Woodley Petroleum Co. v. Arkansas Louisiana Pipeline Co.

153 So. 539, 179 La. 136, 1934 La. LEXIS 1356
CourtSupreme Court of Louisiana
DecidedFebruary 26, 1934
DocketNo. 31976.
StatusPublished
Cited by1 cases

This text of 153 So. 539 (Woodley Petroleum Co. v. Arkansas Louisiana Pipeline Co.) 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
Woodley Petroleum Co. v. Arkansas Louisiana Pipeline Co., 153 So. 539, 179 La. 136, 1934 La. LEXIS 1356 (La. 1934).

Opinion

ODOM, Justice.

Plaintiff prosecutes this appeal from a judgment sustaining an exception of no cause of action to its suit for the sum of $19,526.11, the value of a certain quantity of natural gas.

As a cause of action plaintiff alleged that on September 30, 1929, it entered into a contract with defendant under the tenns of which defendant obligated itself to purchase from it and to pay for a certain minimum quantity of natural gas during a period named, at a stipulated price per thousand cubic feet, or to pay for the minimum quantity whether taken and used or not, all as per written contract attached to and made part of the petition.

It is alleged that during the period named defendant was obligated to take and pay for a minimum quantity of 1,828,000,000 cubic feet of gas, whereas it took and paid for only 814,956,000 cubic feet; that the difference between the amount of gas taken and the minimum amount defendant obligated itself to take was 513,845,000 cubic feet, the value of which at the price agreed upon being $19,-526.11. This is the amount which plaintiff alleges defendant is due it under the contract.

The exception of no cause of action was grounded upon the proposition that plaintiff had not alleged that it had on hand, and therefore was able to furnish, a quantity of gas up to the minimum called for by the contract, or more than was actually 'taken and used by defendant. The defendant, it seems, stressed the point before the lower court that, even though it had agreed to take and pay for a minimum quantity of gas, and although it had not done so, it could not be held liable for any quantity beyond the amount it took, in the 'absence of a showing that plaintiff had on hand, and was able to deliver, the additional quantity under the terms and conditions of the contract.

One of the well-recognized rules of pleading is that a plaintiff must allege every ultimate fact necessary to be proved in order to recover. The trial judge was of the opinion that plaintiff could not recover without proving, in effect, that it had tendered to defendant the minimum amount of gas stipulated in the contract and expressed that view. *139 Plaintiff then amended its original petition, and as touching this point it alleged further:

“That plaintiff was never in default in any of its obligations imposed upon it by said contract, but performed each of its said obligations in good faith, and was always ready, able and willing to perform every such obligation.”
“That plaintiff extended to defendant the exclusive right to take the gas produced by plaintiff’s wells and that defendant had refused such exclusive right during the life of the aforesaid contract, especially during the winter months hereinabove referred to.”

It is then alleged that the pipe lines which comprised the gathering system referred to in the contract belonged to, and were under the control of, the defendant; that said pipe lines were connected with lines leading to plaintiff’s wells, and that the lines leading to plaintiff’s wells were equipped with valves which were under the exclusive control of defendant; that the quantity of gas which flowed from plaintiff’s wells into defendant’s pipe line or gathering system was regulated by the opening and closing of these valves. Then follows the allegation:

“In the alternative plaintiff avers that defendant never sought to take from plaintiff’s wells and connections any more than 814,-956,000 cubic feet of gas which it actually did take during the said winter season, but that defendant had and refused the right to take up the minimum quantity of gas stipulated in the said contract for the aforesaid winter season and that such quantity of gas was available to the defendant to take in the manner provided in the annexed contract.”

The lower court was of the opinion that the allegations in the petition, as amended, did not set out a cause' of action, and sustained the exception.

Under the contract involved, plaintiff agreed to sell and deliver to defendant, and the defendant agreed to purchase and take from plaintiff, and to pay for, all of the gas which might be produced in a certain gas field then owned and operated by plaintiff, and:

“Buyer (the defendant) agrees, in any event, to pay for the minimum amount of gas which it is required to take hereunder, unless excused therefrom under the terms of this contract.”

The contract further provides that the place of delivery of all gas deliverable shall be at the seller’s wells, until such time as the seller may install a compressor station, and thereafter the place of delivery of the gas deliverable through said station “shall be on the discharge side thereof, but the place of delivery of gas deliverable under the natural gas pressure of the well shall continue to be at the wells.”

The plaintiff reserved the right to erect a compressor station in order to enable it to, at all times, “deliver the minimum amount of gas that buyer may be entitled to purchase hereunder and agrees to use due diligence in operating its gas wells.”

It seems to have been contemplated that the flow of gas from plaintiff’s wells under its natural pressure might not be sufficient to supply the minimum amount which defendant agreed to take, for which reason plaintiff reserved the right to erect a compressor station, the purpose of which was to *141 enhance the pressure in the lines leading from its wells to defendant’s gathering system, thereby enabling plaintiff to deliver more gas than it could have done under the natural flow. There is no allegation that the compressor station was installed, and it must therefore be assumed that plaintiff was not able to deliver more gas than would flow through the pipes under the natural pressure of the wells.

Plaintiff alleged that, in accordance with the provisions of the contract, its wells were connected with defendant’s main pipe line or gathering system by pipes equipped with valves, and that the quantity of gas taken was controlled by the opening or closing of these valves, which, it is alleged, were owned by defendant and at all times under its control. It is alleged further that by “opening and closing said valves defendant regulated and was able to regulate the quantity of gas that it took daily from plaintiff’s wells, and that by having such control of the valves, the defendant was in sole possession of the means by which the quantity of gas taken under the contract was regulated.” It is also alleged that defendant never at any time sought to take any more gas than it got and paid for.

Counsel for defendant argue that plaintiff’s petition does not show that its wells would have delivered into defendant’s suction lines the minimum amount of gas during the particular period named, or that such amount would have been delivered “except for the failure or refusal of defendant to take the gas.” They say in brief that, if such allegations had been made, a cause of action would have been shown.

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Bluebook (online)
153 So. 539, 179 La. 136, 1934 La. LEXIS 1356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodley-petroleum-co-v-arkansas-louisiana-pipeline-co-la-1934.