and to have the interest run on all amounts from the date of judicial demand instead of from the date of the judgment.

Appellants urge us to consider the case on the merits and to find that the leases were in full force and effect at all times during the drilling of the Frankfort Oil Company well and until they were voluntarily released by the defendants. They urge in the alternative that we consider and maintain the exceptions to the jurisdiction (venue) of the trial court and either dismiss the suit or remand it for transfer to the 17th Judicial District Court for the Parish of Lafourche.

The facts are not in dispute. By separate instruments dated July 20, 1953 each of the plaintiffs granted an oil, gas and mineral lease in favor of Helis Petroleum Corporation covering his respective undivided interest in and to certain acreage in Lafourche Parish which included the bed of a small shallow lake, known as Lake Boeuf, and lands surrounding it. Both leases are identical in form and contain the following clauses which are pertinent to this suit:

“2. Subject to the other provisions herein contained, this lease shall be for a term of five (5) years and no months from this date (called “primary term”) and as long thereafter as oil, gas or other mineral is produced from said land or acreage pooled therewith hereunder or operations are conducted as hereinafter provided”.
“3. If operations for the drilling of a well shall not be commenced on said land or on acreage pooled therewith on or before the expiration of twelve (12) months from the date hereof, this lease shall terminate as to both parties, unless on or before such date ■Lessee shall pay or tender to Lessor or to Lessor’s credit in the Whitney National Bank at New Orleans, Louisiana, (which bank and its successors are Lessor’s agent, and shall continue as depository for rentals payable hereunder regardless of changes in ownership of said land or rentals) the sum of Three Hun[223]*223dred and °%oo Dollars ($300.00), which payment shall extend for a period of twelve (12) months the time within which such operations may be commenced. Thereafter upon payment or tender in like amount and like manner annually the commencement of such operations may be further deferred for successive periods of twelve months each during the remainder of the primary term * * * operations hereunder shall be deemed to be commenced when the first material is placed on the ground.”
If prior to the discovery of oil, gas or other mineral on said land or on acreage pooled therewith, Lessee should drill a dry hole or holes thereon, or, if, after discovery of oil, gas or other mineral, the production thereof should cease for any cause, this lease shall not terminate if Lessee commences additional drilling or reworking operations within sixty (60) days thereafter, or, if it be within the primary term, commences or resumes the payment or tender of rentals or commences operations for drilling or reworking on or before the rental paying date next ensuing after the expiration of sixty (60) days from date of abandonment of the dry hole or cessation of production. If at any time subsequent to sixty (60) days prior to the beginning of the last year of the primary term there shall be no production of oil, gas or other mineral on said land or acreage pooled therewith and Lessee should abandon a dry hole thereon, or within such period production previously had on the premises shall cease from any cause, no rental payment or operations shall be necessary in order to keep the lease in force during the remainder of the primary term.

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Cite This Page — Counsel Stack

Bluebook (online)
152 So. 2d 220, 19 Oil & Gas Rep. 21, 1963 La. App. LEXIS 1518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wehran-v-helis-lactapp-1963.