UNIVERSITY
OF CALIFORNIA
LOS ANGELES
SCHOOL OF LAW
LIBRARY
LOUISIANA LAW
....OF....
OIL AND GAS
JURISPRUDENCE, STATE AND FEDERAL;
STATUTES; FORMS; RULES OF THE
DEPARTMENT OF CONSERVATION
COMPLETE
By GEORGE G. RIMICK
OF t THE SHREVEPORT, LA., BAR
PUBLISHED BY
F. F, HANSELL & BRO., Ltd.
NEW ORLEANS
r
COPYRIGHT
1922
F. F. HANSELL fie BRO.. Ltd.
(7
PREFACE
This volume is offered to the public with the hope that
it will be of value not only to lawyers but to others interested
in the oil and gas business.
The arrangement is in the form of a digest-text in
which an attempt is made, where possible, to give a con-
nected statement of the law on a given point, embracing
the principles announced in the various decisions of the
courts. And after a review of the cases, a compilation of
statutes is given, followed by the rules of the Department of
Conservation relative to drilling operations, then some few
"forms, a table of cases and index.
A report of the case of Watkins v. Atlanta & Shreve-
port Oil & Gas Co., is appended, as this case has been re-
ferred to frequently and even cited by the Supreme Court,
but has not been officially reported.
Several sections have also been devoted to a general
summary of the corporation laws, blue sky law and other
matters of interest to practitioners of other states and others
engaged in the oil business.
GEORGE G. DIMICK.
Shreveport, Louisiana, May 15th, 1922.
TABLE OF CONTENTS
Section Page
1. Introductory and Historical 1
2. Oil and Gas Legal Status 6
3. Vagrant and Fugitive Character animals
ferae naturae 9
4. Must be reduced to possession 10
5. As part of the realty 11
6. As fruits of land 12
7. Rights of owner of surface 12
8. Severance, Exceptions and Reservations... 13
9. Ownership of Minerals Public Lands 15
10. Co-owners 17
11. Adjoining Landowners 18
12. Rights of Usufructuary 19
13. Rigth-of-way 20
14. Rights of Possessors and Tres-
passers 21
1 5. Police Power 22
16. Proof of ownership of and right to minerals 23
17. Acquisition of minerals and mineral rights 23
18. Lease In general 25
19. How acquired 26
20. Form of contract 27
21. The Lessor 27
22. The Lessee . 29
VI TABLE OF CONTENTS
Section Page
23. Public lands 31
24. Lands of Minors and Interdicts 32
25. Husband' and wife 32
26. Co-owners 33
27. Construction and Interpretation 35
28. Term 37
29. Assignment Third Parties, etc 39
30. Divisibility 41
31. Consideration 43
32. Protestative condition 47
33. Potestative condition concluded 60
34. Rentals and payments 62
35. Tender of payments and perf omance 65
36. Default in payments, performance, etc 67
37. Extension 68
38. Termination 69
39. Termination by effect of law 69
40. Termination by failure to comply with the terms
of the contract 70
41. Abandonment 71
42. Damages for non-performance and for usurpation,
etc 73
43. Mortgage 74
44. Warranty 75
45. Mineral Rights. Sale, exception, reservation, prescrip-
tion, etc 76
46. Options 80
47. License
48. Litigious Rights 83
TABLE OF CONTENTS VII
Section Page
49. Development In General 84
50. As~a consideration 85
51. Producing other substance than oil and gas. . 86
52. Diligence, sufficiency, etc. 87
53. What constitutes) commencement of opera-
tions 92
54. Amount of production 92
55. Time between cessation and resumption of
operations 93
56. Offsets 94
57. Pumps, etc 94
58. Drilling Contracts 95
59. Waste Oil, etc. Damages from same 97
60. Liens, etc 98
62. Conversion of oil 99
63. Sale of oil 100
64. Storage, piping, transportation, etc 103
65. Conservation 107
66. Lesion, fraud, error, etc 116
67. Specific performance 117
68. Procedure 116
69. Sequestration 124
70. Personal Injuries Damages 127
71. Inspection of oils, explosive oils, etc 131
72. Taxation 132
73. Gas Rights and Liabilities in connection with its use and
production 136
74. Corporations 141
75. Blue Sky Law 146
VIII TABLE OF CONTENTS
Section Page
76. Trusts 147
?7. Partnerships 148
APPENDIX "A" Statutes, etc.
Act 168 of 1920 Cancellation of leases 149
Act 60 of 1920 Procedure in oil and gas cases 150
Act 31 of 1920 Severance Tax 153
Act 81 of 1921 Gasoline Tax 160
Act 53 of 1920 Storage of Oil 168
Act 71 of 1906 Waste 170
Act 190 of 1910 ConservationWaste 173
Act 283 of 1910 Waste 176
Act 268 of 1918 Waste 180
Act 270 of 1918 Purchasers of Gas 184
Act 127 of 1912 Conservation 188
Act 66 of 1916 Conservation 203
Act 105 of 1918 Conservation 205
Act 73 of 1920 Conservation Purchasers of Oil 208
Act 250 of 1920 Conservation 214
Act 36 of 1906 Pipe Lines as Common Carriers 223
Act 39 of 1906 Pipe Lines 224
Act 45 of 1921 Pipe Lines Crossing Levees 227
Act 76 of 1920 Pipe Lines as Common Carriers 228
Act 142 of 1918 Lease of School Lands 239
Act 30 of 1915 Lease of State Lands 240
Act 21 of 1915 Lease of State Lands 243
Act 29 of 1915 No Injunction against Lessee of State 244
Act 268 of 1908 Lease of Caddo Levee Board Lands 245
Act 192 of 1916 Lease of Lands of Minors.. 247
TABLE OF CONTENTS IX
Page
Act 116 of 1920 Lease Lands of Minors and Interdicts 248
Act 149 of 1920 Cross Lake Lands 249
Act 232 of 1916 Drilling Contracts 250
Act 232 of 1910 Mortgage of Leases 254
Act 70 of 1921 Municipalities and Parishes may acquire
gas plants, etc 256
Act 37 of 1917 Damage to Gas Plants, etc 261
Act 208 of 1916 Diverting Gas 262
Act 63 of 1921 Diverting Gas 263
Act 213 of 1906 Contamination of Waters 266
Act 183 of 1910 Contamination of Waters 267
Constitutional Provisions, Constitution of 1921 269
APPENDIX "B" Rules and Regulations.
Of the Department of Conservation 271
Rule No. Page
1 Waste 271
2 Waste defined 271
3 Gas to be confined to original stratum 271
4 Methods of prevention 272
5 Notice of intention to drill 272
6 Log of well required 272
7 Plugging dry and abandaned wells 272
8 Proper anchorage required 273
9 Equipment for conserving gas to be provided 273
10 Separate slush pit to be provided 273
11 Producing oil and gas from different strata 273
12 Strata to be sealed off . 274
X TABLE OF CONTENTS
Rule No. Page
13 Mud laden fluid to be applied 274
14 Fresh water to be protected 274
1 5 Gas to be separated from oil 274
16 Separating device to be installed 274
17 Notification of fires, breaks in line, etc 275
18 Drilling record to be kept at well 275
19 Conservation Agents to have access to wells 275
20 Notice to observe rules 276
21 Casing to be> used in Ouachita, Morehouse, Richland and
Union Parishes 276-281
22 Protection of shallow strata in Claiborne 277
23 Capacity of gas wells not to be taken 277
24 Flambeau lights unlawful 277
25 Gas to be metered 277-282
26 Burning gas in day 278
27 Disposition of waste from wells 278
28 Reports required 278
29 Carbon plants 278
30 Extracting gasoline from gas 279
31 Taking control of abandoned and other wells 279
32 Agents to assist in enforcement of rules 280
33 Additional rules to be passed from time to time 280
34 Notice of intention to plug well 281
35 Repeal of inconsistent rules 281
36 Drilling in Ouachita, Union, Morehouse and Richland
Parishes 283
37 Drilling in Ouachita, Union, Morehouse and Richland
Parishes 284
38 ( Inoperative)
TABLE OF CONTENTS XI
Page
39 Standard pressure base 285
40 Swabbing wells 286
41 Drilling in Bossier and Webster Parishes 287
42 Use of gas in Ouachita, Morehouse and Union 288
Casing to be used in drilling 281
APPENDIX "C" Forms
Page
Sale of Mineral Rights 290
Oil and Gas Lease 292
Assignment of Lease 298
APPENDIX "D" Unreported Decision.
R. F. Watkins, et al. v. Atlanta & Shreveport Oil & Gas Co.
(Jan. 6, 1913) 302
LOUISIANA LAW
of
OIL and GAS
Sec. 1. Introductory and Historical.
The history of the oil industry in Louisiana, so far as dis-
closed by the statutes and jurisprudence of the State, had its
beginning about fifty years ago when the Supreme Court was
called upon to interpret a contract entered into for the develop-
ment of certain mineral lands in Calcasieu Parish. The case
referred to is that of Escoubas et al. v. Louisiana Petroleum
& Coal Oil Company., 22 A., 280, decided April 1870, and
the contest involved the forfetiture of a certain oil "lease"
and raised other vexations points some of which are still
the subjects of discussion and litigation.
It appears that the lessees paid the sum of $20,000 for
the privilege of certain wildcat explorations, and promised
a royalty of one-half of the oil produced, which shows that
since that early date, there have, perhaps, been more decided
changes in the customs of development than in the laws by
which it is guided.
The lessee drilled to a depth of 1230 feet, and encountered
nothing but the desiccated earth. But at a depth of about
four hundred feet the drill penetrated a bed of crystallized
sulphur, and it is interesting to recall that this unexpected
discovery resulted in a new industry in Louisiana, which as a
consequence, has become one of the foremost sulphur pro-
ducing sections of the world, this subterranean wealth being
extracted by an original process evolved from the necessities
of the occasion.
2 INTRODUCTORY AND HISTORICAL
The question of the rights of the lessees to this unexpected
substance was referred to the courts and will be discussed
at a later point, but, in passing, it might be well to call at-
tention to this illustration of the advisability of protecting a
lessee, who drills in unknown regions, in the discovery of
unexpected substances, the hope of finding which has always
at least appealed to the imagination, and not without foun-
dation as this case illustrates.
So far as disclosed by the dry records of the law, the his-
tory of the oil industry in Louisiana remains unwritten from
the foregoing date until about the year 1901, when, shortly
after the discovery of oil at Spindle Top in Texas, we find
the efforts of the pioneers in Louisiana rewarded by the dis-
covery of oil in South Louisiana at Jennings and elsewhere.
This discovery is referred to by the Supreme Court in 119
La. 793, where this matter-of-fact allusion is made to the
beginning of the greatest wealth producing industry of the
State :
"At the height of the excitement created by the discovery
of oil at Beaumont, Texas, indications similar to those at
the celebrated Spindle Top were observed at Prairie Manou,
about 90 miles from Beaumont, and it caused a great excite-
ment. Speculators began taking leases on the lands of the
neighborhood," and so forth.
From that time on, nearly every volume of the decisions
of the Supreme Court has contained the decisions of oil and
gas litigation, the initial cases from South Louisiana being
some of the hardest fought legal battles in the history of the
State.
The celebrated Caddo Field, near Shreveport, was dis-
covered after the South Louisiana fields, and since that time
STATUTES 3
every few years has seen the development of some new pool
in North Louisiana near Shreveport, including the celebrated
Gusher Bend, Pine Island, Bull Bayou, DeSoto, Red River,
Haynesville, Homer, and Bossier fields, with a consequent
increase of litigation and jurisprudence. The first case
decided from North Louisiana was that of Murray v. Barn-
hart, 117 La. 1023, decided in 1906 and involved a lease made
in 1901.
So far as the statutory law of the State is concerned, the
lawmakers have been rather lax in dealing with these great
natural resources and the industries engaged in their de-
velopment.
The discovery of oil in Louisiana found the State with no
mining laws, as that industry was unknown in this section.
The few antiquated sections of the Codes and statutes which
might apply were evidently casual and accidental expressions
and illustrations enacted without the remotest idea that they
would ever apply to the production of oil and gas. As the
Supreme Court says: "Mining is a new industry in this
State." (Spence v. Lucas et al, 138 La. 763).
"And the (Civil) Code is silent as to such contracts
(mineral leases) ; for the reason, doubtless, that minerals
under and within the soil of Louisiana were not in the con-
templation of the lawmakers at the time that the (Civil) Code
was adopted. The Legislature up to this time has been
silent upon the subjct of mineral rights and contracts."
Rives et al. v. Gulf Refining Co. of Louisiana, 133 La. 178.
And again: "* * * The difficulty with the articles of
the Code of Practice is that they were framed at a time when
the nature and existence of oil under the soil of this State
was not supposed or known, and the laws were not therefore
4 EARLY CONTRACTS
framed to meet such things and the conditions surrounding
them." Natalie Oil Co. v. La. Ry. & Nav. Co., 137 La. 710.
The result has been that much has been left to interpreta-
tion and court-made law, because, as shown further on, the
statutory enactments have been few and far between, with
a consequent loss on the part of the State and the land
owners and independent operators, who are the ones who
have had cause to complain about this inactivity.
The cupidity of some lessees and land owners also created
a feeling of suspicion and hostility betwen lessors and lessees
for sometime, because parties on both sides have frequently
sought to take advantage of one another by ambiguous and
obscurely drawn contracts, evidently under the impression
that at a later timd benefits might flow from clauses not
thoroughly understood at the time of contracting. In the
case of Cook v. Gulf Refining Co., 127 La. 592, the Supreme
Court referred to a lease as being poorly and obscurely
drawn, and many cases show the difficulty for the Courts
to interpret such contracts. And in one of the earlier cases
(Jennings-Heywood v. Houssiere-Latreille, 119 La. 844)
the court quoted approvingly the case of Ohio Oil Company
v. Delmore, (Ind. Sup.) 73 N. E. 908, where it was said:
"Whether it proceeds from design of crafty speculators in
oil and gas leases to enshroud their contracts with doubtful,
ambiguous and absurd provisions, as a means of promoting
their interests, or whether it comes from a custom in the
rural districts of employing unskilled draftsmen, it is a not-
able fact that few subjects of contract contribute to the courts
an equal proportion of written agreements for interpreta-
tion."
Some of the original misunderstanding of the oil industry
OIL INDUSTRY 5
in Louisiana are shown by the expressions of the Supreme
Court in the case of J. M. Guffey Petroleum Co. v. Murrell,
Tax Collector, et al, 127 La. 466, and while this case was
decided several years ago, there is no question that the re-
marks still apply in some instances, and the Court's ex-
pressions show the advisability of a better understanding
between land owners, producers, and State authorities. The
Court said, in discussing the applicability to the oil industry
of certain Constitutional tax exemptions in favor of mining
industries :
"They (the law makers), did not have in mind oil wells
and oil fields which are temporary and evanescent in their
nature; there is nothing permanent about them. It is evident
that, if they had actually had oil fields in mind in framing
the provisions of Article 230 (of the Constitution of 1898)
such would not have been brought within the exemption
for the simple reason they afford employment to compar-
atively very few, they are but a little benefit to the State. The
owners resist every raise made in the assessment of their
property, and, if that does not avail, they seek to cloak them-
selves with Article 230. The business is of such temporary
character that by the time an increase can be made in the
assessment, the property has begun to wane in value. Not-
withstanding the enormous quantities of oil produced at the
oil field in question, not enough population has been gathered
there to make even an incorporated village; there are no
works of permanent improvement found there; and since the
production has greatly decreased it is a dreary place, and
in a few more years will be a worthless one. Contrast this
locality with Birmingham and Pittsburg and places where
there are mines in the proper and usual meaning of the
6 LEGAL STATUS
term. It is shown in the testimony that although the plain-
tiff's production of oil was at times as high as 29,000 bbls.
per month, they actually failed to prove that as many as five
hands were continuously employed by them", and so forth.
It will readily be admitted that conditions at this time are
not quite so bad as pictured, and much helpful legislation
has been enacted since 1918; and that a better understand-
ing is coming about is shown by the expression of the Court
in Dickinson v. Texana Oil & Refining Co., 144 La. 489,
where it was said:
"The business of developing the tract of land for oil and
gas is one requiring special knowledge and experience, exer-
cise of good judgment and the handling of large capital."
Sec. 2. Oil and Gas Legal status.
In the case of J. M. Guffey Petroleum Co. v. Murrell,
Tax Collector, 127 La. 466, certain oil producers claimed
exemption from certain taxes by reason of the provision of
the State Constitution exempting from taxation mining
pursuits. The Supreme Court held that boring for oil was
not a "mining operation", nor was the production of oil
from flowing or pumping wells "mining", and that oil and
mineral waters were not minerals within the intendment of
the Constitution, nor within the technical or scientific sense
nor the ordinary acceptance of the term, on the same theory
that mineral waters are not classified as minerals. Upon
application for a rehearing, however, the court said: "We
may concede the contention ***** that scientifically
speaking petroleum is a mineral and that its extraction from
the bowels of the earth is a mining operation. But petroleum
is a substance of a peculiar character and differes in many
respects from coal and other minerals which have a fixed
OIL AS MINERAL, 7
status. Petroleum also requires an entirely different process
of mining, so called. As late as 1897 it was deemed necessary
to pass an Act of Congress to class petroleum as a mineral
in the sense of the mining laws of the United States. Act Feb.
llth, 1897, C. 216, 29 Stat. 526; Sec. 2333 Rev. St. (U. S.
Comp. St. 1901, P. 1434.)"
"In 1898 no oil or gas wells existed in the State of Lou-
isiana, and it was not until 1910 that oil and gas were classed
with 'other minerals'. Act. 172 and 196 of 1910."
But the Court adhered to its view that mineral oil and
gas, as well as minera! waters, were not contemplated by
the Constitution in referring to mining operations, and that
exemptions are strictly construed.
The article of the Constitution (230) referred to read:
"There shall also be exempt from * * * * taxes * * * *
the capital, machinery and other property employed in min-
ing operations." And this Section of the Constitution was
afterwards amended so as to entirely omit the exemption.
See Constitution of 1898, 1913 and 1921.
In 1912, in the case of Etchison Drilling Co. v. Flournoy,
Tax Collector, 131 La. 442, which was another case deal-
ing 1 with taxation, the question as to whether or not oil
and gas are minerals was considered by the Court. After
reviewing the acts of the legislature, particularly Acts 144
of 1908, 154 of 1910, 172 of 1910, 196 of 1910 and 261 of
1910, and the Report of the Conservation Commission of
1910, the Court said: "From the above summary of the
laws of 1908 and 1910, all referring to the subject of
minerals, gas, oil, etc., we are forced to the conclusion that
the Legislature has now classified oil and gas as minerals,
and those who are engaged in extracting them from the
8 OIL AS MINERAL
earth to be engaged in mining pursuits. Such Classification
is binding upon the Courts * * * ". And, later, "* * * we
are constrained to hold the production of oil to be a mining
pursuit * * * "; and as the question before the Court was
the constitutionality of an act taxing a mining pursuit, which
the Constitution at the time of the passage of the act ex-
empted from taxation, the Court held the act to be null and
void. The Syllabus says:
"The legislature has now classed oil and gas among
minerals of this state; and persons engaged in producing
these minerals are following a mining pursuit. Act. No.
144 of 1908; Act No. 154 of 1910; Act No. 172 of 1910;
Act No. 196 of 1910. Act 254 of 1910."
It might be added that since 1910 many other acts have
been passed which consider oil and gas as minerals, and the
following case sets the matter at rest :
"Whatever may have been thought of oil or natural
gas at one time, it is now established beyond any question
that oil, or petroleum and natural gas are minerals and
judicially must be so treated." Rives et al. v. Gulf Refining
Co. of Lo. 133 La. 178.
The Employers' Liability Act. (No. 20 of 1914) states
that for the purposes of said act "Mine" means any opening
into and beneath the surface of the earth for the purpose
of extracting any mineral or minerals, and all underground
working, slopes, etc., and includes also the appurtenant
structures at or about the openings of a mine and any ad-
joining workplace where the material from a mine is stored
or prepared for use of shipment. And the act also goes
further and expressly includes persons employed in "The
VAGRANT CHARACTER 9
operation, construction, repair, removal, maintenance and
demolition of * * * * oil, gas, sulphur, ' salt and other
wells * * * ."
In DeMoss v. Sample, 143 La. 243, it was said that "oil
and gas in place are minerals."
Sec. 3. Vagrant and Fugitive Character animals
ferae naturae.
Courts will take judicial notice of the vagrant character
of petroleum, and that an oil well will draw its product from
an indefinite distance, and in time exhaust a large space.
Wettengal v. Gornley 160 Pa. 559, 28 Atl. 934, 40 Pen.
St. Rep. 733. Cited in Jennings-Heywood Oil Syndicate v.
Houssier-Latreille Oil Co. et al 119 La. 793.
They are analogous to animals ferae naturae and are
vagrant and fugitive products:
Rives v. Gulf Refining Company of Louisiana, 133 La.,
178, citing Ohio v. Indiana, 177 U. S. 190 and Brown v.
Spillman, 155 U. S. 665. Caddo Oil & Refining Co. v. Pro-
ducers Oil Co. 134 La. 701; DeMoss. Sample, 143 La. 243;
Hanby v. Texas Co., 140 La. 189; Higgins Oil & Fuel Co.
v. Guaranty Oil Co., 145 La. 233.
"Oil and gas have no fixed situs under a particular por-
tion of the earth's surface within the area where they obtain.
They have the power, as it were, of self-transmission."
Natalie Oil Co. et al v. Louisiana Ry. & Nav. Co. 137 La.
706.
But in Frost-Johnson Lbr. Co. v. Sailings, 149 La. .' the
comparison of oil and gas with animals farae naturae is re-
10 POSSESSION
ferred to as "unfortunate", and the case also refers to an
expression in Higgins Oil & Fuel Co. v. Guaranty Oil Co.,
145 La. 233, to the effect that "The analogy between the
subteranean oil and subteranean or percolating waters is,
we believe, near complete * * * ."
Sec. 4. Must be reduced to possession.
And, from the fugitive nature of oil and gas, it has been
held repeatedly that they^ must be reduced to possession to
become the subject of ownership, and a grant of oil and gas
gives merely the right to explore for same. Caddo Oil &
Mining Co. v. Producers Oil Co., 134- La. 701; Rives v. Gulf
Refiining Co., of Louisiana, 133 La., 179; Cook v. Gulf Ref.
Co., of Louisiana, 135 La. 609, Citing Watkins v. Atlanta
& Shreveport Oil & Gas Co., (Not reported but see it in
appendix) ; Ohio Oil Co. v. Indiana, 177 U. S. 190, 20 Sup.
Ct. 576, 44 L. Ed: 729; Brown v. Spillman, 155 U. S. 655,
15 Sup. Ct. 254, 39 L, Ed, 304; Westmoreland Gas Co. v.
DeWitt 130 Pa. 235, 18 Atl. 724, 5 L. R. A. 731, and
Natalie Oil Co. et al., v. La. Ry & Nav. Co., 137 La. 706;
Hanby v. Texas Co., 140 La. 190; Higgins Oil & Fuel Co.
v. Guaranty Oil Co., 145 La. 233. Gulf Refiining Co. v. Hayne,
148 La. 340; Frost-Johnson Lbr. Co., v. Nabors Oil & Gas
Co., 149 La. Frist- Johnson Lbr. Co. v. Sailings et al., 149 La.
See also: Elder v. Ellerbe, 135 La. 995; Strother v. Mangham,
138 La. 437; Saunders v. Busch-Everett Co., 128 La. 1049.
And a land owner cannot complain that the oil beneath
his land is being drawn off by an adjoining land-owner by
pumping or otherwise. Higgins Oil & Fuel Co. v. Guaranty
Oil Co., 145 La. 233.
AS PART OF REALTY 11
Sec. 5. As part of the realty.
While oil and gas must be reduced to possession, and it
was said in several cases, including Caddo Oil & Mining Co.
v. Producers Oil Co., 134 La. 701, (citing Ohio v. Indiana,
177 U. S. 190, and Brown v. Spillman, 155 U. S. 665), that
they are not considered as part of the land before they are
brought to the surface or reduced to possession, yet by virtue
of the rights of the owner of the land, they must be treated
as a part of the realty underneath the surface where they lie
Rives v. Gulf Refining Co. of La., 133 La. 178; Elder v.
Ellerbe, 135 La. 995.
And in De Moss v. Sample et al, 143 La. 243, the propo-
sition was stated that while, from the peculiar character of
petroleum gas and oil the ordinary rules relating to miner-
als with a fixed situs cannot be applied to them, they belong
to the owner of the land and are part of the land so long as
they are on it or in it, or subject to the control of the owner,
provided, of course, that adjoining owners may drill and
reduce to possession oil from the common field.
And the right to explore for oil and gas is a real right
(Natalie Oil Co. v. La. Ry. & Navigation Co., 137 La. 706,
Nabors v. Producers Oil Co., 140 La. 985), and it must be
established by written evidence. Hanby v. Texas Co., 140
La. 189. And a sale of oil and gas granting the right to
explore etc., confers a real right. Frost-Johnson Lbr. Co.
v. Nabors Oil & Gas Co. 149 La. - -.
One who asserts title to mineral rights claims a real
right. Wilson et al. vs. Pierson, 143 La. 287.
12 FRUITS SURFACE OWNER
Sec. 6. As fruits of land.
Oil and gas are not "fruits" of the land in considering
the rights of a possessor. The provisions of the Civil Code
relative to "fruits" refer to such things as are born and re-
born of the soil. Elder v. Elberbe et al., 135 La. 990. Al-
though in Cooke v. Gulf Refiining Co., 135 La. 609 and Mar-
tel v. Jennings-Heywood Oil Syndicate, 114 La. 359, the
Court cited C. C. 501 relative to the "fruits" produced by
the thing in deciding who would be liable for the expense of
certain oil production.
Sec. 7. Rights of owner of surface.
The owner of the soil has the exclusive right to reduce the
oil and gas under the land to possession. Natalie Oil Co.,
et al. vs. La. Ry. & Nav. Co., 137 La. 706; Strother vs. Man-
gham, 138 La. 437; Spence v. Lucas, 138 La. 772; Saun-
ders v. Bush Everett Co., 138 La. 1049.
And he may bore wells to extract the minerals. Rives et
al v. Gulf Refining Co., 133 La. 178.
Or he may sell the right. Strother v. Mangham, 138 La.
437.
And it is elementary that he may lease the same. Spence
v. Lucas, 138 La. 772; Saunders v. Bush-Everett Co., 138
La. 1049.
He is, for all practical purposes, the owner of the oil and
gas under the surface, subject, of course, to the doctrines
which arise from the peculiar character of the minerals, such
as the necessity of reducing them to possession:
SEVERANCE, EXCEPTIONS AND RESERVATIONS 13
Rives v. Gulf Refining Co., 133 La. 178; Cooks v. Gulf
Ref. Co., 135 La. 609; Natalie Oil Co. v. La. Ry. & Nav. Co.,
137 La. 706; Strother v. Mangham, 138 La. 437; Spence v.
Lucas, 138 La. 772; Saunders v. Bush-Everett, 138 La. 1049;
Hanby v. Texas Co., 140 La. 189; DeMoss v. Sample, 143
La. 243; Calhoun v. Ardis, 144 La. 311.
And C. C. 505 declares: "The ownership of the soil car-
ries with it the ownership of all that is directly above and
under it."
The owner of the minerals may sue for damages occa-
sioned by the usurpation of his right to drill for them. Cook
v. Gulf Ref. Co., 135 La. 609. And when he has granted the
ownership of, or right of exploration for, the minerals, to
another party, he cannot usurp the rights of his grantee.
Gulf Ref. Co. v. Hayne, 148 La. 340. Nor can he grant a
second valid lease where there is already a valid lease on the
land. Standard Oil Co. v. Webb, 149 La. - -.
A land owner who employs an agent to sell a lease on his
land, in the absence of agreement to the contrary, and if he
acts in good faith, does not preclude himself from selling the
lease himself or from having other agents sell it, and where
a broker sues for commission the burden is on him to prove
his contract. Dickinson v. Robinson, 145 La. 438.
Sec. 8. Severance, Exceptions and Reservations.
The owner's title may be dismembered by sale, reservation
or exception.
The reasoning of the Court in Hanby v. Texas Co., 140
La. 189, correctly presents the point:
14 SEVERANCE, EXCEPTIONS AND RESERVATIONS
"Conceding that the sale of an interest in the oil or gas
which may be discovered beneath the surface of a particular
tract of land conveys no title to any specific oil or gas, it
nevertheless carries with it the right to make use of the sur-
face of the land for the reduction to possession of the oil or
gas that may be found, and in fact the right last mentioned
is alone conveyed in such case since it is the only right with
respect to those fugitive products that the owner of the land
himself can possess. That right, however, he does pos-
sess since it is a right of use, or of enjoyment, and hence a
constituent of his title to the land, and so possessing, he may
dispose of it, since the three things, usus, fructus and abusus,
forming, in conjunction, full ownership, may be separated
and the title dismembered, and in that event the rights re-
spectively resulting from such dismemberment retain the na-
ture of the thing upon which they bear as though no dismem-
berment had occurred." To the same effect Frost- Johnson
Lbr. Co. v. Nabors Oil & Gas Co., 149 La.- .
In the case of DeMoss v. Sample et al., 143 La. 243, the
question was presented as to whether or not a per-
son could sell the surface and reserve the minerals. The
Court answered in the affirmative, saying:
"The elements of ownershin in land may be severed. The
owner may sell surface rights, and except from the sale the
minerals below the surface, and reserve to himself the right
to mine those minerals whether the minerals be in place, like
coal, sulphur, etc., or whether they be migratory like oil and
gas appear to be."
And the Court says in Calhoun v. Ardis, 144 La. 311 (a
case upholding a reservation) : "Whatever doubt may have
existed in this state as to the right of an owner of lands to
PUBLIC LANDS 15
dismember the property and vest the ownership of the sur-
face of the soil in one person and that of the minerals which
might be situated beneath the surface of the soil in another
person, or reain it in himself, was definitely set at rest by the
decision in DeMoss v. Sample, 143 La. 243."
But the two foregoing fases are criticised in Frost- John-
son Lbr. Co. v. Sailings, 149 La., where, in a divided opinion
the court held, on second re-hearing, that those cases are no
authority on the question of whether a sale of mineral con-
veys a corporeal or incorporeal things, as the ratio dicendi
of those cases was not applicable to that question; and then
the court holds that a grant or reservation of oil or gas car-
ries merely the right to extract such minerals from the soil,
which right is a real right and servitude and prescribes by
non-user for ten years. And to the same effect is Frost- John-
son Lbr. Co. v. Nabors Oil & Gas Co., 149 La. where it
is said however that the prescription is interrupted where the
vendor in conveying the land recites that the mineral rights
have been reserved.
Sec. 9. Ownership of minerals Public Lands.
The beds of navigable streams and lakes and tidewaters
belong to the State and the "waste lands" within the State
belong to the United Stats, which conveyed certain "swamped
and overflowed" lands to the State. But in conveying such
lands the situation at the time must be considered and the
Government did not have title to lands not existing at the
time, such as islands and lands formed by river silt and sand.
State v. Capdevielle, 146 La. 94; Atchafalaya Land Co., v.
James, 146 La. 109. See also Wemple v. Eastham, 144 La.
957 and Slattery v. Arkansas Nat. Gas Co., 138 La. 793.
16 PUBLIC LANDS
The State is the owner of all lands underlying the navig-
able waters of her territory, below mean high water, and under
the laws of Louisiana the ownership of the banks is in those
who possess the adjacent lands, and the accretions upon
the soil on the edge of the waters becomes the property of
the owner of the soil from the time of its emergence, with a
reasonable appearance of permanence, and identification
with the soil of the shore above the surface of the water at
its ordinary stage, subject to the servitude in favor the pub-
lic as to the use of river banks. State vs. Richardson et al.,
140 La. 329; Palmer v. Cotton Queen Oil Co., 141 La. 305;
Greening v. Brinkerhoff, 145 La. 760.
See also Strohecker v. Robinson, 147 La. 652.
In the case of Producers Oil Co. v. Hanzen et al., 132 La.
691, the Court said: "A locator on placer grounds belong-
ing to the United States, surveyed and unsurveyed, is the
equitable owner of the mining ground, and the Government
holds the premises in trust for him, to be delivered upon the
payment specified; and he has sufficient interest to protect
his rights in the courts. Mining Co. v. Kerr, 130 U. S. 256,
32 L. Ed. 906; Dahl v. Raunheim, 132 U. S. 269, 35 L. Ed.
324; Creed & Cripple Creek Co. v. Unita Tunnel Co., 196 U.
S. 337, 9 L. Ed. 501." And in Rives et al v. Gulf Refining
Co., 133 La. 178, the Court said: "Lands of the United
States containing oil are subject to location in the same man-
ner as are other mineral lands. Thornton, No. 309; Act
Feb. 11, 1897, c. 216, 29 Stat. 526, U. S. Comp. Stat. 1901,
p. 1434. * * * Such a locator has an equitable title,
one in expectancy, which the courts will recognize until the
government of the United States has acted thereupon."
See also the case of Greene et al. v. U. S., 274 Fed. 145,
CO-OWNERS 17
which deals with general questions concerning meander lines
of water courses, government surveys, etc.
By Act 31 of 1910, as amended by Act 149 of 1920, the
State of Louisiana sold to the City of Shreveport the bed of
Cross Lake, "to protect the public health," by supplying "a
good and wholesome supply of water'" but the State reserved
the mineral rights in the sale. It appears, however, that to
prospect in the lake bed for minerals would be inconsistent
with the use as a wholesome water basin, and the State, by
Act 213 of 1906 has made it a misdemeanor to contaminate
in any way the water supply of any city or to permit the dis-
charge or escape into such water supply any substance or
fluid that would injury the quality of the water or contami-
nate it.
See Sec. 23 relative to lease of public lands.
Sec. 10. Co-owners.
An owner of an undivided interest in minerals owns an
undivided interest in the whole, and his rights cannot be
exercised by a writ of possession, as it would be impossible
to execute it. Martel v. Jennings-Heywood, 114 La. 903,
115 La. 451.
Owners of the surface and owners of the minerals are not
tenants in common. They are owners of separate interests.
DeMoss v. Sample, 143 La. 252.
When parties own minerals in undivision, they are, of
course, subject to an accounting. Crusel v. Brooks, 133 La.
447; Saint v. Martel, 127 La. 73.
An owner of an undivided interest in lands has no right to
18 ADJOINING LAND OWNERS
exploit the same for oil and gas without the consent of his
co-owner. Gulf Refining Co. v. Carroll, 145 La. 299.
A joint owner may act for his co-owners in connection
with the common property, and where part of the co-owners
obtain an injunction against one attempting to sink wells on
their land, they are acting as much for their joint owner as
for themselves. Gulf Refining Co. v. Hayne, 148 La. 340.
And where a person leases lands for development for oil and
gas he is dealing with the same as being owned by him in
severality. Myers v. Myers et al., 148 La. 174.
Known oil lands, like mines, cannot be judicially parti-
tioned in kind, at the suit of one of the co-owners, or by a
creditor of a co-owner. Gulf Refining Co. v. Hayne, 138 La.
555. Connett v. Wright, 149 La.
Where parties hold oil and gas leases in indivision, a par-
tition can be had at any time unless there is a contract to the
contrary. Connett, v. Wright, 149 La.
Where an owner of mineral rights conveys a part interest
in same to his attorney, the attorney can maintain a suit to
protect his interest after his co-owner has conveyed the re-
maining interest to the defendants in such suit and the suit
has been dismissd as to the co-owner by such co-owner and
the defendants. McClung v. Atlas Oil Co., 148 La. 674.
Sec. 11 Adjoining Landowners.
An owner cannot be debarred from the legitimate use of
his property because it may cause real damage to his neigh-
bor. He may extract oil by wells or pumps. And as an
owner of land does not own the fugitive oil and gas beneath
it, he cannot complain of the use of a pump by a neighbor.
USUFRUCTUARY 19
The owner of land is not bound to do anything to save his
neighbor from loss, the only restriction being that he abstain
from doing anything to cause a loss, and where he has drilled
a non-producing well, which, when open, interferes with his
neighbor's pump, by letting air into the subterranean regions,
he will be enjoined from such interference. A landowner
may prevent fugitive oil from being drawn from his land if
he can do so by mechanical means which do not interfere
with the rights of adjoining landowners to draw the oil from
their lands.
Higgins Oil & Fuel Company v. Guaranty Oil Company,
145 La. 233.
The cases of Russell v. Producers Oil Company, 138 La.
184; 143 La. 217; 146 La. 481; Croom v. Noel, 143 La. 189,
and Houston Ice and Brewing Company v. Murray Oil Com-
pany 149 La. , involve general questions of boundary
and the location of wells, and consequent ownership thereof.
Sec. 12. Rights of Usufructuary.
The rights of a usufructuary to oil and gas in land would
seem to be defined by C. C. 552, which says:
"The usufructuary has a right to the enjoyment and pro-
ceeds of mines and quarries in the land subject to the usu-
fruct, if they were actually worked before the commence-
ment of the usufruct; but he has no right to mines and quar-
ries not opened."
This is one of the few provisions of Louisiana law enacted
before the discovery of oil which would appear to contem-
plate minerals in any form. When it was enacted, however,
oil and gas were not known, and it apparently refers to min-
20 RIGHT-OF-WAY
erals "in place," and it has been doubtful just what effect
would be given to it as respects oil and gas. A reasonable
interpretation of it, however, should include oil and gas
wells.
In Elder v. Ellerbe et al., 135 La. 990, in considering the
rights of a mere possessor of land to oil and gas produced
therefrom, the Court referred to that article in the following
language :
"The right of a possessor in good faith to gather for his
benefit the fruits of the property of another cannot be greater
than the right of a usufructuary. He has no right to mines
and quarries not opened." R. C. C. 552.
There the Court evidently considered that the provision
would cover oil and gas.
In the case of Cochran v. Gulf Refining Co. of La., 139 La.
1010, a usufructuary had granted an extension of a lease on
land in which she owned a half interest, and the lease was
attacked on that ground among others, but was decided on
other points without passing upon the rights of the usufruc-
tuary.
Sec. 13. Right of way.
Whether or not a right-of-way carries with it the right to
oil and gas beneath it, depends, of course, on the terms of the
transfer. And in Natalie Oil Co. v. La. Ry. & Nav. Co., 137
La. 706, where the right of a railroad company to drill on
its right of way was at issue, the Court said :
"A right of way may consist either of the fee or merely
of a right of passage and use.
POSSESSORS TRESPASSERS 21
"It follows that if the defendant railway is the owner of
the fee in the land, or right of way bought by it, it has the
right to explore same for the purpose of extracting oil there-
from. * * *
Sec. 14. Rights of possessor or trespasser.
While the provisions of the Civil Code relative to possess-
ors in bad faith claiming as owners are not strictly applied
in cases relating to mineral leases, still a trespasser, or pos-
sessor of mineral lands without right or title is indebted to
the lawful owner for the value of the minerals extracted.
Cooke v. Gulf Ref. Co., 135 La. 609; Martel v. Jennings-
Heywood Oil Syndicate, 114 La. 351.
And such a possessor who acts in moral good faith and on
advice of counsel will not be held for exemplary damages;
and the cost of drilling and equipping a well will be deducted
from the value of the product. Cooke v. Gulf Refining Co.,
135 La. 609. And expenses ordinary and incidental, includ-
ing cost of producing, transporting, preserving and selling
are also deducted. Martel v. Jennings-Heywood Oil Syndi-
cate, 114 La. 360.
In Green et al. and Lucks et al. v. U. S., 274 Fed. 145, the
Government brought suit to quiet title and for value of oil
extracted, and the District Court allowed the cost of extract-
ing the oil to be deducted from the value thereof, finding that
the land belonged to plaintiff. The Circuit Court reversed
the District Court on the question of title.
It is even said in Gulf Refining Co. v. Hayne, 148 La. 340,
that a lessor who usurps the rights of his lessee and drills a
well on the leased premises is entitled to be reimbursed the
22 POLICE POWER
cost of roducing the oil and drilling the well from which it
is produced.
In the case of Jennings-Heywood Oil Syndicate v. Hous-
siere-Latreille Oil Co. et al., 127 La. 971, the Court charac-
terized as "humorous" the contention that an illegal pos-
sessor of land would be entitled to the minerals produced
pending the decison of ownership.
Nor will a possessor in good faith be entitled to the min-
erals produced during his possession as "fruits" of the land.
To the contrary, he owes the owner the royalties and bon-
uses received for permitting operations on the land. Elder
v. Ellerbe et al., 135 La. 990.
A lessee, sued as a trespasser for the return or value of oil
extracted, will not be dismissed from the suit upon disclosing
the name of his lessor, as provided by the Code of Practice,
because upon proving his claim the plaintiff is entitled to
judgment against such lessess for the return of the oil, or
payment therefor. DeSoto's Heirs v. Star Oil Company,
139 La. 965.
A settler on unsurveyed government mineral lands, who
has complied with statutory provisions, is not a trespasser,
but the equitable owner. Producers Oil Co. v. Hansen et al.,
132 La. 691; Rives v. Gulf Ref. Co., 133 La. 178.
Injunction is the proper remedy against a trespasser on a
lease. Houston Ice & Brewing Assn. v. Murray Oil Co.,
145 La. 1050.
Sec. 15. Police Power.
It has been said in several cases that the ownership and
PROOF ACQUIRING MINERALS 23
production of oil are subject to regulation by, and the police
powers of, the State:
Spence et al. v. Lucas et al., 138 La. 763.
Strother v. Mangham, 138 La. 437.
Saunders v. Busch-Everett Co., 138 La. 1049.
This control by the Legislature has taken form in the var-
ious conservation measures and in the common purchaser
bills.
C. C. 505: "The ownership of the soil carries with it the
ownership of all that is directly above and under it."
"The owner may construct below the soil all manner of
works, digging as deep as he deems convenient, and draw
from them all the benefits which may accrue, under such
modifications as may result from the laws and regulations
concerning mines and the laws and regulations of the police."
Sec. 16. Proof of ownership of and right to
minerals.
A conveyance of an interest in minerals, carrying the right
to explore for same, is a jus in re, and its classification being
determined by the character of the object to which it is ap-
plied, it falls in the catagory of immovables, and the title
thereto cannot be destroyed or a new title created by parol
evidence. Hanby v. Txas Co., 140 La. 189.
Sec. 17. Acquisition of minerals and mineral
rights.
Title to minerals and minerals rights may be acquired in
a number of ways.
24 ACQUIRING MINERALS
Ordinarily the sale of the fee carries with it the minerals
and mineral rights. 51 L. R. A. (N. S.) 268. See Civil
Code 462-468; 47 A. 1489; Civil Code 3412, etc.
Minerals are also acquired by lease (by whatever name it
may be called), by sale, reservation and exception, etc.
In the acquisition of minerals in any manner it is, of
course, necessary that the person alienating the same have a
good and valid title. Burkholder v. Consol Prog. Oil Corp.
149 La..
The number of important cases affecting title to valuable
mineral properties but discussing general prositions not
particularly applicable to oil and gas land, is too numerous
to mention in detail, but the following cases are illustrative:
Wadkins v. Producers Oil Co., 130 La. 308; Gulf Refining
Co. of La. v. Hart, 130 La. 51 ; Miller v. Vivian Oil Co., 131
La. 761; Cox v. Busch-Everett Co., 131 La. 817; Gulf Re-
fining Co. v. Jeems Bayou Hunting & Fishing Club, 129 La.
1021; Moore v. Gulf Refining Co., 124 La. 607; Thompson
et al. v. Busch-Everett Co., 133 La. 938; Lattimer's Heirs v.
Gulf Refining Co., 146 La. 249; Slattery v. Arkansas Nat-
ural Gas Co., 138 La. 793; Vestal v. Producers Oil Co., 135
La. 984; Vinton Oil & Sulphur Co. v. Gray, 135 La. 1049;
etc., etc.
In one of the earliest cases affecting oil and gas lands the
Supreme Court expressed itself as not being in favor of stale
claims to lands made only after they became valuable. See
Cochran Oil & Development Co. v, Arnaudet, 11 La. 587,
where it is said:
"* * * Some of the assignors of the plaintiff
are the great-great-great grandchildren of Anthony
Cochran. None of the assignors knew him otherwise
LEASE 25
than by reputation. They were indifferent during
this long interval of time to any rights they may have
had in this land< and indifferent, also, to any duty
connected with it as owners; and it was only after
the property had acquired value from being ascer-
tained to be in the recently discovered 'oil field' that
they appear upon the scene, after being hunted up
by a party acting in his own interest for a consider-
ation, seeking to attack parties who have been in
possession of the property for many years in good
faith and who had made valuable improvements
upon it at great expense/'
And in that case the contentions of plaintiffs were dis-
missed. This question must necessarily, however, be gov-
erned by the particular circumstances of each case.
Sec. 18. Lease: In General.
"Not one land owner in a hundred develops his own land.
Even if he should be financially able to do so, not being in
the oil business, he would not care to assume the risk, the
usual and almost universal custom is to lease the land to an
oil operator." Mohawk Oil Company v. Hayne, 270 Fed.
851. ,
The term most commonly employed in describing contracts
giving rights and privileges to mine and explore for oil and
gas, is "lease." Cook v. Gulf. Ref. Co., 127 La. 592; Bush-
Everett Co. v. Vivian Oil Company, 128 La. 886; Rives v.
Gulf Refining Co., 133 La. 178; Gulf Refining Co. v. Hayne,
138 La. 555; Spence v. Lucas 138 La. 763.
And the name given such a contract is immaterial. Mur-
ray v. Barnhart, 117 La. 1023; Rives et al. v. Gulf Refining
26 ACQUISITION OP LEASE
Co., 133 La. 178; Gulf Refining Co. v. Hayne, 138 La. 555;
Saunders v. Bush-Everett Co., 138 La. 1049.
Such leases are in a class by themselves. Rives v. Gulf,
133 La. 178; Gulf Refining Company v. Hayne, 138 La. 555;
Cook v. Gulf, 135 La. 609.
They are not to be considered as ordinary land or farm or
house leases although there is some resemblance in them to
coal or solid mineral leases. Rives v. Gulf, 133 La. 178;
Cook v. Gulf, 135 La. 609.
Until the Legislature passes laws on the subject, the Courts
will adhere to the jurisprudence on the subject and treat such
contracts as leases. Spence v. Lucas, 138 La. 763.
The laws relating to sales and leases found in the code
cannot be unreservedly applied to them, but will be applied
where possible. Gulf Refining Co.. v. Hayne, 138 La. 555.
And they will be considered as leases and the law relating to
leases applied in so far as possible. Spence v. Lucas, 138 La.
763.
While a well already drilled will not generally be included
in a lease providing for a' well to be drilled (Cook v. Gulf
Refining Co., 127 La. 592) ; still, where the circumstances
show that a drilling well was intended to be included in a
lease, it will be so included (Russell v. Producers Oil Co.,
143 La. 217).
Sec. 19. How acquired. '
As we have previously seen the most common method of
acquiring minerals and mineral^ rights is by lease, and this,
of course, should be acquired from the owner. Rives v. Gulf
Refining Co., 133 La. 178; Natalie Oil Co. v. La. Ry. & Nav.
FORM OF LEASE LESSOR 27
Co., 137 La. 706; Strother v. Mangham, 138 La. 437; Spence
v. Lucas, 138 La. 763; Saunders v. Busch-Everett Co., 138
La. 1049; Hanby v. Texas Co., 140 La. 189. Burkholder v.
Consol. Prog. Oil Corp., 149 La. .
Sec. 20. Form of Contract.
While it is not necessary under the Louisiana law that
leases and mineral contracts, conveyances, etc., be in any par-
ticular form, such contracts containing reciprocal obligations
should be signed by all the parties. In Cook v. Gulf Refining
Co., 127 La. 592, the Court noticed the failure of the lessee
to sign, and in the same case it was said that a well brought
in before a lease was signed could not be considered as per-
formance of the lease signed thereafter.
The lease should also be filled out properly where a form
is used and no blanks should be left. The point was made
in McClendon v. Busch-Everett Co., 138 La. 722, that the
space left for fixing the time within which operations should
begin had been left blank, but the Court held that after oper-
ations had been started and permitted, this was immaterial.
Sec. 21. The lessor.
The rights and duties of the lessor are treated incident-
ally under the various headings dealing with the lease, and
need not be repeated. There are a few general principles,
however, which may be at this point referred to with profit.
The Courts do not look with favor on a complaint of a
lessor where the lessee is actually developing in accordance
with the terms of the contract. Knight Bros. v. Standard
Oil Co., 147 La. 272.
28 LESSOR
In Spence v. Lucas, 138 La. 770, it was said, arguendo,
that a lessor would not be permitted to sue for a dissolution
of the lease on the grounds that he was not the owner of the
property leased.
A lessor who has parted with the fee or assigned the roy-
alty rights cannot declare a forfeiture for failure of the
record owner of a lease to make the necessary payments to
keep it alive. Baird v. Atlas Oil Co., 146 La. 1091, citing
Ohio Iron Co. v. Auburn Iron Co., 64 Minn. 404, 67 N. W.
221; Craig v. Summers, 47 Minn, 189, 49 N. W. 742, 15 L.
R. A. 236, Thornton Oil & Gas Sec. 168. Nor can he grant
an extension of the lease. Burkholder v. Consol. Prog. Oil
Corp., 149 La.
A lessor who refuses to perform a contract should aban-
don it. Prince v. Standard Oil Co., 149 La. 288.
A lessor is a necessary party to a suit affecting title to the
property leased. DeSota's Heirs v. Standard Oil Co., 139
La. 965.
A lessor is the legal possessor of the surface except for
the purposes expressly granted the lessee, and the function
and responsibility of looking after the preservation of fences,
timber, etc., belongs to him and not the lessee. Wemple v.
Pasadena Pet. Co., 147 La. 532.
A lessor who drills a well on the lease of his lessee must
deliver to the lessee the proceeds from the well less cost of
production. Gulf Ref. Co. v. Hayne, 148 La. 340.
A lessor who received a substantial cash consideration for
the drilling of as many wells as the lessee may desire, cannot
retain the money as the consideration for one well drilled and
ask that the lease be annulled as to the balance of the land
LESSEE 29
on the ground that the lessee has violated an implied obliga-
tion to drill other wells. McClendon v. Busch-Everett Co.,
138 La. 722.
Sec. 22. The lessee.
The rights of the lessee are treated incidentally in a num-
ber of sections, under the head of payments, development,
potestative condition, etc., and need not be repeated at this
point. Certain principles are here set forth, however, that
will not be found elsewhere.
In Cook v. Gulf Refining Co., 127 La. 592, it was said that
a lessee who obtains a lease to bore for oil merely acquires
a hope, and the lessor has discharged his obligation in per-
mitting the lessee to attempt to realize his hope. But during
the term of the lease the lessee has a real right which cannot
be disregarded by the lessor while it is in effect. Nabors v.
Producers Oil Co., 140 La. 985.
The lessee cannot be forced to do more than comply with
the terms of the lease. Knight Bros. v. Standard Oil Co.,
147 La. 272.
A lessee has only such rights on the surface necessary for
development. Houssiere-Latreille v. Jennings-Heywood, 115
La. 107. He is only required to treat the surface of the land
as a good administrator, and is not bound by the provisions
of law relating to ordinary leases, whereby the lessee is liable
for all damages no matter by whom done and must restore
the premises in like condition in which received, etc., and
where a lease gives the right of ingress and egrss, the lessee
is not responsible for the destruction of fences, etc., by third
parties, as it is not required to exercise police supervision
30 LESSEE
over the property. Wemple v. Pasadena Petroleum Co., 147
La. 532.
A lessee who has parted with record title to a lease cannot
make payments so as to keep it alive as against third per-
sons. Baird v. Atlas Oil Co., 146 La. 1100. And the lessee
who has parted with a portion of the lease cannot rescind
the transfer. Jennings-Heywood v. Home Oil & Develop-
ment Co., 113 La. 383.
The lessee has the right to maintain his possession against
his lessor or his lessor's transferrees, and all other persons.
Jennings-Heywood v. DeBallion, 113 La. 572.
A lessee under a mineral lease is a tenant and he cannot
contest or force a change in the ownership of his lessor, nor
can he force a partition of the land leased. Gulf Refining
Co. v. Hayne, 138 La. 555.
In Rives v. Gulf Refining Co., 133 La. 189, the Court held
that the rule that a tenant cannot deny his landlord's title
does not embrace an oil or gas lease which the lessor had no
right to give, if neither the lessee nor his assignees took pos-
session or executed any powers or rights under it, citing
Thornton on Oil & Gas. And the Court further cited the
same work to the effect that :
"If a person take a second lease of the premises from
the person claiming adversely to the first lessor, he cannot
refuse to pay rent under the second lease on the ground that
the first lessor had the better title."
In Spence v. Lucas, 138 La. 770, it was said that a lessee
would not be permitted to sue his lessor for a dissolution of
a lease on the grounds of a bad title, unless disturbed in pos-
session.
LESSEE PUBLIC LANDS 31
A lessee under a mineral lease sued for the property and
the value of oil extracted, cannot be dismissed from the suit
upon disclosing the name of the lessor, as provided by the
Code of Practice in suits affecting leases, as he is a proper
party to litigate the question of payment for the oil. DeSoto's
Heirs V. Standard Oil Co., 139 La. 965.
A lessee may claim damages for slander of title. Baird v.
Atlas Oil Co., 146 La. 1102.
The lessee who has delivered an oil royalty to the wrong
party owes to the rightful owner the value of the oil, being
the price received for same by the persons to whom delivered,
plus interest from judicial demand. Russell v. Producers
Oil Co., 146 La. 481.
A lessess who owns leases on adjoining tracts and drills
a well the location of which is doubtful, merely owes royalty
to the owner upon whose land the well is found to be. Rus-
sell v. Producers Oil Co., 143 La. 217.
A lessee who has been prevented from operating through
acts of his lessor is entitled to the proceeds of a well drilled
by his lessor. Gulf Refining Co. v. Hayne, 148 La. 340.
A lessee in exclusive possession is an indispensable party
to a suit to establish the validity of a prior lease the neces-
sary effect of which would be to render its own invalid. Vin-
cent Oil Co. v. Gulf. Ref. Co., 195 Fed. 434.
Sec. 23. Public lands.
Act No. 30 of 1915 provides that all State Lands may be
leased by the Governor and provides the method of leasing,
and Act 21 of 1915 ratifies certain leases previously executed
by the Governor. (See Appendix).
32 MINORS MARRIED PERSONS
Act 268 of 1908 author ies the Caddo Levee Board to lease
or farm out for oil, gas and minerals the lands within the
limits of said district for a royalty in oil and gas.
School lands are leased under Act 142 of 1919, which re-
peals Act 214 of 1912 and 39 of 1910, and amends Act 130
of 1916. It provides that Parish School Boards have the
right to grant mineral leases by resolution of the Board with-
out a vote of the township, and such leases shall be executed
by the Superintendent and Parish Treasurer.
As to the lease of Government lands, see the Federal Oil
Leasing Act of 1920. Also Morrison-DeSoto, Oil and Gas
Rights and Thortnton on Oil and Gas, etc.
Sec. 24. Lands of Minors and Interdicts.
The lease of lands of minors is covered specifically by Act
192 of 1916 and Act 116 of 1920.
Sec. 25. Husband and Wife.
There seems to be no doubt under the Louisiana law that
the husband can execute a lease on the community property.
But as to property standing in the wife's name, and the sep-
arate and paraphernal property of the wife, she should exe-
cute the lease, and, in propr cases, join her husband and be
authoried by him.
A husband has no authority to assign leases standing in
his wife's name. Denman v. Wilder, 148 La. 481. In the
same case it is held that a husband can transfer leases to his
wife as a dation en paiement provided she does not personally
assume her husband's obligations.
CO-OWNERS 33
Act 35 of 1921 provides that when the homestead has been
properly designated as such on the public records, it cannot
be sold or mortgaged except with the consent of the wife
specifically set forth in the act or deed. As oil and gas are
a part of the realty, it would appear that the wife should sign
any alienation of these minerals affecting such homestead.
Sec. 26. Co-owners.
There is no question that co-owners may join in a lease of
the whole of the land. And where a lease is placed on the
whole of a piece of land and the heirs of the lessor take pos-
session of it, the lease holds as to the whole. Murray v.
Barnhart, 117 La. 1023; and even though the lease may have
been wrongfully executed as to the whole, an acceptance of
the succession of the co-owner would cure this defect. Coch-
ran v. Gulf Refining Co., 139 La. 1010. And ownership of
the whole is not essential to make a valid lease of the whole.
Suence v. Lucas, 138 La. 770. But leasing land for develop-
ment for oil and gas indicates that the lessor is dealing with
the land as being owned by him in severalty. Myers v. Myers
et al, 148 La. 175. But such a lease is void as far as the co-
owner is concerned. Gulf Ref. Co. v. Carroll, 145 La. 305.
The question of whether or not a vaild lease can be given
on an undivided interest in mineral lands is not free from
doubt :
In Spence v. Lucas, 138 La. 772, the Court said, arguendo
that a lessor had a right to lease an undivided interest in
mineral lands. And in Gulf Refining Company v. Hayne et
al., 138 La. 555, where the question was not directly at is-
sue, it was said that while "the Court might recognize the
34 CO-OWNERS
rights of plaintiff under the lease (to an undivided 1-3), it
cannot put it in actual corporeal possession of an undivided
interest in the land leased. Such right is a mere abstract
right"; while if the lease bore upon specific property, it might
be put in possession of it. Martel v. Jennings-Heywood Oil
Syndicate, 114 La. 903, 115 La. 451.
In Gulf Refining Company v. Carroll, 145 La. 229, it is
held directly that a co-owner cannot give a valid lease of the
whole without the consent of his co-owners, and in that case,
after reviewing the cases referred to above, the Court seems
in doubt as to the legality of a lease of an undivided interest
and questions the rights of a lessee thereunder.
And in Baird v. Atlas Oil Co., 146 La. 1102, where the
question was fairly raised, the Court decided the case on
other issues and refused to pass on this point. But in Gulf
Refining Co. v. Hayne 148 La. 340, the Court recognized
the rights of an owner of a lease on an undivided interest in
land by ordering the delivery to him by the lessor of his un-
divided interest in the proceeds of a well drilled on the land
by the lessor in contravention of the rights of lessee.
There are several other cases where such leases have been
passd upon inferentially and indirectly. In Jennings-Hey-
wood Oil Syndicate v. Home Oil & Development Co., Ltd.,
113 La. 383, it was said that eviction as to a portion of a lease
would carry the right to rescind the whole. In Elder v. El-
lerbe, 135 La. 990, the right was recognized to sue to annul,
a lease so far as it related to an undivided interest, as was
the case in Gulf Refining Company v. Hart et al., 130 La.
51, where suit was brought to annul a lease as to a 19-20 in-
terest in same.
CONSTRUCTION INTERPRETATION 35
The logical and equitable rule should be that a lease is in-
valid as to the whole unless joined in or authorized by the
owners of the whole.
Known oil lands, like mines, cannot be judicially parti-
tioned in kind. Gulf Refining Company v. Hayne, 138 La.
555. Connett v. Wright, 149 La
Sec. 27. Construction and interpretation.
In interpreting a lease, the intention of the parties must be
looked to. Jennings-Heywood v. Houssiere-Latreille, 119
La. 793, citing Ohio Oil Co. v. Delmore (Ind. Sup.) 73 N. E.
1093, 34 L. R. A. 62; and the intention of the parties must
be inferred from the language and terms of the contract.
Jennings-Heywood v. Houssiere-Latreille, 127 La. 999. For
instance, w r hether a mineral contract is severable or joint, de-
pends upon the intention of the parties as revealed by the lan-
guage and subjct matter of the instrument. Nabors v. Pro-
ducrs Oil Co., 140 La. 985. And where a contract employs
both particular and general terms the general terms will not
be controlled by the particular ones when the contrary inten-
tion is manifest, and facts of public notoriety will be presumed
to have been known by the parties and the language con-
strued with reference to such facts. Anse LaButte Oil Co. v.
Babb, 122 La. 415. But the intention of the parties has noth-
ing to do with the matter where, under the law they cannot
do what they intended. Frost-Johnson Lbr. Co. v. Sailings,
149 La. _
The language itself will be construed by the court when
necessary to a proper understanding. Knight Bros. v. Stan-
dard Oil Co., 147 La. 272.
36 CONSTRUCTION INTERPRETATION
A mineral contract must, however, be construed as a whole
(Bush-Everett Co. v. Vivian Oil Co.., 128 La. 886; Escoubas
v. La. Pet. Co., 22 A. 280), and the intention of the parties
gathered from all its parts. Calhoun v. Ardis, 144 La. 311.
The court looks to the language used and the substance of
a transaction to determine its legal effect, and not to the word
used in describing it. So it makes no difference whether the
contract is termed lease, license, sale, grant, deed, convey-
ance, real right, incorporeal hereditament, chattel interest,
right in land, contract or any other name. Long v. Sun Com-
pany, 132 La. 601; Rives v. Gulf Ref. Co., 133 La. 178. But
a contract will be construed as written until error is shown.
Cook v. Gulf Ref. Co., 127 La. 592; and it is the law between
the parties (Dickinson v. Texana Oil Co., 147 La. 341), and
when clear and unambigious, the courts will not assume to
correct the intention of the parties, who will not be heard to
say their intentions were other than those clearly expressed.
DeMoss v. Sample, 143 La. 243. And where they have pro-
vided for a forfeiture it must be declared. Dickinson v. Tex-
ana, 147 La. 341. And openly and clearly expressed obliga-
tions cannot be construed as "implied obligations." Prince
et al. v. Standard Oil Co., 147 La. 283.
Leases are construed most strongly against the lessee.
Rives v. Gulf Rfining Co., 133 La. 178; Cook v. Gulf Refin-
ing Co., 135 La. 609; Jennings-Heywood v. Houssiere-La-
treille, 119 La. 793. But this construction does not apply in
a suit for damages. Cook v. Gulf Ref. Co., 135 La. 609.
The construction placed upon a contract by the parties
themselves has great weight. Rives v. Gulf Co., 133 La. 178;
and a contract written by an oil company will be construed
as written by it. Cook v. Gulf, 127 La. 592.
TERM 87
Where the parties themselves place their interpretation on
a lease honestly and on advice of competent counsel, they can-
not be held to be in bad faith. Cook v. Gulf, 135 La. 609.
In Elston v. Atlas Oil Co., 147 La. 1048, the Court said
that contracts will not be construed so as to lead to absurd
conclusions, nor will the Court undertake to re-write con-
tracts.
Where, in the sale of land, it is recited that the mineral
rights are reserved because they have been previously sold
to another person, it was held that this was applicable only
to mineral rights previously so sold and not other lands, in
view of C. C. 2474 providing for the construction of ambig-
uous clauses against the vendor. Frost- Johnson Lbr. Co. v.
Nabors Oil & Gas Co., 149 La. .
Sec. 28. Term.
A lease is null and void which provides for extentions by
payment of annual rentals without any time limit, thus per-
mitting the lessee to hold the same perpetually, because "A
lease or option for an indefinite term is a nudum pactum"
Bristo v. Christine Oil & Gas Co., 139 La. 312; Norris v.
Snyder & McCormick, 139 La. 316; Calhoun v. Christine
Oil & Gas Co., 139 La. 316; Dunham v. McCormick, 139 La.
317; Norris v. McCormick, 139 La. 318; Parrot v. McCor-
mick, 139 La. 318; Williams v. McCormick, 139 La. 319 and
Parrott v. Kirschler, 139 La. 320.
In Busch-Everett v. Vivian Oil Co., 128 La. 886, the Court
said that " * * * a contract of lease may be entirely
legal without a term, or a term may be so indefinite that only
the Court can determine the date." But in view of the rule
38 TERM
stated in the cases first quoted above, and considering the
question before the Court in the 128 La. case, this expression
apparently means nothing more than that a lease is legal if
the term can be definitely determined and the term need
not be expressed in actual terms of time. ( See Anse LaButte
Oil Co. v. Babb, 122 La. 415).
When the term of a lease is conditioned upon the produc-
tion of minerals in paying quantities, the term is dependent
upon continuous operations and ceases when the operations
cease. Brown v. Producers Oil Co. 134 La. 672.
The term of a lease may be continued by the common con-
sent of the parties. Hudspeth v. Producers Oil Co., 134 La.
1013. But a lease is not to be extended by implication. And
a lease which is to continue during the time that oil and gas
are found in paying quantities is at an end after the time dur-
ing which exploration is permitted has expired and no oil or
gas have been found. Cook v. Gulf Refining Co., 127 La.
592, 135 La. 609.
Where the term of a lease, during which it may be kept in
force by annual payments, is specified as five years, held that
the particular instrument meant five years in addition to the
first year. Chadwick v. Standard Oil Co., 147 La. 668.
A lease which provides that it shall be in force for 25 years
after the discovery of oil and gas and as much longer there-
after as oil and gas are produced in paying quantities, and
which requires the lessee to prosecute diligently the produc-
tion of oil and gas, will be annulled where only one small well
is drilled and lessee refuses to develop further. Green v.
Standard Oil Co., 146 La. 935.
The term for performance will be extended where lessee is
ASSIGNMENT THIRD PERSONS 39
prevented from performing by the lessor. Gulf Refining Co,,
v. Hayne, 148 La, 340; Standard Oil Co. v. Webb, 149 La.
; Keene v. Logan, 147 La. 80.
Sec. 29. Assignment Third Parties, etc.
It has never been seriously questioned that a lease is as-
signable and it is not necessary that the contract state that it
is assignable. Anse La. Butte v. Babb, 122 La. 415, and a
lease giving a person the exclusive right to drill on land does
not impose a personal obligation requiring his personal skill
and attention, which cannot be assigned. Anse La. Butte Oil
& Mining Co. v. Babb, 122 La. 415; Rives v. Gulf Refining
Co., 133 La. 178, citing Heller v. Vailey, 28 Ind. 555; 63 N.
E. 490, where it was said that a lease did not grant a mere
personal privilege, but an assignable interest in land.
The transferee of a lessee steps into his shoes. Houssiere-
Latrille v. Jennings-Heywood, 115 La. 107; Rowe v. Atlas
Oil Company, 147 La. 1100. And the same as to the assignee
of the lessor. State ex rel. Jennings-Heywood v. DeBaillon,
113 La. 572; Hudspeth et al. v. Producers Oil Company, 134
La. 1013; Standard Oil Company v. Webb, 149 La. - -.
And the law requires no registry of the actions of parties
under recorded leases, subsequent purchasers being obliged to
inquire as to such action. Bush-Everett Co. v. Vivian Oil
Co., 128 La. 886; Hudspeth v. Producers Oil Co., 134 La.
owner. Baird v. Atlas Oil Company, 146 La. 1091. A former
owner cannot extend a lease on lands which he has sold and
by paying the price of the extensions to his vendor, affect the
rights of parties who have acquired a new lease from the ven-
dor, and properly recorded it. Burkholder v. Consolidated-
Prog. Oil Corp., 149 La
40 ASSIGNMENT THIRD PERSONS
But a person purchasing a lease, who acquires a good
record title need only inquire as to the rights of the present
owner. Baird v. Atlas Oil Company, 146 La. 1091.
A lease not recorded is null and void as to third parties.
Baird v. Atlas Oil Company, 146 La. 1091, but on the other
hand, the recordation of the contract protects all of the sub-
stantial rights granted under it, and where an owner sells
land affected by a valid lease the purchaser acquires subject
to the lease and can convey no greater right than he acquires.
Standard Oil Co. v. Webb, 149 La. - -; State v. DeBaillon,
113 La. 572.
A lease of the whole property by a co-owner when duly
registered bears on the property sold in the hands of the
transferree. Spence v. Lucas, 138 La. 763.
Lands pass to the heirs of a lessor subject to his lease.
Cochran v. Gulf Refining Co., 139 La. 1010 .
A person acquiring lands at sheriff's sale, subject to a lease,
has the same rights as the original owner to annul the lease.
Gray v. Spring, 129 La. 345.
A description in an agreement to sell leases may be suffi-
cient between the parties but not sufficient to give notice to
third persons, and such third persons cannot be affected by
a notice of Us pcndens recorded after their acquisition. Sny-
der v. Wilder, 146 La. 811.
Where a person acquires a second lease or top lease on
lands and the first leases are null and void, such new lease
takes precedence over the first ones as well as all leases subse-
quent thereto. Raines v. Dunson, 145 La. 543; Martel v.
Jennings-Heywood Oil Syndicate, 113 La. 351.
DIVISIBILITY 41
Recording a conveyance to an attorney of a present inter-
est in mineral rights in consideration of services to be ren-
dered in respect to those rights protects the attorney against
subsequent purchasers from the client, without a notice to the
adverse party, as the same is governed by the conveyance
laws and not the special statute in regard to attorney's liens.
McClung v. Atlas Oil Co., 148 La. 674.
A person who buys a lease subject to the outcome of a suit,
after the filing of notice of Us pendens, is bound by the judg-
ment rendered. Where however, void leases are subsequent-
ly validated, one acquiring a new lease before such valida-
tion would prevail over them. Mohawk Oil Company v.
Layne, 270 Fed. 841).
The correction of a mineral deed, so as to include land not
originally described, did not operate to the prejudice of a
third party to whom land has been conveyed without reser-
vation of mineral rights subsequent to the execution of the
mineral deed, but prior to correction, or its successor in in-
terest. Frost-Johnson Lbr. Co. v. Nabors Oil & Gas Co.,
149 La. - -.
Sec. 30. Divisibility.
It was said in Murray v. Barnhart, 117 La. 1030, that the
obligation to drill one well on a tract of land is indivisible
and therefore the obligation to deliver the land is indivisible.
When the obligation of one party is indivisible, the obligation
of the other party is likewise indivisible. See Caddo Oil &
Mining Co., 134 La. 701; McClendon v. Busch-Everett Co.,
138 La. 722.
And where heirs take possession of land upon which their
42 DIVISIBILITY
ancestor has placed a lease and sell a portion of the land, as
the lease is indivisible, they cannot alone ask its recission.
Cochran v. Gulf Ref. Co., 139 La. 1010.
Where the owners of several tracts join in a joint lease for
a gross price, a joint obligation on the part of the lessors is
created, and an obligation to commence a well cannot be con-
strued as meaning a well on the tract of each party. A con-
tract by which several parties obligate themselves to do the
same thing creates a joint obligation on their part, and a con-
tract whereby something is to be done for the common bene-
fit of several persons creates an obligation that is joint and
inseverable as to the obligees. Nabors v. Producers Oil Co.,
140 La. 985, also Nabors Oil & Gas Co. v. McCormick et al.,
145 La. 88.
A joint lease made by several land owners is indivisible
and cannot be annulled without the consent of all, but where
the lease itself provides for its forfeiture, the failure of one
of the lessors to demand it does not affect the right of the
other to have it annulled. Green v. Standard Oil Co., 146
La. 935.
In Hart v Standard Oil Co., 146 La. 885, the facts dis-
closed that under a lease providing for development for oil
and gas, the gas rights alone were transferred by the lessee
to a company that abandoned the gas rights and disclaimed
any interest therein. Quaere: How about the divisibility
of a lease as to gas and oil rights, and what is the effect on
the oil rights where lessee transfers the gas rights to a per-
son who abandons them and fails to develop?
Where the lands of two parties have been leased under a
single lease and the lessee and one of the lessors enter into a
CONSIDERATION 43
new lease as to the lands of that lessor only, and the other
lessor is not consulted, the first lease will be considered to
have been abandoned and no longer binding on the lessor who
was thus ignored. Jennings-Heywood Oil Syndicate, 113
La. 351.
In Rains v. Dunson, 145 La. 541, the Court discussed a
provision in a community lease relative to drilling a well on
any land within a certain radius, and it was held that where
the lease of an owner of a single tract was illegal, he was not
estopped by performance on another tract, since he was
powerless to prevent the same, the Court expressly refrain-
ing from any indication that a community lease contract,
properly drawn, would be illegal. See Baird v. Atlas Oil Co.,
146 La. 1100; Rowe v. Atlas Oil Co., 147 La. 37; Wilder v.
Norman, 147 La. 413; Burkholder v. Consolidated-Prog. Oil
Corp. 149 La
Sec. 31. Consideration.
There is some confusion in viewing the jurisprudence of
Louisiana upon the question of the consideration for mineral
contracts and leases, owing to its association with certain
principles relative to development and the peculiar principles
relating to the potestative condition, and the reader is re-
ferred to the sections dealing with development and the po-
testative condition for a fuller discussion of those details ; the
purpose of this section being to consider the question of con-
sideration as far as possible without relation to other sub-
jects.
The following principles have been applied to the consid-
eration for the granting of mineral contracts, for continuing
them and for terminating them :
44 CONSIDERATION
The civil law, differently from the common law, requires
that the consideration of a contract be serious, hence the tra-
ditional one dollar consideration of the common law is not
considered under the civil law as a serious consideration.
Murray v. Barnhart, 117 La. 123; Berl v. Kehoe, 130 La.
1020; Caddo Oil & Mining Co. v. Producers Oil Co., 134 La.
701; Gray v. Spring, 129 La. 345; the difference between the
two systems is so wide that common law cases have no appli-
cation. Goodson v. Vivian Oil Co., 129 La,* 955.
And the same may be said of two dollars. Murray v. Barn-
hart, 117 La. 123. And the fact that a lease recites that one
dollar is deemed by the parties thereto to be sufficient adds
nothing to the want of consideration, because such a want
cannot be supplied by a mere declaration. Long v. Sun Co.,
132 La. 601.
In Brown v. Producers Oil Co., 134 La. 672, the sum of
twenty dollars was treated as not a serious consideration for
either granting or terminating a valuable lease.
And the mere promise of a royalty in the event oil is dis-
covered, without an obligation to drill, is no consideration.
Goodson v. Vivian Oil Co., 129 La, 955; Berl v. Kehoe, 130
La. 1020; while in Martel v. Jennings-Heywood, 114 La.
351, a lease for one dollar and a promise of a royalty was
considered as a mere license, revocable at will. And in Wil-
der v. Norman, 147 La. 413, it was held that the promise of
development without an obligation to develop is no consider-
ation for a lease. Also Hinton v. Smith, 149 La.
In McClendon v. Busch-Everett Co., 138 La. 722, the
Court said that in the absence of proof the Court cannot as-
sume that a substantial consideration received by a lessor is
CONSIDERATION 45
inadequate, and that some other consideration was implied
or intended as the real cause or consideration of the contrast.
While the authorities previously quoted announce as a gen-
eral rule of the Civil law the inhibition against a price not
serious, this principle finds its place in our law in Civil Code
Art. 2464, which provides merely that the consideration for a
sale must be serious and ought not to be out of all proportion
with the value of the thing, saying nothing about other kinds
of contracts.
There has been a tendency to use interchangably the terms
"serious" and "adequate" and to intimate that by a serous
consideration, an adequate one may be meant. It is respect-
fully urged that it should not be loss sight of that inadequacy
of consideration should be reached by the provisions of law
relating to lesion, error and fraud (See Butler v. Marston,
145 La. 41), and that it is not the inadequacy of price which
the provisions of the civil law seek to remedy in referring to
the seriousness of consideration, but the abuses incident to
reciting as a consideration for a sale a price so small that the
parties consider it unimportant, or do not intend that it be
paid at all and make the recitation merely as a matter of
form. For instance, the sale of a piece of property valued
at one thousand dollars for one dollar would fall clearly within
the rule ,but its sale for two hundred dollars would not in-
volve the disrepancy referred to, because such a sum would
be serious and would be paid although it might be inade-
quate, and the larger the transaction involved and the greater
the sum actually paid the greater the difficulty in declaring
it to be not serious.
In Saunders v. Bush-Everett Co., 138 La. 1049, the pay-
ment of an annual rental amounting to three per cent on wild-
46 CONSIDERATION
cat lands of a value of five dollars an acre was considered a
serious consideration and the Court said: "Whether the
consideration is adequate or inadequate is a question with
which the Courts have no concern where neither error or
fraud are alleged or shown." And in Bush-Everett Co. v.
Vivian Oil Company, 128 La. 886, it was said that defendants
had paid for all they received, where they had paid for a lease
$345.00 cash and $115.00 a quarter rentals. In McClendon
v. Bush-Everett Co., 138 La. 722, $300.00 in cash and from
$100.00 to$200.00 a year was termed "adequate", to support
the lease.
It has been stated in several cases that the real considera
tion for a mineral lease is the obligation to develop. Jennings
Heywood v. Houssiere-Latreille, 119 La. 793, and Martel v.
Jennings-Heywood, 114 La. 351, citing numerous authori-
ties; Murray v. Barnhart, 117 La. 1023; Goodson v. Vivian
Oil Co., 129 La. 955; Brown v. Producers Oil Co., 134 La.
672.
But this rule cannot apply where a substantial cash con-
sideration has been paid for a lease. McClendon v. Bush-
Everett Co., 138 La. 722; Long v. Sun Company, 132 La.
601; Cochran v. Gulf Refining Co. 139 La. 1010.
After oil is discovered, however, the main consideration
is development for oil and gas and the lessee must then either
develop with diligence or give up the lease. Green v. Stan-
dard Oil Co., 146 La. 935; Brown v. Producers Oil Co., 134
La. 672.
No consideration is necessary for the reservation or ex-
ception of minerals from a sale of land as the part reserved
or excepted is not involved .DeMoss v. Sample, 143 La. 243.
POTESTATIVE CONDITION 47
Sec. 32. Potestative condition.
Perhaps the most troublesome legal phase of the construc-
tion and interpretation of mineral contracts in Louisiana is
that which involves the potestative condition. From the first
oil and gas case to the latest, the cry of "potestative condition"
has been made, and much confusion has arisen in the applica-
tion of the law.
The principal points of attack have been: (a) Insuffi-
cient consideration; (b) failure to express any obligation to
develop; and (c) the reservation of the right to abandon the
lease at any time ; it having been suggested that each involved
the potestative condition.
The Courts have held a number of leases invalid on the
three grounds, but the distinction drawn between them has
not been clear nor certain, and it is difficult to follow the rea-
soning of the opinions in analyzing the various cases and en-
deavoring to reconcile them.
The statutory provisions relating to the potestative condi-
tion are as follows:
Civil Code 2024. "The potestative condition is that
which makes the execution of the agreement depend on an
event which it is in the power of the one or the other of the
contracting parties to bring about or hinder."
Civil Code 2034. "Every obligation is null that has
been contracted on a potestative condition on the part of him
who binds himself."
Civil Code 2035. "The last preceding article is limited
to potestative conditions which make the obligation depend
solely on the exercise of the obligor's will but if the condition
be that the obligor shall do or not do a certain act, although
the doing or not doing of the act depends on the will of the
48 POTESTATIVE CONDITION
obligor, yet the obligation depending on such condition is
not void."
Bouviers' Law Dictionary, p. 583 (3rd. Rev.) gives the
following definition from Potheir on Obligations: "Potes-
tative conditions are those which are in the power of the per-
son in whose favor the obligation was contracted ; as, If I con-
tract to give my neighbor a sum of money in case he cuts
down a tree."
Article 2024 is a translation from the Code Napoleon. It
is followed by Article 2034 which is also a translation from
the Code Napoleon, and while this article says that all obliga-
tions contracted on a potestative condition are null, this lan-
guage is controlled by the following article, 2035, which
makes certain distinctions and exceptions. This article
(2035) writes into our Code some of the interpretations of
the French law, and both under the wording of these provi-
sions of our Code, and many of the French authorities, it is
not every potestative condition that nullifies a contract.
And according to the French interpretations, many of the
authorities agree that the potestative condition referred to
in the French law and the Code Napolon is that which de-
pends upon the frivolous and capricious exercise of the will,
such as a stipulation that a thing will or will not be done upon
the drinking a bottle of wine or the wearing of a certain hat;
and that the inhibition against the potestative condition does
not apply where the exercise of the will has for its object the
accomplishment of a substantial, physical thing, such as where
a man agrees that if he plants certain trees which obstruct a
view from the adjoining estate that he will pay a sum of
money; nor does it apply where the exercise of the will would
result in a loss to the obligor or where the contract provides
for a gain to the obligee.
POTESTATIVE CONDITION 49
The Supreme Court of Louisiana considered these inter-
pretations of the potestative condition and entered into a full
discussion of the matter in the case of Anse LaButte Oil &
Mineral Co. v. Babb, 122 La. 415.
That was a case where the defendant had given to the
plaintiff (or its assignor) the exclusive right to explore his
land and had provided that in case of success on defendant's
land, or that of two other persons, that plaintiff could pur-
chase defendant's land during a certain period for a certain
price, and plaintiff sued for specific performance, whereupon
he was met with the defense of the "potestative condition,"
(which had already been successfully urged in previous oil
litigation) on the ground that, as plaintiff had a similar con-
tract covering one of the other tracts, he could at will pre-
vent the exploration of defendant's tract by refraining from
drilling. The Court said:
"The next defense is that the condition upon which
(plaintiff's assignor) agreed to buy the land in case of suc-
cess in finding commercial substances upon it or upon the
land of (the two other parties) was potestative on his part,
since he might have, at will, prevented success by abstaining
from drilling upon any of the said lands, and renders the
contract null.
"True, he secured by the same contract the exclusive
right to drill upon the Babb land, and had already secured,
or secured on the same day * * * the ownership of the
Begnaud land, and may, therefore, in a sense, be said to have
been in a position to defeat the condition at will as to these
lands by abstraining from drilling upon them ; but the Breaux
land remained, which he neveV controlled. * * * In
connection with this Breaux land, the condition can in no
sense be said to have been potestative. Anybody might have
drilled upon it Breaux or anybody else, and brought success
and the fulfillment of the condition.
50 POTESTATIVE CONDITION
"Nor is this all. It is not every potestative condition that
renders null the obligation to which it is attached. Article
2035 of the Civil Code, speaking of Article 2034, according
to which "every obligation is null that has been contracted on
a potestative condition on the part of him who binds himself,
says: (And then the Court quotes the article).
"If this Article 2035 were taken literally, the contract
would not be null, no matter to what extent the act upon
which the obligation depended might be at the will of the
obligor. The civilians explain, however that the act, upon
the doing or not doing of which the obligation is made to
depend, must not be so easy of performance or so insignifi-
cant in reality to leave matters to the mere will of the obligor ;
as, for example, if the obligation was to depend upon whether
the obligor 'raised his arm or drank a glass of wine, or wore
his gray hat,' De Carpentier et Du Saint, Rep. de Droit Fran-
caise, Vo. Condition, No. 100. The question whether the act
upon which the obligation is to depend is, or not, of the char-
acter here described, is one of fact, to be determined from
the particular circumstances of each case. Id. No. 101.
"In the instant suit, the only only way in which drilling,
and the consequent possible fulfillment of the condition could
have been prevented upon the Breaux land, would have been
by securing control of the land by some onerous contract.
The facts of the case leave no doubt, therefore, that the ful-
fillment of the condition was not purely potestative.
"Even as to the Babb and Begaud lands, the plaintiff
company could not have abstrained from drilling upon them
(in case of non-success on the Breaux land) without renounc-
ing the benefits which had been sought to be secured by en-
tering into the. contracts with reference to them and renounc-
ing the benefit of the large expense incurred; and the renun-
ciation would not have been such insignificant act as is de-
scribed above as depending solely upon the will of the ob-
ligor, namely, abstraining from raising one's arm, or drinking
a glass of wine, or wearing one's gray hat, but would have
meant the sacrifice of important rights"
POTESTATIVE CONDITION 51
And the Court held that such an agreement was not null.
But a re-hearing was had, and the contention was renewed
that the contract contained a potestative condition, and the
Court then said:
"It is next contended that the contract was null because
without consideration and dependent upon a potestative con-
dition. We think that a perfect answer to this contention is
that, conceding that the condition was potestative in the be-
ginning, it was actually performed by the grantee and his as-
signs at a great expense, and with the active assistance of the
defendant.
"A condition which has been fulfilled ceases to be potes-
tative. Murray v. Earnhardt, 117 La. 1023, 42 So. 489."
The analysis of the potestative condition in the original
opinion seems to be correct, yet from the expressions on re-
hearing doubt is left as to its authority, and many other cases
seem to be involved in the same confusion. These cases will
be considered seriatim :
The first case involving the potestative condition is the
first oil and gas case to come before the Court. Escoubas v.
Louisiana Petroleum & Coal Oil Co., 22 A. 280, where the
right to explore certain lands was granted for a considera-
tion $20,000.00 promised to be paid, and the time for ex-
ploration having expired, an extension was granted without
further consideration, except for the stipulation that while
the lessee would continue to work no forfeiture would be de-
clared. The Court stated this constituted a potestative con-
dition because the lessees were not obligated to drill or con-
tinue work.
In the next case (Martel v. Jennings-Heywood Oil Syndi-
cate, 114 La. 351), the Court stated that a lease for 99 years
52 POTESTATIVE CONDITION
for $1.00 and a promised royalty on each barrel of oil pro-
duced, not binding the lessee to develop, was a mere permit
or license, revocable and terminable at will. This case was
later discussed in Saunders v. Busch-Everett Co., 138 La.
1049, where it was said, "the Court held, in effect, that it
(the lease) was a nudum pactum, as the grantee gave no con-
sideration and bound itself to nothing."
The next case is that of Houssiere-Latreille Oil Co. v. Jen-
nings-Heywood Oil Syndicate, 115 La. 107, which was a pos-
sessory action, in which, however, the Court considered the
validity of the lease vel non. The final opinion was rendered
on rehearing in which the Court "re-stated" its position on
the first hearing, to-wit:
"A contract purporting to be a lease for a term of ten
years of mineral rights in a forty acre tract of land in an
unproved part of the county, whereby the contractor agrees
to commence operations within six months, or pay $50.00
quarterly, in advance, for each additional three months such
operations are delayed until an oil well is completed, and
whereby he is given the right to remove his machinery at any
time and to cancel the contract on payment of $100.00 at any
time, and whereby, in the event of the discovery of oil and
gas, the gross yield is to be shared, in certain proportions,
by the contracting parties, is not void upon its face for want
of mutuality or as containing a potestative condition."
This matter was later passed upon in the District Court
in another action, but in the meantime the case of Murray v.
Barnhart, 117 La. 1023, came before the Supreme Court and
it was held :
''That the civil law, differently from the common law,
requires that the consideration of a contract be serious, and
not all out of proportion with the value of the contract.
Hence, in a contract of more than $100.00 in value, the tra-
POTESTATIVE CONDITION 53
ditional $1.00 consideration of a common-law contract is
looked upon by the civil law as not being a serious consider-
ation at all. And the same may be said of $2.00 for the priv-
ilege of retiring at any time from such a contract.
"Therefore, in an oil and gas lease, the obligation of the
lessee to complete one well within one year will be held to be
purely potestative, and as such to entail the nullity of the
contract, where he at the same time reserved to himself the
right to retire from the contract at any time on paying $2.00
and this, notwithstanding that this consideration is stated to
be $1.00 cash in hand paid, receipt whereof is acknowledged."
And this case is differentiated from the preceding one
(Houssiere-Latreille v. Jennings-Heywood, 115 La. 107) be-
cause, as the Court said, in that case the lease provided for
$100.00 for cancellation, which the Court deemed sufficient,
while in this case the lease only provided $2.00.
The case of Jennings-Heywood Oil Syndicate v. Hous-
siere-Latreille Oil Co., 119 La. 793, then came before the
Court for the second time time, whereupon, in passing upon
the same lease considered in the first case, the Supreme Court
adopted the expressions in Murray v. Barnhart relative to
the insufficient consideration, and held that where a lease was
granted for the "sole and only" purpose of development that
a consideration of $50.00 a quarter for delay and $1.00 for
cancellation was inconsiderable and therefore there was no
contract because the lessor was obligated and the lessee was
not.
The conflict in these cases caused much confusion and the
matter was considered by the court four times, as in each
case there were original hearings and re-hearings, and Mur-
ray v. Barnhart sought to differentiate the 115 La. case with-
out overruling it, while the 119 La. case adopted the prin-
54 POTESTATIVE CONDITION
ciples announced in Murray v. Barnhart for the purpose of
virtually overruling the 115 La. case. And the construction
as stated in the 119 La. case, and in one or two other in-
stances, that the familiar clause in a lease for the "sole and
only purpose" deals with development, seems rather strained
as that clause on its face sems to limit the lessee in the use
of the land only. In other words, the lessee is to use the land
not for agricultural purposes, or for the purpose of erecting
other works thereon, but for the "sole and only purpose" of
his oil and gas operations.
The case of Saunders v. Busch-Everett Co., 138 La. 1049,
which attempts to reconcile all previous cases, in reviewing
the 115 La. case and the 119 La. case says that in the 115 La.
case the views of the Court were fairly stated in the language
previously quoted herein, and that after the case went back
to the District Court and was tried it was then held that the
sole object was to explore the land, and as the lessee was left
at liberty to do so or not, at his option, it was no contract bind-
ing upon the lessee; but that if there was a contract it was
an option which expired because not exercised, or a commu-
tative contract which was breached by the lessee failing to do
within the term, or an alternative obligation to explore or
pay, neither of which was done, etc.
After the 119 case came Anse La Butte v. Babb, 122 La.
415, which has been referred to already, and in which the
plea of "potestative condition" seems to have met with no
success.
In 128 La. 886, Busch-Everett Co. v. Vivian Oil Co., it was
said that where a contract provides a substantial cash con-
sideration and for the payment of rentals, such a contract is
POTESTATIVE CONDITION 55
"synallagmatic" and does not as a whole contain a potesta-
tive condition, for the lessee "did not retain the right to put
an end to the contract at their will"; and this case further
states that there is nothing in the 1 19 La. case or in Murray
v. Barnhart to the contrary. Aside from these expressions,
however, the case was decided on the particular point that
"after performance it is too late to invoke the potestative con-
dition, even if we concede that such a condition existed."
Next comes Gray v. Spring, 129 La. 345, where it was said
that a lease of $1.00 which reserved the right at any time to
surrender the lease and be released from all money due and
conditions unfilled "is null and void as the lessee is bound to
nothing." And in Goodson v. Vivian Oil Co., 129 La. 966,
it was held that where there was no consideration but a prom-
ised royalty and the lessee reserved the right to terminate
the lease at any time and remove its machinery, etc., there
\vas no consideration and the lease was void, citing Murray
v. Barnhart as authority.
In Berl v. Kehoe, 130 La. 1020, the Court held that a lease
without cash consideration, and containing a mere promise
of a royalty without obligation to drill ,and which reserves
the right to remove at any time all property placed on the
lease, etc., is void for want of consideration. And it was
stated that the case fell within the ruling in Martel v. Jen-
nings-Heywood v. Houssiere-Latreille, 119 La. 851 and
Goodson v. Vivian Oil Co., 129 La. 955.
In Long v. Sun Co., 132 La. 601, the lease was for $1.00
and the obligation to pay lOc an acre per year for delay, with
the reservation that the lessee could terminate upon paying
$1.00, but requiring a six year notice of termination on the
66 POTESTATIVE CONDITION
part of the lessor. The Court held that the contract contained
the postestative condition as the contract depended entirely
on the will of the lessee.
A lease was set aside in Brown v. Producers Oil Co., 134
La. 672, which provided for a $20.00 cash consideration and
a like sum as liquidated damages for the right to withdraw
at any time. The Court cited Long v. Sun Co., 132 La. 601 ;
Martel v. Jennings-Heywood, 114 La. 357; Jennings-Hey-
wood v. Houssiere-Latreille, 119 La. 851; Berl v. Kehoe, 130
La. 1023 and Murray v. Barnhart, 117 La. 1023.
There were two opinions in Caddo Oil & Mining Co. v.
Producers Oil Co., 134 La. 701, the original decision being
changed on rehearing. The lease was for $1.00 cash and re-
served the right to abandon the premises and remove all prop-
erty whenever desired. It was decided:
"Under our law the condition last above noted (right to
remove, etc., at will) is clearly potestatives ; that is to say,
it made the execution of the contract depend upon the will
of the defendant (C. C. 2024) thereby destroying the obliga-
tion which defendant had assumed and which was the 'legal
tie' that gave the plaintiff the right to enforce the contract.
C. C. 2020. Pothier Obligations No. 1-205"; and it was
further said that $1.00 was no consideration for the right to
withdraw, consequently there was no consideration to the
lessor and no contract. Citing Murray v. Barnhart, 117 La.
1023; Goodson v. Vivian, 129 La. 95$.
Hudspeth v. Producers Oil Co., 134 La. 1013, dealt with
a lease which provided that work should begin in 24 months
or the lessor should give notice that the lease would then ter-
minate and the lessee could then pay 50c an acre for delay to
prolong the lease. Th Court said that while such a lease may
have been potestative in the beginning, the potestative condi-
tion was cured by performance.
POTESTATIVE CONDITION 57
In McClendon v. Busch-Everett Co., 138 La. 722, the
Court characterized as potestative a condition in the lease
providing the right to remove all machinery, etc., notwith-
standing a substantial cash consideration paid for the lease.
Saunders v. Busch-Everett Co., 138 La. 1049 (previously
referred to) lays down a doctrine that made a marked change
in the trend of the jurisprudence on potestative conditions,
for it was held that :
"A contract whereby the owner of land grants to another
in consideration of payments made and to be made, of cer-
tain agreed sums of money and other considerations, which
are to arise in a certain contigency, his right, or option, to
drill for oil or gas within a year and to extend the time thus
granted, quarter by quarter, until it reaches a limit of five
years, contains no potestative condition by reason of its fail-
ure to impose upon the grantee any obligation to drill, since
it is not within the contemplation of the contract that he
should drill unless he so elects The purpose is to confer the
right to drill, without imposing the obligation, and there is
nothing in that purpose or in the nature of the contract which
contravenes any law of this State." (This lease also con-
tained the right to remove all machinery, etc., at any time and
to abandon the lease at will).
In the next case (Cochran v. Gulf Refining Co. of La., 139
La. 1010), the lease in question was granted for a substantial
cash consideration for its execution and for extensions, and
the lessee reserved the right to remove from the premises,
etc., upon paying $100.00. The contention was made that the
consideration for the grant and extensions (50c an acre for
six months) was inadequate, and the right to remove upon
paying $100.00 was a potestative condition which would an-
nul the contract. The Court held the consideration sufficient
and the contract not "unilateral," but said further :
58 POTESTATIVE CONDITION
"The potestative conditions in the contract were elimi-
nated by the defendants beginning with the term of the con-
tract, the drilling of two wells that produced gas in paying
quantities", referring to Saunders v. Busch-Everett, Murray
v. Barnhart, Anse LaButte v. Babb, Hudspeth, etc., 134 La.
113; McClendon v. Busch-Everett.
Leonard v. Busch-Everett, 139 La. 1099, passed upon
issues identical with Saunders v. Busch-Everett, and re-af-
firmed the doctrine of that case, stating that such a lease did
not contain a potestative condition. The lease in this case was
for a cash consideration of 25 cents an acre and the same
amount per year as rentals, payable quarterly, and the opinion
does not show whether the right was reserved to abandon the
lease.
Bristo v. Christine Oil & Gas Co., 139, La. 312, dealt with
a lease granted for $1. and a promised royalty and 10 cents
an acre for renewals from year to year if no development the
first year, and the Court announced: "We rest our decision
in this case not upon the potestative condition on which the
contract was made, but upon the proposition that a contract
purporting to give a perpetual option" is null etc.
In Wilder v. Norman, 147 La. 413, the court characterized
as a "suspensive potestative condition" a clause in a com-
munity lease which promised development but did not bind
the lessee to develop, no other consideration having been
given for the lease other than the promise to drill, the court
holding that such a lease was unenforcible, and citing most
of the cases previously reviewed and C. C. 1034. And in
Rains v. Dunson, 145 La. 541, where a lease was given
without consideration except a provision that drilling a well
within a radius of two miles should hold the lease, it was
held that such a lease contained a casual and potestative con-
POTESTATIVE CONDITION 59
dition, and for such reason was null. While in Hinton v.
Smith, 149 La. , it was said that a contract contains a
potestative condition and lacks mutuality where it provides
no consideration other than a promise to drill a well, with-
out an obligation to do so, and gives the lessee the privilege
of extending it by payments, if he desires, and provides for
its further extension if a well is drilled within five miles and
oil is founds
It appears from the forgoing cases that the prohibited
potestative condition has in some instances been confused
with a lack of a serious consideration, when it is quite evi-
dent that a lease without a serious consideration would nec-
essarily fall without considering the question of the potesta-
tive condition. The decisions also employ certain expressions
in regard to "unilateral" contracts, indicating that because a
contract is unilateral it is null. It is not every unilateral con-
tract that is null and there is no provision in our law that
says so. A unilateral contract, or any other contract, that
lacks mutuality is a nudum pactum, and where one person
seeks an advantage without consideration and without being
bound there is a lack of mutuality which makes the contract
null. There are unilateral contracts of many kinds that are
legal :
For instance, Bouvier's Law Diet., 3rd Ed., says:
"When the party to whom an engagement is made makes
no express agreement on his part* the contract is called uni-
lateral, even in cases, where the law attaches certain obliga-
tions to his acceptance. La. Civ. Code, Art. 1758. A loan of
money and a loan for use are of this kind. Pothier Obe. part
1, c. 1, s. 1, Art. 2, Lee. Elemen. Sec. 781."
"In the Common Law, according 1 to Professor Langdell,
every binding promise not in consideration of another promise
60 POTESTATIVE CONDITION
is a unilateral contract. For example, simple contract debts,
bonds, promissory notes, and policies of insurance. A bilateral
contract, which consists of two promises to give in exchange
for and consideration of each other, becomes a unilateral
contract when one of the promises is fully performed; Lang-
dell, Sum. Cont. Sec. 183."
As a whole, it is quite difficult, if not impossible, to make
any connected statement reconciling and explaining the
various expressions of the courts relative to the potestative
condition, seriousness of consideration and lack of mutuality.
Sec. 33. Potestative condition, concluded.
The courts have announced several other rules and prin-
ciples in connection with the potestative condition.
A potestative obligation retains that character only so long
as it has not been fulfilled in whole or in part. Murray v.
Barnhart, 117 La. 1023.
And where a contract is potestative it is unnecessary to
consider whether or not it has been breached. Murray v.
Barnhart, 117 Lo. 1023.
A potestative condition must be urged in a direct action
to annual the lease. Houssiere-Latreille v. Jennings-Hey-
wed, 115 La. 107.
After performance it is too late to invoke the potestative
condition and after a party has obtained all the benefits he
intended to receive from a contract he cannot be heard to in-
voke the potestative condition. Busch-Everett v. Vivian Oil
Co., 128 La. 886. And while a lease may have been potestative
in the beginning, such defect is cured by the commencement
of work by the lessee at the instance of the lessor. Hudspeth
v. Producers Oil Co., 134 La. 1013. These cases, however,
POTESTATIVE CONDITION 61
are on the theory that the defect is waived by standing by
and permitting the lessee to make expenditures, and where
a lease provided for drilling on lands of other persons in
addition to those of the lessor, which boring he could 1 not
prevent, he may invoke the potestative condition. Rains v.
Dunson, 145 La. 541.
In order to convert into a contract that which was not a
contract because of the potestative condition, the partial
execution which estops the lessor must have been performed
to the knowledge and advantage of the lessor, at the expense
of the lessee, and that he was misled by the silence of the
lessor must appear, and estoppel will not result where the
lessor had no knowledge of the partial performance and no
opportunity to refuse it. Hinton v. Smith, 149 La. .
In order to ascertain whether or not a contract contains
a potestative condition it must be construed as a whole.
Busch-Everett Co., v. Vivian Oil Co., 128 La. 886.
And a purchaser at Sheriff's sale may invoke the original
nullity of a lease for want of consideration and failure to
impose an oblibation on the grantee even though he or the
original lessor might at times have been estopped by per-
mitting crtain work under the contract. Gray v. Spring, 129
La. 345. And while a lessor is permitting development he
cannot complain. Id.
Where a lessee has actually complied with and discharged
the obligation which the potestative condition would nullify,
and the lessor has accepted and profited by the performance,
he cannot repudiate the contract without restoring the status
quo, or while retaining such advantage. Caddo Oil & Min-
ing Co. v. Producers Oil Co., 134 La. 701.
62 RENTALS AND PAYMENTS
While a lease may be potestative in the beginning, such a
defect may be cured by a subsequent voluntary performance
by the lessee. Hudspeth v. Producers Oil Co., 134 La. 1013.
After a lessee has performed his obligations expressed in
a mineral lease the lessor cannot annul the contract because
it contains a potestative condition. McClendon v. Busch-
Everett, 138 La. 722. And a potestative condition in a con-
tract ceases to be such when it is fulfilled. Anse LaButte
* Babb, 122 La. 415.
Sec. 34. Rentals and Payments.
An option in a lease is terminated by failure to make quart-
erly payments promptly when due, and a payment due in
advance is a condition precedent or suspensive condition and
delay in making it cannot be excused even if caused by vis
major. Jennings-Heywood v. Houssiere-Latreille, 119 La.
793. And an alternative obligation to pay rental or develop
becomes a pure and simple obligation to develop if the pay-
ments are not made in time. Id. And where a lease requires
a specified payment within a specified time to prevent for-
feiture, payment should be made on or before that date.
Rowe v. Atlas Oil Co., 147 La. 37; Wilder v. Norman, 147
La. 414. And where a contract expressly provides for a for-
feiture upon failure to make a payment, and payment is not
made, forfeiture will be declared. Dickinson v. Texana Oil
& Refining Co., 147 La. 341. But where a lease calls for
a payment if drilling operations are not begun within a cer-
tain time, without saying when the payment is to be made,
it is not due until demanded. Keene et al. v. Logan, 147 La.
80.
The burden of proof is upon one alleging that a payment
63
has been made, and while the general rule is that there is a
legal presumption that a letter properly addressed, stamped
and mailed reached its destination in due time, where direct
testimony shows that a payment so mailed was not received
in time, a forfeiture will be declared. Pure Oil Operating
Co. v. Gulf Refining Co., 143 La. 284.
In Anse LaButte Oil & Mineral Co. v. Babb, 122 La. 415,
the court construed a clause providing for payment ninety
days after success to mean within ninety days and not after
ninety days.
A lessor who refuses to accept quartely payments under
a valid lease cannot complain that lessee is in default. Leon-
ard r. Busch-Everett, 139 La. 1099. And the time during
which lessor prevents performance is excluded in determin-
ing when payments are due. Keene v. Logan, 147 La. 80.
A lessor's acceptance of rentails under a void lease during
the time both parties considered it in force will not prevent
him from demanding that it be decreed null thereafter. Nor-
ris v. Snyder & McCormick, 139 La. 316; Williams v. Me.
Cormick, 139 La. 319; Parrot v. Hirschler, 139 La. 320. But
where a lessor accepts past due payments and permits
drilling he cannot claim a cancellation. Bellinger v. Smith,
142 La. 1009.
The deposit of rentals in a bank, where permitted by the
lease, is sufficient. Murray v. Barnhart, 117 La. 1023. And
in this case, a clause providing for payments during delay,
was construed to provide for liquidated damages and not
an alternative obligation by which the lease could be kept
in force.
The case of Knight v. Standard Oil Co., 147 La. 272, dealt
64 RENTALS AND PAYMENTS
%
with certain provisions of a lease relative to payments after
commencement of operations, and it was held that quarterly
payments were suspended during operations, and that a pro-
vision that the completion of a well should operate as liqui-
dation of payments during the remainder of the lease meant
a producing well and not a dry hole. As to payments during
cessation of work, whether caused by accidents or while mak-
ing another location the circumstances and equities of the
case will govern where there is no express stipulation in the
lease.
The evidence of payment of rentals need not be recorded
to have affect against the third parties. Busch-Everett Co.
v. Vivian Oil Co., 128 La. 886; Baird v. Atlas Oil Co., 146
La. 1099.
A lesssee who has parted with record title to a lease cannot
make payments of rentals so as to keep it alive where the
owner of the lease has failed to do so. Baird v. Atlas Oil Co.,
146 La. 1100.
A lessor who accepts rentals from a gas well on a lease is
not estopped from claiming a cancellation for failure to de-
velop diligently. Prince v. Standard Oil Co., 147 La. 283.
A lease which provided that forfeiture could be prevented
for five years by payment of rentals, held to mean five years
in addition to first year which was not included in the com-
putation. Chadwick v. Standard Oil Co., 147 La. 668.
Where both parties to a lease agree that a recited con-
sideration was not paid, it will be treated as containing no
consideration. Rains v. Dunson, 145 La. 525.
Although a lease is silent on the question, where a lessee
maintains his right to produce casinghead gasoline thereun-
TENDER 65
der, he must pay the lessor a royalty therefor. Wemple v.
Producers il Co., 145 La. 1031.
Where a drilling contractor receives checks in payment
of past due installments, intending to accept them only if
found that they would be paid by the bank, and upon wiring
the bank found that they would not guarantee the payment,
he was not bound as having received the checks, but could
sue on his contract. Allison v. Brown, 148 La. 530.
It was said in Hutchinson et al. v. Atlas Oil Co., 148 La.
540, that where a lease provides that payments shall stop
after discovery of oil and gas, this provision is intended
either expressly or impliedly to mean that minerals shall
be produced and marketed to the best advantage of all parties.
Sec. 35. Tender of Payments and Performance.
Failure to tender rent is not cause for the ipso facto term-
ination of the lease unless there is an express clause to that
effect. Houssiere-Latreille Oil Co. v. Jennings 1 Hey wood
Oil Syndicate, 115 La. 107.
In Murray v. Barnhart, 117 La. 1023, it was held that
payments made as liquidated damages for delay in the per-
formance of a lease need not be returned before suing for
a recission of the contract for non-performance, but that
the consideration of the contract should be returned. And
in Jennings-Heywood Oil Syndicate v. Houssier-Latrielle
Oil Co., et al, 119 La. 793, it was said that where a lessor
has received payments for delay in development and the
lessee has had the benefit of the delay the lessee cannot de-
mand the tender or return of such payments.
And in the same case it was announced, as a dictum, that
66 TENDER
in a lease providing for payments of rentals or development,
where the rentals are not paid, if the lessee tender fulfill-
ment and sufficient reason for failure to develop, equity
might relieve him. But, ordinarily in the absence of begin-
ning operations or payments of rentals that his rights ex-
pired, and that the only useful offer of performance a lessee
could make after rents have been paid would be to develop
the land.
It devolves upon a person refusing to accept tenders of
rentals due under a lease to maintain the legality of his re-
fusal, and so as to royalties due under a lease. Busch- Everett
Co. v. Vivian Oil Company, 128 La. 886.
But in Goodson v. Vivian Oil Co. 129 La. 955 it was said
that where an agreement is a nuduni pactwn the lessor has
the right to so treat the lease and to refuse the tender of
rentals which would be a mere gratuity.
Where a lease calls for the deposit of rentals in a bank,
and such deposit is made too late, the lessor need not return
or offer to return the deposits, he need only inform the bank
of his unwillingness to accept the deposit. Pure Oil Co., v.
Gulf Refining Co., 143 La. 284.
A lessor is under no obligation to receive the tender of a
price which the lessee was not obligated to make, nor is he
bound by a tender which affords him no opportunity to re-
fuse. The case is different where such party is bound, be-
cause then the lessor is as much bound to receive the price
as the lessee is to pay it. Hinton v. Smith, 149 La. .
In a suit for specific performance of a contract to convey
mineral lands, it was sufficient for plaintiff to offer to per-
form without depositing the price in Court. Anse LaButte
Oil & Mining Co. v .Babb, 122 La. 415.
DEFAULT 67
Sec. 36. Default in payments, performance, etc.
Where a lessee is not obligated to drill no putting in de-
fault is necessary, because it would be demanding something
that the lessee was not obliged to do. Escoubas v. Louisiana
Pet. & Coal Oil Company, 22 A. 280. And a lessee is not
in default until he has failed to comply with the lease. Hous-
siere-Latreille v. Jennings-Heywood, 115 La. 107.
Our law enforces no such fanciful notion as that, after a
contractor has violated his contract by not performing it, at
the time stipulated, the contractee who no longer desires to
have it performed, must call upon him to perform and that
if this is not done the time for the performance runs indefi-
nitely. When the time for performance has passed and
neither party says anything about the matter, the presump-
tion is that neither party desires performance but that both
desire that nothing further be said about the matter. Jen-
nings-Heywood v. Houssiere-Latreille, 119. La. 183.
Where a contract is breached by failure to perform in
time, it is only when damages are to be claimed that a put-
ting in default is necessary as a prerequisite to bringing suit.
Murray v. Barnhart, 117 La. 1923, and this is true only as
to future damages, because damages already suffered may
be recovered without putting in default. Jennings-Heywood
v. Houssiere-Latreille, 119 La. 793.
A lessor who refuses to accept quarterly payments under
a valid lease and brings suit to cancel it, puts himself in
default and cannot urge that the^ lessee has not, pendent e
lite, performed his part of the contract. Leonard v. Busch-
Everett Co., 139 La. 1099; Keene v. Logan, 147 La. 80.
68 EXTENSIONS
And where he prevents performance, the lessee is not in de-
fault and the term is extended. Gulf Refining Co. v. Hayne,
148 La. 340.
Where a payment is required under a lease, but no time
is specified for the payment, such payment is due on demand
and there is no default until demand is made. Keane v.
Logan, 147 La. 80.
A person first in default cannot claim damages for the
alleged subsequent default of the other party to the contract.
Allison v. Brown, 148 La. 530.
Sec. 37. Extension.
One cannot grant an extension of a lease after he has
ceased to be the owner of the property leased. And the fact
that he turned over part of the lease money to the land owner
will not constitute a ratification of his acts. Burkholder et al
v. Consolidated-Progressive Oil Corp. 149 La. . And in
this samfe case it is stated that after a lease ceased to exist
under its own terms, the effect of granting an extension is
the same as granting a new contract.
An agreement that a lease will not be declared forfeited
during a certain time so long as as the lessee continues to
mine for petroleum, constitutes merely a potestative condi-
tion as to the lessee, who is not obliged to drill. Escoubas
v. Louisiana Petroleum Co., 22 A. 280.
In Cook v. Gulf Refining Co., 127 La. 592, it was said
that a lease is not to be extended by implication.
And it appears that there would have to be a serious con-
sideration for extending a lease, as for acquiring one. Wil-
der v. Norman, 147 La. 413.
TERMINATION 69
Sec. 38. Termination.
There are numerous ways in which a lease may be term-
inated, the most common instances being:
(a) By effect of law. This manner of termination is
treated in a separate section.
(b) By failure to comply with the terms of the lease.
This is also treated in a separate section.
(c) By violation of the provisions of law. Under this
heading see the sections relative to potestative condition,
lesion, etc.
(d) By abandonment and acts of the parties. See the
section relative to abandonment, etc.
A lease which gives one party the right to terminate at
will without a serious consideration, but which requires the
other party to give a six year notice, is illegal and will be
annulled. Long v. Sun Co., 132 La. 601.
Sec. 39. Termination by effect of law.
The sale of land to pay debts of a succession incurred be-
fore the execution of the lease will free the property from
the lease. Black Bayou Oil Co. v. Pyron ,129 La. 118. And
it would appear that the same is true of a foreclosure sale un-
der a mortgage placed on the land prior to the lease. And
the motives for the same are immaterial if the debts are due
and the sale is made to pay them. Where, however, the
lesee offers to pay the debt, a different case is presented.
Known oil and mineral lands cannot be partioned in kind,
but must be partitioned by licitation, and under such a sale
the lease does not follow the land. Gulf Refining Co. v.
70 TERMINATION
Hayne, 138 La. 561; Spence v. Lucas, 138 La. 773; Gulf
Refiining Co. v. Carroll, 145 La. 199. In all of these cases,
however, the lease was executed by the owner of an undi-
vided interest only, and what the decision would be where
the lease was executed by all parties, or what would be the
effect of a partition in kind where one owner had executed
a lease, remains to be seen.
The mere extra-judicial partition by all owners does not
affect the rights of the lessees. Cochran v. Gulf Refining
Co., 139 La. 1010.
Sec. 40. Termination by failure to comply with
the terms of the contract.
A discussion of the forfeiture and cancellation of leases
for failure to comply with their terms, embraces a great
many subjects which are treated separately in other sections
of this volume, such as payment of rentals, development, etc.,
and a perusal of those sections is necessary, it being the in-
tention of this section merely to consider general principles
that find no place in other sections dealing with particular
phases of leases.
Forfeitures are not favored and are strictly construed.
Jennings-Heywood v. Houssiere-Latreille, 115 La. 107;
also 119 La. 793, and they are generally interpreted in favor
of the lessor. Jennings-Heywood v. Houssiere-Latreille,
119 La. 844; Escoubas v. Louisiana Petroleum Co., 22 A.
280. And a lease cannot be forfeited without a suit to de-
clare a forfeiture, unless there is some express provision
therefor. Jennings-Heywood v. Houssiere-Latreille, 115
La. 107. Where a contract, however, expressly provides
ABANDONMENT 71
for a forfeiture in default of payment, the forfeiture must
be declared. Dickinson v. Texana Oil & Ref. Co., 147 La.
341.
The burden of proving forfeiture of a lease is on the one
claiming it. Baird v. Atlas Oil Co., 146 La. 1091.
Where a lease requires certain action to "prevent" a for-
feiture, such action must be taken before the event, and the
privilege of preventing a forfeiture does not carry with it
the right of re-acquiring the right after it shall have been
forfeited. Rowe v. Atlas Oil Co., 147 La. 37. A forfeiture
cannot be prevented after it has occurred and a payment
deposited after forfeiture and not accepted is too late. Wil-
der v. Norman et al., 147 La. 413.
Where a litigant successfully maintained his suit for a
one-fifth interest in oil lands, the Court ordered the Clerk
of Court to cancel from the public records a lease on said
lands insofar as it affected said interest. Martel v. Jen-
nings-Heywood, 114 La. 351.
A commutative contract containing the obligation to
exploit the land for oil and gas is broken by the lessee who
fails to begin operations within the term. Jennings-Hey-
wood v. Houssiere-Latreille, 119 La. 794. And where a
contract has been breached its recission may, of course, be
claimed, and a petition which alleges that the defendant
agreed to complete a well in one year and four years had
elapsed without the commencement of a well, sets forth an
action for recission. Murray v. Barnhart, 117 La. 1023.
Sec. 41. Abandonment.
"The question of the abandonment of a contract such as
72 ABANDONMENT
an oil and mineral lease by the lessee is ordinarily a matter
of fact and intention, but it may be altogether a matter of
fact and law; and where, as a matter of fact, work under
such contract is discontinued under circumstances which
fail to furnish a sufficient reason for the discontinuance or
the belief that there was no definite intention to resume such
work, the fact of the abandonment is controlling." Gray et
al. v. Spring et al., 129 La. 355.
It was said in Standard Oil Company v. Barlow, 141 La.
52, that where a lessee drills an unprofitable well and aban-
dons the lease, he may wait a reasonable time to exercise
the right conferred by the lease "to remove all machinery,
fixtures and improvements placed thereon at any time" and
may remove the pipe which was left in the ground, and that
eight months after the abandonment is a reasonable time
within which to take such action.
Where there is a permanent failure to continue explora-
tion, it amounts to an abandonment. Brown v. Producers
Oil Co., 134 La. 672; Caddo Oil & Mining Co. v. Producers
Oil Co., 134 La. 701.
In Knight Bros. v. Standard Oil Co., 147 La. 272, it was
held that seventeen days was not an unreasonable time be-
tween the abandonment of one well and commencement of
operations on another, under a lease calling for development.
The case of Escoubas v. Louisiana Petroleum & Coal Oil
Co., 22An. 280, involved the construction of a provision
in a lease which required "constant" work "without cessa-
tion" and the Court found as a question of fact that the pro-
visions had not been complied with and that work had been
abandoned.
DAMAGES 73
In Martel et al. v. Jennings-Heywood Oil Syndicate,
114 La. 351, the Court said that a joint lease was abandoned
when it had been given without consideration and the lessee
and one of the lessors entered into a new contract and ignored
the previous one and did not consult the other land owner
whose land had been embraced in the joint lease.
Where a lease provides that if minerals are found in pay-
ing quantities and the lessee discontinues work, he shall be
held to have abandoned the lease except ten acres around
the well, the lessee is not entitled to claim the ten acres
where minerals have not been found in paying quantities.
Brown v. Producers Oil Co., 134 La. 672.
Sec. 42. Damages for non-performance and for
usurpation, etc.
It was intimated by the Court in the early case of Hous-
siere-Latreille v. Jennings-Heywood, 115 La. 107, that dam-
ages might be claimed for failure to drill. And in Murray
v. Barnhart, 117 La. 1023, it was said that when a contract
to do is breached, the obligee may claim its recission or dam-
ages. And in Cook v. Gulf Refining Co., 135 La. 609, it was
said that an owner of land could recover for the usurpa-
tion of his right to drill, but that exemplary damages could
not be allowed against the usurper where he acted in good
faith on advice of counsel. And a lessee has his remedy
against his lessor for the lessor's usurpation of his rights.
Gulf Refining Co. v. Hayne, 148 La. 340.
In Brown v. Producers Oil Co., 134 La. 672, damages were
directly claimed for failure to develop, but the Court dismissed
the claim, saying: "The damages are not proved; they are
speculative and conjectural; mere theories." But the Court
74 MORTGAGE
went on to say that it did not hold that the loss was not sus-
ceptible to proof. But in Caddo Oil & Mining Co. 134 La.
701, it was said that an action for damages on account of
insufficient development of a lease was impracticable.
Where a plaintiff sought an injunction against certain
drilling on land claimed by it (Natalie Oil Co. v. La. Ry.
& Nav. Co., 137 La. 706) and the District Court exacted an
injunction bond to protect the defendant, the Supreme Court
said that while a bond was proper, it was conditioned to pro-
tect defendant against damages and that the difficulty would
be in defendant proving damages, because it could not pos-
sibly show that any oil had been drained from its land by
adjoining wells of plaintiff, and it might be that there was
no oil under defendant's land at all, as it could only prove
that there was oil by boring for it and bringing it to the sur-
face; but that if defendant were permitted to bond the in-
junction and bore for oil, then plaintiff's damages would be
easily ascertained by gauging the oil from the wells.
Where damages are claimed for drilling a gas well on
land of plaintiff, it is difficult, if not impossible, to estimate
the loss of gas under the ground. Cook v. Gulf Refining
Co, 135 La. 609.
Sec. 43 Mortgage.
Act 232 of 1910 authorizes the execution of mortgages
on leases and contracts, etc., together with buildings, equip-
ment, etc, and the issuance of bonds secured by mortgage
for a period not exceeding the term of the lease, etc. See
Spence v. Lucas, 136 La. 763; see also Parks v. Hughes,
145 La. 221. See Appendix.
WARRANTY 75
Sec. 44. Warranty.
In Jennings-Heywood Oil Syndicate v. Home Oil & De-
velopment Company, Ltd., 113 La. 383, defendants were
sued on notes given in payment of a lease, and resisted the
suit on the ground that plaintiff, the seller of the lease, was
bound as warrantor to maintain them in peaceful possession
of the lease as in the sale of real estate, and that certain
suits had been filed which had the effect of keeping them
out of the possession of, and enjoyment of, the property, and
the Court applied the same rules as in the case of warranty
in the sale of real estate and held that the lessee or purchaser
having been informed of the danger of eviction, would have
to pay the price of the lease or suffer judgment to be entered
against him, but would be entitled to demand a bond from
the seller (and lessor) to protect him in case of eviction and
before the judgment could be executed or payment required.
The Court refused to order the return of a portion of the
purchase price in Rives v. Gulf Refining Co., 133 La. 178,
where claimed because only 79 acres was delivered under a
lease calling for one hundred acres.
The Court stated that only the right to extract oil was ac-
quired and it was impossible to say what it was worth or
what portion of the price should be returned.
It was said, arguendo, in Wilson et al. v. Person, 143 La.
282, that one who sells or grants mineral rights incurs the
personal obligation of defending his vendee's title. And a
person who grants a lease on the whole, while merely own-
ing an undivided interest is bound to protest his lessee
against the acts of his co-owners. Gulf Refining Co. v.
Hayne, 148 La. 340.
76 MINERAL RIGHTS
A person selling a lease on his land where there is a prior
lease must reimburse all money paid for the second lease.
Standard Oil Co. v. Webb, 149 La. - -.
Sec. 45. Mineral Rights. Sale, exception, reser-
vation, prescription, etc.
For a number of years, before the Courts had passed upon
the question, there was much doubt in Louisiana as to the
legality of certain contracts which attempted to segregate the
ownership of oil and gas, before reduced to possession, from
the ownership of the land itself.
The question was raised indirectly in some of the earlier
cases, as, for instance, in Cook v. Gulf Refining Co., of Louisi-
ana, 127 La. 592, where it was urged that under the terms
of a particular lease the oil itself had been sold to the lessee,
and the court answered that if such was the case, then it oper-
ated only as the sale of a hope, citing C. C. 2456. In Gray v.
Spring, 129 La. 345, it appears from the opinion of the Court
that a one-third interest in "mineral rights" had been sold,
while in the later case of Nabors et al v. Producers Oil Co.,
140 La. 985, the ownership of "mineral rights" distinct from
the land is referred to and noticed.
In the case of Strother v. Maugham, 138 La. 437, the Court
expressed itself more directly on the question. The plaintiff
had sold the defendant all of the minerals in and under his
land, and later attacked the sale. The Court said : "The doc-
trine that the owner of the land has no property right in the
oil or gas beneath the surface until he has reduced it to pos-
session in no manner denies to such owner the exclusive right
to the use of the surface for the purpose of such reduction, or
for any other purpose not prohibited by law, but, to the con-
EXCEPTIONS RESERVATIONS 77
trary, concedes that right, as inherent to the title to the land
and subject only to the control of the State, in the exercise of
its police power, and the right may be sold, as may any other
right and may carry with it the right to the oil and gas that
may be found and reduced to possession."
This case was followed by Hanby v. Texas Co., 140 La.
189, where the Court said: "Conceding that the sale of an
interest in the oil or gas which may be discovered beneath the
surface of a particular tract of land conveys no title to any
specific oil or gas, it nevertheless carries with it the right to
make use of the surface of the land for the reduction to pos-
session of the oil or gas that may be found, and in fact the
right last mentioned is alone conveyed in such case since it
is the only right with respect to those fugitive products that
the owner of the land himself can be said to possess. That
right, however, he does possess * * * * and he may dispose of
it."
In DeMoss v. Sample et al, 143 La. 243, the question of
the legality of a resrevation of minerals was at issue, and the
Court held that an owner might sell the surface rights on his
land and except the minerals below the surface, including oil,
gas and sulphur.
The Court called attention to Act 31 of 1910 (now amended
by Act 149 of 1920 (where the Legislature had inferentially
recognized the legality of such reservations by "reserving to
the State of Louisiana all minerals and mineral rights on and
under" certain lands conveyed to the City of Shreveport. And
in the same case the Court stated that while the descriptive
word "exception" is more proper in describing this character
of transaction, that the word "reservation" would be held to
mean the same thing. And it was further decided that no
78 MINERAL RIGHTS PRESCRIPTION
consideration was due the vendor who reserved the minerals,
since the part reserved was not transferred and there was no
need of a consideration.
Calhoun v. Ardis, 144 La. 311, followed the De Moss case
and it was there held that a notarial act conveying title to
land, retaining mineral rights thereunder, operated as a reser-
vation of the minerals and excluded them from the sale and
there was no consideration for same due the purchaser, as
they never belonged to the purchased; and that an owner of
land might dismember his title and vest the ownership of the
surface in his purchaser and retain and reserve the minerals
thereunder for himself. (Citing DeMoss v. Sample).
After the decision of these cases, the question of the pre-
scription of mineral rights, which had caused much confusion
for a number of years, occasioned a marked change in the
trend of jurisprudence on the question of the segregation or
dismemberment of title. For, if the expressions con-
tained in DeMoss v. Sample and Calhoun v. Ardis were taken
literally, then the question of prescription as applied to min-
eral rights would be treated in the same way as the prescrip-
tions relating to corporeal, real property; while, on the other
hand, in the case of Wadkins v. Atlanta and Shreveport Oil
& Gas Co., decided in 1913, and not reported, due to the fact
that the case was compromised during the pendency of appli-
cation for rehearing, the Court held that mineral rights pre-
scribed by non-user for ten years, thus treating such rights
as mere servitudes. And this case, while not reported, had
been cited as authority by the Supreme Court on several occa-
sions. (See the opinion in appendix).
So, in the case of Frost-Johnson Lbr. Co. v. Sailings, 149
La , the question was directly presented, and after the
MINERAL RIGHTS PRESCRIPTION 79
Court had considered the matter several times, reaching dif-
ferent conclusions, on the second rehearing the decision in the
Wadkins case was followed and it was again held that the
right to extract oil and gas from land is a servitude and pre-
scribes by non-user for ten years. The Court reviewed some
of the earlier decisions and stated that in view of the previous
expressions, oil and gas could not be considered as susceptible
to ownership as specific things apart from the soil and that a
grant or reservation carries only the right to extract such
minerals from the soil. The Court also sought to distinguish
the cases of DeMoss v. Sample and Calhoun v. Ardis, holding
that they were no authority on the point as to whether a sale
of mineral rights conveys a corporeal thing or an incorporeal
right.
While the Sailings case was pending on rehearing, the Su-
preme Court decided the case of Frost- Johnson Lbr. Co. v.
Nabors Oil & Gas Co., 149 La , holding that prescription
had not run in that particular instance, as it had been inter-
rupted because during the ten years following the execution
of the deed conveying the right, the vendor recognized such
right by executing a deed conveying the land subject to such
right and acknowledged such right by reserving the minerals.
The decisions on this question having been confusing, the
classification of mineral rights as servitudes will materially
change the theory upon which valuable interests have been
acquired and held, still it is hoped that the question is finally
at rest and will not be another disturbing element in our oil
and gas jurisprudence.
Passing to other questions relating to mineral rights, the
early case of Houssiere-Latreille Oil Co. v. Jennings-Hey-
wood Oil Syndicate, 115 La. 107, intimated that, for the pur-
80 OPTIONS
pose at least of the possessory action, the actual possession of
mineral rights would have to be shown. While in the case of
McClung et al v. Atlas Oil Co., 148 La. 674, a transfer to an
attorney of an undivided interest in mineral rights in consid-
eration of services to be rendered, was construed as giving
him a present, fixed interest so that he had a standing in Court
to test his title against others claiming the same thing, irre-
spective of the action of his client and vendor.
In Wilson v. Pierson, 143 La. 287, certain rights arising
from the reservation and acquisition of mineral rights were
passed upon, and it was held that where one acquired lands
from a vendor who had no title, and such vendor reserved
the mineral rights, and the purchaser subsequently acquired
the land from the lawful owner, and sued his first vendor for
claiming the mineral rights, such purchaser was not estopped
by the recital of the first deed that his first vendor retained
the mineral rights, because he had not conveyed the mineral
rights to his first vendor and had not received any considera-
tion for the supposed reservation, and was under no obliga-
tion to defend his first vendor's claim to the mineral rights;
and it was also said that the purchase from the rightful owner
would not inure to the benefit of the first and wrongful claim-
ant of the property by reason of his reservation of the min-
eral righs, although if the mineral rights had been sold to him
instead of having been reserved by him such acquisition might
inure to his benefit.
Sec. 46. Option.
Where a contract (without a serious consideration) gives
a lessee the right to exploit land or not, at his option, there
is in reality no contract, but if an option is granted it expires
by failure to exercise it timely, because if an option is not
OPTIONS 81
exercised within the time limit the right will be lost and even
vis major is no excuse for delay. Jennings-Heywood v.
Houssiere-Latreille, 119 La. 793.
In Goodson v. Vivian Oil Co., 129 La. 955, a lease was
termed a "grant and option," and gave the lessee the exclu-
sive right to begin drilling within six months, with the pro-
vision that if the lessee "shall avail itself of the right herein
granted to drill on said lands and shall find oil or gas in pay-
ing quantities, it shall have the right, at any time, to termi-
nate said lease and remove its machinery and property there-
from." Defendants drilled an unsuccessful well which they
contended was a gas well, and deposited rentals therefor, as
provided in the lease, which plaintiff refused, contending
that the well had not been completed as required by the con-
tract. Defendants contended that the lease was a "continu-
ing option," but the Court held that the lease clearly differ-
entiated the lease from the option and the lease was can-
celled.
A lease was construed in Long v. Sun Co., 132 La. 601,
which contained the provision that for the payment of $1.00
the option was given to cancel at any time after the expira-
tion of twelve months upon giving notice, and that the one
dollar should be held a valuable consideration for all of the
options, rights and privileges granted. On account of the
insignificant consideration, the Court considered that the
defendant was given the option to cancel the contract at will,
and stated that contracts optional with one of the parties are
optional as to either, if there is no consideration, and that
either party may exercise the right to terminate such a con-
tract at will.
A perpetual option to renew a lease from time to time
82 LICENSE
without definitely stating the term constitutes a nudum pac-
tum. Bristo v. Christine Oil & Gas Co., 139 La. 312; Norris
v. Snyder, 139 La. 316; Parrot v. Kirchler, 139 La. 320;
Calhoun v. Christine, 139 La. 316; Denham v. McCormick,
139 La. 317; Nervis v. McCormick, 139 La. 318.
An option for a valuable consideration to drill or not drill
within a certain time, with the privilege of renewal from
quarter to quarter for a stated time is valid and binding.
Leonard v. Busch-Everett, 138 La. 1049. And in Saunders
v. Busch-Everett, 138 La. 1049, a similar contract was held
to be valid, the Court stating that it was not contemplated
that any drilling obligation be imposed.
In Snyder v. McCormick, 146 La. 811, a contract requir-
ing the payment of $250.00 cash and $1000.00 out of the
proceeds of leases sold, and other provisions requiring plain-
tiff to act as agent of defendant, was construed as a contract
with the payment 1 of earnest, which defendant could repu-
diate upon paying twice the amount.
Sec. 47. License.
A lease which gives the lessee the right to explore for
ninety-nine years without obligating him to do so is a mere
license or permit and binds neither party and it terminable
at the will of either party. Martel et al. v. Jennings-Hey-
wood Oil Syndicate, 114 La. 351; see Rains v. Dunson, 145
La. 539.
Oil and gas are vested in the owners of land as a real cor-
poreal entity and property a solid substantial estate and
not a mere license to take them. DeMoss v. Sample et al.,
143 La. 243. But see Frost- Johnson Lbr. Co. v. Sailings, 149
La..
LITIGIOUS RIGHTS 83
Sec. 48. Litigious Rights.
Civil Code 2652 provides that he against whom a litigious
right has been acquired may get himself released by paying
the transferee the real price of the transfer, together with
interest from date. And Civil Code 1447 forbids the pur-
chase of litigious rights by attorneys when they fall under
the jurisdiction of the tribunal in which they exercise their
functions, under the penalty of nullity. But a right is not
litigious unless there exists a suit and contestation over
same (C. C. 1653) and the nullity denounced by C. C. 2447
is only relative and in the interest of those whose rights have
been violated, and an attorney may purchase an interest in
oil fields where the litigation involving the same has been
determined prior to the purchase, as a title ceases to be liti-
gious when final judgment is rendered in the cause. Saint
v. Martel, 122 La. 93. C. C. 2652 and 2653 are, however,
for the benefit of either party to the litigation. Langston
v. Shaw et al., 147 La. 644.
In McClung v. Atlas Oil Co., 148 La. 674, it was held that
neither C. C. 2653 nor C. C. 2447 apply where a suit has not
been brought, no matter how apparent it is that a suit is
necessary, and a present conveyance to an attorney at law
for services rendered and to be rendered in respect to min-
eral lands is not invalid.
A right, to be litigious, must be involved in litigation.
Where a second lease is made by an owner, while suit affect-
ing a previous lease is pending, the sale of the second lease
does not constitute the sale of a litigious right. But where
a litigant has the right to acquire the right sold, upon paying
the price, etc., he must do so promptly and cannot await the
84 DEVELOPMENT
enhancement in value of the property. Mohawk Oil Co., v.
Layne, 270 Fed. 851.
Sec. 49. Development In General.
The business of developing a tract of land for oil and gas
is one requiring special knowledge and experience, exercise
of good judgment and the handling of large capital. Dickin-
son v. Texana Oil & Refining Co., 144 La. 489.
In seeking and saving petroleum produced by the opera-
tions of nature, the necessity for the use of wells, storage
tanks, etc., is inherent in the business and the expenses of
storing oil from a gushing well is ) an operating expense.
Jennings-Heywood v. Houssiere-Latreille, 127 La. 971.
A lessee under a mineral lease has only such rights on the
surface necessary for development. Houssiere-Latreille v.
Jennings-Heywood, 115 La. 107.
In Anse La Butte Oil & Mineral Co. v. Babb, 122 La. 415,
a contract was construed as giving the right to purchase the
land and requiring no development at all.
It was stated in Gray v. Spring, 129 La. 345, that to per-
mit a large expenditure of money under a void lease would
constitute an estoppel against claiming such nullity.
But an adjoining land owner who has been informed by
engineers that the location of a well is on the land of his
neighbor is not estopped thereafter from inquiring as to the
true location of the property line and claiming the produc-
tion from the well. Russell v. Producers Oil Co., 138 La.
184. In the same case, it is said that it devolves upon those
who go upon land to drill a well, or otherwise, to inform
themselves in advance that they have that right.
DEVELOPMENT AS CONSIDERATION 85
It was said in Murray v. Barnhart, 117 La. 1024, that in
a proper case the Court might allow additional time to per-
form a contract, but in a mineral contract time is always
more or less of the essence, and when a lessee has allowed a
long time to elapse without excuse for failure to perform no
additional time will be allowed.
A lease providing that if the lessee brings in an oil well
he shall have the right to exploit the land of the lessor does
not give him the right to exploit the land by bringing in a
gas well. Cook v. Gulf Refining Co., 127 La. 592.
\Yhere the holders of leases on the same land enter into
an agreement to have the land developd during the pendency
of a suit about the leases, such development inures to the
benefit of the real lessee, and the owner of one of the leases
could not be charged with failure to develop. Mohawk Oil
Company v. Layne, 270 Fed. 851.
The question of development as the real consideration for
the granting of mineral leases was a question much discussed
during the first years of the industry in Louisiana, and it
was intimated in some of the earlier cases that if the lessee
was not obliged to develop, and no development was had,
that the lease would not hold. Martel v. Jennings-Heywood,
114 La. 351; Murray v. Barnhart, 117 La. 1023; Goodson
v. Vivian Oil Co., 129 La. 955; Long v. Sun Co., 132 La.
601; Hudspeth v. Producers Oil Co., 134 La. 1013, etc.
In some of the cases, however, the Court construed the
clause "for the sole and only purpose of mining," etc., to in-
dicate that the sole object was development (Murray v.
86 UNEXPECTED SUBSTANCES
Barnhart, 117 La. 1023) and the Court later held that where
development is indicated to be the sole purpose of a lease,
delay will not be permitted, and where delay is permitted
there must be a proper consideration for such delay. Long
v. Sun Co., 132 La. 601.
In Green v. Standard Oil Co., 146 La. 935, it was said
that the, main consideration for a lease is development, but
this must, no doubt, be taken as meaning that where a lease
provides for diligent development after oil is found, such
development is the main consideration for continuing the
lease. And it was stated in Hutchinson v. Atlas Oil Co., 148
La. 540, that time and prompt development become the es-
sence of the contract once oil or gas has been found. (Cit-
ing Guffey Petroleum Co. v. Oliver, Tex. Civ. Ap, 79 S. W.,
Archer on Oil & Gas, etc.)
Sec. 51. Producing other substances than oil and
gas.
An interesting question was raised in 22 A. 280, Escoubas
v. Louisiana Petroleum & Coal Oil Co., where the lessee
had the right to bore for oil or "other similar products." No
oil was found, but a bed of crystallized sulphur was located
and lessee claimed his portion of same and the right to pro-
duce it, under the lease. The district Court decided in his
favor but on appeal to the Supreme Court the case went off
the other points without any decision of this particular
question.
In the case of Anse LaButte Oil & Mineral Co. v. Babb,
122 La. 415, the contract gave the right to explore for "com-
mercial substances of whatever nature" and upon the find-
ing of oil and salt in small quantities, it was claimed that the
DILIGENCE 87
operations were successful and commercial substances had
been found. But the Supreme Court said the Plaintiffs
rights were based upon the operations being a "Success",
and the finding of oil and salt in less than paying quantities
did not constitute the finding of "commercial substances" as
contemplated under the contract, inasmuch as it was known
by the parties that such substances in small quantities would
be found and that salt was not a commercial substance in
the contemplation of the parties.
The question of payment for casing-head gasoline, where
the lease does not provide for same, was discussed fully in
Wemple v. Producers Oil Company, 145 La. 1031, and it
was held that where the lessee maintains his right to pro-
duce casing head gasoline from such a 1 lease, he must pay
to the lessor the royalty of l /% provided for oil production
unless he can show that such production involves greater ex-
pense and less profit than the production of heavier oil.
The case of Lock, et al. v. Russel et al, 75 W. Va. 602, 845
S. E. 948 was cited in support of this decision.
Sec. 52. Diligence, sufficiency, etc.
It was contended for and stated in several of the earlier
cases that every lease contains an implied obligation to put
down as many wells as necessary for the development of the
land where oil has been discovered in paying quantities, regard-
less of the stipulations of the lease, and when development
ceases and will be concelled. Brown v. Producers Oil Co.,
134 La. 672; Caddo Oil & Mining Co. v. Producers Oil Co.,
134 La. 701 ; Berl v. Kehoe, 130 La. 1920.
In the case of Caddo Oil & Mining Co. cited above, how-
ever, the Court, on re-hearing, stated that while the question
88 DILIGENCE
of development is primarily to be determined by the lessee, the
ultimate determination is with the Court, and what ordinarily
knowledge and care would dictate is what the law would re-
quire in the way of development.
And in the case of McClendon v. Busch-Everett Co., 138
La. 722, it was stated that a lessor is not entitled to a cancel-
lation of a lease for a violation of an implied obligation to
drill unless there is an express provision for such forfeiture.
That case goes on to state that in Caddo Oil & Mining Co.
v. Producers Oil Co., Goodson v. Vivian Oil Co. and Berl
v. Kehoe, that the question of development was all important
due to a lack of consideration to support the leases involved,
aside from the obligation to drill.
And in Cochran v. Gulf Refining Co., 139 La. 1010, the
McClendon v. Busch-Everett case was followed, holding that
where a proper consideration is paid in cash there is no ob-
ligation to do more than the contract expressly provides.
And where a lessee has paid a proper cash consideration
and complied with the express obligation to drill a well within
a year, which well is not productive, the lessor cannot ask a
cancellation on the ground that the lessee is not bound by
an implied obligation to drill additional wells, nor on the
ground that the lessee merely acquired a hope and the lessor
is released by permitting the lessee to attempt to realize the
hope. Nabors v. Producers Oil Co., 140 La. 986.
The case of Prince v. Standard Oil Co., 147 La. 283, dis-
cusses the duty of the lessee very fully. It was contended by
the lessee that the following provision embraced merely an
implied obligation to drill, which could not be enforced "The
party of the second part( lessee) bining itself, after the dis-
covery of oil or gas in paying quantities, to prosecute dili-
DILIGENCE 89
gently the work of production of oil or gas and deliver the
one-eighth of the oil as above provided, and the payment of
$200 per annum for gas (if a gas well) as above provided."
The Court said:
"The diligence required in production is that which could
be reasonably expected of an operator of ordinary prudence.
"Where a lease does not expressly make either lessee
or lessor the arbiter of the extent of diligence required of
lessee to prosecute the work of production, the question of
whether the required diligence is exercised depends on what
would be reasonably expected of operators of ordinary pru-
dence, having regard to the interests of both lessee and lessor.
"Where lease required lessee 'to prosecute diligently the
work of production of oil or gas', lessee could not deal with
the premises in its own perculiar interests exclusively, but
was required to promote the mutual advantage and profit of
the lessor, and, though not bound to work unprofitably for
lessor's benefit, it was required, in such event, when refus-
ing lessors' requests to prosecute the work, to abandon the
contract,
''Where lessee required diligent prosecution of work of
production, and where lessee, after drilling a gas well, re-
fused for four years to drill other wells, lessors were entitled
to cancellation, though land had no value as oil property,
and there was no market for gas in the territory, and though
lessee has paid the annual rent for the gas wel las required
by the lease, the provision as to diligent prosecution being
express and not merely implied."
It was also held in the same case that the acceptance of
rentals from a gas well did not estop the lessor from claim-
ing a forfeiture for failure to develop diligently.
In Hart v. Standard Oil Co., 146 La. 885, the Court found
that the drilling of some twenty wells on 320 acres, at a cost
of $650,000.00, and which had not paid out after several
90 DILIGENCE
years' operation, but from which the lessor: had received
$90,000.00, was a sufficient development under an agree-
ment calling for development in accordance with the custom
of the field.
The drilling of twenty wells on 700 acres, where the ex-
penditures have far exceeded the recipts and 75 per cent, of
the wells produced nothing, and nobody has obtained any-
thing from the lease but the lessors, seems to constitute, as
a whole, reasonable and adequate development. Nabors Oil
& Gas Co. v. McCormick, 145 La. 94.
But in Green v. Standard Oil Co., 146 La. 936, a lease
was annulled where lessee drilled only one small well which
hardly produced enough oil to pay for its operation, and
lessee refused to drill any more wells. And in Hutchinson
et al. v. Atlas Oil Co., 148 La. 540, where a lessee drilled
a salt water well and then T. gas well (there being a marker
for gas) and then abandoned work, the lease was declared
forgeited, the Court saying: "The main object of this and all
other mineral leases is to have exploitation of the premises
for their minerals, and, if found, to have them produced for
the common benefit of the lessor and lessee". * * * * "In
our opinion it would require a very clear and unmistakable
contract to support the proposition that a lessee could, after
discovering any mineral in paying quantities decline to ex-
plore further, refuse to pay any further consideration, and
fail to market that which had been found, indefinitely and
at its pleasure."
Where a lease confers on the lessee the right to drill sue
cessively for oil or gas after thoroughly testing the lease for
oil and gas the lessee proceeds to begin operations to drill
another gas well, although there is no market for gas and no
DILIGENCE 91
advantage in drilling the well, the Court will not interfere
but will allow the lessee to drill according to the terms of
the contract. Elston v. Atlas Oil Co., 147 La. 1048. In the
same case the Court stated arguendo, that there is a limit to
the amount of drilling that can be done and that would be
required to be done under a lease.
As stated in Murray v. Barnhart, 117- La. 1023, where
development is the sole object of the lease, the erection of a
derrick after suit for cancellation is brought, is insignificant.
And the placing of one man on a lease to drill shallow wells
to a depth of 25 or 30 feet, which wells produce about one
barrel of oil a day, is merely making a pretense of prosecut
ing with diligence the search for oil in paying quantities.
Gray v. Spring, 129 La. 345. And where it is a matter of
public notoriety, and known to the contracting parties in
the beginning that small quantities of oil and salt will be
found, and they are so found, such a well is not a "success"
as contemplated by the contract. Anse LaButte Oil & Mineral
Co. v. Babb, 122 La. 415. But, as said in the same case,
where the lessor is on the lease every day, if he does not
consider a well a success, he should say so and not remain
silent so as to injure the lessee.
The Court stated in Rains v. Dunson, 145 La. 542, that
where a lease did not obligate the lessee to development, and
after the lesssee made formal demand for the cancellation
of the lease, the placing of some materials on the ground for
the erection of a derrick (or even the erection of a derrick)
a few days before suit was filed, was not a reasonable prose-
cution of the work.
Where a lease .provides that a well shall be commenced, the
term "well" means the hole to be drilled in the hope of finding
92 COMMENCEMENT AMOUNT
oil and retains that status until a depth is reached which de-
termines whether it shall be a producer, or a dry hole, and
the whole process constitutes a prosecution of the work of
drilling a well. Knight Bros. v. Standard Oil Co., 147 La. 272.
A land owner who states that he is satisfied with drilling
on an adjoining lease and would ask for no lease money,
is not estopped where it is not shown that his statements were
accepted or acted on. Rowe v. Atlas Oil Co., 147 La. 37.
Sec. 53. What constitutes commencement of
operations.
The wording of each lease must, of course, be looked to
as indicating what would constitute a commencement of
operations thereunder, and, from the nature of the question,
each case must necessarily rest upon its own particular
facts and few set rules can be laid -down to govern such a
situation.
In Murray v. Barnhart, 117 La. 1023, where the lease
was construed as calling for early development, the court
stated that the act of erecting a derrick after suit was
brought was "insignificant"; while in Hudspeth et al. v.
Producers Oil Co., 134 La. 1013, it was held that the work
of erecting derricks during the term of the lease satisfied
the conditions thereof.
Where a lease provides for a "well" to be commenced,
it means a hole in the ground. Knight Bros. v. Standard Oil
Co., 147 La. 272.
Sec. 54. Amount of production.
In the case of Anse LaButte Oil & Mineral Co. v. Babb,
CESSATION RESUMPflON 93
122 La. 415, the court considered whether or not a well was
a "success" under the provisions of a contract and reached
the conclusion that a well which gushed one time, oil mixed
with gas, sand and clay in an amount sufficient to merely
cover a pit 8 by 12 feet with an inch and a half of oil, that
such amount was in less than "paying quantities", especially
in view of the fact that the finding of oil in insignificant
quantities was fully expected.
As stated in Cook v. Gulf Refining Co., 135 La. 609,
where a lease provides that it shall remain in force so long
as oil is found in "paying quantities", it is,, of course, at
an end when the time for exploration has expired and no
oil or gas has been found. This principle was also announced
in case of same title, 127 La. 592.
Sec. 55. Time between cessation and resumption
of operations.
Where lessee has kept a lease in force by making the re-
quired payments and then begins drilling a well, which is
abandoned as a dry hole, and in 17 days undertakes to make
a location for another well, but is prevented by the lessor,
who brings suit for cancellation of the lease on the ground
(among others), that a rental which fell due while opera-
tions were going on ,was not paid, held that no payment was
due while drilling was in progress, and where the contract
makes no special provision for the time allowed without pay-
ment of rental or forfeiture of contract between the abandon-
ment of a dry hole and the resumption of the prosecution of
the work of drilling a well, the question will be determined
according to the circumstances of the case, and 17 days was
not an unreasonable delay. Knight Bros. v. Standard Oil
Company, 147 La. 272.
94 OFFSETS PUMPS
When a lease provides for operations to be prosecuted
with due diligence, due diligence is shown where the lessee
has suffered an unavoidable accident by breaking a linver
in the well and endeavors faithfully to remove the same and
waits two months to select another location to drill another
well after finding it impossible to remove the broken liner.
Nobors v. Producers Oil Co., 140 La. 985.
Sec. 56. Offsets.
Where an agreement provided for the drilling of such off-
set wells as was customary in the field, the Court held in
Hart v. Standard Oil Company, 146 La. 885, that the cus-
tom did not require offsetting wells unless within 200 feet
from the lines, nor the offsetting of a well of such small pro-
duction that, according to expert testimony, it could not pos-
sibly have drained lessor's land.
Sec. 57. Pumps, etc.
An owner cannot be debarred from the legitimate use of
his property simply because it causes damage to his neigh-
bor; both wells and pumps are artificial means of causing
the flow of oil, and the owner of land cannot complain of
the use of a pump by an adjoining land owner.
But where the owner of land has sunk an oil well which is a
non-producer, which lets air into the subterranean regions
and interferes with an adjoining land owner drawing oil
with a pump, such interference will be enjoined. Higgins
Oil & Fuel Co. v. Guaranty Oil Co., 145 La. 233.
See the Conservation Laws relative to powers of Depart-
ment of Conservation in respect to the use of pumps.
DRILLING CONTRACTS 95
Sec. 58. Drilling contracts.
Act 232 of 1916 provides that all drilling contracts for
$1000 or more shall be in writing and recorded in the public
records of the parish where work is to be done. That such
recordation operates as a lien on the well, equipment, etc.,
and 10 acres of ground surrounding same. That the owner
of the well shall require of the driller a bond for not less
than one-half amount of contract for the faithful perform-
ance of contract and payment of all labor materials, etc.
That all having claims against contractor shall file sworn
statements of same within 30 days from acceptance by own-
er. That at the end of 30 days the bond shall be cancelled
if no claims filed, otherwise all in interest are brought into
Court in concurcus proceeding and the rights of parties and
solvency of bond passed upon. The owner shall not make
last payment on contract and shall hold out a tleast one-fifth
of contract price until the 30 days for filing claims has
elapsed. The owner who fails to take bond or record same
shall be responsible as a surety for labor, materials, etc., and
claims shall operate as first lien and privilege on well, land
or lease. See Appendix.
This act is not generally observed.
In the case of Hammond Oil & Development Company v.
Feitel 115 La. 132, plaintiff contracted with defendant to
drill a well to a stipulated depth at a stipulated price. The
drill stem became stuck and defendant abandoned the work.
Plaintiffs did what they could to minimize the damage by
pulling the pipe, etc., and sued the defendant for the differ-
ence, and the Court held, that where a contractor through
his own negligence brings the work which he has under-
taken to perform into such a condition that he is unable to
96 DRILLING CONTRACTS
complete it and thereupon abandons his contract, he becomes
liable for the loss resulting to the other contracting party,
including the amount reasonably expended in minimizing
such loss.
In the case of Latex Oil & Pipe Line Company v. Atlanta
Oil & Gas Co., 124 La. 385, certain work was done under a
contract which was then supplanted by a new contract, and
it was contended by plaintiffs that defendant could claim
nothing under the first contract because it had not performed
the second contract, but the Court held that when the first
contract to sink a well to a certain depth had been performed,
and the driller had earned the stipulated compensation, his
failure to complete the supplemental contract to drill the well
deeper will not effect the rights acquired under the first con-
tract.
In American Well & Prospecting Company v. Lilly Oil
Company et al., 128 La. 660, plaintiff sued for amount due
them for drilling a well. The contract provided that the
well should be completed "to the satisfaction" of defendant,
and in the suit the defendants answered that the well had
not been so completed. The evidence showed the officials of
the defendant company had visited the well and it was then
turned over to the company; that plaintiff then furnished a
pumping plant for the well and that defendants operated it
for more than a year before any complaint was made, and
the Court held that where a well is to be completed to the
satisfaction of an oil company, that taking possession of it
and operating for more than a year without objection or
complaint is conclusive evidence of such satisfaction.
In the case of McCann & Harper Drilling Company v.
Busch Everett Co., 131 La. 888, plaintiff sued for the price
WASTE 97
of a well, it appearing that the well should be drilled to a
depth of 2,300 feet and should be a 6-inch well, but the de-
fendants complained than on account of a leaky casing, the
well had been completed as a 4-inch well, which they had
not contracted for, and the Court found that it is the custom
of the oil field that where nothing is said in the contract, it
is contemplated that where it is impossible to complete the
well at a certain diameter through no fault of the driller,
that the contract really contemplates that the well shall be
finished at a smaller diameter. The Court further found
that two wells had already been accepted as 4-inch wells and
the Court said that fact carried "considerable significance."
Where a drilling contract requires the use of a certain
size casing "if necessary", and it is not necessary, it cannot
be contended that the driller has not performed the contract.
Allison v. Brown, 148 La. 530.
Sec. 59. Waste Oil etc. Damages from same.
Act 13 of 1906 makes it a misdemeanor knowingly and
willfully to contaminate any stream, body of water, etc.,
from which the public supply of any city is taken, or to do
any act tending to corrupt, injure or contaminate said water,
or to permit to escape or drain into said water any substance
or fluid tending to contaminate or injure said water or to
injure the quality thereof. See Appendix.
And Act 183 of 1910 makes it a misdemeanor knowingly
and willfully to empty or drain into or permit to be drained
from pumps, reservoirs, wells or oil fields into any natural
stream or drain from which water is taken for irrigation
purposes any oil, salt water or noxious or poisonous gasses
or substances which would render said water unfit for irri-
98 LIENS
gation or destroy the fish in said stream. The act does not
apply from September 1 to March 1, but during the closed
season watch must be kept to prevent leaks, etc., and all
reservoirs must be posted showing to whom they belong.
See Appendix.
The case of McFarland v. Jennings-Heywood Oil Syndi-
cate, 118 La. 357, was a suit for damages occasioned to land
near the oil fields from escaping oil and salt water and from
a fire occasioned by escaping oil, all of which, it was alleged,
had killed trees and destroyed crops and pasturage and pol-
luted the fresh waters in a natural stream. The Court held
that the doctrine of damnurn absque injuria would not apply
and that an adjoining estate had no legal right to discharge
into a natural drain waste oil or salt water, and is respon-
sible for damages resulting to the estate below. In this case
it was further shown that a certain company was claiming
all of the waste oil from the field and had built dams for the
purpose of saving it, and the Court held that this company
would be responsible for all of the damages occasioned by
the escape of oil and sailt water over and through the dam.
See the case of Cedar Grove Oil & Gas Co. v. Southwes-
tern Gas & Electric Co., 141 La. 452, relative to a claim for
allege damage to gas strate by permitting gas to escape, but
not decided upon that issue.
Sec. 60. Liens etc.
In Conroy v. Pine Belt Oil Company, 143 La. 879, a per-
son furnishing materials or labor for improving a well on
a lease was held to be entitled to a lien and privilege on the
lease and wells located thereon and the derricks, machinerv,
EQUIPMENT CONVERSION 99
piping,, tubing, tanks, storehouses and attachments thereto
belonging or composing same.
Sec. 61. Machinery, equipment, etc.
The lessee under an oil lease who drills a well which
proves unprofitable may abandon the land, and within a rea-
sonable time may exercise the right conferred by the lease
"to remove all machinery, fixtures and improvements placed
thereon at any time" by removing the pipe which has been
left in the ground, and eights months after the abandonment
is a reasonable time within which to take such action. Stan-
dard Oil Company v. Barlow, 141 La. 52.
In La. Texas Oil & Pipe Line Company v. Atlanta Oil &
Gas Company, 124 La. 385, a claim was made for damages
for the misuse and abuse of drilling machinery by a pledgee
but the claim was denied on a question of fact.
The chattel mortgage acts of the state, (See Act 198 of
1918), give authority to mortgage all kinds of machinery,
oil well casing, line pipes, drilling rigs, tanks, tank cars and
all other movable property.
When boilers and machinery are accessories to a well, the
possession of one covers the possession of the other. Jen-
nings-Heywood v| Hey wood Oil Company, 117 La. 542.
Sec. 62. Conversion of oil.
In Jennings-Heywood Oil Syndicate v. Houssiere-La-
treille Oil Company, 127 La. 971, it was claimed that a pipe
line company had illegally converted certain oil to its own
use ; the Court found that it had acted in good faith believing
the oil belonged to it and ordered it to pay the price at the
100 CONVERSION SALE
time of conversion with legal interest thereon from date of
conversion, and stated further that while in some cases the
measure of damages for conversion is the highest market
value, that this rule would not be applied in this particular
case.
The question in Russell v. Producers Oil Company, 146
La. 481, was the amount due a lessor whose royalty had
been paid to the wrong party. The Court found that as
there was no intention of wrong doing on the part of the les-
see, that the lessor was entitled to the price received for the
oil by the wrongful recipient, plus interest from date of de-
mand and not the market value at the time of judgment.
A lessor who wrongfully drilled a well on the lease of
lessee must turn over to the lessee the proceeds of the well
less cost of production. Gulf Ref. Company v. Hayne 148
La. 340.
Sec. 63. Sale of oil.
In the case of Crusel v. Tierce, 118 La. 292, the defendant
entered into a written contract whereby he agreed to deliver
to plaintiff 250,000 barrels of oil at 18c per barrel from cer-
tain production and from certain oil stored, and from cer-
tain wells to be drilled. After delivering only a small part
of the oil, defendant notified plaintiff that the contract was
at an end, because the supply had failed.
The Court held that the contract contemplated only oil
produced and stored, and that defendant would not be com-
pelled to operate at a loss in order to fill the contract, and
would be permitted to deduct the amount of oil paid as roy-
alty to the lessor, although this was not specifically men-
tioned in the contract, because plaintiff should have under-
SALE OF OIL 101
stood that the royalty would have to be deducted. But the
Court refused to permit a deduction of a royalty in oil paid
for pumping the wells, because a royalty of this kind was not
contemplated and should have been paid for in cash and not
in oil. The defendant also contended that there was not as
much oil on hand as the contract had contemplated, but the
Court held that inasmuch as defendant had represented a
certain amount on hand, he was bound by this representa-
tion.
The Court then allowed the plaintiff the difference be-
tween the contract price of 18c and the market price of 26c
for the oil, which was not delivered. The question was also
raised that plaintiff had borrowed a certain quantity of oil,
which he had to repay when he could have bought outright
at a less figure. But the Court said that in borrowing the
oil "he acted for the best interest of all parties concerned,
and did what is frequently done in the oil field," and should
not have to suffer for what was defendant's fault. The
Court allowed a reduction of Ic per barrel, as plaintiff had
agreed to pay that amount of brokerage on each barrel, and
would have had to pay it if the oil had been delivered.
In the case of Addeline Sugar Factory, Ltd. v. Evange-
line Oil Company, 121 La. 961, a contract was entered into
for the delivery of 20,000 barrels of fuel oil at 36c per bar-
rel, contract providing "20M with privilege of 15M more
bbls." The contract fixed the time and place of deliveries
and the manner of payment, and provided that in the event
of failure to deliver, damages should be computed at the dif-
ference in the cost between oil and other fuels, etc.
The plaintiff notified the defendant that it would take the
entire 25,000 barrels, and when the defendant failed to fur-
102 SALE OF OIL
nish that amount, sued for the difference between the con-
tract price and the market price, which was about 60c per
barrel. Defendant contended that although the contract did
not so provide that the oil was purchased for the purpose of
making a sugar crop, and not for speculating purposes, and
the amount was merely extended for the privilege of obtain-
ing a greater amount if it should be necessary to make the
crop, and that it was not t under obligation to deliver any oil
other than the amount specified for the crop.
The Court considered oral evidence showing the surround-
ing circumstances at the time of making the contract and
upheld defendant's contention. The Court further 'an-
nounced the doctrine that while damages will be allowed for
actual loss, that it will not necessarily be extended to the
loss or gain of which a party has been deprived.
In Silverman v. Caddo Gas & Oil Company, 127 La. 928,
defendant agreed to furnish plaintiff with 100,000 barrels
of oil, but stopped delivery. He sued for breach of contract,
defendant claiming that he himself was in default by failing
to pay for oil delivered, and the Court held that he could
not recover damages under the circumstances.
In the case of Crusel v. Hermitage Planting & Mfg. Co.,
114 La. 922, defendants resisted a suit for damages for
breach of contract to purchase oil, on the ground that plain-
tiff had failed to deliver oil by a specified date. The Court
decided against this contention, holding that where a con-
tract specifies delivery about a certain time that the buyer
cannot fix arbitrarily a certain day and demand delivery, etc.
Where a contract for the sale of oil provides that oil will
be delivered from certain wells at a certain price, but that
should the wells cease to "gush" the agreement and price
STORAGE, PIPING, TRANSPORTATION 103
should be changed to meet the new conditions, and the wells
cease to gush but no agreement can be reached, the Court
will not undertake to make an agreement for the parties.
United Fruit Co. v. L. Pet. Co., 115 La. 181.
In Minors' Estate v. Crusel, 124 La. 59U, the plaintiffs
were given judgment for the difference between contract
price and market price they were compelled to pay after
the seller failed to deliver oil.
Agreements relative to commissions for the sale of oil must
be definite and certain. Miller v. Crusel, 135 La. 649.
Sec. 64. Storage, piping, transporation, etc.
The question of the reasonableness and legality of certain
practices in the storing and piping of oil was discussed in
Jennings-Heywood v. Houssiere-Latreille, 127 La. 971,
where the Court stated that the necessity for piping and
storing oil is inherent in the oil business. Certain oil, in the
hands of the sheriff, has been stored, and after a fire in a
distant field, the owners of the storage facilities tried to pro
rate the loss on owners of stored oil in all fields, on the theory
that the same was "common stock." It was stated by the
Court that, while oil belonging to several owners, mixed to-
gether in tanks, becomes common stock so as to oblige the
owners to pro rate a loss from a fortuitous cause, oil stored
in different fields would have to be made common stock by
an unmistakable agreement, which was not the case in this
instance. The Court found further that the charge for pip-
age varies as conditions vary, and that a charge of lOc per
barrel for piping and storing was reasonable in that in-
stance, as was a charge of Ic a barrel a month for storage,
which was the usual and reasonable charge in the field. And
104 STORAGE, PIPING, TRANSPORTATION
the Court further found that a charge of five per cent and
one per cent a month for loss by seepage, leakage and evap-
oration from eastern tanks was reasonable "and, in most
cases, insufficient to protect the bailee." And a charge of
33 1-3 cents per day per thousand barrels was found to be a
customary charge.
In Crusel v. Brooks, 133 La. 447, the Court found that a
deduction of from 2 per cent to 5 per cent for loss by pipe
line is reasonable and customary and does not always cover
actual loss. And a reasonable charge may be made for
leakage and evaporation from earthern storage, and where
there is a large amount of oil on hand and it is necessary to
store it, storage in earthern tanks is justifiable. And where
all oil from various owners is stored together, each owner
remains the owner of a certain number of barrels, but not
any particular oil, which is all common, and losses are de-
ducted proportionately.
The question of the liability of a lessee for commingling oil
and delivering to the wrong royalty owner was discussed in
Russell v. Producers Oil Co., 146 La. 481. The rightful
owner of the oil contended that by commingling his oil with
oil from other wells he was entitled to the whole production,
but the Court held that as there was a practically certain
way of determining the amount of oil due him, the lessee
would merely be obliged to pay him the value of his share
of the oil, with interest.
Where a pipe line company running oil requires a bond of
$100,000 from the claimant of oil, to protest it from adverse
claims to same, it cannot, after paying the claimant $90,000,
refuse to pay the value of oil up to the balance of the amount
of the bond and thus defeat the purpose for which the bond
PIPE LINES 105
was given and taken Atlas Oil Co. v. Standard Oil Co., 142
La. 601.
Act 36 of 1906 declared all pipe lines that convey oil and
gas from one point in the State to another point /;/ the State,
for a consideration, to be common carriers and under the con-
trol of the Railroad Commission, while Act 39 of 1906 gave
pipe line companies the right of expropriation etc.
Act 76 of 1920 undertakes to amend and re-enace No. 36
of 1906, and to correct certain defects in that act, and makes
all pipe lines common carriers subject to the regulations of
the Railroad Commission. "Common carrier" is defined to
mean "all persons, firms or corporations engaged in the trans-
portation of crude petroleum as 'common carriers' for hire;
or which upon proper showing may be legally held to be a
'common carrier' from the nature of the business conducted
or from the manner in which such business is carried on."
The act defines "pipe line" as including "the real estate,
rights of way, pipe in line, tank facilities as herein designated,
and necessary for the proper conduct of its business as a com-
mon carrier, all fixtures, equipment and personal property of
every kind owned, controlled, operated, used or managed, in
connection with, or to facilitate the transportation, distribu-
tion and delivering of crude petroleum through lines con-
structed of pipe."
The right to run along, over and across roads, streams, etc.,
is given to pipe lines under certain conditions; the Railroad
Commission is given the power to establish rates and charges
and regulations after proper hearing; common carriers shall
exchange tonnage and maintain reasonable facilities for the
business; they shall make and publish tariffs ; they shall not
discriminate against or between shippers and owners; they
106 PIPE LINES
are considered as shippers of their own oil ; when offered more
oil than they can transport, it shall be equitably proportioned ;
they may deliver the same oil received or from common stock
of the same kind and value; persons dissatisfied with the ac-
tion of the Railroad Commission may restor to the courts,
etc.
Violation of the provisions of the act or failure to obey
the orders of the Railroad Commission shall be a misdemean-
or and penalties are provided for discriminations. The act
repeals all laws in conflict therewith. It appears, therefore,
that it supercedes and repeals Act 39 of 1906 entirely since it
purports to cover the subject matter covered by that act. It
contains the provision, however, that it is "cumulative of all
laws of this State which are not in direct conflict * * regu-
lating the control of common carrier pipe line companies/'
The Constitution of 1921 changes the name of the Railroad
Commission to "Louisiana Public Service Commission."
By Act 45 of 1921, the Levee Boards are required to give
owners of pipe lines 30 days' notice that levee is to be moved,
or pay the cost of moving the pipe.
Act 172 of 1902 gives all pipe line companies organized in
Louisiana the right to issue bonds and obligations secured by
mortgage of the franchise, property, income, revenues, etc.,
of the company. While Act 22 of E. S. 1918 authorizes muni-
cipalities to acquire, own and operate gas pipe lines both with-
in and without the city limits, acquire leases, drill wells, etc.,
and to expropriate existing lines in and out of the city limits,
and to mortgage the same, etc.
Act 70 of 1921, authorizes Parishes and Municipalities to
acquire and construct gas pipe lines.
CONSERVATION 107
Act 119 of 1918 permits the provisional sale of tank cars,
giving the vendor the right to hold the title to same until paid
and to repossess the same if not paid. And Act 9 of E. S.
1917 subjects all rolling stock to taxation.
In Constantine Refining Co. v. Day, 147 La. 623, and same
v. Ricaud, 147 La. 634, this act was held constitutional and
tank cars were subjected to taxation for State purposes, but
that portion of the act fixing the situs of such property in a
subdivision of the State where the cars had never been, for
purposes of local taxation, was declared illegal.
Act 198 of 1918, provides for the mortgage of all kinds of
machinery, oil well casing, line pipes, rigs, tanks, tank cars
and all movable property.
The fact that a valve and outlet cap on an oil tank car were
improperly adjusted by the shipper will not relieve the car-
rier from liability for its negligence in failing to stop the leak-
age. Southern Cotton Oil Co. v. New Orleans & N. E. R.
Co., 146 La. 541.
Interocean Oil Co. v. Ames, 149 La., deals with damages
for breach of contract to transport oil by steamer.
Act 53 of 1920 makes receipts for stored oil negotiable,
under the uniform warehouse receipt law. See Act in appen-
dix.
Sec. 65. Conservation.
The Conservation policy of the State relative to oil, gas and
minerals is expressed in a number of statutory provisions
passed since 1906. The administration of the conservation
laws has been changed a number of times and at present the
provisions are complicated and in some instances conflicting,
and there is need of a general revision.
108 CONSERVATION
The first statutes dealt with the closing of wild gas wells
and provided for certain investigations and reports, and the
legislation has culminated in the Common-purchaser Acts of
1918 and 1920, which go a step beyond the ordinary limits of
conservation legislation, and seek to remedy economic condi-
tions.
An outline of the Conservation laws follows. The acts in
full will be found in the appendix.
Act 144 of 1908 established a temporary Commission on
the Conservation of Natural Resources, which was composed
of several State officials, who served without compensation,
and a paid secretary The duty of this commission was to
inquire into and make certain reports concerning forestry, re-
clamation of lands, and prevention of waste in the extraction
of oil, gas and other minerals, such report to be made to the
General Assembly with recommendation for necessary legis-
lation This act carried a small appropriation for the use of
this commission, and was repealed by subsequent legisaltion.
Act 172 of 1910 amended and re-enacted the previous act
and created a board known as the "Conservation Commis-
sion" composed of some eight members of whom several were
State Officials, and the others to be appointed by the Gov-
ernor, the members serving without compensation, but being
provided with a paid Secretary. Its duties were the same as
prescribed in the previous act, that is, making certain reports
and recommendations, with additional power upon emergen-
cies to expend certain moneys to promote, protect and save
the natural resources of the State, and this act also provided
that the commission should confer with other State Commis-
sions and Federal Commissions. This act also carried a small
appropriation, and it has been superceded by later laws.
CONSERVATION 109
Act 254 of 1910, established a "Department of Mining and
Minerals" with a "Supervisor of Minerals," and a Deputy
Supervisor, who should be an experienced oil and gas man
and geologist.
The Supervisor was authorized to make inspections and to
see that precautions were taken to insure the health and safe-
ty of workmen and to see that all laws were enforced. He
was to make annual reports to the Conservation Commission,
and was authorized to prohibit unsafe and dangerous and
wasteful operations, etc., and to see that all operators subject
to license tax should pay the same. The act makes violations
a misdemeanor and repeals all laws in conflict.
All of these laws were merely makeshifts, however, and it
was soon realized that the conservation policy of the state
would continue to suffer unless more stringent laws were
passed.
Therefore, in 1912, the legislature provided the foundation
of the present Conservation system of the State in Act 127
of 1912. It need not be said that the present system could be
vastly improved upon.
Act 127 of 1912, created a Conservation Commission com-
posed of three paid commissioners, one of whom was desig-
nated as "President" and provision was made in the act for
the necessary employees, assistants, etc.
The title of this Act authorizes the Conservation Commis-
sion to discharge the duties and functions heretofore assigned
to the Department of Mining and Minerals, but there appears
to be no express provision in the body of the act, relative to
this. There seems to be no question however, that this act
repeals the Act relative to the Department of Mining and
Minerals.
110 CONSERVATION
The Commission under this Act is made a department of
the State Government, for the purpose of the protection, man-
agement and Consevration of the wild life of the State, oy-
sters, fish, etc., and the natural and mineral and forestry re-
sources of the State. The commission is also created as a
body politic, or political corporations, possessing all powers
inherent in such corporations, with authority to sue and be
sued, etc.
It is the duty of the Commission to collect statistics; to
adopt rules and regulations for the control of the natural re-
sources of the State, including minerals, which rules however,
may be contested in the courts; to make reports to the Gov-
ernor; to enforce all laws relating to minerals; and to assist
in the development of the natural resources of the State; to
initiate and prosecute civil actions under the laws adminis-
tered by it, and to report violations of the criminal laws to the
District Attorney and see that they are prosecuted (and the
mandatory duty is imposed upon the District Attorney to
prosecute such cases) ; to make reports to the General Assem-
bly, etc.
The act created a fund known as the "Conservation Fund"
to be made up of all amounts collected by the Commission.
The Officers and employees of the commission are required
to give bond, and are prohibited from being interested in the
exploiting for personal gain any of the natural resources of
the State or to be employed by anyone so engaged under pen-
alty of dismissal and forfeiture of any rights so acquired.
The commission is given the right to appoint special con-
servation agents, and all sheriffs, constables and peace offi-
cers are given the powers of conservation agents.
CONSERVATION 111
The commission is charged with the duty of carrying out
the provisions of Act 172 of 1910, previously referred to, and
to discharge the functions given the commission under that
act.
The act provides certain penalties for violation of its pro-
vision and repeals all laws in conflict. (See State v. King,
133 La. 568.)
Act 66 of 1916 amends Act 127 of 1912 by changing the
name of the commission to "Department of Conservation" and
provides that the same shall be directed and controlled by a
"Commissioner of Conservation," to be appointed by the Gov-
ernor, and the Act does away with the other two members
of the commission.
Act 105 of 1918 makes minor changes in Act 127 of 1912,
and Act 66 of 1916, and gives conservation officers authority
to carry arms.
Act 250 of 1920 delegates to the Department of Conserva-
tion greater power and authority in the work of conserving
the crude petroleum, natural gas and mineral substances of
the State, and this is the act under which the Department is
now operating.
It gives the department authority to adopt such rules and
regulations as it may deem necessary for the drilling develop-
ment, sinking, deepening, abandoning and operation of oil
and gas wells, and to prevent waste from same and to require
persons to make reports relative to same; (all of which rules
may be contested in Court) to adopt rules and regulations re-
quiring that gasoline be extracted from natural gas before
using the same for carbon ; to have full supervision over the
production and use of gas in connection with the manufac-
112 CONSERVATION
ture of carbon black and other manufacturing enterprises and
for domestic use; and to limit the amount of gas to be taken
from particular fields or areas; to adopt rules and regula-
tions making it unlawful for persons negligently to permit
oil and gas wells to go wild or become uncontrollable; and to
require diligent efforts to close the same, and in case of de-
fault, the Department shall have the right to take charge of
such wells and close same at the expense of the owners and
gives the Department a lien to protect it for expenditures.
The act defines "waste" as including underground waste,
surface waste and any unreasonable waste or leakage in the
production of oil, gas and other minerals.
The Department is given the right to enforce its rules and
regulations in the Courts and the violation of such rules and
regulations is made a misdemeanor .
The right of injunction against the Department is cur-
tailed.
All actions, writs, etc., relating to the department are tried
summarily.
The Attorney-General and District Attorney represent the
Department.
This act repeals all laws in conflict.
Act 268 of 1918 makes it unlawful to permit the waste of
natural gas or to use natural gas for any purpose in such
manner as to threaten with premature exhaustion, extinction
or destruction the common supply or common reservoir trom
which natural gas is drawn, and defines "waste." It makes
it the imperative duty of the Department to make frequent in-
spections and investigations and to stop waste, and the power
of injunction without bond is given. The Department is also
CONSERVATION 113
given the power to regulate the use of pumps and artificial
means of increasing natural flow. The act also provides that
manufactures and sellers shall make semi-annual reports to
the Department and the Department shall report to the Gov-
ernor and Police Juries ; and the District Judges are also in-
structed to charge the grand juries to investigate waste.
Penalties of fine and imprisonment are imposed for viola-
tions of this act. This act does not repeal any laws except
those inconsistent with its provisions.
Act 270 of 1918, which declares its purpose to be for con-
servation, provides that whenever the full production from
any gas field is in excess of demand, then only such propor-
tion as can be marketed without waste shall be taken, and any
^erson taking same shall only take his proportion of the total
flow, subject to action of the "Conservation Commission" in
permitting a greater quantity to be taken
The act makes all persons engaged in purchasing and sell-
ing natural gas "common purchasers" and provides that they
must buy at their trunk lines, and prohibits discrimination in
buying gas and makes the purchaser take the same ratably
where he does not take all; it also gives him the right to buy
from any owner, the provisions of the act being under the
supervision of the "Conservation Commission," and the viola-
tion of the provisions of the act being a misdemeanor. This
Act repeals all laws in conflict.
Act 73 of 1920 also expresses its purpose to be for Conser-
vation, and provides that during periods of over-production,
all buying agencies shall accord to each oil producer in the
field the opportunity to sell his proportion of the oil purchased
and prohibits buying agencies from taking from the field a
114 CONSERVATION
greater proportion of their own oil than taken from other
producers. The act does not force the producer to sell nor
prevent him from storing his oil. And the provisions of the
Act do not apply to purchasers of less than 500 barrels a day
and who transport such oil through their own facilities
The act provides for public hearing by the Conservation
Commissioner to establish when a period of over-production
txists and for the appointment of a supervisor and assistants
for the field during such period, who shall make necessary
gaugings of oil and inspections of property, books, etc., to as-
certain the facts and make rules and regulations, subect to
review by the Conservation Commissioner and the Courts.
Violation of the provisions of the act is made a misdemean-
or.
Act 190 of 1920 provides that when an oil or gas well is
abandoned or no longer operated, it shall be the duty of the
operator having custody of same, and the owner of the land,
to stop and plug the same in the manner provided in the act ;
and the act makes it unlawful to permit the waste of oil or
gas; the Supervisor of Minerals is given authority to make
regulations for the boring of oil and gas wells and violation
of such regulations and provisions of the act is made a mis-
demeanor. The act further provides that if the person in
whose custody or control the well is, should fail to comply
with the -act, adacent possessors may enter on the land and
control the well and shall have an action to recover expenses
and costs and Attorney's fees.
The act repeals all laws in conflict.
Act 71 of 1906, as amended by Act 283 of 1910, declares
it unlawful and a nuisance negligently to permit gas wells to
CONSERVATION 115
become wild or uncontrollable and provides that if operations
to close the same are not begun in good faith within five days
after notice, and in the event the w r aste is not stopped, the
State Board of Engineers shall take charge of the well and
close same at the expense of the owner and the State is given
a lien to cover the expense.
The act further makes it a misdemeanor to set fire to a gas
well or negligently to permit a well to go wild or become un-
controllable or to permit gas wastefully to escape or burn;
also to abandon any well without plugging same.
It appears however, that the foregoing acts (190 of 1910
and 71 of 1906) have been partially, if not wholly, repealed
by subsequent legislation, especially Act 127 of 1912, and
amendments, and 250 of 1920 and 268 of 1918.
Act 41 of 1914 placed under the administration of the Con-
servation Commission the collection of the license tax on oil
and gas, but this act has also been repealed by subsequent
legislation.
In the case of Department of Conservation v. La. Gas &
Fuel Company, Inc., 144 La. 962, the Department assayed to
exercise its right to close gas wells, etc., under Act 268 of
1918, but the right was neither denied nor passed upon by the
Supreme Court as the decision dealt with other matters. It
was held in this case, however, that the "Conservation Com-
mission" and "Department of Conservation" were one and
the same and the Department could be impleaded under the
name of "Conservation Commission."
The Department of Conservation has adpoted a number
of rules and regulations under the foregoing laws, a copy
of which will be found in the Appendix.
116 LESION, FRAUD, ERROR
Sec. 66. Lesion, fraud, error, etc.
In the case of Butler v. Marston, 146 La. 41, a redemption
sale was attacked on the ground that it was a mere security
contract and on the ground of lesion beyond moiety, it ap-
pearing that the land was nearly valueless at the time of sale,
but worth $100,000.00 at the time of suit.
The court found that the purchaser acted in good faith, and
that the contract was a redemption sale in fact, and stated
further that the time to consider the value was when the buy-
er was considering putting his money in it and not after it
had acquired a value of $100,000.00 from the discovery of oil.
When a fraudulent transaction is alleged, it must, of
course, be shown. Black Bayou Oil Co. v. Pyron, 129 La.
118; Gulf Refining Company v. Carroll, 145 La. 299; Raines
v. Dunson 145 La. 525; Denman v. Wilder, 148 La. 481
(April 2-21). And a cause of action based on fraud is a per-
sonal action. Martel v. Jennings-Heywood, 114 La. 356.
And where a contract is sought to be reformed on the ground
of fraud or error, there must be clear proof of the antecedent
contract and the error in reducing it to writing. Rogers v. S.
H. Bolinger Co., 149 La (In this case the contention was
made that a mineral reservation in a deed was made through
fraud or error, but the contention was not sustained).
It was said in Jennings-Heywood Oil Company, 119 La.
852, that the plea of error or lesion presupposses the existence
of a contract, and in Caddo Oil & Mining Co. v. Producers
Oil Co., 134 La. 718, the court stated that where a lessor com-
plains of insufficient development upon allegation and proof
of fraud, he would be entitled to relief.
The Court does not look with favor upon stale claims which
SPECIFIC PERFORMANCE 117
are only pressed after an oil field is discovered. Cochran Oil
& Development Co. v. Arnaudet, 111 La. 587. And in Jen-
nings-Heywood v. Houssier-Latreille, 119 La. 842, the Court
quoted the language of Twin-Lick Oil Co. v. Marbury, 91 U.
S. 592, 23 La. Ed. 331, where the Supreme court said:
"The fluctuating character and value of this class of prop-
erty is remarkably illustrated in the history of the production
of mineral oil from wells. Property worth thousands today
is worth nothing tomorrow; and that which would today sell
for $1,000.00 as its fair value may, by the natural changes of
a week or the enerby and courage of a desperate enterprise, in
the same time be made to yield that much every day. The in-
justice, therefore, is obvious of permitting one holding the
right to assert an ownership in such property to voluntarily
await the event, and then come in and share the profit/'
Sec. 67. Specific performance.
The Court was asked to order the specific performance of
an obligation to drill oil wells, in Caddo Oil & Mining Co. v.
Producers Oil Co., 134 La. 701, but this relief was denied, the
court saying: "One cannot be forced to drill a well for oil, as
such operations would not be within the power of the court
to enforce. It would be subject to many contingencies. It is
entirely impractical. For that reason the courts have invari-
ably annulled contracts and have not ordered specific per-
formance in cases similar to the present one." And the sylla-
bus in that case further states that from the nature of the un-
dertaking the court would not be able to supervise the \vork
so as to enforce the decree.
Courts will not enforce uncertain and inequitable contracts
and contract requiring the continued supervision of the court
and the personal services of the parties which they could not
118 PROCEDURE
be compelled to perform. Snyder v. Wilder, 146 La. 811,
citing Federal Oil Co. v. Western Oil Co., 112 Fed. 376 on
the point that specific performance will not be ordered against
one party where the other may, at his option, refuse to carry
out his part of the contract. Citing also Lone Star Salt Co.
v. Texas S. L. R., 99 Tex. 445, 90 S. W. 867,L. R. A. (N. S.)
835. In the Snyder v. Wilder case the agreement related to
the transfer and sale of certain leases, the acquisition of
others, and the drilling of a well.
Nor will the courts order the specific performance of a con-
tract where the parties agree to close the doors of the courts
upon themselves with regard to matters to arise in the future.
Saint v. Martel, 127 La. 73.
The only reason for awarding damages for breach of con-
tract is because specific performance cannot be had; and spe-
cific performance being the more complete remedy, it will be
ordered where possible. So, a lessor will be ordered to turn
over to a lessee his portion of oil produced from the leased land
and the lessee will be recognized as owner of an interest in a
well drilled by his lessor. Gulf Refining Co. v. Hayne, 148
La. 340.
And where a mineral contract involves merely the transfer
of the land, of course specific performance will be ordered, and
in the case of Anse LaButte Oil Co. v. Babb, 122 La. 415,
where the contract gave the lessee the right upon discovering
oil to buy the land covered by the lease and he sued for specific
performance, while the case went off on other points, it is
apparent that the court considered his action as a proper one.
Sec. 68. Procedure.
While procedure in actions respecting leases, minerals, etc.,
PROCEDURE 119
is necessarily the same as in cases governing other rights and
contracts, and the general provisions on those subjects must
be considered, yet this work would perhaps be incomplete
without a brief discussion of some of those principles as they
have been applied in actual cases affecting oil and gas rights.
There are also some few special statutory provisions which
might well be reviewed.
Act 60 of 1920 provides a method of summary trial of suits
affecting oil and gas leases. Act 76 of 1920, relative to pipe
lines as common carriers makes all suits relative to the orders
of the Railroad Commission preference cases, and the same
act provides that the orders, decisions, rules, rates and regu-
lations of the Commission may be suspended by injunction
upon bond in an amount fixed by the Court. See also the
laws relating to the Department of Conservation and the pro-
visions relative to writs of injunction by and against the De-
partment. See also Act 29 of 1915 relative to injunction
against lessees of the State, etc.
In considering the procedure in suits affecting oil and gas
rights, a perusal of the various branches of the litigation be-
tween the Jennings-Heywood Oil Syndicate and the Hous-
siere-Laterille Oil Co., and the various persons connected
therewith, which cases are many times referred to herein, is
an education in itself. See also Martel v. Jennings-Heywood
Oil Syndicate, 115 La. 615-622 not referred to elsewhere
herein.
The question of title cannot be gone into in a possessory
action, hence in contests over mineral lands and leases the
possessory action will not give adequate relief where questions
of title are involved. Producers Oil Co. v. Hanzen et al., 132
La. 691; Houssiers-Laterille v. Jennings-Heywood, 115 La.
120 PROCEDURE
107; Jennings-Heywood v. Houssiers-Latereille, 119 La. 793,
113 La. 619, 116 La. 1053, 117 La. 960.
Where one answers a suit claiming a real right in prop-
erty he presents to the court the question of the validity of
his title. Wilson v. Pierson, 143 La. 289; Slattery v. Ar-
kansas Natural Gas Co., 138 La. 793. And a suit for can-
cellation and annullment of a lease, is, of course, different
from a petitory action. Cook v. Gulf Refining Co., 135
La. 609.
The direct action to rescind thd^ contract is -frequently
resorted to. Murray v. Earnhardt, 117 La. 1023; Berl v.
Kehoe, 130 La. 1020; Elder v. Sun Co. 135 La. 943.
Suit to quiet title and slander of title is resorted to where
a purchaser finds a lease recorded against his property.
Gray v. Spring et al., 129 La. 345 ; Baird v. Atlas Oil Co.,
146 La. 1091.
Persons who claim a real right to land which has been
leased to a defendant in a cause may intervene in said
cause. Rives v. Gulf Refining Co., 133 La. 178.
For petitionary action and trespass, see DeSoto's heirs
v. Standard Oil Co., 139 La. 965; Nilson v. Brinkerhoff,
146 La. 697.
Injunction is a proper remedy against a trespasser on a
mineral lease. Houston Ice & Brewing Co. v. Murray Oil
Co., 145 La. 1053. Injunction may issue to maintain a plain-
tiff in possession, but not to oust one from possession of prop-
erty. Pure Oil Co. v. Gulf Refining Co. 143 La. 284; State
v. DeBallion, 113 La. 619.
In the suit of De Soto's Heirs v. Standard Oil Co., 139 La.
965, which was a petitory action and claim for damages for
PROCEDURE 121
trespass in the value of oil illegally extracted, the defedant
lessee claimed that under provisions of the Code of Practice,
that upon giving the name and address of its lessor it should
be dismissed from the suit. The Supreme Court said: "If
this suit involved merely the land without the oil alleged to
have been taken from it, and a return of which is demanded,
relators' contention would be well founded, but it involves
also the oil and plaintiffs are entitled to have both demands
passed on in one suit, and, if their claims be well founded, to
have a judgment against the relator upon the latter demand.
The lessors could not stand in judgment upon it, and even if
they could a judgment against them for the return of the oil
or for payment of $1,250,000.00, its alleged value, might be
as easily made effective against them as against relator. No
doubt, it is incumbent upon the plaintiffs, before proceeding
any further in the suit to cite the lessors for litigating the
question of title, which these lessors alone are qualified to
litigate."
The Supreme Court is slow to interfere with the District
Court in matters within its discretion such as bonding in-
junctions. Jennings-Heywood v. Heywood Oil Co., 117 La.
536. And in proceedings involving the sequestration of oil
etc., where costs are taxed by the District Court the Supreme
Court will presume the same correct unless there is evidence
to the contrary. Jennings-Heywood v. Houssiere-Latreille,
118 La. 262; Martel v. Jennings-Heywood, 118 La. 391.
A judgment for an undivided interest in oil lands and oil
produced cannot be executed by obtaining a writ of posses-
sion, and where the judgment is constituted upon the reim-
bursement of certain expenses, such reimbursement would
have to be made before a writ of possession could issue. Mar-
tel et al v. Jennings-Heywood Oil Syndicate, 114 La. 903.
122 PROCEDURE
The question of acquiescence in a judgment has been raised
on several occasions in oil litigation. So; Where appellant
has executed certain division orders which impart acquies-
cence in the judgment, the case will be remanded for further
evidence. Wells et al v. Files, 131 La. 736. And an appeal
will be dismissed where there is an acquiescence by receiving
payment of royalties. Jolley v. Vivian Oil Co., 131 La. 937.
And where it is claimed that appellants have acquiesced in a
judgment by executing deeds in accordance with a judgment,
the case will be remanded for evidence on that point. Wells
v. Files, 133 La. 219.
Where, since an appeal, an appellant has alleged and ad-
mitted in another judicial proceeding that he has no title to
the property claimed in the case on appeal, a plea of estoppel
will be sustained in the Supreme Court. Mohawk Oil Co. v.
Layne, 147 La. 895.
In Saunders v. Busch-Everett Co., 138 La. 1049, after ap-
pealing from a judgment upholding a lease, the plaintiff and
lessor executed a deed to a portion of his land in which he
stated it was leased and the sale was made subject to same
and included an interest in the royalty under the lease. De-
fendant and appellate moved to dismiss the appeal, but the
court refused to do so, stating that while there might be
ground to affirm the judgment, that an acquiescence in a
judgment, to take away the right of an appeal, must be un-
conditional, voluntary and an absolute acquiescence by appel-
lant, and he must have intended to acquiesce and abandon his
right of appeal, which must be distinguished from an ac-
knowledgment of the correctness of a judgment.
Where an appellant accepts a promise of development pend-
ing an appeal and authorizes the appeal to be dismissed in
PROCEDURE 123
part, the appeal will be dismissed in toto, because an acquies-
cence in an indivisible judgment has occurred. Rains v. Dun-
son, 143 La. 321 ; Jolley v. Vivian Oil Co., 131 La. 937.
In Hutchinson et al v. Atlas Oil Co., 148 La. 540, motion
to dismiss was made on the ground that defendant had ac-
quiesced in the judgment by collecting for certain gas, but
after remanding the case for evidence the motion was denied
on the facts.
The execution of a mineral lease on land acquired in a par-
tition was held in Myers v. Myers et al, 148 La. 174, to be an
acquiescence in the partition and ground for the dismissal of
an appeal in a suit to set aside the partition.
The stipulated price of an unexecuted lease sought to be
annulled, governs the jurisdiction on appeal. Elder v. Sun
Co., 135 La. 943.
One who asserts fraud in connection with a written lease
has the burden of proving it. Chadwick v. Standard Oil Co.,
147 La. 668.
An action involving title to oil lands, pending in a State
Court, will not be stayed because, after its institution, parties
claiming under the principal defendant therein elect to raise
the issue of title in the Federal Court, instead of intervening
in the pending suit. Jennings-Heywood v. Houssiere- La-
treille, 119 La. 864. See also Saint v. Martel 126 La. 245.
See Mohawk Oil Co. v. Layne, 270 Fed. 841, in re State
and Federal Courts.
There are many other cases involving general points of
practice and procedure and it would serve no useful purpose
to review them in detail. Among them are : State ex rel. Saint
v. Martel, 123 La. 813, 853; Standard Oil Co v. Drummers
Oil Co., 138 La. 94; Davis v. Safety First Oil Co., 138 La.
124 SEQUESTRATION
89; Evangeline Oil Co. v. Traban, 126 La. 243; Davis & Orr
v. Stringfellow, 138 La. 94; Beck v. Natalie Oil Co., 143 La.
152; Veoughan & Co. v. Equitable Oil Co., 116 La. 773;
Bradley v. Shreveport Gas. E. Lt. & Pr. Co., 139 La. 1029;
In re Wadkins, 129 La. 484; Wadkins v. Producers Oil Co.,
130 La. 308 and 129 La. 484.
Sec. 69. Sequestration.
Among the conservatory measures for the protection of
litigants during the pendency of an action, the ones most fre-
quently resorted to in oil and gas litigations have been seques-
trations, both by writs applied for as incidental demands in
suits and the equitable sequestration ordered by the Court,
and even conventional sequestration.
The District Court will ex-officio order the sequestration
of oil discovered during the pendency of suit, even after ap-
peal to the Supreme Court. Jennings-Heywood Oil Syndi-
cate v. DeBallion, Judge, 113 La. 672; State ex rel. Jennings-
Heywood Oil Syndicate v. DeBallion, Judge, 113 La. 619;
Jennings-Heywood Oil Syndicate v. Houssiere-Latreille Oil
Co., 114 La. 573.
A judicial sequestration was ordered in Martel et al v. Jen-
nings-Heywood Oil Syndicate, 114 La. 351, where plaintiffs
were claiming 1-5 of certain oil. And in Martel et al v. Jen-
nings-Heywood Oil Syndicate, 115 La. 451, the court stated
that the proceeding where co-owners cannot agree as to the
disposition of the property is a suit for partition, accompanied
by sequestration, pendente lite.
One entitled to sequestration of an undivided interest is
entitled to sequester the entire property. Gulf Refining Co.
v. Hayne, 148 La. 340. See also Martel v. Jennings-Hey-
wood Oil Co., 115 La. 451.
SEQUESTRATION 125
Whether a judicial sequestration shall be released on bond
is within the sound discretion of the Court. Jennings-Hey-
wood Oil Syndicate v. Houssiere Latreille, 114 La. 573.
Where the trial Court issued an ancillary sequestration
after the main suit had been transferred to the appellate court,
held, that the decision of the main suit on appeal did not op-
erate as a decision of the sequestration, and that after the de-
cision of the main suit jurisdiction remained in the trial court
to pass upon the sequestration. Houssiere-Latreille v. Jen-
nings-Heywood, 116 La. 347.
And a sequestration does not become ftmctus officio when
judgment is rendered, but holds the property until the judg-
ment can be executed. In a possessory action, however, it
does not hold until the question of ownership is decided, be-
cause the ownership is not at issue in such an action. It mere-
ly holds until the disposition of the issues involved. Jennings-
Heywood Oil Syndicate v. Houssiere-Latreille Oil Co., 117
La. 960. See, also, 113 La. 635 and 116 La. 1053.
Where an ancillary sequestration is issued by the District
Court after appeal to the Supreme Court, the control of the
writ is in the hands of the Court in which the sequestration
is pending and not the appellate court. Martel v. Jennings-
Heywood, 114 La. 903.
Where a judicial sequestration is ordered, the party cast
in the suit must pay the costs of the execution of the writ.
Jennings-Heywood v. Houssiere-Latreille, 116 La. 1053. And
this is true even though the decree of the Supreme Court is
silent on the question, because if properly issued it is main-
tained at the cost of the party cast. Jennings-Heywood v.
Houssiere-Latreille, 117 La. 960.
126 SEQUESTRATION
The parties in interest can require of the Sheriff an in-
telligible account of the oil sequestered. Jennings-Heywood
Oil Syndicate v. Houssiere-Latreille, 127 La. 921. And a
judicial sequestrator can be proceeded against by the sum-
mary process of rule or motion, and without citation, to com-
pel him to turn over and account for property. And the same
is true of a conventional acquestrator. In re Bernstein, 145
La. 1011.
In Crusel v. Brooks, 121 La. 243, the Court found that
while the handling of sequestered oil by a Sheriff requires
special care, and he is entitled to pay as a necessary expense
for keepers and guagers and bookkeepers, etc., he is not a re-
ceiver nor quasi-receiver, and is not entitled to fees for an at-
torney who gave him advice. He is always entitled, however,
to recover a just compensation for his administration. Jen-
nings-Heywood v. Houssiere-Latreille, 118 La. 262; 118 La.
391.
Charges for piping and storing oil must be regarded as
operating expenses to be borne by the oil and not as costs,
since the necessity of piping and storing is inherent in the oil
business. But a Sheriff in charge of sequestered oil can
make any reasonable contracts and provisions for its preser-
vation, as the Sheriff is bound to administer the property "as
a prudent father of a family would administer his own af-
fairs." His contract cannot, of course, be unconscionable.
The ordinary charges for services of the Sheriff and his em-
ployees are properly taxed as costs. Jennings-Heywood v.
Houssiere-Latreille, 127 La. 971.
In Dickinson v. Texana Oil & Ref. Co. et al, 144 La. 489,
the appointment of a judicial sequestrator was prayed for to
take over certain producing property pending decision of the
PERSONAL INJURIES DAMAGES 127
suit. The District Judge ordered the sequestration on' the
face of plaintiff's petition, but the record was carried up to
the Supreme Court and it was there said that, "a judge should
think twice, nay three and more times, before ordering the
ex-officio sequestration of so precarious a property as an oil
and gas lease, requiring special qualifications for successful
management," etc., before placing it in the hands of an ap-
pointee of the Court. And the order for a sequestration was
set aside and the District Judge directed in acting upon the
matter of whether or not a sequestration should issue to take
into consideration all the pleadings in the case and the facts
and circumstances. It was further said that the ex-officio
sequestration provided for by Code of Practice 274 shall issue
only when "one of the contending parties does not seem to
have a more apparent right to the possession that the other."
Sequestration was resorted to as an incidental demand in
State v. Richardson et al, 140 La. 329 and Palmer Co. v. Cot-
ton Queen Oil Co., 141 La. 305.
By Act 29 of 1915 where the State is lessor no injunction
shall lie against the State's lessee to restrain development, the
remedy being confined to a demand for judicial sequestration
until a decision of the rights of the parties. This sequestra-
tion may be bonded, or the oil may be sold under order of
Court.
Sec. 70. Personal Injuries Damages.
While the question of employer's liability, so far as it re-
lates to the oil and gas business, is now to be determined by
the Employer's Liability Act (No. 20 of 1914 and amend-
ments), still there are cases where this act does not, or might
not, apply, in which event the general law and jurisprudence
128 PERSONAL INJURIES DAMAGES
would apply, and the review of the several cases arising prior
to the passage of the employer's Liability Act, is of interest
and value.
The Employer's Liability Act (No. 20 of 1914), includes
and covers "Every person performing services arising out
of and incidental to his employment in the course of his em-
ployer's trade, business or occupation in the following hazard-
ous trades, business and occupations: (a) the operation, con-
struction, repair, removal, maintenance and demolition of * *
"oil, gas, sulphur, salt and other wells * *." See Hardin v.
Higgins Oil & Fuel Co., 147 La. 453; Pye v. Southwestern
Gas & E. Co., 147 La. 537; Brooks v. Peerless Oil Co., (In-
jury from being struck on head with tongs). S. R. Zagst v.
Co. v. Southern Surety Co., 148 La. 328 (injury in moving
derrick holding general way of moving derrick is to take
it down compensation allowed for injury in Texas owing to
the terms of the insurance contract. )
It was decided in the case of Woodworth v. Producers Oil
Company, 142 La., 368, that claims for damages both under
the general law and the Employer's Liability Act could be
cumulated in the alternative. But see Philps v. Guy Drilling
Co., 143 La. 951 and Norwood v. Lake Bistenean Oil Co., 145
La. 823. The claim was based upon an allegation of negli-
gence on the part of the defendant while using a defective
derrick and swivel, and placing machinery in charge of in-
experiencd men.
In the case of Ferringer v. Crowley Oil & Mineral Com-
pany, 122 La. 441 plaintiff sued for damage occasioned while
he was repairing a hot-water pipe, which was in bad condi-
tion, and into which the water was negligently turned, while
he was working, resulting in his being scalded, and the court
PERSONAL INJURIES DAMAGES 129
held the master liable on the theory that he cannot make the
work on which the servant is injured, more hazardous with-
out notice to the servant.
In the case of Fuchs et al, v. K. C. S. Ry. Company, 132 La.
782, and apprentice was sent into a tank car without being
properly warned. He carried an open flame for a light and
was burned to death when the gas in the car exploded, and
the Court held that it was negligence to send an inexperienced
person on work of this kind, and that a general warning was
not sufficient, but that he should have been warned particu-
larly as to the danger of this occupation.
In the case of Porter v. Rogers Oil & Gas Company, 139
La. 1050, damages were awarded under the following facts:
The defendants were deepening a well at 2000 feet, by drill-
ing by hand, the procedure being that several pair of tongs
each operated by one or two men were clamped on the pipe,
which was turned in this way. The teeth of some of the tongs
were worn off, several pair slipped off, but one pair on which
the teeth were good, stuck to the pipe and when the "strain"
on the pipe was released, the pipe revolved backward, carrying
the tongs with it and the tongs struck the defendant, resulting
in his death. The Court awarded damages and in speaking of
this method of drilling, said :
*Though perhaps not demanded by statutes, it (hand
drilling) is, from a moral point of view a criminal, trifling
with human life, in which apart from the moral and humane
aspect, the risk of loss by actions in damages is not compen-
sated by the saving in expenses."
In Haynes v. Fisher Oil Company, et al, 142 La. 890, plain-
tiff's son was killed by being struck by a broken hook which
separated while being hitched to a 4-inch drill stem pipe,
130 PERSONAL INJURIES DAMAGES
which was being pulled from the well, and the Court held the
defendant liable, stating that an employer is responsible for
injury where he attempts to use an apparatus that is gener-
ally recognized to be an insufficient size or strength to stand
the strain put upon it.
In the case of Iddle v. Hamler Oil & Tank Company, 138
La. 97, plaintiff was injured by falling from a scaffold while
working on a steel tank, and the Court held the defendant
guilty of negligence because of its failure to furnish enough
men, and its failure to furnish a safe place to work, and failure
to instruct and warn an inexperienced workman as to the dan-
ger of the work, and to instruct him in the use of the imple-
ment with which he worked.
In Murphy v. Standard Oil Co., of Louisiana, 140 La.
557, plaintiff's claim for damages was denied on the ground
that where an employee of an oil company adopts an unneces-
sary and admittedly dangerous method of throwing in the
clutch of the gas engine which runs the pump of the oil well,
the employer is not liable, if appearing that the employee was
throwing in the clutch with the aid of a long piece of pipe
which was knocked violently against his head which resulted
in his injury.
And in the case of Wiggins v. Standard Oil Co., La. 141,
532, where the plaintiff was injured "while knocking down'*
pipe, or unscrewing or separating pipe taken from well, the
plaintiff's claim for damage was refused on the ground that
While an employer is negligent in failing to furnish safe tools
for the employee to work with, this doctrine has no applica-
tion where a simple tool like a hammer has no other defect
than being too heavy.
In Allen v. Atlas Oil Company, 140 La. 184, it was held
INSPECTION EXPLOSIVES 131
that where a pumper on a well for his own use installs a bath
tub in the engine room and members of the family use it and
one of them is injured as a consequence of falling into the
machinery, the employer is not liable to such third person
who is at most a mere licensee.
In Alexander v. Standard Oil Co., of La. 140 La. 54, the
court held the defedant liable for injury to a boy of 14 years
who was injured while stepping from a platform on top of a
tank to another platform to procure a pail of rivets for his
work, and the court held further that under Act 301 of 1908,
forbidding employment; of children under 14 years in any
occupations which are "unhealthful or dangerous," that em-
ployment in a refinery plant is a dangerous occupation under
the statutes, and that working on a 4-foot open unguarded
platform 26 feet from the ground is a dangerous occupation.
There are several cases relating to injuries from gas dis-
cussed under that head. See Cole v. Gas Company and Ford
v. Gas Company, 121 La. 771, Rohr v. Gas Light Company,
136 La. 546, Bradley v. Gas Company, 142 La. 49, Wolff v.
Gas Company, 138 La. 743.
Sec. 71. Inspection of oils, explosive oils, etc.
Act 199 of 1918 amends Act 37 of E. S. 1877 by providing:
That the Board of Health shall have control of the inspection
and gauging of coal oils and of all illuminating oils derived
wholly or in part from coal or petroleum, etc., and shall make
rules and regulations relative thereto.
The Board shall appoint guagers and inspectors throughout
the State.
That inspectors shall furnish an inspection certificate on
132 TAXATION
inspections made and charge a fee of 1-8 of 1 per cent per
gallon on all fluid inspected.
This act does not apply to oil destined for sale or consump-
tion out of the tSate and all such oil shall be branded for ex-
port.
The penalties are invoked by a civil suit, and the Board has
the right of injunction to prevent violations of the act.
In Reed v. Nelson, 133 La. 968, a groceryman was sued for
damages resulting from an explosion of oil sold by him which
consisted of "insurance oil" and gasoline. The Court reached
the conclusion that the facts did not support plaintiffs charges
and decided for defendant.
The case of City of Crowley v. Ellaworth, 113 La. 308, lays
down the rule that the storage of explosive oils is a matter
legitimately subject to the police power and their storage
within the city limits may be regulated or prohibited.
Sec. 72. Taxation Constitutional Provisions.
Article 230 of the Constitution of 1898 exempted from tax-
ation capital, etc., employed in "mining operations" and it
was held in Guffey v. Tax Collector, 127 La. 466, that this
exemption did not apply to oil operations; while in Etchison
Drilling Company v. Flournoy, 131 La. 442 it was held that
Act 196 of 1910 was unconstitutional because it attempted
to levy a license tax on production of oil which was a "mining
pursuit," and in Calcasieu Lumber Company v. Reid, 146 La.
77, this act was again declared unconstitutional. The consti-
tution, however, was amended by Act 154 of 1910, leaving
out this exemption and the constitutions of 1913 and 1921,
also omit it, and several acts have since been passed levying
license and severance taxes on oil production.
TAXATION 133
Art. 229 of the Constitution of 1898 (as amended) and
Constitution of 1913, provided for an annual license tax on
persons, etc., "engaged in the business of severing natural
products from the soil," and an attempt was made to collect
this tax from the land owners. But in State v. Stiles, 137 La.
540, it was held that Act 209 of 1912, being an act to carry
into effect Act 229 of the Constitution, did not authorize the
collection of the license tax from a land owner, not engaged
in severing the product and who only received a royalty from
the person actually producing the oil.
License or Severance Tax.
Act 31 of 1920 passed in accordance with Art. 229 of the
Constitution of 1913, provides for an annual license tax, pay-
able quarterly on oil and gas production, the license to operate
in each quarter to be based on the market value of the oil
severed in the preceeding quarter. The act provides for
sworn quarterly statements of the quantity and actual cash
value of oil produced, together with any further information
called for by the Supervisor of Public Accounts. The tax is
2 per cent of the gross value of total production in its unmanu-
factured state immediately after severance and shall be paid
to the Parish Tax Collector.
The tax is due by those actually engaged in the operation
of severing, whether owners of the soil, lessees or owners of
the oil and gas.
The supervisor of Public Accounts has authority to ex-
amine books and witnesses, etc., and may enforce same by
the process of the Courts.
The tax is in addition to all real estate and other property
taxes.
134 TAXATION
Penalties are prescribed for failure to pay the license.
A false oath in connection with any of the reports required
under this act shall be punishable as perjury, and the act pro-
vides for a fine for failure to make reports.
The act also requires all purchasers of oil to make quarter-
ly statements of the quantity and value and persons from
whom purchased.
The law repeals all others in conflict.
The cases of State v. Stiles, 137 La. 540 and Standard Oil
Co. v. Police Jury, 140 La. 42, discuss acts and provisions no
longer in effect.
Previous legislation on this subject was embraced in Act
196 of 1910, 209 of 1912, 296 of 1914, 10 of 1916 and 145 of
1916, 20 of S. S. 1918, 82 of 1918, etc.
The Constitution of 1921 provides for a severance tax to
be paid proportionally by the owners of natural resources and
forbids further taxes on same.
Property Tax.
In the case of De Moss v. Sample et al, 143 La. 243, it was
said by way of obiter that in Louisiana, while it has been the
custom to tax real estate as a unit, that the different elements
of the land are capable of being severed and separatly taxed.
In Marston v. Elliott, Sheriff, et al, 138 La. 574, it was
stated that in making an assessment the whole value of the
land shall be placed together on the tax rolls, oil, agriculture
and all other purposes instead of assessing the agricultural
value in one place and the oil in another.
In Palmer Co., Inc., et al v. Police Jury of Red River Parish
et al, 142 La. 1076, it was held that where to the agriculture
TAXATION 135
value of land, the oil value is added, it does not constitute a
separate assessment of the mineral oil ; and the property owner
who fails to render a return of the oil value of his land cannot
complain over the action of the board of reviewers in respect
to its assessment. (In that case, the method of assessment
employed by the Sheriff was to ascertain from the Conserva-
tion Commission the quantity of oil produced and take that as
a basis for his calculations in adding the oil value to the agri-
cultural value. His method it appears was to add 60 cents
value for each barrel of oil produced during the first quarter
of the year, and no objection was made to this method. In
the same case, the license tax act 296 of 1914, based on Act
229 of the Constitution of 1913, was upheld.)
The Constitution of 1921 also forbids adding the value of
of! and gas to the assessment of lands, but leaves in effect all
existing laws until the legislature acts.
In Hayne et al v. Assessor et al, 143 La. 697, some interest-
ing questions were raised relative to the assessment of min-
erals, but the case went off on another point.
Act 276 of 1908, amending 127 of 1898, as amended by 19
of 1900, provides:
"That all***Corporations, etc.,***chartere or created by
the laws of other States or foreign countries who may engage
in their own name or in the name of their representatives or
agents in this state in the sale of coal oil, petroleum, naphtha,
benzine, turpentine, or other mineral oil, whether crude or re-
fined, shall pay an annual license of seven dollars for each one
thousand dollars of such sales.
And in the City of Shreveport v. Pierce Oil Corp., 141 La.
372, it was held that :
136 GAS
A corporation (whether foreign or local) selling at whole-
sale and retail the various products of crude and refined oil
is liable for license tax of the city of Shreveport (and other
cities).
Corporation taxes are referred to elsewhere. Also Act 9
of E. S. 1917, subjecting rolling stock (including tank cars)
to a tax, which latter act was passed upon in Constantine Re-
fining Co. v. Day, 147 La. 623; Same v. Aicand, 147 La. 634.
That there is only one firm in the State engaged in the
production of sulphur, does not render a severance tax invalid
(Act 145 of 1916) Vinton Sulphur Co. v. Reed, 249 Fed. 172.
By the Constitution of 1921, gas pipe lines, etc., constructed
after the adoption of the Constitution and prior to January 1,
1926, supplying natural gas for fuel and light purposes to
cities and towns not already supplied with natural gas are ex-
empted from taxation for ten years.
By Act 81 of 1921 a license tax of one cent a gallon is levied
on all gasoline or motor fuel sold in the state, to be paid by
the producers, refineries, importers and dealers. See Appen-
dix.
Act 231 of 1921 provides for inspection and supervision fees
to be paid by all common carriers and all public utilities under
the supervision of the Louisiana Public Service Commission.
The minimum is $80.00 and maximum $500.00, and the
amount is based upon the gross receipts in excess of $5,000.00.
Sec. 73. Gas Rights and Liabilities connection
with use and production.
There is nothing intrinsicly dangerous in constructing a
gas pipe line. Cole v. La. Gas Co. and Ford v. Same, 121 La.
GAS 137
771. These cases involved the following facts: A piece of
pipe was being taken from a line and another piece substi-
tuted. It was necessary to heat and bend the pipe. A fire
was built for that purpose and workmen were sent in each
direction to shut off the gas, but when the section was re-
moved the gas was ignited by the fire and a workman was
burned to death. While the Court intimated that the pres-
ence of the fire constituted negligence, the case merely de-
cided that an independent contractor who was in charge of the
work would be the person responsible and not the company
employing the contractor.
A gas company is responsible for the condition of the sup-
ply pipe to the meter, and the property owner is responsible
for the pipe from the meter to the house, and where gas form
such pipe leaks and explodes, injuring a passerby, the com-
pany and consumer are liable in solido for damages. Wolff
v. Shreveport Gas E. Lt. & Pr. Co., 138 La. 743.
Conceding, however, that the service pipe belongs to the
owner of the house, and the gas company should not be held
responsible for a severance of the pipe without its knowledge,
the gas turned into the pipe belongs to the company and when
the gas turned into the pipe does not go through the meter it
is as much the duty of the company to cut off the gas until it
can find where it is going as it is the duty of the owner of
a wild animal to search for it when it escapes, although the
advantage is with the gas company, which need only turn
off a cook to arrest the escape of the dangerous agency. And
it is not contributory negligence for one who hears a noise
like leaking water to go under his house to investigate and
light a match, where escaping gas is odorless, the Court taking
notice of the odorless character of natural gas from the Caddo
field. Hahn v. Southwestern Gas Co., 145 La. 212.
138 GAS
In Bradley v. Shreveport Gas E. Lt. & Pr. Co et al, 142 La.
49. the Court held that :
"It was negligence for a gas company to open an outlet in
a gas pipe to allow the gas pressure to blow out the obstruc-
tions in the pipe and thereby liberate in a partly closed shed
highly combustible and explosive gas when mixed with air
unless this was unavoidably necessary and was accompanied
by every reasonable precaution for guarding against the dan-
ger thus created.
"That this was not unavoidably necessary was conclusively
shown by the fact that the gas company could have installed
and shortly after the explosion did install an apparatus of
which it knew, and which it had not installed sooner merely
to save expenses, and by testimony that a pipe could have been
adapted to the outlet for conducting the gas out of the shed
to be harmlessly diffused in the open air."
"In an action for death caused by explosion of gas which
defendant's workman was allowing to escape from a gas pipe,
plaintiff was not required to show how the gas became
ignited."
"The liberation of a large quantity of natural gas, which
was highly combumstible or explosive when mixed with air,
in a partly closed shed without taking any precautions against
its becoming ignited, was negligence and one of the concurrent
and co-operating causes of an inquiry caused by an explosion,
and rendered the gas company liable no matter how the igni-
tion was brought about, unless the injured person was himself
responsible therefor and contributed by his negligence to the
ignition.
"The burden was upon the gas company to show that the
injured person by his negligence contributed to the ignition of
the gas."
See also Rohr v. New Orleans Gaslight Co., 136 La. 546.
There rests upon the owner of a natural gas pipe line pass-
ing through a place used as a public highway in an inhabited
GAS 139
place, the obligation to exercise vigilance commensurate with
the danger and of a character to protect the public in person
and property from injury and destruction; and where a leak
has existed for five months and escaping gas could be heard
and was ignited and the owner of the line did not hear of the
leak until after a child was injured, the inspection of the line
was perfunctory and inefficient, and such owner was negli-
gent in not discovering the leak sooner and was liable to the
same extent as if the leak had been discovered and not stop-
ped; and where, under such conditions, young children are
attracted by the gas and ignite it and are burned, the proxi-
mate cause is the negligence of the gas company which is liable
in damages. Jackson v. Texas Co., 143 La. 21.
Taxpayers have no standing in court to contest an ordi-
nance of the city council granting a right to a gas company
to lay pipes, etc., on the ground that it violates the vested
rights of another company that has been granted a franchise
and in which they have no interest. There must be an actual
and real injury to the property owners property rights before
they have an interest. Morris v. Municipal Gas Co., 121 La.
1916.
The supply of gas to consumers generally being a business
of a public nature, it is competent for the legislature, subject
to constitutional restrictions, to grant the use of streets and
public highways for this purpose. New Orleans Gas Light
Co. v. La. Light, etc. Co., 115 U. S. 650, 6 S. Ct. 252, 19 L.
Ed. 516.
A company which is granted authority to lay mains and
pipes in the streets without any particular streets or particular
parts of streets being designated does not thereby acquire any
vested right to occupy any particular part of the streets, but
takes the risk of location and may be requiired to make such
140 GAS
changes as public convenience or security requires, and this
as its own expense. New Orleans Gas Light Co. v. New
Orleans Drainage Comn., Ill La. 838,35 So. 929. It has a
property right however in its pipes, etc., in the streets.
Act 94 of 1921, gives municipalities of over 100.000 popula-
tion the right to grant indeterminate permits to use the streets
for gas mains, ets., under certain conditions.
A gas company, in return for the right of laying its mains
and pipes in public streets, assumes the duty to furnish gas
to all persons who have made the necessary arrangements to
receive it and applied therefor, and who pay or offer to pay
the price and abide by all the reasonable rules and regulations
of the company. State v. New Orleans Gas Light Co., 108
La. 67, 32 So. 179; New Orleans Gas Co. v. Paulding, 12 Rob.
388.
A gas company has no right to require the owner or occu-
pant of a building to pay arrearages due by former owner or
occupant, as a condition to a further supply of gas. New
Orleans Gas Co. v. Paulding, 12 Rob. 378.
And an agreement to pay arrearages of a predicessor, under
threats, is invalid. N. O. Gas Light Co. v. Paulding, 12 Rob.
378.
A city ordinance, which is the contract between the gas
company and the city, fixing the terms upon which the cor-
poration shall supply the citizens, will be enforced by the
courts in favor of the inhabitants of the city, and where such
an ordinance classifies the different kinds of consumers as
"domestic," "manufacturers" and "public institutions," the
courts will decide in which classification a consumer falls.
Henderson v. Shreveport Gas, E. Lt. & Pr. Co., 134 La. 39.
CORPORATIONS 141
A gas company cannot exercise judicial powers and decide
claims in its own favor. State v. N. O. Lighting Co., 2. Or.
Ap. 269. It may exercise reasonable regulations, but must
regard the rights of others and cannot cut off the gas supply
because of alleged damage to meter not shown to be through
the fault of the customer because of his refusal to pay for
same.
Manufacturers of artificial gas were held not liable for
license under Act 171 of 1898. State v. N. O. Lighting Co.,
118 La. 440.
Act No. 259 of 1916 amends and re-enacts Act 100 of 1898,
so as to authorize gas companies to consolidate with other
companies by sale or lease, and to issue bonds, etc.
Act 37 of E. S. of 1917 makes it a felony to- damage, injure
or render unavailable, or attempt to do so, any gas plant, or
to interfere with the transportation of the product thereof.
\Yhile Act 208 of 1916 and Act 63 of 1921 makes it a mis-
demeanor to divert gas from pipes, mains, etc., or to break or
alter any gas meter. Act 154 of 1918 makes it a misdemean-
or to steal or remove maliciously any gas fixture from any
dwelling or building, and the possession of any fixture so re-
moved shall be prima facie evidence of a violation of the act.
Sec. 74. Corporations.
Oil companies in Louisiana are organized under the general
corporation law (Act 267 of 1914), a summary of which fol-
lows :
Corporations are formed by three or more natural persons,
but where there are only three, two of such number cannot
be husband and wife.
142 CORPORATIONS
A charter or articles of Incorporation must be prepared,
which must contain: The name of the corporation (which
cannot be similar to any other in the state, and which must
be followed by the word "Incorporated," or the abbreviation,
"Inc."); the purposes for which formed; the amount of the
capital stock and kind of stock ; the amount to which the capi-
tal may be increased; the number of shares and par value;
the location of the domicile, which must be within the State;
the period of duration; the number of directors (which shall
be not less than three) and their addresses; the names and
addresses of subscribers and a description of all property and
services given for stock.
The charter is executed before a Notary Public and pub-
lished for thirty days and it is recorded in the Parish. A cer-
tified copy is sent to the Secretary of State who issues a cer-
tificate of Incorporation taking effect from the date of the
charter, which certificate, or a certified copy, is prima facie
evidence of the legal creation and existence of the corpora-
tion.
The capital stock, cannot be less than $5,000.00, and 50 per
cent of the capital stock must be subscribed at the time of in-
corporation and 50 per cent of all stock subscribed must be ac-
tually paid in before the corporation commences business and
the remainder within twelve months under penalty of dissolu-
tion. Until all subscriptions are paid the corporation shall
not incur obligations greater than the amount paid and there-
after shall not incur unsecured liabilities greater than twice
the amount of its fully paid up capital and surplus. Until all
stock is subscribed and paid for, the corporation is obliged to
make semi-annual sworn reports to the Secretary of State
showing the amount subscribed.
CORPORATIONS 143
Where property or good will is given for stock, an itemized
description must be attached to the charter with an appraisal
of the Directors. If given after incorporation, such statement
and appraisal shall be filed with the Clerk of Court and Sec-
retary of State. The right to contest excessive values so placed
on property prescribes in five years. And no stock or bonds
shall be issued except for labor done on property or money
actually received, and fictitious issues of stock are void and
the corporation liable for forfeiture of its charter.
Different classes of stock may be issued with different
privileges, restrictions and voting power.
By written consent, directors meetings may be held out of
the State and at other places than the domicile of the corpora-
tion.
Corporations may hold stock in other Corporations, but one
Corporation cannot vote more than 10 per cent of the stock
of another Corporation.
Stockholders are not liable for the debts or faults of the
Corporation for more than the unpaid balance due on stock,
but Directors are personally liable for certain illegal acts and
omissions.
The Courts have jurisdiction over the acts of the offices
of the Corporations to compel them to conduct conscientious-
ly the affairs of the corporation in certain cases where they
fail to account for funds, to suspend officers who abuse their
trust, to regulate salaries and compensation in certain in-
stances, to remove officers for gross misconduct, to direct
elections to supply vacancies of officers removed, to prevent
fraudulent alienations, and certain creditors and stockholders
may also invoke there remedies.
144 CORPORATIONS
Amendments of charter and liquidation of Corporations is
provided for in the statute.
Annual reports must be made to the Secretary of State rela-
tive to the amount of stock, names and addresses of officers,
etc. And corporations operating public utilities, except those
reporting to the Railroad Commission, shall also furnish
additional information. (See State ex rel. Atty. General v.
Vivian Gas Oil & Pipe Line Co., 147 La. 701.)
An incorporation tax of 1-20 of 1 per cent (minimum
$10.00), is levied on new corporations.
Foreign corporations are given the same rights, powers
and privileges as domestic corporations upon filing with the
secretary of State copies of articles of Incorporation and Cer-
tificate of Incorporation and subsequent amendments thereto,
and all corporations that establish an office or appoint a resi-
dent agent in Louisiana without so qualifying shall be guilty
of a misdemeanor.
The manner of service of legal process on local and foreign
corporations is fully provided by statute.
Transfers of stock, etc., are fully covered by a uniform
stock transfer Act (No. 180 of 1910.) See Crichton v. La.
Oil Ref. Co., 144 La. 649.
In Van Vleet v. Evangeline Oil Co., 129 La. 406, it was
said that where oil wells represent part of the capital stock
of a corporation and produce oil, the proceeds may be dis-
tributed as dividends without having to set aside funds to re-
place the production, but where a stock of oil already pro-
duced is part of the capital, the proceeds of its sale should
not be used as dividends, and the case discusses the general
principles relative to payment of dividends.
CORPORATIONS 145
Prior to the passage of Act 267 of 1914, oil and pipe line
companies were incorporated under Revised Statutes 683, as
amended by Act 154 of 1902, but the general corporation act
repealed these statutes.
In Crucel v. Houssiere-Latreille, 122 La. 913, the principle
of ratification of the acts of corporation agents are discussed.
A transaction by which one who was treasurer and field
manager of an oil corporation charged with looking after its
affairs of such character, received $8,000.00 worth of bonds
from the corporation for property, which shortly prior to the
sale to the Corporation, he had acquired for only $200.00, was
fraudulent. Parks v. Hughes, 145 La. 221.
Keimer v. Southwestern Oil Co., 113 La. 80 involves the
right of oil company to discharge employes for disobedience.
Where an oil company has drilled some wells and has mere-
ly closed operations temporarily, the property cannot be said
to be "abandoned" so as to justify a receivership. Wilkins
et al. v. Penn. La. Oil & Gas Co., Inc., 149 La.
There are many other cases wherein oil companies were
parties, which pass upon various phases of corporate practice
and which it would serve no useful purpose to review. We list
however, some of the most important : Receiverships : Van-
Vleet v. Angeline Oil Co., 127 La. 919; 133 La. 72; Oil City
Iron Wks. v. Pelican Oil Co., 115 La. 265; Winterhaler v.
Hoffmamn, 119 La. 125; S. M. Jones Co. v. Home Oil &
Dev. Co., 124 La. 148; Receivership of Cotton Queen Oil
Co. 143 La. 2 (shares should not be issues at less than par.}
Stock Transaction: Vinton Oil & Sulphur Co., v. Park, 115
La. 800. Cooper v. Jennings Refining Co., i!8 La. 181;
Smith v. Shippers Oil Co., 120 La. 640; S. M. Jones Co. v.
Hoffman et al, 114 La. 996; Webster v. Harnon, 148 La.
1080; Atkins v. Garnett, 270 Fed 942. Officers and Agents;
Hutter v. Indian Oil Ref. Co. 134 La. 578; Crusel v. Hous-
siere-Latrellis Oil Co., 122 La. 913. Stipulation pour auturi;
146 BLUE SKY LAW
Miller et al. v. Crusel, 135 La. 649. Guaranty of accounts
Continental Supply Co. v. Tucker Rose Oil Co., 146 La. 871.
Building leases: Dreyfus v. Process Oil Co., 142 La. 564;
Richardson v. Liberty Oil Co., 143 La. 130.
Sec. 75. Blue Sky Law.
Act 177 of 1920, known as the "Blue Sky Law," is de-
signed to prevent fraud in the sale of stocks and bonds. It
creates a "Securities Commission."
It provides that every person, corporation, partnership,
etc., organized in the State or any other State, which shall
engage in the business of selling or negotiating for the sale
of any stocks or bonds, or securities in Louisiana, by adver-
tising the same or otherwise, shall be deemed a "dealer" and
shall register with the Commission giving name and address,
character of the securities and places where business will be
conducted and names and addresses of agents. Such dealers
shall pay an annual $25.00 license fee. All agents are re-
quired to register and obtain a license and pay a fee.
Before any stock can be sold or offered, the dealer shall
file with the Commission a sworn statement showing: A de-
scription and amount of securities offered for sale ; a certified
copy of charter and by-laws; or certified copy of agreement
of partnership, trust, etc., names and addresses and occupa-
tions of the officers for a period of ten years ; a description of
the industry to be engaged in and when it will be established ;
an inventory and appraisement of assets; statement of gross
income and expenses; copy of mortgage, etc., securing the
securities; copy of form of security to be issued; copy of bal-
ance sheet; copy of subscription blanks, statement showing
manner in which securities are to be offered and sold, etc.
A filing fee of 1-10 of 1 per cent of the face value of the
TRUSTS 147
securities is required, with a minimum of $25.00 and maxi-
mum of $200.00.
The Commission may inspect books and interrogate wit-
nesses.
Approval of securities is shown by a permit or license and
an appeal to the Courts may be had.
Penalties are provided for failure to comply with the pro-
visions of the Act, for false statements in connection with the
sale of securities, for false statements made to the Commis-
sion, etc.
Foreign companies are also required to file an irrevocable
written consent to be sued in this state.
Sec. 76. Trusts.
Common law trusts are unknown in Louisiana. Gates v.
Renfroe, 7 A. 769; Partee v. Succession of Hill; 12 A. 767.
And they were intended to be prohibited by the provisions of
the Civil Code against fidei commissa. Partee v. Succession
of Hill, 12 A. 767; Perrin v. McMicken's Heirs, 15 A. 154;
Marks v. Lowenburg, 143 La. 196.
And there is no adequate statutory provision under which
thev could be interpreted, and due to the constitution inhibi-
tion against the adoption of foreign systems of law, the courts
could not indirectly engraft the whole common law of trusts
into the Louisiana law. Succession of Franklin, 7 A. 395.
There seems, however, to be nothing against a naked trust
where property is placed in the name of another, merly to
be held. Malone v. Barker, 2 Rob. 369; Caldwell v. Hennen,
5 Rob. 20; Hope v. State Bank, 4 A 213; Succession of Coch-
rane, 29 A. 232.
148 PARTNERSHIPS
An agreement designating a party as "trustee" to hold cer-
tain oil property during a suit was construed in Rains v. Dun-
son (In re Bernstein), 145 La. 1011, as a conventional se-
questration, and the provisions of the Civil Code were applied
in interpreting it.
Until the Legislature acts on this subject, the benefits flow-
ing from the creation of trusts must be foregone, or some
other form of legal association resorted to.
See Act 72 of 1918 relative to donations for charitable
purposes and Act 107 of 1920 relative to trustees for dona-
tions mortis causa and inter vivos.
Sec. 77. Partnerships.
Partnerships entered into for the purpose of engaging in
the oil and gas business are subject only to the general laws
relating to partnerships.
Hamman v. Emerson et al, 135 La. 629, was a suit to dis-
solve a partnership and to have the defendant's interest in a
corporation declared to be the property of the partnership.
The plaintiff and defendant had an agreement whereby the
plaintiff furnished the defendant money for expenses in buy-
ing leases which they owned in indivision and defendant
agreed to devote all of his time to the business. The Court
held on the facts submitted that the partnership had been ter-
minated, and that defendant was not prevented from joining
a corporation where it took no part of his time and did not
interfere with the partnership business.
Partners in oil development are subject to an accounting.
Crusel v. Brooks, 133 La. 477.
Where parties acquire oil and gas leases in common and
there is no agreement to hold the same in indivision for any
duration, neither is precluded from an action for partition.
Connett v. Wright, 149 La
STATUTES CANCELLATION OF LEASES 149
APPENDIX "A"
Statutes, etc.
Cancellation of Leases.
ACT No. 168 of 1920.
House Bill No. 70. By Mr. Wilkinson.
AN ACT.
To require lessees under optional oil and gas leases to fur-
nish to their lessors cancellation of such leases at the termina-
tion of any of the options therein provided, to grant to lessors
in case of failure therein a right of action against such lessees,
and to provide penalties for violation of this act.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, that whenever, by reason of the termina-
tion of the full period within which an optional oil and gas
lease may be kept alive by the payment of rentals, or at the
termination of any of the options in such lease by reason of
failure on the part of the lessee to comply with the condition
therein for the prevention of forfeiture, such lease shall lapse,
the lessee shall within ten days after written demand on the
part of the lessor furnish the lessor with an instrument, duly
acknowledged, directing the cancellation of such lease on the
records.
Section 2. Be it further enacted, etc., That if any lessee,
having been given written notice demanding cancellation of
such lease, shall fail or refuse to supply the same within ten
days he shall be liable to lessor for a reasonable attorney's
150 STATUTES PROCEDURE
fees incurred by the lessor in bringing suit to have such for-
feiture or cancellation adjudged, and in addition thereto shall
be liable to the lessor for all damages suffered by the lessor
by reason of his inability to make any lease on account of the
first lease not having been cancelled.
R. F. WALKER,
Speaker of the House of Representatives.
HEWITT BOUANCHAUD,
Lieutenant Governor and President of the Senate.
Approved: July 8, 1920.
JNO. M. PARKER,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
Procedure in Oil and Gas Cases.
ACT No. 60 of 1920.
House Bill 92. By Mr. Tanner.
AN ACT.
Providing for the summary trial of suits at law in which
the title to mineral lands, or oil, gas and mineral leases, is
in controversy; provided that plaintiff, on giving bond with
proper security to indemnify defendant for any loss which
might be occasioned him on account of such suit, may have
said suit placed on ordinary docket of court in which said suit
is pending; providing for continuances, and giving appeals
from judgment of trial courts in such suits preference in the
appellate courts.
Section 1. Be it enacted by the General Assembly of the
STATUTES PROCEDURE 151
State of Louisiana that whenever a suit is filed in which the
title to or possession of mineral lands, or oil, gas or mineral
leases, is questioned, the defendant shall have the right to
demand a summary trial of the said cause provided that on
such demand being made by the defendant the plaintiff may
have said cause retained, on the ordinary docket of the court
having jurisdiction thereof, by giving bond sufficient to in-
demnify the Defendant against any loss resulting from said
suit in the event same is decided adversely to plaintiff.
Section 2. Be it further enacted, etc., That on or before ten
days after the date of filing of said suit, defendant shall file
his answer to plaintiff's demand, and after the answer is filed,
or as a part thereof, defendant may file a motion for a sum-
mary trial of said cause. Upon the filing of said motion, the
judge shall sign an order fixing the case for trial by prefer-
ence in not less than five days, nor more than ten days, from
date of such filing.
Section 3. Be it further enacted, etc., That should plaintiff
show a legal cause for delay of such trial, only one continu-
ance shall be granted, and that for not more than ten days.
Section 4. Be it further enacted, etc., That 48 hours or
more before the cause is called for trial, plaintiff may place
said cause back in the category of ordinary causes, and not
subject to any preference or priority by giving bond with good
and sufficient security in an amount sufficient to indemnify
the defendant or defendants, against any loss which might
result in the event said suit is decided adversely to plaintiff,
which said bond shall be fixed by the court after a summary
hearing on a rule filed by plaintiff and served on defendant.
That, in fixing the amount of such bond, the court shall
consider all the circumstances that may affect the particular
152 STATUTES PROCEDURE
property, on business in contestation, including probable loss
arising from the unsalability of the property at time of final
judgment, the stopping of development, the hindering or re-
tarding of development, refusal of the purchaser to pay fur
the product until the title is settled, the requirements of the
lease as to development, or any loss of whatsoever nature
which may be caused by the filing of said suit.
That upon fixing the amount of such bond, the plaintift
shall, within twenty-four hours thereafter file his bond, with
full, valid and sufficient security and approved by the court,
in favor of the Clerk of Court, and the conditions of such
obligation shall be to well and fully pay the defendant any and
all damages he may sustain, by reason of the filing of said
suit, together with all costs of court in the event the court
should decide the case contrary to the demands of the plain-
tiff.
Should the plaintiff fail to file such bond, the court, shall,
upon motion of defendant, render judgment in favor of the
defendant and rejecting plaintiff's demands in toto.
Section 5. Be it further enacted, etc., That should either
party appeal a case so fixed for summary trial, said cause
shall be a preference suit in the appellate court and shall be
fixed and set for argument in said appellate court for a date
not more than thirty days from the date of the filing of the
transcript in said cause.
Section 6. Be it further enacted, etc., That should the
court be in vacation at the time of filing said suit, the cause
shall be fixed for trial in first instance on the first day of the
next term of court.
Section 7. Be it further enacted, etc., That all laws or parts
STATUTES SEVERANCE TAX 153
of laws in conflict herewith be, and the same are, hereby re-
pealed.
R. F. WALKER,
Speaker of the House of Representatives.
HEWITT BOUANCHAUD,
Lieutenant Governor and President of the Senate.
Approved: July 6, 1920.
JNO. M. PARKER,
Governor of the State of Louisiana.
A true copy:
JAMES J. BAILEY,
Secretary of State.
Severance Tax.
ACT No. 31 of 1920.
House Bill No. 223, Substituted for House Bill No. 119.
By Mr. Dreyfous.
AN ACT.
To carry into effect Article 229 of the Constitution of 1898
as amended at the election in November, 1910, and as repeated
in the Constitution of 1913, by levying a license tax upon all
persons, firms, corporations, or association of persons en-
gaged in the business of severing natural resources from the
soil or water; including all forms of timber, turpentine and
other forest products ; minerals, such as oil, gas, sulphur, salt,
coal and ores ; also marble, stone, gravel, sand, shells and other
natural deposits ; and prescribing the method of collecting and
enforcing the payment of such license tax ; requiring all tliose
engaged in the severance of, and dealing in, such natural re-
154
sources to make such reports of their business as may be nec-
essary for the proper enforcement of this act ; to provide pen-
alties ; and to repeal certain laws and all laws in conflict here-
with.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That there is hereby levied a license tax
for the year 1920 and for each subsequent year upon each per-
son engaged in the business of severing natural resources
from the soil or water ; including all forms of timber, turpen-
tine and other forest products ; minerals, such as oil, gas, sul-
phur, salt, coal and ores; also marble, stone, gravel, sand,
shells and other natural deposits. Said license taxes shall be
collected quarterly by the tax collectors as hereinafter set
forth and paid into a special fund which is hereby created to
be known as the Severance License Tax Fund of the State of
Louisiana. The license to operate in each quarter shall be
based on the market value of the quantity severed in the last
preceding quarter-annual period.
Section 2. Be it further enacted, etc., That every such per-
son, firm, corporation or association of persons engaged with-
in the State in the business of severing any or all such natural
resources from the soil or water shall, within thirty (30) days
after the expiration of each quarter-annual period expiring,
respectively, on the last day of June, September, December
and March of each year, file with the Supervisor of Public
Accounts a statement under oath, on forms prescribed by him,
of the business conducted by such persons, firm, corporation
or association of persons during the last preceding quarter-
annual period, showing the kind of natural resources so sev-
ered or produced, the gross quantity and actual cash value
thereof, and such other reasonable and necessary information
pertaining thereto as the Supervisor of Public Accounts may
STATUTES SEVERANCE TAX 155
require for the proper enforcement of the provisions of this
act. There shall also be shown on such quarterly reports the
location of each such natural resource and the place or places
where produced or severed from the soil or water. At the
time of rendering such quarter-annual report each such per-
son, firm, corporation or association of persons shall concur-
rently file a duplicate thereof with, and pay to, the tax collec-
tor of the parish where said natural resource is taken or sev-
ered from the soil or water a license tax equal to two per
centum (2%) of the gross value of the total production there-
of during the preceding three months; and the value of all
such products shall be computed as of the time when, and at
the place where, each such product or natural resource is
severed or taken from the soil or water. For the purpose of
this act the market value of all such products or natural re-
sources shall be computed in their unmanufactured state im-
mediately after severance fromj the soil or water.
The making of said reports, and the payment of said license
taxes, shall be by those actually engaged in the operation of
severing, whether it be the owner of the soil, or a lessee who
is severing from the soil of another or the owner of any such
natural resource severing from the soil of another.
Section 3. Be it further enacted, etc., That the Supervisor
of Public Accounts shall have the power to require any such
person, firm, corporation or association of persons engaged
in severing all such natural products from the soil or water
to furnish any additional information by him deemed to be
necessary for the purpose of commuting the amount of said
license tax: and for said purpose to examine books, persons;
and to that end shall have power to examine witnesses, and
if any such witness shall fail or refuse to appear at the request
of the Supervisor of Public Accounts, or refuse access to
156 STATUTES SEVERANCE TAX
books, records and files, said Supervisor of Public Accounts
shall certify the facts and the name of the witness so failing
and refusing to appear, or refusing access to books and
papers, to the District Court of the State having jurisdiction
of the party; and said court shall thereupon issue a summons
to the said party to appear before the said Supervisor, or his
assistant, at a place designated within the jurisdiction of the
court, on a day fixed, to be continued as occasion may require,
and give such evidence, and open for inspection such books
and papers ,as may be required, for the purpose of ascertain-
ing whether or not any return so made is the true and correct
return as herein required ; and whenever it shall appear to the
Supervisor that any such person, firm, corporation or asso-
ciation of persons engaged in severing such natural products
from the soil or water has unlawfully made an untrue or in-
correct return, as herein provided, said Supervisor shall cor-
rect the return and shall compute said license tax on same,
and certify the same to the tax collector for collection.
Section 4. Be it further enacted, etc., That the license tax
provided by this act shall become delinquent after the date
fixed for each quarter-annual report to be filed in the office
of the Supervisor of Public Accounts, and from such time
shall, as a penalty for such delinquency, be subject to similar
penalties to those provided in the general license laws of this
State; and the payment of the license tax levied by this act
shall be in addition to, and shall not affect the liability of the
parties so taxed for, the payment of all state, parochial, muni-
cipal, district and special taxes upon their real estate and other
corporal property; but no other tax in addition hereto shall
be imposed upon the rights to produce in this State those
things whose production is subject to a license tax by the
provisions of this act.
STATUTES SEVERANCE TAX 157
Section 5. Be it further enacted, etc., That if any person
firm, corporation or association of persons shall fail to make
a report of the gross production and value of its natural prod-
ucts (upon which the license tax is herein levied) within the
time prescribed by law for such report, it shall be the duty of
the Supervisor of Public Accounts to examine the books, rec-
ords ,and files of any such person, firm, corporation or asso-
ciation of persons to ascertain the amount and value of such
production and to compute the tax thereon as provided herein,
and according to the procedure hereinbefore provided, where
witnesses, refuse to testify, or access to books and papers is
refused, and shall add thereto the cost of such examination,
together with any penalties accruing thereon.
Section 6. Be it further enacted, etc., That when any
license tax provided for in this act shall become delinquent,
the Supervisor of Public Accounts shall issue an order directed
to the Sheriff of any parish wherein the same or any part
thereof accrued, and the sheriff to whom said order shall be
directed shall proceed against the property, assets, and effects
of the person, firm, corporation or association of persons
against whom said license tax is assessed in the same manner
as he is authorized by the general license laws to proceed in
the collection of delinquent licenses, collecting penalties as
prescribed by general laws.
Section 7. Be it further enacted, etc., That any person who
shall intentionally make any false oath to any report required
by the provisions of this act shall be deemed guilty of perjury
and shall be subject to all penalties prescribed for said crime.
Section 8. Be it further enacted, etc., That it is hereby
made the duty of the Supervisor of Public Accounts to super-
vise and enforce the collection of all license taxes that may be
due under the provisions of this act ; and, to that end, the said
158 STATUTES SEVERANCE TAX
Supervisor is hereby vested with all of the power and author-
ity conferred by this act.
Section 9. Be it further enacted, etc., That it is hereby
made the duty of all purchasers and others dealing in any
natural products severed from the soil or water of Louisiana
to file quarterly with the said Supervisor of Public Accounts
a statement, under oath, showing the names and addresses
of all persons, firms, corporations or associations of persons
from whom each said purchaser or dealer has purchased any
natural product severed from the soil or water of Louisiana
during said quarter; together with the total quantity of, and
gross value paid for, each such natural product. Said reports
shall be filed within thirty (30) days after the expiration of
each quarter, and shall be made on such forms as may be pre-
scribed by said Supervisor of Public Accounts. The failure
of any person, firm, corporation or association of persons to
make reports as herein provided shall be punished by fine of
not less than fifty dollars ($50.00) nor more than five hun-
dred dollars ($500.00) for each such offense.
Section 10. Be it further enacted, etc., That Act No. 296
of 1914 and all laws or parts of laws in conflict with the pro-
visions of the present Act, and especially Act No. 20 of the
Extra Session of 1918, be and the same are hereby repealed;
provided, however, that nothing contained in this act shall
in any wise be construed to impair, or deprive the State of,
whatever rights it may have against parties subject to a license
tax under said Act No. 20 of the Extra Session of 1918 and
other laws; and all rights, interests and titles of the State to
any license taxes that may be legally due under said Act No.
20 of the Extra Session of 1918 and other laws are hereby
specially reserved, whether the same be in litigation or not;
it being the true intent and purpose of the present act that
STATUTES SEVERANCE TAX 159
said Act No. 20 of the Extra Session of 1918 and other laws
shall remain in full force and effect until such license taxes
shall become due under this present act; and no obligation
that may be due the State for license taxes under said Act No.
20 of the Extra Session of 1918, and other laws prior to the
date when this present act shall go into effect shall in any man-
ner be impaired; provided further that all funds collected
under this act and said prior tax laws shall be turned into the
Severance License Tax Fund of the State of Louisiana.
Section 11. Be it further enacted, etc., That this act shall
take effect from and after July 1, 1920; and the first quarter-
ly report thereunder, and license tax payable on the value of
the production shown thereby, shall be computed on the opera-
tions of the preceding three months ending June 30, 1920.
Section 12. Be it further enacted, etc., That if any clause,
sentence, paragraph, or part of this act, shall for any reason be
adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect, impair or invalidate the re-
mainder of this act; but shall be confined in its operation to
the clause, sentence, paragraph, or any part thereof, directly
involved in the controversy in which such judgment has been
rendered.
R. F. WALKER,
Speaker of the House of Representatives.
HEWITT BOUANCHAUD,
Lieutenant Governor and President o fthe Senate.
Approved: June 30, 1920.
JNO. M. PARKER,
Governor of the State of Louisiana.
Atrue copy:
JAMES J. BAILEY,
Secretary of State.
160 STATUTES GASOLINE TAX
Gasoline Tax.
ACT No. 81 of 1921.
House Bill No. 4. By Mr. Smith, of Vermillion.
AN ACT.
Levying a license tax of one cent per gallon on all gasoline
or motor fuel sold in the State of Louisiana for domestic con-
sumption; defining motor fuel; prescribing the method of
collecting and enforcing payment of such license tax, and
providing for the expenses thereof; requiring all those en-
gaged in the handling, sale, or distribution of same to make
such reports of their business as may be necessary for the
proper enforcement of this Act; providing penalties; direct-
ing that all revenues or moneys received under the provisions
of this Act be dedicated to the General Highway Fund; and
repealing all laws or parts of laws in conflict herewith.
Section 1. Be it enacted by the Legislature of Louisiana;
That there is hereby levied a license tax of one cent per gallon
on all gasoline and motor fuel sold in the state of Louisiana
for domestic consumption.
The term "motor fuel" is defined as meaning all volatile
gas generating liquids having a flash point below 110 degrees
F., commonly used to propel motors or motor vehicles.
It is understood, however, that for the purposes of this act
that the product commonly known as cashinghead and absorp-
tion gas, or cashinghead and absorption gasoline shall be ex-
cepted from the operation of the tax herein provided when sold
to be blended or compounded with other less volatile liquids in
the manufacture of motor fuel. Reports of all such sales,
STATUTES GASOLINE TAX 161
however shall be furnished the Supervisor or Public Accounts
with the report required by Section Four of this Act.
Section 2. The aforesaid license tax of one cent per gallon
shall be collectible from all persons, firms, corporations or as-
sociations of persons engaged as dealers in the handling, sale
or distribution of such products within the State, the method
of collection to be prescribed in Section 4 of this Act. The
term "dealer," as used in this Act, is defined to mean any per-
son, firm, corporation, or association of persons who pro-
duces, refines, manufactures, blends or compounds gasoline
or motor fuel for sale to the jobber, consumer, or to persons,
firms, corporations or associations of persons who in turn sell
to the jobber or consumer. The term "dealer" is further de-
fined to mean the person, firm, corporation or association of
persons who imports such gasoline or motor fuel from other
States for distribution, sale or use in the State of Louisiana.
Each and every dealer shall be required to take out a license
monthly to sell gasoline or motor fuel. The license to operate
in each month shall be based on the sales of such gasoline or
motor fuel, as defined herein, sold in the last preceding month-
ly period.
Section 3. All persons, firms, corporations, or associations
of persons, importing such gasoline or motor fuels from other
States shall, within five (5) days after receiving such ship-
ments, report to the Supervisor of Public Accounts, on blanks
furnished by that officer, the persons, firms, corporations, or
association? of persons from whom such shipments were re-
ceived, the dates shipped, the dates received, and the gallon-
age of each of the classes of such gasoline or motor fuels re-
ceived; and such report shall state whether such fuels are to
be retailed or used in the State of Louisiana, or exported to
another State or foreign country. The statements rendered
162 STATUTES GASOLINE TAX
to the Supervisor of Public Accounts shall be supported by
affidavits properly sworn to before an officer of the State
empowered to accept affidavits ,and in order that the Super-
visor may have additional means of checking up the accuracy
of such statements, the records, books, and other documents
of those making them, as well as those of common carriers
relative to such shipments are hereby declared to be accessible
to the Supervisor of Public Accounts.
Section 4. Every such person, firm, corporation, or asso-
ciation of persons engaged as a dealer in the handling, sale or
distribution of such gasoline or motor fuels for consumption
within the State shall, within twenty days after the expiration
of each monthly period, (periods to be computed from the
first day of the month to the last day thereof) file with the
Supervisor of Public Accounts a statement, under oath, on
forms prescribed and furnished by him, of the business con-
ducted by such person, firm, corporation, or association of
persons during the last preceding monthly period, showing
the number of gallons of each o fthe classes of fuel enumer-
ated in this act, that were sold to persons, firms, corporations,
or associations of persons within the State; and every such
person, firm, corporation or association of persons reporting
to the Supervisor of Public Accounts shall, concurrently, re-
mit to said Supervisor an amount based on that statement
equal to one cent per gallon as the license tax due for the
month next succeeding the month which the said statement
covers.
Section 5. The Supervisor of Public Accounts shall, within
the first five days of each calendar month, forward the full
amount collected by him during the preceding calendar month
to the State Treasurer, to be placed to the credit of the Gen-
eral Highway Fund, created by Section 22 of Article 6 of the
STATUTES GASOLINE TAX 163
Constitution, and the State Treasurer shall, on the first day
of each and every month, notify in writing the Director of
Highways of the State of Louisiana of the total amount re-
ceived from the Supervisor and placed to the credit of the
General Highway Fund from the sources herein specified.
Section 6. It is the purpose of this act to centralize the
collection of the license tax herein authorized in the hands of
those who originally dispose of gasoline or motor fuels for
distribution or consumption within the State. But in no case
shall there be a duplication of the collection of the license tax
herein authorized.
Section 7. The Supervisor of Public Accounts shall have
the power to require any person, firm, corporation, or associa-
tion of persons engaged in the handling, sale or distribution
of gasoline or motor fuel, as described herein, to furnish any
additional information by him deemed to be necessary for the
purpose of computing the amount of said license tax ; and for
said purpose to examine the books, records and files of such
person, firm, corporation, or association of persons; and to
that end shall have the power to examine witnesses, and if
any such witnesses shall fail or refuse to appear at the re-
quest of the Supervisor of Public Accounts, or refuse access
to books, records, and files ,said Supervisor of Public Ac-
counts shall certify the facts and the name of the witness so
failing and refusing, to appear, or refusing access to books
and papers, to the District Court of the State having jurisdic-
tion of the party, a copy of which shall be sent to the Gover-
nor; and said court shall thereupon issue a summons to the
said party to appear before the said Supervisor or his assis-
tant at a place designated within the jurisdiction of the court,
on a day fixed, to be continued as occasion may require, and
give such evidence, and open for inspection such books and
164 STATUTES GASOLINE TAX
papers as may be required for the purpose of ascertaining
whether or not any return so made is the true and correct re-
turn as herein required; and whenever it shall appear to the
Supervisor that any such person, firm, corporation, or asso-
ciation of persons engaged in the handling, sale or distribu-
tion of gasoline or motor fuels, within the meaning of this
Act, has unlawfully made an untrue or incorrect return, as
herein provided, the Supervisor shall correct the return and
shall compute said license tax on same, and verify same to his
department as being the amount actually due and owing, and
said Supervisor shall concurrently notify the said person,
firm, corporation, or association of persons of such fact; and
in the event said person, firm, corporation, or association of
persons shall not, within five (5) days after such notification
make a correct return and pay the full amount due, the Super-
visor of Public Accounts shall, in the name of the State, enter
suit against such person, firm, corporation, or association of
persons for the amount due, together with such penalties as
are prescribed in the general license laws. Such suits shall
be by rule to show cause within five days why payment should
not be made, and shall be tried in the manner set forth in the
general license laws of the State.
Section 8. The license tax provided by this Act shall be-
come delinquent on the 21st day of the month for which said
license tax is due, and from such time shall, as a penalty for
such delinquency, be subject to similar penalties to those pro-
vided in the general license laws of the State, which are 2 per
cent per month on the amount of the tax from the date of de-
linquency to date of payment, and 10 per cent attorney's fees
on both the tax and the penalties in all cases wherein the at-
torney is called on to assist in the collection. The payment
of the license levied by this Act shall be in addition to, and
STATUTES GASOLINE TAX 165
shall not affect the liability of the parties so taxed, for the
payment of all state, parochial, municipal, district and special
taxes upon their real estate and other corporal property.
Section 9. If any person, firm, corporation, or association
of persons shall fail to make a report of the sales upon which
the license tax herein is levied, within the time and nianner
herein prescribed for such report, it shall be the duty of the
Supervisor of Public Accounts to examine the books, records,
and files of any such person, firm, corporation, or association
of persons to ascertain the amount of such sales, and to com-
pute the tax thereon as provided herein, and according to the
procedure hereinbefore provided, where witnesses refuse to
testify, or access to books and papers is refused, and shall add
thereto the cost of such examination, together with any pen-
alties accruing thereon.
Section 10. When the license tax provided for in this Act
shall become delinquent, the Supervisor of Public Accounts
shall, in the name of the State, proceed against the property,
assets, and effects of the person, firm, corporation, or asso-
ciation of persons against whom said license tax is assessed,
for the purpose of collection of delinquent licenses, and there
is hereby imposed and shall be collected the same penalties as
prescribed in the general license law.
Section 11. Any person, firm, corporation, or association
of persons who shall intentionally make any false oath to any
report required by the provisions of this act shall be deemed
guilty of perjury, and shall be subject to all penalties pre-
scribed for said crime.
Section 12. It is hereby made the duty of the Supervisor
of Public Accounts to collect, supervise, and enforce the col-
lection of all license taxes that may be due under the provi-
166 STATUTES GASOLINE TAX
sions of this Act ; and, to that end, the said Supervisor is here-
by vested with all of the power and authority conferred by
this Act.
He shall give bond in favor of the Governor of the State or
his successor in office, for the sum of ten thousand dollars,
($10,000.00) conditioned on the faithful performance of the
duties imposed on him by this act. The premium on said bond
shall be paid out of the appropriation made for the expenses of
his office. The bond shall be approved by the Governor, and
shall be filed in the office of the State Auditor.
Section 13. The failure of any person, firm, corporation,
or association of persons mentioned herein, to make reports as
herein provided, or to comply with any other provision of this
Act, shall be punished by a fine of not less than Fifty Dollars,
($50.00) for each offense. This fine shall be assessed by the
Judge of the District Court having urisdiction of the party,
or suit brought by the Supervisor of Public Accounts.
Section 14. The fines provided for herein shall be collected
by the Sheriff in whose jurisdiction they were assessed, and
shall be turned over in full to the Supervisor of Public Ac-
counts, without any deduction therefrom for commissions,
within fifteen days after collection, and the Supervisor shall
in turn remit same to the State Treasurer, in the same manner
and at the same time he remits license taxes collected under
the provisions of this Act, and the State Treasurer shall im-
mediately credit same to the General Highway Fund. The
State Treasurer shall make a report on the first day of each
and every month to the Director of Highways, in detail, of all
amounts received from the sources provided by the provisions
of this Act, placed to the credit of the General Highway Fund.
Section 15. The cost assessed against delinquent persons
STATUTES GASOLINE TAX 167
for the examination of their books, records and files by the
Supervisor of Public Accounts, as provided in Section 9 of
this Act, shall be collected by the Supervisor and remitted to
the State Treasurer in the same manner and at the same time
that other collections are remitted, and shall be credited to the
General Highway Fund.
Section 16. The only legal evidence showing payment of
the license tax herein levied shall be the appropriate form of
license issued by the Supervisor of Public Accounts, and
signed by him or by an assistant for him. The giving of per-
sonal receipts for money paid on account of licenses by either
the Supervisor or any assistant is prohibited.
Section 17. For the purpose of meeting the expenses nec-
essary for the proper enforcement of this Act, the Legislature
shall appropriate from the General Highway Fund a sum not
exceeding Fifteen Thousand Dollars ($15,000.00) annually.
The amount appropriated shall be drawn by the Supervisor of
Public Accounts in monthly installments, and used by him to
pay salaries of assistants and stenographers, necessary office
expenses, and the traveling expenses of himself and assistants
when away from the office on official buiness.
Section 18. This Act shall become effective as provided for
by Section 27 of Article 3 of the Constitution, but the first
monthly license to be issued hereunder shall be for the month
of January 1922, same to be based on sales made during the
month of December, 1921.
Section 19. All laws or pars of laws in conflict with the
provisions of this act be and the same are hereby repealed.
Approved: By the Lieutenant-Goevrnor and Acting Gover-
nor. November 18, 1921.
A true copy:
JAMES J. BAILEY,
Secretary of State.
168 STATUTES STORAGE OF OIL
Storage of Oil.
ACT No. 53 of 1920.
House Bill No. 114. By Mr. Shattuck.
AN ACT.
To amend and re-enact Sections 23 and 58 of Act No. 221
of the General Assembly of the State of Louisiana for the
year 1908, entitled, "An act to make uniform with the laws of
other states the laws of the State of Louisiana governing
warehousemen, and fixing their qualifications, defining their
duties, providing the manner, method and character of re-
ceipts to be issued, declaring the extent and method of their
negotiation and transfer, fixing the rights and liabilities
thereunder, and fixing penalties for violation of this Act."
Section 1. Be it enacted by the General Assembly of the
State of Louisiana that Section 23 of Act No. 221 of 1908,
entitled, "An Act to make uniform with the laws of other
states the laws of the Louisiana governing warehouse receipts
by defining warehousemen, and fixing their qualifications,
defining their duties, providing the manner, method and char-
acter of receipts to be issued, declaring the extent and method
of their negotiation and transfer, fixing the rights and liabili-
ties thereunder, and fixing penalties for violation of this Act,"
be and the same is hereby amended and re-enacted so as to
rad as follows, towit:
Section 23. If authorized by agreement, or by custom, a
warehouseman may mingle fungible goods with other goods
of the same kind and grade. In such case the various deposi-
tors of the mingled goods shall own the entire mass in com-
mon, and such depositor shall be entitled to such portion
thereof as the amount deposited by him bears to the whole.
STATUTES STORAGE OF OIL 169
The provisions of this section shall apply to crude petroleum
when placed in storage in a public warehouse.
Be it further enacted, etc., That Section 58 of said Act No.
221 of 1908, be, and the same is hereby amended and re-en-
acted so as to read as follows :
Section 58. First : In this act, unless the context or subject
matter otherwise required :
"Action" includes counter claim, set-off and suit in equity.
"Delivery" means voluntary transfer of possession from
one person to another.
"Fungible goods" means goods of which any unit is, from
its nature or by merchantible custom, treated as the equivalent
of any other unit. Crude Petroleum and its refined products
are included within this definition. "Goods" means chattels,
merchandise or crude petroleum or its refined products in
storage, or which has been or is about to be stored.
"Holder of a receipt means a person who has both actual
possession of such receipt and a right of property therein.
"Order" means an order by indorsement on the receipt.
"Owner" does not include mortgagee or pledgee.
"Person' 'includes a corporation or partnership of two or
more persons having a joint or common interest.
To "purchase" includes to take as mortgagee or as pledgee.
"Purchaser" includes mortgagee and pledgee.
"Receipt" means a warehouse receipt.
"Value" is any consideration sufficient to support a simple
contract. An antecedent of pre-existing obligation, whether
for money or not, constitutes value where a receipt is taken
either in satisfaction thereof or as security therefor.
170 STATUTES WASTE
''Warehouseman" means a person lawfully engaged in the
business of storing goods for profit.
"Warehouse" means any structure, building, tank for stor-
ing crude petroleum or its refined products, or receptacle of
any kind, in which goods as herein defined, are deposited or
stored for profit.
Second: A thing is done "in good faith" within the mean-
ing of this Act when it is in fact done honestly, whether it be
done negligently or not.
R. F. WALKER,
Speaker of the House of Representatives.
HEWITT BOUANCHAUD,
Lieutenant Governor and President of the Senate.
Approved: July 5, 1920.
JOHN M. PARKER,
Governor of the State of Louisiana.
Waste.
ACT No. 71 of 1906.
By Mr. Barrett. Senate Bill No. 71.
AN ACT.
To protect the natural gas fields of this State; and to pro-
vide for closing, capping or plugging of wild, uncontrollable
or burning natural gas wells in this State or otherwise pre-
venting the escape and waste of natural gas therefrom by the
owners or proprietors thereof after due notice ; and providing,
that in default of the owners or proprietors doing so after
such notice, that the Governor, on complaint of him shall di-
rect the Board of State Engineers to close, cap or plug the
STATUTES WASTE 171
same or otherwise prevent the escape and waste of natural
gas therefrom at the expense of the owners or propritors ; and
providing that possession of such natural gas well so closed
by the State, shall be retained by the State until the expense
of closing the same is reimbursed to the State; and making
it a misdmeanor for any person to wilfully and intentionally
set fire to any gas well or to negligently permit any natural
gas well in his possession or under his management and con-
trol, to catch on fire or become wild and uncontrollable, or to
negligently permit the escape and waste of natural gas there-
from; and making it a misdemeanor to abandon any well in,
near or adjacent to any natural gas field, or apparent natural
gas field, without first plugging or securing the same to pre-
vent the admission of waste ; into the gas-producing sand, and
making it a misdemeanor for any person to intentionally or
wilfully injure or damage the property, pipes or pipe lines,
wells or mains of any natural gas producing company or to
intentionally divert gas therefrom; and prescribing penalties
therefor.
Section 1. (Amended and re-enacted by Act No. 283 of
1910.)
Section 2. (Amended and re-enacted by Act No. 283 of
1910.)
Section 3. Be it further enacted, etc., That it shall be a mis-
demeanor for any person to wilfully and intentionally set fire
to any natural gas well or negligently permit or suffer any
natural gas well owned by him or under his management and
control or in his possession, to catch on fire, or go wild or be-
come uncontrollable, or to negligently permit or suffer natural
gas to wastefully escape or wastefully burn therefrom; and
on conviction thereof shall be fined in a sum not less than five
172 STATUTES WASTE
hundred dollars ($500.00) or imprisonment of not less than
three (3) months or both at the discretion of the court.
Section 4. Be it further enacted, etc., That any person who
shall intentionally or wilfully injure or damage the property,
pipes, pipe lines or mains of any natural gas well belonging
to or operated by any natural gas-producing company, or who
shall wilfully or intentionally divert the gas from any pipe,
main or natural gas well, the property of any such natural
gas-producing company, shall be deemed guilty of a misde-
meanor and on conviction thereof, shall be fined in the sum
of not less than one hundred dollars ($100.00) or imprison-
ment of not less than thirty (30) days or both at the discretion
of the court.
Section 5. Be it further enacted, etc., That it shall be un-
lawful for any individual, firm or corporation to abandon any
well in or adjacent to a natural gas field or an apparent natural
gas field, without first placing a wooden plug, properly made,
both above and below the gas-producing sand or otherwise
sufficiently securing such well against the admission of water
into the gas-producing sand; and whenever any individual,
firm or corporation shall abandon such well without first
plugging or securing the same as above provided, to prevent
the admission of water into the gas-producing sand, he shall
be deemed guilty of a misdemeanor and on conviction thereof
shall be subject to a fine of not less than one hundred dollars
($100.00) nor more than one thousand dollars ($1000.00) or
imprisonment of not less than thirty (30) days nor more than
four (4) months, or both at the discretion of the court.
Section 6. Be it further enacted, etc., That the provisions
of this act shall apply to any gas well or wells which may be
bored or drlilled in, near to or adjacent to any natural gas
STATUTES WASTE 173
field or to any apparent natural gas field and to any such well
or wells which have heretofore already been bored or drilled.
Section 7. Be it further enacted, etc., That this act shall
take effect from and after its promulgation.
J. Y. SANDERS,
Lieutenant Governor and President of the Senate.
J. W. HYAMS,
Speaker of the House of Representatives.
Approved : July 4th, 1906.
NEWTON C BLANCHARD,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
Conservation- Waste.
ACT No. 190 of 1910.
House Bill No. 333.
AN ACT.
To provide for the conservation of natural gas by regula-
tions to prevent waste in the extraction of oil and gas, and
transportation thereof; and to provide penalties.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That whenever any well shall have been
sunk for the purpose of obtaining natural gas or oil or explor-
ing for the same, and shall be abandoned or cease to be oper-
ated for utilizing the flow of gas or oil therefrom, it shall be
the duty of any person, firm or corporation having the cus-
174 STATUTES WASTE
tody of control of such well at the time of such abandonment
or cessation of use, and also of the owner or owners of the
land wherein such well is situated, to properly and securely
stop and plug the same as follows: If such well has not been
"shot" there shall be placed in the bottom of the hole thereof
a plug of well-seasoned pine wood, the diameter of which shall
be within one-half inch as great as the hole of such well, to
extend at least three feet above the salt water level, where
salt water has been struck, such plug shall extend at least three
feet from the bottom of the well. In both cases such wooden
plugs shall be thoroughly rammed down and made tight by
the use of drlilling tools. After such ramming and tightening
the hole of such well shall be filled on top of such plug with
finely broken stone or sand, which shall be well rammed to a
point at least four feet above the gas or oil bearing rock; on
top of this stone or sand there shall be placed another wooden
plug at least five feet long with diameter as aforesaid, which
shall be thoroughly rammed and tightened. In case such well
has been "shot" the bottom of the hole thereof shall be filled
with a proper and sufficient mixture of sand, stone and dry
cement, so as to form a concrete up to a point at least eight
feet above the top of the gas or oil bearing rock or rocks, and
on top of this filing shall be placed a wooden plug at least six
feet long with diameter as aforesaid, which shall be properly
rammed as aforesaid. The casing from the well shall then be
pulled or withdrawn therefrom, and immediately thereafter
a cast iron ball, eight inches in diameter, shall be dropped in
the well, and securely rammed into the shale by the driller or
owner of the well, after which not less than one cubic yard of
sand pumping or drilling taken from the well shall be put on
top of said iron ball.
Section 2. Be it further enacted, etc., That it shall be un-
STATUTES WASTE 175
lawful for any person, firm or corporation having possession
or control of any natural gas or oil well, whether as a contrac-
tor ,owner, lessee, agent or manager, to allow or permit the
flow of gas or oil from any such well, to escape into the open
air, without being confined within such well or proper pipes,
or other safe receptacle, for a period longer than two (2)
days, next after gas or oil shall have been struck in such well,
and thereafter all such gas or oil shall be safely and securely
confined in such wells, pipes or other safe and proper recep-
tacles ; provided that this law shall not apply to any well that
is being operated for the production of oil and in which the
oil produced has a higher salable value in the field than has
the gas so lost.
Section 3. Be it further enacted, etc., That the Supervisor
of minerals shall have, and he is hereby invested with, author-
ity to prescribe regulations for the boring of oil and gas wells,
to the end that blowouts, and gas waste, otherwise, shall be
avoided, which regulations shall be followed by drillers.
Section 4. Be it further enacted, etc., That any person,
firm or corporation, violating the provisions of Sections 1 and
2 of this Act or any reasonable regulations provided by the
Supervisor of minerals, shall be guilty of a misdemeanor, and
upon conviction thereof shall be fined in any sum not exceed-
ing five hundred dollars ($500.00) or shall be imprisoned for
a period not exceeding three months, in the discretion of the
court.
Section 5. Be it further enacted, etc., That whenever any
person, or corporation in possession or control of any well in
which natural gas or oil has been found shall fail to comply
with the provisions of this Act, any person or corporation
lawfully in possession of lands situated adjacent to or in the
vicinity or neighborhood of such well may enter upon the
176 STATUTES WASTE
lands upon which such well is situated and take possession of
such well from which gas or oil is allowed to escape in viola-
tion of the provisions of Sections 1 and 2 of this Act, and pack
and tube such well and shut in and secure the flow of gas or
oil, and maintain a civil action in any court of competent juris-
diction in this State against the owner, lessee, agent or man-
ager of said well, and each of them jointly and severally, to
recover the cost and expenses of such tubing and packing, to-
gether with attorney's fees and costs of suit. This shall be in
addition to the penalties provided by Section 4 of this Act.
Section 6. Be it further enacted, etc., That this Act shall
take effect from and after its passage, and all laws in conflict
herewith are hereby repealed.
H. G. DUPRE,
Speaker of the House of Representatives.
P. M. LAMBREMONT,
Lieutenant Governor and President of the Senate.
Approved: July 6, 1910.
J. Y. SANDERS,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
Waste.
ACT No. 283 of 1910.
House Bill No. 426.
AN ACT.
To amend and re-enact Sections 1 and 2 of Act 71 of the
STATUTES WASTE 177
General Assembly of the State of Louisiana of theh year 1906,
entitled:
"An Act to protect the Natural Gas fields of this State; and
to provide for closing, capping or plugging of wild, uncon-
trollable or burning natural gas wells in this State or other-
wise preventing the escape and waste of natural gas therefrom
by the owners, or proprietors thereof after due notice; and
providing that in default of the owners of proprietors doing
so after such notice, that the Governor, on complaint to him
shall direct the Board of State Engineers to close, cap or plug
the same or otherwise prevent, the escape and waste of natural
gas therefrom at the expense of the owners or proprietors;
and providing that possession of such natural gas well so
closed by the State shall be retained by the State until the ex-
pense of closing the same is reimbursed to the State ; and the
making it a misdemeanor for any person to wilfully and in-
tentionally set fire to any gas well or to negligently permit any
natural gas well in his possession or under his management
and control, to catch on fire or become wild and uncontrol-
able, or to negligently permit the escape and waste of natural
gas therefrom ; and making it a misdemeanor to abandon any
well in, near, or adjacent to any natural gas field, or apparent
natural gas field without first plugging or securing the same
to prevent the admission of water; into the gas producing
sand, and making it a misdemeanor for any person to inten-
tionally or wilfully injure or damage the property, pipes or pipe
lines, wells or mains of any natural gas producing company
or to intentionally divert gas therefrom; and prescribing pen-
alties therefor.
Section 1. Be it enacted by the Beneral Assembly of the
State of Louisiana, That in order to protect the natural gas
178 STATUTES WASTE
fields of this State, it is hereby declared to be unlawful and a
nuisance for any person, firm, or corporation to negligently
permit or suffer any natural gas well to go wild or become
uncontrolable or wastefully burn and the owner or proprietor
or person in possession of any wild, uncontrolable or waste-
fully burning natural gas well, shall close the same and secure-
ly cap it or plug it or otherwise prevent the escape and waste
or wastefully burning of natural gas therefrom, after five (5)
days' written notice to such owner or proprietor or person in
possession to do so; such notice to be given by any person
having an interest in stopping such wild, uncontrolable, waste-
fully burning natural gas well; or such notice may be given
by any constable or Justice of the Peace of the parish where
such wild or uncontrolable or wasteful or wastefully burning
natural gas well may be located, or the demand of any person
having an interest in the stopping of the same.
Section 2. Be it further enacted, etc., That whenever such
owner or proprietor or person in possession of such wild, or
uncontrolable, wasteful or wastefully burning natural gas
well, shall be notified to close, cap or plug the same ,or other-
wise prevent the escape and waste or wasteful burning of
natural gas therefrom, he shall in good faith commence the
work of so capping or plugging the same in order to prevent
the escape and waste or wasteful burning of natural gas there-
from, within five (5) days from the date of the receipt of
such notice as provided for in the first section of this Act;
and in the event that the owner or proprietor or person in
possession of such natural gas well, fails ,refuses, or neglects
to close, plug or cap the same or otherwise prevent the escape
and waste or wasteful burning of natural gas or commence
in good faith the work of doing so within five (5) days from
STATUTES WASTE 17U
the receipt of such notice, the Governor, on the written com-
plaint of any person, firm or corporation having an interest
in the stopping, plugging or closing of such natural gas well,
shall direct the Board of State Engineers to take charge of
the work of closing such wild or uncontrolable or wastefully
burning natural gas well, and the Board of State Engineers
shall then proceed at once to cap or close or plug the same or
otherwise prevent the wasteful escape or wasteful burning of
natural gas from such well, at the expense of the owner or
proprietor thereof ; and to secure to the State the cost and ex-
pense of such closing, capping or plugging of such well, pos-
session of the same, with sufficient ground adjacent thereto, it
belonging to such owner or proprietor, with the rents, revenues
and incomes therefrom, shall be retained by the State until the
full and final payment of such costs and expense shall be re-
imbursed to the State, and when such owner or proprietor or
person in possession of such well shall pay such cost or ex-
pense to the State, less the revenues, rents and incomes de-
rived therefrom by the State while the same was in possession
of the State, the State shall restore possession of said well to
him provided, in the event that the rents, revenues, and in-
comes shall not be sufficient to reimburse the State as pro-
vided for in this section, then and in that event the cost and
expense of closing, capping or plugging of such wild uncon-
trollable or wasteful natural gas well, shall operate on a lien
and privilege upon all of the property of whatsoever nature
of the owner of the said wild well, and the State shall proceed
to enforce said lien and privilege by suit before any court of
competent jurisdiction, the same as in other civil actions and
the judgment so obtained, shall be executed in the same man-
ner as now provided by law. If the property so siezed and
sold brings an amount in excess of the cost and expense occa-
180 STATUTES WASTE
sioned by the State as provided in this Section; then and in
that event such excess or balance shall be paid over to the
owner of such wild gas well.
H. G. DUPRE,
Speaker of the House of Representatives.
P. M. LAMBREMONT,
Lieutenant Governor and President of the Senate.
Approved: July 7, 1910.
J. Y. SANDERS,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
Waste.
ACT No. 268 of 1918.
Senate Bill No. 193. By Messrs. Smith and Fields,
(Substitute for Senate Bills Nos. 28 and 69.)
AN ACT.
Defining waste and making the waste or undue use of nat-
ural gas a misdemeanor ; empowering the Department of Con-
servation with authority to prevent the use of natural gas with
premature exhaustion, and charging the said Department with
the duty to regulate the method of taking natural gas from
any well or more than twenty-five per cent of the potential
ceedings to enforce the provisions of this act; requiring the
sellers and users of natural gas in manufacturing enterprises
to make full and complete report of the quantity of natural
gas used by them to the department of conservation; requir-
STATUTES WASTE 181
ing the said department to make semi-annually a full and com-
plete report to the Governor by Parishes of the natural gas
being used within the State, the waste going on and the sit-
uation as to the future supply of natural gas in the several
Parishes, and likewise make such report to the President of
the Police Jury of each Parish in which natural gas is pro-
duced; requiring the District Judges of the several parishes
wherein natural gas is produced to charge each grand jury
with the duty of investigating the waste of natural gas, or
the use being made of natural gas in a manner to threaten
with premature exhaustion or extinction the common reser-
voir of such natural gas ; and providing penalties for the viola-
tion of the provisions of this act.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That it shall be unlawful to permit the
waste of natural gas, or to use natural gas for any purpose
whatsoever in such manner as will threaten with premature
exhaustion, extinction or destruction the common supply or
common reservoir from which said natural gas is drawn.
Section 2. Be it further enacted, etc., That the term waste
as above used in addition to its ordinary meaning, shall in-
clude :
(a) Wantonly or wilfully permitting the escape of nat-
ural gas in commercial quantities into the open air.
(b) The intentional drowning with water of a gas stratum
capable of producing gas in commercial quantities.
(c) Underground waste.
(d) Permitting of any natural gas well to wastefully
burn.
Section 3. Be it further enacted, etc., That the Depart-
182 STATUTES WASTE
men of Conservation is granted full power and authority to
prevent the waste of natural gas, or the use or natural gas for
any purpose whatsoever in such quantities as will threaten
with premature exhaustion, extinction or destruction the com-
mon supply or common reservoir from which said natural gas
is drawn by preventing the flow during each 24 hours from
any well o rmore than twenty-five per cent of the potential
capacity thereof, and it is made the imperative duty of the
said Department of Conservation to make frequent inspection
and investigation of the natural gas fields of the State so as
to carry out the provisions of this act, and if any waste or use
of natural gas in quantities to threaten with premature ex-
haustion, extinction or destruction the common reservoir from
which the natural gas is being drawn is found to exist as waste
and the undue use of natural gas has heretofore been defined,
the said Department shall proceed at once to prevent or stop
the waste or improper use of such natural gas; and to carry
out the provisions to sue out and injunction without giving
bond in any of the District Courts of the State to prevent and
prohibit the said waste of natural gas or the use or manner of
use of natural gas in such quantities as to threaten with pre-
mature exhaustion, extinction or destruction the common
source or reservoir from wTiich said natural gas is being drawn
as waste, and the undue use of natural gas has heretofore
been defined; and in all such proceedings it shall be the duty
of the Attorney General of Louisiana to appear in behalf of
said Department, which injunction shall not be dissolved on
bond.
Section 4. Be it further enacted, etc., That there is hereby
granted to and vested in the Department of Conservation the
power to regulate the use of pumps, compressors and other
artificial or injurious means of increasing the natural flow.
STATUTES WASTE 183
Section 5. Be it further enacted, etc., That every person,
association, partnership or corporation engaged in selling
natural gas or using natural gas in the manufacture of any
article of commerce, or for fuel in manufacturing enterprises,
shall make semi-annual reports under oath to the Department
of Conservation upon blanks to be furnished by the Depart-
ment showing the manner of use and quantities of natural gas
used or sold as aforesaid.
Section 6. Be it further enacted, etc., That the Department
of Conservation shall make a full and complete report semi-
annually to the Governor of the situation in the various nat-
ural gas fields within the State, and shall likewise file with
the President of the Police Jury of each Parish within which
natural gas is produced a statement showing the situation
concerning the present and future supply of natural gas with-
in such year.
Section 7. Be it further enacted, etc., That it shall be the
duty of the District Judges in those Parishes wherein natural
gas is produced or found, to charge the grand juries to inquire
into the waste of natural gas, or the use being made of natural
gas for any purpose whatsoever that is threatening with pre-
mature exhaustion, extinction or destruction the common
source or reservoir from which said natural gas is being
drawn, as w r aste and the undue use of natural gas has hereto-
foe been defined.
Section 8. Be it further enacted, etc., That each violation
of this act shall be punished by a fine of not less than one
hundred dollars nor more than five hundred dollars, or by
imprisonment for not less than thirty days nor more than six-
ty days, or both in the discretion of the court, and in default
of the payment of the fine imposed by imprisonment for any
additional time not exceeding six months, and each day this
184 STATUTES PURCHASERS OF GAS
act is violated shall constitute a seperate offense hereunder
after written notification given to the offender by authority
of the said Department of Conservation.
Section 9. Be it further enacted, etc., That this act shall
not repeal the existing laws on this same subject matter unless
the same are inconsistent with the provisions of this act.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
Approved: July 11, 1918.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
Purchasers of Gas.
ACT No. 270 of 1918.
Senate Bill No. 198. By Mr. Leon R. Smith.
AN ACT.
Looking to the conservation of natural gas in the State;
regulating the drilling for natural gas, its extraction from the
earth and marketing; making persons, firms or corporations
engaged in the business of purchasing and selling natural gas
in the state common purchasers from all and regulating the
manner of such purchase without discrimination excepting
municipal corporations and the pipe lines and distribution
systems of corporations the direct ownership of which may
STATUTES PURCHASERS OF GAS 185
revert to any municipality ; regulating the method of measur-
ing gas so produced and purchased; conferring upon the Con-
servation Commission of Louisiana certain powers with refer-
ence to such boring, extraction, purchase and sale of such nat-
ural gas; charging said Commission with the enforcement of
this Act; charging District Attorneys with the duty of bring-
ing necessary suits to enforce this Act with injunction to be
issued without bond, fixing penalties, etc. ; providing penalties
for the violation of this Act and to repeal all laws or parts of
laws in conflict with the provisions of this Act.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That, in order to further conserve the
natural gas in the State of Louisiana, whenever the full pro-
duction from any common source of supply of natural gas in
this State is in excess of the market demands, then any per-
son, firm or corporation having the right to drill into and
produce gas from any such common source of supply, may
take therefrom only such proportion of the natural gas that
may be marketed without waste, as the natural flow of the
well or wells owned or controlled by any such person, firm or
corporation bears to the total natural flow of such common
source of supply having due regard to the acreage drained by
each well, so as to prevent any such person, firm or corpora-
tion, securing any unfair proportion of the gas therefrom;
provided, that the Conservation Commission of Louisiana
may by proper order, permit the taking of a greater amount
whenever it shall deem such taking reasonable or equitable.
Section 2. Be it further enacted, etc., That every person,
firm or corporation, now or hereafter engaged in the business
of purchasing and selling natural gas in this State, shall be
186 STATUTES PURCHASERS OF GAS
common purchaser thereof, and shall purchase all of the nat-
ural gas which may be offered for sale which may be brought
in pipes and connecting lines by the owner or proposed seller
to its trunk lines, at the sellers expense, or to its gathering
lines, without discrimination in favor of one producer as
against another, or in favor of any one source of supply as
against another save as authorized by the Conservation Com-
mission of Louisiana after due notice and hearing, but if any
such person, firm or corporation shall be unable to purchase
all the gas so offered, then it shall purchase natural gas from
each producer ratably, and any common purchaser of gas
shall have the same right to purchase the product of any gas
well or wells that are not being utilized under the conditions
of this act; and in the event the owner of said well or wells
refuse to sell, the common purchaser shall have the same right
of action against such owner or owners as the seller has
against the common purchaser who refuses to buy, and the
seller so refusing to sell shall be subject to the same penalties,
etc., provided against the common purchaser who refuses to
buy. This act shall not affect in any way a municipal cor-
poration engaged in buying and selling natural gas, the direct
ownership of which shall vest in, or which may under charter
or franchise provisions ultimately vest in or be acquired by
any municipality.
Section 3. Be it further enacted, etc., That no common pur-
chaser shall discriminate between like grades and pressures
of natural gas, or in favor of its own production or of produc-
tion in which it may be directly interested, either in whole or
in part, but for the purpose of prorating the natural gas to be
marketed, such production shall be treated in like manner as
that of any other producer or person, and shall be taken only
STATUTES PURCHASERS OF GAS 187
in the ratable proportion such production bears to the total
production available for marketing.
Section 4. Be it further enacted, etc., That all gas produced
from the deposits of this State when sold shall be measured
by meter and the Conservation Commission of Louisiana
shall, upon notice and hearing, relieve any common purchaser
from purchasing gas of an inferior quality or grade, and the
Commission shall from time to time make such regulations
for delivery, metering and equitable purchase and taking as
conditions may necessitate.
Section 5. Be it further enacted, etc., That it shall be the
duty of the Conservation Commission of Louisiana to see that
the provisions of this Act are fully and properly complied with
and it shall further be the duty of the District Attorney, in
whose district any violation takes place, on application of the
Conservation Commission of Louisiana, to bring such suit or
suits as may be necessary to enforce the provisions of this act
and any injunction which may be necessary shall be furnished
without bond.
Section 6. Be it further enacted, etc., That any person,
firm or corporation or partnership violating any of the pro-
visions of this Act shall be guilty of a misdemeanor and on
conviction thereof in any court of competent jurisdiction be
liable and fined not less than $50.00 nor more than $500.00
or be subject to imprisonment for thirty days or be liable to
both fine and punishment in the discretion of the court for each
offense, each day's continuation of such violation shall be and
is hereby declared to be a separate offense.
188 STATUTES CONSERVATION
Section 7. Be it further enacted, etc., That all laws or parts
of laws in conflict herewith be and the same are hereby re-
pealed.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
Approved: July 11, 1918.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
Conservation.
ACT No. 127 of 1912.
House Bill No. 320. By Mr. Buie.
AN ACT.
To create and establish a Conservation Commission of
Louisiana, defining its duties and powers and constituting it
a department of the Government ; to provide for the necessary
employees and defining their qualifications, duties and powers
in relation to the protection of birds, fish, shell fish and wild
quadrupeds; forestry and mineral resources of the State; to
provide for the payment of the salaries and expenses of the
said Commission, to issue licenses and levy and collect the
charges thereon, and to provide for the revenues to maintain
and support the same; to provide for the establishment of
public and private preserves and propagating grounds for
STATUTES CONSERVATION 189
game and fish; to authorize the Conservation Commission
herein created to discharge the duties and functions hereto-
fore exercised by the Board of Commissioners for the protec-
tion of birds, game and fish, and the Conservation Commis-
sion heretofore created, and the duties heretofore assigned to
the Department of Forestry and the Department of Mining
and Minerals; to authorize said commission to represent the
aforesaid other commissions either as defendant in any litiga-
tion that might be pending; to provide penalties for the viola-
tion of this act, and to repeal all laws or parts of laws in con-
flict with or inconsistent with the provisions of the act.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That the conservation Commission is
hereby created, composed as follows :
Three commissioners, one of whom shall be president of
said Commission, shall be appointed by the Governor, by and
with the advice and consent of the Senate, for a term of four
years and shall be men who are informed in whole, or in part,
on the following subjects: wild life, game and the require-
ments for its conservation, oysters and salt and fresh water
fish of the State, and the forestry and mineral resources of
the State. After being confirmed by the Senate, the said Com-
missioners shall not be subject to removal by the Governor;
they shall be subject to removal for malfeasance, nonfeasance,
or incompetency upon charges made before a court of compe-
tent jurisdiction.
The said commissioners shall have the supervision and con-
trol over all employees in every branch of the service, and
shall give their entire time to the service and shall receive a
salary not to exceed twenty-four hundred dollars per annum
payable monthly, except the president, who shall receive not
to exceed three thousand dollars per annum, payable monthly,
190 STATUTES CONSERVATION
and shall receive actual traveling and hotel expenses when
engaged in the discharge of thir official duties.
The Commission shall have authority to pay the expenses of
any of its employees, officers or assistants either within or
without the State, while in the service of the Commission. The
Commission is authorized to efficiently transact its business
and promote the good of the service, and fix the salaries pro-
vided that the total expenses for this purpose shall not exceed
$20,000 per annum for clerical and all office and traveling
expenses, and provided there shall not be any attorney other
than the Attorney General to represent said Commission.
Section 2. Be it further enacted, etc., That the Conserva-
tion Commission of Louisiana is here constituted a depart-
ment of the State government for the purpose of the protec-
tion, management ,and conservation of the oyster fields and
water bottoms of the State; to protect the birds, fish, shell
fish and wild quadrupeds of the State, and the natural and
mineral and forestry resources of the State and to see that
all laws relative thereto are enforced, and, as such, it is hereby
created a body politic or political corporation invested with
all powers inherent in such corporation.
It shall have authority to sue and be sued under the style
"Conservation Commission of Louisiana" and all process
against said corporation shall be served on the president, or
in his absence on any member of the said Conservation Com-
mission, at the general office and all suits in its behalf shall
be brought by its president in the name of the Commission.
In case there are any suit spending in which the game, fish
and oyster commission, or the Conservation Commission here-
tofore created are parties to said suit either as plaintiff or
defendant the present Conservation Commission created by
STATUTES CONSERVATION 131
this act shall be substituted and become parties to said litiga-
tion in lieu of the former commission, which shall be super-
ceded by the present one. The domicile of said corporation
is hereby fixed in the City of New Orleans, where the office
shall be established, and where its archives shall be kept, and
services of processes shall be made upon the president or other
members of the Commission in person.
It shall be the duty of said Commission to collect, classify
and preserve such statistics, data and information, as will tend
to promote the objects of this act and to take charge of and
keep all records, books and papers and documents which shall
in the discharge of their duties hereunder come in their pos-
session or under their control; to make and execute all con-
tracts, and generally to do and perform all things necessary
to carry out the objects of this act subject to all limitations
and duties herein provided.
Said commission shall adopt by-laws for its own govern-
ment and the government of its employees, it shall adopt rules
and regulations for comprehensive control of birds, shell fish,
and wild quadrupeds, and mineral and soil and natural re-
sources of the State which said by-laws or rules and regula-
tions shall not be inconsistent with our contrary to the pro-
visions of this act.
Any person in interest who feels aggrieved by any such rule
or regulation shall have the right to test the legality of the
same in the courts of the State, either in the Court of the juris-
diction wherein the contest arises, or at the domicile of the
Commission.
It shall be the duty of the Commissioners, at each regular
meeting to examine all accounts and operations of the Com-
mission and determine what work shall be undertaken; and
192 STATUTES CONSERVATION
monthly reports thereof shall be made in writing to the Gov-
ernor, and condensed quarterly copies of said monthly reports
shall be printed in one morning paper in the City of New
Orleans. Said Commission shall improve, enlarge and pro-
tect the natural oyster reefs of this State as conditions may
warrant subject to the provisions stipulated in this Act and
other laws not herein repealed, provided they shall not lease
any of the natural reefs of the State. It shall also protect arid
propagate, when possible all species of birds) and game of
whatever description and establish preserves and hatcheries,
to be maintained and operated under the control of the Com-
mission, and, it shall be its duty to rigidly enforce all laws
relative to the bedding, fishing, selling, shipping and canning
of oysters and of all laws relative to the protection and propa-
gation and selling of birds and game and of all laws relative
to the protection and propagation and sale of all species of
fish in this State whether they shall be salt water or fresh
water fish, whether they shall be shell fish or fish of any other
description and of all laws relative to diamond-back terrapin,
shrimp, and, in fact shall have full power and control over
birds and animals, whether they be game or fur-bearing or
not; over all fish whether they shall be salt water or fresh
water fish; over diamond-back terrapin shrimp and oysters
of this State found or being within the borders of this State,
or within any of the waters of the State, whether said waters
be rivers, lakes, bayous, lagoons, bays or gulfs. It shall, like-
wise enforce all laws relating to the natural mineral and for-
estry resources of this State. It shall assist in protecting all
lessees of private oyster bedding grounds in the enjoyment of
their rights, and shall assist in the protection of private fish
ponds used by individuals to propagate fish, and to protect
game preserves placed under the control of the State, provided
they are used for the propagation of birds and game, or as
STATUTES CONSERVATION 193
resting places for game or birds, and to see that said preserves
are properly posted according to law. And said Commission
shall in every way possible assist in developing the natural
resources of the State under its jurisdiction to their fullest
proportions.
Section 3. Be it further enacted, etc., That this Commis-
sion shall have power and authority, in its name, to initiate
and prosecute all civil actions or proceedings arising from the
violation of any law, the administration of which is imposed
upon it. And it shall also be the duty of said Commission to
report all violations of the criminal laws with the enforcement
of which it is charged to the District Attorney within whose
jurisdiction such infractions occur, and see that such cases so
reported are promptly prosecuted and it shall be the duty of
the District Attorney to prosecute all such actions and make
report of such prosecutions to the Commission. This obliga-
tion shall be mandatory on the District Attorney.
Section 4. Be it further enacted, etc., That it shall be the
duty of said Commission, on or before the first Monday in
April of each year, to prepare and present to the Governor
of the State, a printed annual report showing the operations
of the Commission since the date of its last annual report,
showing the amount of money received by it and from what
sources, the amount of money expended by it and for what
purpose, and in each annual report immediately preceding the
regular session of the General Assembly, the Commission
shall include an estimate of proposed expenditures and ex-
penses for the ensuing two years; and its prospective reve-
nues and such recommendations for legislative action if any
the Commission may deem \vise for the better accomplish-
ment of the purposes of this act. The governor shall lay copies
of said report before the General Assembly convening after
194 STATUTES CONSERVATION
their receipt, and at each regular session the General Assem-
bly shall appropriate such funds as it may deem wise, for the
continuation of the work of said Commission. A fund to be
known as the "Conservation Fund" is hereby, established and
all funds collected by the Conservation Commission as herein
provided for shall be paid in the State Treasury to the credit
of said fund, a record of said payments being made by the
State Auditor, and acknowledgment thereof sent to the Con-
servation Commission, that all expenditures shall be made out
of the said fund by the warrant of the said Conservation Com-
mission drawn on the State Auditor, which warrant shall be
signed by the President of the Conservation Commission, and
countersigned by its Secretary and said State Auditor shall,
in turn, issue his warrant in payment thereof on the State
Treasurer, said Conservation shall keep a set of books show-
ing from whom every dollar is received and for what purpose ;
and shall keep in its file vouchers or receipts for all moneys
paid out. Any surplus funds existing after the current annual
expenses are provided for may be used for the purpose of
game, oyster and fish propagation and conservation.
Section 5. Be it further enacted, etc., That each one of
said Commissioners shall give for the faithful performance of
the duties of his office a bond in favor of the Governor of the
State for the benefit of the people of the State in the sum of
five thousand dollars ($5,000.00) and each employee of the
said Conservation Commission other than the Commissioners,
shall give a similar bond for the faithful performance of their
duties in the sum of one thousand dollars ($1,000.00). In
case of forfeiture of any of said bonds and recovery on same,
theamount recovered shall go to the general fund of the Com-
mission.
Section 6. Be it further enacted, etc., That all moneys,
STATUTES CONSERVATION 195
machinery and other property of whatever kind now owned
or controlled by the Board of Commissioners for the protec-
tion of birds, game and fish of the State of Louisiana is here-
by declared to be the property of the State of Louisiana, and
is hereby transferred to the control of the Conservation Com-
mission of Louisiana and the said Conservation Commission
of Louisiana is hereby required to assume and pay all valid
bills and debts owing by the Board of Commissioners for the
protection of birds, fish and game and to discharge the duties
heretofore discharged by said board and not otherwise pro-
vided for herein, and to prosecute and carry on all actions
heretofore commenced by said board, and to enforce all laws,
the duty of enforceing which devolves upon said Board of
Commissioners for the protection of birds, game and fish.
Section 7. Be it further enacted, etc., That the Conserva-
tion Commission shall permit no salaried officer or employee
to be actively interested in the exploiting for personal gain of
any of the natural resources of the State, or to be employed
by any person, firm or corporation engaged in the exploiting
of any of the natural resources of the State, under the penalty
of dismissal from the service hereof and forfeiture of any
rights sought to be acquired by said officer or employees.
Section 8. Be it further enacted, etc., That the Conserva-
tion Commission shall acquire such boats and other property
as may be necessary to regulate and supervise the work of
said commission, and as soon as the funds become available
for the purpose, the Conservation Commission shall establish
suitable armed patrols on the boundary lines between the
waters of Louisiana and Mississippi to prohibit the violation
of any of the laws of this State relating to birds, shell fish and
wild quadrupeds of this State.
196 STATUTES CONSERVATION
Section 9. Be it further enacted, etc., That it shall be the
duty of the said Conservation agents to see that every person
hunting, trapping, seining, shipping or dealing in any way in
any of the natural resources of this State in the territory as-
signed to each agent for which a license must be obtained as
hereinafter provided has in his possession, or is the owner of
any official license as provided by law, except in case of a
resident hunting on his own lands or on lands leased for agri-
cultural purposes or on lands inside the ward in which his
domicile is located.
Section 10. Be it further enacted, etc., That the said Con-
servation Commission, through its accredited agents shall
have power to search or examine any cold storage warehouse,
boat, store, car, conveyance, vehicle, fish baskets or other re-
ceptacle for birds, fish, shell fish or wild quadrupeds, when
they have good cause to believe that any law for the protec-
tion of fish, shell fish, birds and wild quadrupeds has been
violated, and it shall be and is hereby made their duty to im-
mediately make affidavit against the suspected violators.
Section 11. Be it further enacted, etc., That the Conserva-
tion Commission shall have power to appoint competent men
throughout the State to be known as "Special Conservation
Agents," who shall possess all rights and powers given by
the law to the regular Conservation Agent except the right
to search without warrants, and they shall be subject to all
requirements and regulations both of the law and the rules of
the Conservation Commission, provided that such special Con-
servation Agent shall be in no way entitled to recompense from
either the parish, or state or commission for services rendered
or expenses incurred in the performance o ftheir duty. All
sheriffs, constables and peace officers shall have the power
as Conservation Agent under this section except the right to
STATUTES CONSERVATION 197
search without warrant, and shall receive one-half of all fines
collected for violation of the Game and Conservation Laws of
this State that may be reported by them.
Section 12. Be it further enacted, etc., That all salaries
and other expenses of said Conservation Commission are to
be paid by warrant of the Conservation Commission of Louisi-
ana drawn on the State Auditor, which warrant shall be signed
by the President of the Conservation Commission and coun-
tersigned by its Secretary, and the State Auditor, shall, as
hereinbefore provide, issue his warrant on the State Treas-
urer in payment thereof, said payment to be made from the
funds collected by the sale of hunting licenses, or forfeiture
of bonds and fro mall money which may be appropriated by
the General Assembly for the use of the Conservation Com-
mission and from all revenues derived from oysters and
shrimp licenses and tax, or licenses for the trapping of fur-
bearing animals and licenses on fish seines, boats, diamond-
back terrapin, and from other sources. All fines derived from
convictions of the violations of the Conservation laws of this
State, except as may be herein otherwise provided less the
sheriff's per cent for collection provided by law, shall be paid
to the treasurer of the school funds for the use of the public
schools in the parish in which the violation occurred.
Section 13. Be it further enacted, etc., That the Conserva-
tion Commission of the State of Louisiana, during the month
of June of each year, shall send to the tax collector of each
parish of the State, a book or books containing a regularly
numbered series of official hunting and trapping licenses
bearing the facsimile signature of the President of the Com-
mission, which license shall be issued by the said tax collec-
tors to all persons applying for same at the rate of fifty cents
for all residents hunting in their own parish outside the limits
198 STATUTES CONSERVATION
of the wards in which thei rdomicile is located and three dol-
lars for all not residents and unnaturalized foreign-born resi-
dents hunting on their own land, and ten dollars for persons
who hunt for profit and are commonly known as "market
hunters," except that non-residents of unnaturalized foreign-
born residents shall not be permitted to hunt or trap for profit.
On the first of each month, the tax collector shall make return
to the Treasurer of the State of Louisiana in cash accom-
panied by a proper report of all licenses that have been issued,
less five per cent of the sum collected, which amount is to be
deducted in full payment of their services in issuing said
licenses; and, at the same time, said tax collectors must for-
ward to the Conservation Commission duplicates of such re-
ports. The Conservation Commission shall deposit with the
State Treasurer all funds and monies as received from the
tax collector and proper records of said deposits shall be en-
tered on their books covered by receipts or vouchers of the
State Treasurer.
Section 14. Be it further enacted, etc., That no person shall
at any time hunt, pursue, or kill with a gun any of the wild
quadrupeds or birds that are protected during any part of the
year, or take with traps or other devices without first having
procured a license to do so, and then only during the respec-
tive periods of the year when it shall be lawful.
Section 15. Be it further enacted, etc., That the Conser-
vation Commission is hereby empowered to accept from any
persons, firm, corporation, State or Federal Government, any
lands or waters suitable for game and fish preserves and to
provide such rules and regulations not contrary to law, for
the Conservation of the birds, game and fish found thereon.
Section 16. Be it further enacted, etc., That the Conser-
vation Commission shall employ at a salary not to exceed
STATUTES CONSERVATION 199
eighteen hundred dollars per year and traveling expenses
necessarily incurred by him in the discharge of his official
duties, not to exceed seven hundred dollars per year, a sur-
veyor whose duty it shall be to mark the boundaries of all
oyster bottoms leased by the State to private individuals.
Section 17. Be it further enacted, etc., That the Commis-
sion may adopt all needful rules and regulations necessary for
a proper and intelligent administration and enforcement of
the State Laws relating to fish, game and wild quadrupeds.
Section 18. Be it further enacted, etc., That In all cases of
arrest for violation of the game and fish laws of the State the
possession of the game, fish, or nets or seines, or lines, or the
possession or operation of any other device herein prohibited
shall be prima facie evidence of the violation of this act.
Section 19. Be it further enacted, etc., That the Conserva-
tion Commission may take fish of any kind, when, where, and
in such manner as may be necessary for the purpose of science
and of cultivation and distribution, and they may grant writ-
ten permits to other persons for the same purpose, and may
introduce or premit to be introduced any kind of fish into any
waters. They may, after a hearing, set apart for a term not
exceeding ten years, any waters in the State for the purpose
of propagation, or for the use of the United States Bureau of
Fisheries. The order setting apart such waters shall be re-
corded in the registry of deeds of the parish in which they are
situated. They may erect and maintain such fixtures as are
necessary for the purpose of propagation and maintenance.
Section 20. Be it further enacted, etc., That it shall be un-
lawful for any person to wilfully enter in or upon any build-
ing or other structure of any area of land or water, set apart
and used by scientific experiments and distribution of fish,
200 STATUTES CONSERVATION
birds or game after said commission has printed notices of
such occupation and use and the purposes thereof, to be placed
in a conspicuous position adjacent to any such areas of land
or water or upon any such building or other structure or to
wilfully and maliciously injure or deface any such building,
or other notice posted as aforesaid, or injure or destroy any
property used in such experiments or investigation or other-
wise interfere therewith.
Section 21. Be it further enacted, etc., That the Conser-
vation Commission may purchase from persons, firms or cor-
porations, fish row or fish eggs, giving in exchange or in con-
sideration thereof a per centum of the young fish hatched or
produced at any of the fish hatcheries of the State for the eggs
so purchased; and the placing of such young fish in waters
on the land of such persons; firms or corporations shall not
be deemed a stocking of such waters with fish by the State.
Section 22. Be it further enacted, etc., That no wild animal
or fowl or spawn or fish of any species from without the
State shall be liberated within the State except upon written
permission of thhe oCnservation Commission.
Section 23 . Be it further enacted, etc., That the Conserva-
tion Commission, upon the petition of the police jury of a par-
ish, may stock the hwaters of any stream, bayou, lagoon, lake
or river, with such fish as they judge to be the best suited to
such waters. The Commission may thereupon prescribe for
a period not exceeding three years, such reasonable regula-
tions relative to the fishing in such streams and tributaries as
they deem to be for theh public interest, and shall cause such
regulations to be enforced.
Section 24. Be it further enacted, etc., That whenever
they deem it for the best interest of the State, the Conserva-
STATUTES CONSERVATION 201
tion Commission may entirely prohibit the taking of any kind
of fresh water fish in any part of the State, for a series of
years not exceeding three. They may adopt, and from time
to time modify or repeal such needful rules and regulations
not contrary to the laws of the State, as they may deem neces-
sary or proper for the protection and preservation of the Fish
of the State.
Section 25. Be it further enacted, etc., That the Conserva-
tion Commission hereby created shall be charged with the duty
of carrying out the provisions of Act 189 of 1910, and by any
other laws on the subject of the oyster industry, insofar as
they are not in conflict with the provisions of this Act, and
said Conservation Commission shall to that extent discharge
the functions heretofore exercised by the Board of Commis-
sioners for the Protection of Birds, Game and Fish.
Section 26. Be it further enacted, etc., That the Conser-
vation Commission hereby created shall be charged with the
duties of carrying out the provisions of Act 172 and 196 of
1910, and any other laws on the subject of the Conservation
of the natural mineral, soil and forestry resources of this State
insofar as they are not in -conflict with the provisions of this
Act, and the Conservation Commission hereby created shall
to that extent discharge the functions heretofore exercised
by the Conservation Commission created, by Act 172 of 1910.
Section 27. Be it further enacted, etc., That the Conserva-
tion Commission hereby created shall be charged with the duty
of carrying out the provisions of Act No. 261 of 1910, amend-
ing and re-enacting Act No. 113 of 1904, and the service of
the other officials mentioned in said act are hereby dispensed
with, the same being placed under the exclusive control and
administration of the Conservation Commission hereby cre-
ated.
202 STATUTES CONSERVATION
Section 28. Be it further enacted, etc., That any person
violating any of the provisions of this act, where a punish-
ment has not been otherwise provided, shall be guilty of a
misdemeanor, and upon conviction thereof by any court of
competent jurisdiction, shall be liable to a fine o fnot less than
twenty-five dollars ($25.00) nor more than one hundred dol-
lars ($100.00) or be subject to imprisonment for not less than
thirty (30) days, or be liable to both fine and imprisonment
in the discretion of the court.
Section 29. Be it further enacted, etc., That all laws or
parts of laws in conflict herewith be, and the same are hereby
repealed.
L. E. THOMAS,
Speaker of the House of Representatives.
THOMAS C. BARRETT,
Lieutenant Governor and President of the Senate.
Approved: July 9th, 1912.
L. E. HALL,
Governor of the State of Louisiana.
A true copy :
ALVIN E. HEBERT,
Secretary of State.
STATUTES CONSERVATION 203
Conservation.
ACT No. 66 of 1916.
House Bill No. 175. By Mr. Powell.
AN ACT.
To amend and re-enact Section 1 of Act No. 127 of the Acts
of the General Assembly of 1912, entitled: "An Act to create
and establish a Conservation Commission of Louisiana, defin-
ing its duties and powers and constituting it a department of
the Government; to provide for the necessary employees and
defining their qualification, duties and powers in relation to
the protection of birds, fish, shell fish and wild quadrupeds;
forestry and mineral resources of the State; to provide for
the payment of the salaries and expenses of the said Commis-
sion, to issue licenses and levy and collect the charges thereon,
and to provide for the revenues to maintain and support the
same; to provide for the establishment of public and private
preserves and propagating grounds for game and fish; to
authorize the Conservation Commission herein created to dis-
charge the duties and functions heretofore exercised by the
Board of Commissioners for the protection of birds, game and
fish, and the Conservation Commission heretofore created,
and the duties heretofore assigned to the Department of For-
estry and the Department of Mining and Minerals ; to author-
ize said commission to represent the aforesaid other commis-
sions either as defendant in any litigation that might be pend-
ing; to provide penalties for the violation of this Act, and to
repeal all laws or parts of laws in conflict with or inconsistent
with the provisions of the Act.
Section 1. Be it enacted by the General Assembly of the
204 STATUTES CONSERVATION
State of Louisiana, That Section 1 of Act No .127 of the Acts
of the General Assembly of 1912, approved July 9th, 1912, be
amended and reenacted so as to read as follows : Be it enacted
by the General Assembly of the State of Louisiana, that the
"Department of Conservation" is hereby created. It shall be
directed and controlled by an officer to be known as "Com-
missioner of Conservation." The said Commissioner shall be
appointed by the Governor, by and with the advice and con-
sent of the Senate, for a term of four years, and he shall be
informed, in whole or in part, on the subject of wild life, game
and fish, and the requirements for their conservation, oysters,
salt and fresh water fish of the State, and the forestry and
mineral resources of the State. The said Commissioner shall
be subject to removal by the Governor. He shall have super-
vision and control over all employees in every branch of the
service. He shall receive a salary of thirty-six hundred dol-
lars ($3,600) per annum, payable monthly, and shall receive
his actual traveling and hotel expenses when engaged in the
discharge of his official duties away from the domicile of the
Department. He shall have authority to pay the expenses of
its employees, either within or without the State, while in the
service of the Department, but such expenditures and his sal-
ary shall never exceed the amount of the revenues available
for the use of said Department ; and provided, there shall not
be any attorney other than the Attorney General paid to rep-
resent the said Department; that the Commissioner herein
provided for shall fully represent the Department of Conser-
vation and discharge all the obligations and duties heretofore
devolving upon the three members of the Conservation Com-
mission ; it being the intent and purpose of this Act to reduce
the Commission to one head, who shall be Superintendent and
General Manager of all of the affairs properly coming within
its supervision; and to place in said Department of Conserva-
STATUTES CONSERVATION 205
tion all the duties, authority, power, privilege and jurisdiction
of the Conservation Commission.
Section 2. Be it further enacted, etc., That all laws and
parts of laws in conflict herewith be and the same are hereby
repealed.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
Approved: June 30th, 1916.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy:
JAMES J. BAILEY,
Secretary of State.
Conservation.
ACT No. 105 of 1918.
House Bill No. 121. By Mr. Ashford.
AN ACT.
To amend and re-enact Section 1, 8 and 10 of Act 127 of
1912, as amended by Act 66 of 1916 and Act 45 of 1916, en-
titled :
To create and establish a Department Conservation, de-
fining its duties and powers and constituting it a department
of the Government to provide for necessary employees and
defining their qualifications, duties and powers in relation to
the protection of birds, fish, shell fish and wild quadrupeds;
forestry and mineral resources of the State; to provide for
the payment of the salaries and expenses of the said Commis-
sion, to issue licenses and levy and collect the charges thereon,
206 STATUTES CONSERVATION
and to provide for the revenues to maintain and support the
same; to provide for the establishment of public and private
preserves and propagating grounds for game and fish; to
authorize the Conservation Commission herein created to dis-
charge the duties and functions heretofore exercised by the
Board of Commissioners for the protection of birds, game and
fish, and the Conservation Commission heretofore created and
the Department of Mining and Minerals, to autorize said
commission to represent the aforesaid other commission either
as defendant or plaintiff in any litigation that be pending; to
provide penalties for the violation of this Act, and to repeal
all laws or parts of laws in conflict with or inconsistent with
the provisions of the act.
Section 1. Be it enacted by the General Assembly of Louisi-
ana, that Section 1 of Act 127 of 1912, as amended by Act
66 of 1916, be and the same is hereby amended and re-enacted
to read as follows :
"That the 'Department of Conservation' is hereby created.
It shall be directed and controlled by an officer to be known
as 'Commissioner of Conservation.' The Commissioner shall
be appointed by the Governor, by and with the advice and
consent of the Senate, for a term of four years, and he shall
be informed, in whole or in part, on the subject of wild life,
game and fish and the requirements for their conservation,
oysters, salt and fresh water fish of the State, and the fores-
try and mineral resources of the State. The said Commis-
sioner shall be subject to removal by the Governor. He shall
have supervision and control over all employees in every
branch of the service, and shnll give his entire time to the
service. He shall receive a salary of four thousand ($4,000.00)
dollars per annum, payable monthly and shall receive such
expenses as are necessary when engaged in the discharge of
his official duties. He shall have authority to pay the ex-
STATUTES CONSERVATION 207
penses of its employees, either within or without the state,
while in the service of the department but such expendici'rs
and his salary shall never exceed the amount of the revenues
available for the use of said department; and provided there
shall not be any attorney other than the Attorney General
paid to represent the said department ; that the Commissioner
herein provided for shall fully represent the Department of
Conservation and discharge all the obligations and duties
heretofore devolving upon the three members of the Conser-
vation Commission: it being the intent and purpose of this
Act to reduce the Commission to one head who shall have full
charge of all the affairs properly coming within its super-
vision: and to place in said Department of Conservation all
the duties, authority, power, privilege and jurisdiction of the
Conservation Commission."
Section 2. Be it further enacted, etc., That section 8 of Act
127 of 1912, be and the same is hereby amended and re-enacted
to read as follows:
"That the Commissioner of Conservation shall require such
boats and other movable property as may be necessary to
regulate and supervise the work of the said Department of
Conservation, and shall establish suitable armed patrols on the
waters of the State or on the land, to prevent the violation of
any of the conservation laws of the State relating to birds,
wild quadrupeds, and other game, fish, shall fish, oysters,
forests, mines and minerals, and waterbottoms ; and shall
have the power to appoint competent men throughout the
State to be known as "Conservation Agents," with the author-
ity to carry arms concealed while in the performance of their
duties, who shall have full power under the law to enforce all
laws for the protection of the natural resources of the State."
Section 3. But it further enacted, etc., That Section 10 of
Act 127 of 1912 be amended and re-enacted to read as follows:
208 STATUTES PURCHASERS OF OIL
"That the said Department of Conservation, through its
officers, inspectors, and agents shall have full power to search
or examine any cold storage warehouse, boat, store, car, con-
veyance, vehicle, fish basket ,or other receptacle for birds, fish,
shell fish, game or wild quadrupeds, when they shall have good
cause to believe that any law for the protection of birds, fish,
shell fish, game, or wild quadrupeds has been violated; that
they shall enforce all laws for the protection of the other nat-
ural resources of the state, and it shall be and is hereby made
their duty to arrest and immediately make affidavit against
the suspected violators."
Section 4. Be it further, enacted, etc., That all laws or parts
of laws in conflict herewith be and the same are hereby re-
pealed.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
Approved: July 5, 1918.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
Conservation Purchasers of Oil.
ACT No. 73 of 1920.
House Bill No. 122. By Mr. Tanner.
AN ACT.
To conserve the oil resources of the State and to secure to
STATUTES PURCHASERS OF OIL 201)
each party entitled thereto an opportunity to sell his fair share
of the oil produced in a common pool and to such end to pre-
vent any person, firm, association or persons or corporation
engaged in the business of purchasing crude petroleum from
the producer from discriminating in such purchase during a
condition of ever-production ; vesting the Commissioner of
Conservation of Louisiana with jurisdiction to appoint a su-
pervisor for such field while such condition continues, with
authority to make rules and regulations governing such pur-
chases, and likewise conferring on said Commission, JMris-
diction to exercise the other powers hereby vested in it ; mak-
ing violation of any order of the Commissioner o rof any rule
or regulation of such supervisor, legally issued hereunder, a
misdemeanor and providing penalties therefor.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana that during a period of over-production in
any oil field, it shall be the duty of the buying agencies to ac-
cord to each producer an opportunity to sell that proportion
of the oil, taken by such buying agencies, as the potential pro-
duction of oil from the wells of such producer bears to the
potential production thereof from all of the wells in such
field. However, nothing in this act shall be construed as com-
pelling the owner of any pipe line to construct a pipe line for
the purpose of reaching the well of any producer. In provid-
ing for the amount of oil to fill their requirements such buying
agencies shall not take any larger percentage of the potential
production of themselves, or of persons affiliated with them
or under the same management or control, than they offer
to purchase of the potential production of other producers;
provided that nothing herein is intended to compel any buying
agency to purchase oil in larger quantities or at a higher price
than it desires; or to compel any producer to sell unless he
shall wish to do so; or to prevent any producer from storing
210 STATUTES PURCHASERS OF OIL
oil by him produced, if he desires, but the amount so stored
shall be deducted from the ratable share which such producer
may require purchasing agencies to take under the j revisions
of this act.
Section 2. Be it further enacted, etc., That the provisions
of this act shall not apply to any purchaser buying oil in quan-
tities of less than five hundred (500) barrels per day and who
transports such oil through his own facilities.
Section 3. Be it further enacted, etc., That upon a repre-
sentation in writing and under oath by any person to the con-
servation commissioner of Louisiana that there exists a con-
dition of over-production in any oil field in this State, said
Commissioner shall hold a public hearing thereon, after two
days' notice of such hearing published in two daily news-
papers that are published nearest the oil field affected and by
notice posted on the Court House door of the Parish in which
such oil field is located. If the Commissioner shall determine
at such hearing that there does exist such condition, he shall
appoint a supervisor to serve in such field during the period
of over-production. If those producing oil in such field and
the buying agencies therein, or those producing oil in such
field and the buying agencies therein, or a large part of both
such producers and buying agencies, shall unite in a recom-
mendation to said Commissioner for the appointment as sup-
ervisor of a citizen of this State, and also give to such Com-
missioner assurance to him satisfactory for the payment of
the salaries and expenses of such supervisor and his assis-
tants, then the Commissioner shall appoint as supervisor the
party so recommended, if in the judgment of said Commis-
sioner he be competent and trustworthy. Except as stated,
the Commissioner shall have absolute discretion in the selec-
tion of such supervisor and in the fixing of his salary at any
sum not to exceed five hundred ($500.00) dollars per month.
STATUTES PURCHASERS OF OIL 211
Unless paid in the manner above indicated the salaries and
expenses of the supervisor and his assistants shall be paid by
the Commissioner of Conservation. The said Commissioner
shall also have power to remove any such supervisor and ap-
point his successor whenever he may deem such to be advis-
able. It shall be the duty of said Supervisor, whenever he
may think it to be necessary or the Commissioner may order,
to ascertain, by actual gauge or otherwise, the amount of the
potential production from the wells drilled and the quantities
of oil which the buying agencies, will from time to time take
therefrom to fill their requirements, and to prescribe rules
and regulations so as to accord to each producer an opportun-
ity to sell his ratable share of such requirements on the basis
as specified in Section 1 above. Subject to review, modifica-
tion, amendment, or annulment as hereinafter provided, all
the producers of oil in such field and the agencies buying oil
therein shall comply with and observe such rules and regu-
lations under the penalties for violation thereof as later herein
stated.
Section 4. Be it further enacted, etc., That the Super-
visor may employ such assistants, clerical or otherwise, as
may be necessary to the discharge of his duties, and fix their
compensation, subject to approval of the Conservation Com-
missioner. In the discharge of his duties the supervisor and
his assistants shall have the right to enter upon any lease or
other property of any producer in the oil field, and have such
control over such property, machinery, and appliances as
may be requisite to gauge the wells; and also shall have the
right to examine any books, papers, or accounts of any oil
producer relative to his production, operation, and sales; and
of any buying agency relative to the latter's operations as
such.
Section 5. Be it further enacted, etc., That all acts of
212 STATUTES PURCHASERS OF OIL
the supervisor and the rules and regulations by him pre-
scribed shall be subject to amendment, change, modification,
or annullment by said Commissioner upon hearing after such
reasonable notice as he may prescribe. Jurisdiction is con-
ferred upon the district courts of this State to review every
action or decision of such Commissioner, and the reasonable-
ness of any order, rule, or regulation prescribed or approved
by him, except the action of the Commissioner in appoint-,
ing a supervisor as provided in Section 3 herein, and the
rules and regulations prescribed by such supervisor shall not
be suspended until set aside by the Commissioner or said
court. Such review may be had at the instance of any per-
son having an interest in the matter to be reviewed in the
manner and with the same effect as is now or may hereafter
be allowed in suits to annul orders of said commission in
other matters over which he has jurisdiction.
Section 6. Be it further enacted, etc., That if any per-
son shall wilfully violate any order, rule or regulation made
or provided by said Commissioner or supervisor or of such
court of competent jurisdiction unless stayed or suspended
he shall be guilty of a misdemeanor, and shall be fined not
less than one hundred ($100.00) dollars nor more than one
thousand ($1,000) dollars for each offense, and shall for-
feit and pay to the State of Louisiana not less than one
hundred^ ($100.00) dollars nor more than one thousand
($1,000.00) dollars for each day's violation, to be recovered
in any court jurisdiction at the suit of the State.
Section 7. Be it further enacted, etc., That as herein used
the words "potential production" mean the amount of petro-
leum which can be an dis actually produced from the wells
in the oil field when operated to their full capacity for a
reasonable test period not to exceed five consecutive days;
"over-production" means that the potential production is in
STATUTES PURCHASERS OF OIL 213
excess of the quantity of oil being taken care of in the oil
field: "persons" includes all individuals, partnerships, as-
sociations of persons and corporations; "producers" includes
the lessee or other operator of oil wells, or owner of oils as
produced from the well, and also the owner of the royalty
therefrom; and "buying agencies" embraces all persons en-
gaged in the business of purchasing oil from the producer,
provided that the purchasing by a producer merely of the
royalty on his production shall not make such producer a
buying agency.
Section 8. Be it further enacted, etc., That this law is
designed through its operation during a period of over-pro-
duction to conserve the oil n as is manifestly to the public
interest, and to provide means whereby all of the producers
may have a reasonable opportunity to sell their fair propor-
tion of the market's requirements, and it shall be construed
to effectuate these purposes.
Section 9. Be it further enacted, etc., That is Section 2,
or any provision thereof, of if any other section or provision
or part of any other section, be declared unconstitutional, or
void for any other reason, such holding shall not invalidate
any other provision or section of. this act, and all provisions
of any section of this act which are constitutional and valid
shall remain in full force and effect.
R. F. WALKER,
Speaker of the House of Reprsentatives.
HEWITT BOUANCHAUD,
Lieut Governor and President of the Senate.
Approved: July 6, 1920.
JOHN M. PARKER,
A true copy: Governor of the State of Louisiana.
JAMES J. BAILEY,
Secretary of the State.
214 STATUTES CONSERVATION
Conservation.
ACT No. 250 of 1920.
Senate Bill No. 155. By Mr. Boyer, Chairman of the Com-
mittee on Conservation, etc. Senate Bill No. 155. Sub-
stitute for Senate Bill No. 115, by Mr. Warren.
AN ACT.
Granting to the Department of Conservation, created by
laws of Louisiana, greater power and authority in the work
of conserving the crude petroleum, natural gas and mineral
substances mined or produced in the State of Louisiana,
giving to the Department of Conservation power and
authority to adopt and promulgate, amend and re-adopt,
rules and regulations for the drilling, development, sinking,
deepening and abandonment of natural gas and oil wells,
and to promulgate rules and regulations regulating the pro-
duction and use of natural gas, and requiring that the gaso-
line contained in the natural gas used by carbon plants be
extracted and saved before such gas be utilized for the mak-
ing of Carbon; empowering and authorizing the Department
of Conservation to take charge of, control, or securely cap
or plug any natural gas well or oil well wasting oil or gas
and not in control; providing for proceedings in the exer-
cise of this authority; and giving a lien and privilege in
favor of the Department of Conservation for all reasonable
expenses and costs incurred by it, or under its authority, in
the closing, caping or plugging of any such uncontrolled or
wild well, and extending this lien and privilege to all leases,
property and equipment owned by the company, firm or
individual owning such wild well, and defining the word
"waste" as used in this act; and requiring persons, associa-
tions and corporations mining, drilling or operating oil or
STATUTES CONSERVATION 215
gas wells or mines to report to the Department of Conserva-
tion from time to time on the output of such wells or mines;
prescribing penalties for the violation of this Act' and the
rules and regulations of the Department of Conservation
adopted pursuant hereto, and limiting the amount of fine or
term of imprisonment that may be imposed; authorizing and
empowering the Department of Conservation to resort to
courts for legal, equitable or criminal process to compel
obedience and compliance with its rules and regulations; and
to enforce any of the provisions of this Act; authorizing
the Department of Conservation to appeal from any judg-
ment or decree against it, or any order restraining the De-
partment in the exercise of its authority; granting the right
to appeal to any person, association or corporation from any
judgment, order or mandate of the Department of Conserva-
tion directed against it; and authorizing the determination
of the reasonableness of the orders, rules and regulations of
the Department of conservation in any court of competent
jurisdiction at the timely instance of any party affected
thereby and conferring jurisdiction therefor; making it the
duty of the Attorney General, on request, to represent the
Department of Conservation, and Authorizing the appoint-
ment of a District Attorney to appear instead of the Attorney
General, under certain conditions; declaring all legal pro-
ceedings hereunder to be preference matters entitled to sum-
mary trial and disposition in courts of competent jurisdiction ;
providing for appropriations of funds necessary for the en-
forcement of this Act, and regulating the issuance of in-
junctions restraining the Department of Conservation in its
control of wild gas wells and providing for injunction bonds
therewith.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That the Department of Conservation,
216 STATUTES CONSERVATION
created by the laws of the State of Louisiana, acting through
the Commissioner of Conservation, is hereby empowered and
directed to adopt and promulgate, pursuant to the pro-
visions of the Constitution and the laws of the Stae of Lou-
isiana and of this Act, such rules and regulations as said
Department may deem necessary for the conservation of the
crude petroleum, natural gas and mineral substances pro-
duced in the State of Louisiana, and to provide rules and
regulatins for the drilling development, sinking, deepening,
abandonment and operation of oil wells, gas wells and mines
for the purpose of conserving the products produced there-
from, and to prevent the waste of such products, and to re-
quire persons, associations and corporations mining, drilling
or operating such wells or mines to report to it from time
to time on the output of the wells or mines being operated
by them.
Section 2. Be it further enacted, etc., That the Depart-
ment of Conservation is authorized by the grant or power
in this act to prescribe rules and regulations requiring that
the gasoline contained in natural gas used by carbon plants
be extracted and saved before such gas be utilized for the
making of carbon, where such gas contains sufficient gaso-
line to make the extraction thereof beneficial or profitable.
Section 3. Bt is further enacted, etc., That the Depart-
ment of Conservation be and it is hereby given supervision
over the production and use of natural gas in connection with
the manufacture of carbon black, in other manufacturing
enterprises and for domestic consumption ; and that power
and authority is hereby granted to the Department of Con-
servation to prepare and promulgate all necessary and reas-
onable rules and regulations providing for the conservation
of natural gas produced for and used in plants manufactur-
ing carbon black, in other manufacturing enterprises and for
STATUTES CONSERVATION 217
domestic consumption; hereby especially granting to the
Department of Conservation the power to limit the amount
of gas which may be withdrawn from all the gas wells in
any particular gas field or area to a percentage of the poten-
tial capacity of such gas wells as may be reasonbly necessary
to conserve and safe-guard an adequate supply of natural
gas.
Section 4. Be it further enacted, etc., That in order to
further protect the natural gas fields and oil fields in this
State, it is hereby declared to be unlawful, and the Depart-
ment of Conservation shall have the authority to adopt
rules and regulations making it unlawful and declaring it
to be a nuisance for any person, firm, association, or corpora-
tion to negligently permit any natural gas well or oil well
to go wild or waste or to become uncontrollable or wasteful,
and to provide that the; owner or person in possession of
any wild, uncontrolled, or wasteful natural gas well or oil
well shall, after five (5) days written notice given to such
owner or proprietor or person in possession by the Depart-
ment of Conservation or its agent, be required to make every
reasonable and diligent effort to close such well and securely
cap or plug it in accordance with the rules and regultaions
established by the Department of Conservation.
That in the event of the failure of the owner or party in
possession of said will or uncontrolled natural gas well or
oil well within five (5) days after service of the notice above
provided for, to begin in good faith the work of closing,
rapping ,or plugging said wild or uncontrolled well, and to
diligently and skillfully prosecute such work, then the De-
partment of Conservation shall have the superior right to
enter into the actual possession and control of the said well
and to take charge of the work of closing said wild or un-
controlled natural gas well or oil well, and it shall have the
218 STATUTES CONSERVATION
right to proceed, through its own agents or by contract with
a reasonable contractor, to close or plug the said wild or un-
controlled well or otherwise prevent the wasteful escape or
wasteful loss of natural gas or oil from such well, all at the
reasonable expense of the owner or proprietor thereof; and
in order to secure to the Department of Conservation the
reasonable cost and expense of closing, capping, or plugging
such wild well, the possession of the same with sufficient
ground adjacent thereto belonging to such owner or pro-
prietor with the rents, revenues and incomes therefrom,
shall be retained by the Department of Conservation until
the' full and final payment of such costs and expense in-
curred shall be repaid to the department of Conservation
or the contractor, and when such owner or proprietor or
person in possession of such well shall pa>f such cost and
expense to the Department of Conservation, less the revenues,
rents, and income derived therefrom by the Department of
Conservation, while same was in the possession of said De-
partment. The Department of Conservation shall, after such
well is brought under control, restore possession of said well
to the cwner; provided that in the event rents, reveaucs and
income shall not be sufficient to reimburse the Department
of Conservation, as provided for in this section, then and
in that event, the costs and expense of closing or plugging
said wild or uncontrolled or wasteful natural gas well or
oil wells shall operate as a lien or privilege in favor of the
Department of Conservation upon all of the property of the
owner or proprietor of said wild well, except such as is ex-
empted by law, and the Department of Conservation shall
proceed to enforce said lien and privilege by suit before any
court of competent jurisdiction, the same as any other like
civil action, and the judgment so obtained shall be executed
in the same manner now provided by law for execution of
STATUTES CONSERVATION 219
judgments. Any excess over the amount due thel Depart-
ment of Conservation which the property seized and sold may
bring, after payment of court costs shall be paid over to the
owner of said wild or uncontrolled well.
Section 5. Be it further enacted, etc., That the term
"waste" as used in this act, in addition to its ordinary mean-
ing, shall include underground waste, surface waste, or any
unreasonable waste or leakage in the production of crude
petroleum, natural gas, or other minerals.
Section 6. Be it further enacted, etc., That the Depart-
ment of Conservation shall have the right to appear in court,
through its chief officer or other designated agent, or sub-
ordinate officer, duly designated by the chief officer to en-
force rules and regulations and any provision of this act
by civil or criminal process before any court in the State of
Louisiana of competent jurisdiction.
Any corporation, partnership, association or individual
who shall willfully violate any provision or any rule or regu-
lation adopted by the Department of Conservation, puruant
hereto, upon conviction thereof by any court of competent
jurisdiction shall be deemed guilty of a misdemeanor and
may be fined not less than Fifty ($50.00) Dollars nor more
than fifteen hundred ($1,500.00) dollars or suffer imprison-
ment for not more than fifteen (15) days in the Parish jail,
or both, at the discretion of the court.
Section 7. Be it further enacted, etc., That the Depart-,
ment of Conservation shall have the right and power to re-
sort to the courts and through the courts make use of writs
of injunction, mandamus, or any lawful process to compel
the obedience and compliance with the rules and regulations
adopted by its pursuant to the authority of this act, and to
enforce any provisions of this act, all without giving bond
220 STATUTES CONSERVATION
for the payment of costs. That the right to appeal is hereby
granted to the Department of Conservation to any court of
competent appellate jurisdiction, from any judgment or de-
cree or order restraining the Department of Conservation
from exercising the authority given in this act or the rules
and regulations adopted pursuant to same, said appeal or
appeals to be prosecuted without giving bond for payment
of costs.
No injunction may be issued by any court, to restrain the
Department of Conservation, or any of its agents, officers
or employees, from carrying out the provisions of Section
4 of this act, except upon rule after not less than three (3)
days notice, and on the trial of such rule, which shall be
summary, the defendant shall be allowed to introduce evi-
dence to rebut the allegations of the petition, with the right
on the part of the plaintiff also to offer evidence; and the
injunction should not thereafter issue unless the court shall
be satisfied from the evidence submitted, that the plaintiff
has made out a prima facie case, and in the order for such
injunction, the court shall fix the amount of bond to be
furnished by the plaintiff.
Section 8. Be it further enacted, etc., That if any com-
pany, corporation, partnership or individual engaged in the
use of natural gas in any manufacturing or industrial enter-
prise or engaged in the production of or discovery of natural
gas or oil, and placed under the supervision of the Depart-
.ment of Conservation by the terms of this act, shall be dis-
satisfied with any order, rule, or regulation prepared and
promulgated by the Department of Conservation under the
authority granted under this act, such company, corporation,
partnership or individual may, within three months after any
such order, rule or regulation is made and become effective
by the Department Conservation, and not thereafter, file in a
STATUTES CONSERVATION 221
court of competent jurisdiction, at the domicile of the com-
plainant, or the Department of Conservation, or in any
parish where the said action arose, a petition setting forth
therein the particular cause or causes of objection to the
order, rule or regulation of said Department of Conserva-
tion so complained of.
All such cases shall be tried in the same manner, subject
to the legal writs and processes, as civil cases (and shall be
given precedence over all other civil cases in the said court),
and shall be heard and determined as speedily as possible.
Any such court shall have the power and authority to affirm
the order, rule or regulation of said Department of Conser-
vation so complained of, or to change, modify, alter or set
aside the same, as justice may require; provided, that in all
cases wherein the enforcement of the said rule! or regula-
tion of the said Department of Conservation shall be sought
to be enjoined or restrained, such injunction or restraining
order shall issue upon the party seeking the same giving
such bond, to be executed in favor of the Department of
Conservation in such amount and with such surety as the
court shall direct.
Section 9. Be it further enacted, etc., That all civil or
criminal prosecutions instituted in the courts of this State
by the ( Department of Conservation or under its direction
and authority, and all appeals prosecuted from judgments
adverse to the contention of the Department of Conservation,
and all appeals taken from the orders and mandates of the
Department of Conservation, shall be tried summarily, as
the practice in the courts of Louisiana permit, and by pref-
erence in said courts.
Section 10. Be it further enacted, etc., That it is hereby
made the duty of the Attorney-General to represent the De-
222 STATUTES CONSERVATION
partment of Conservation, whenever requested by it in any
of the courts of this State, but the Attorney-General may
direct a District Attorney to appear in his place and stead
in any case the Department of Conservation moves to or
institutes before a court, within the judicial district where
said District Attorney resides.
Section 11. Be it further enacted, etc., That the Depart-
ment of Conservation, acting through he Commissioner of
Conservation, shall have power to amend, re-adopt and pre-
scribe new rules and regulations, from time to time, when-
ever in the judgment of said department of the same are
neccessary.
Section 12. Bd it further enacted, etc., That the funds
necessary for the enforcement of this act be appropriated
from funds derived from the license imposed on the busi-
ness of severing natural resources, as the Legislature may
appropriate or otherwise provide.
Section 13. Be it further enacted, etc., That this act
shall take effect from and after its passage and promulgation,
and that all laws in conflict herewith are hereby repealed.
HEWITT BOUNCHAD,
Lieutenant Governor and President of the Senate.
R. F. WALKER,
Speaker of the House of Representatives.
Approved: July 8, 1920.
JOHN M. PARKER,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
STATUTES PIPE LINES 223
Pipe Lines as Common Carriers.
ACT No. 36 of 1906.
By Mr. St. Julien. House Bill No. 53.
AN ACT.
To declare pipe lines common carriers, and to place them
under the control and regulation of the Railroad Commission
of Louisiana.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That all pipe lines, through which gasses,
oil, or other liquids are conveyed from one point in the State
to another point in the State, for a consideration, are hereby
declared to be common carriers, and are placed under the con-
trol of and subject to regulation by the Railroad Commission
of Louisiana.
Section 2. Be it further enacted, etc., That the power and
authority is herby vested in the Railroad Commission of
Louisiana, and it is hereby made its duty to adopt, change, or
make reasonable and just charges or regulations to govern
and regulate all pipe lines in this State through which gasses,
or other liquids are conveyed from one point in the State to
another point in the State for a consideration.
Section 3. Be it further enacted, etc., That all laws or parts
224 STATUTES PIPE LINES
of laws inconsistent or in conflict with this Act be and the
same are hereby repealed.
J. W. HYAMS,
Speaker of the House of Representatives.
J. Y. SANDERS,
Lieutenant Governor and President of the Senate.
Approved: June 29th, 1906.
NEWTON C. BLANCHARD,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
Pipe Lines.
ACT No. 39 of 1906.
By Mr. Toomer. House Bill No. 233.
AN ACT.
Relative to corporations, domestic and foreign, organized
with the power to build and construct pipe lines for transpor-
tation of oil and gas, or either, giving such corporations, un-
der certain terms, the right of expropriation, rights of way
under and across all publice lands and across streams 4 and
other public waters, and rights of way along, across and un-
der public rural highways and roads, and streets and public
places of cities and towns with the consent of and upon terms
imposed by the local authorities having jurisdiction thereof,
and declaring all corporations exercising the powers, herein
conferred, to be common carriers.
STATUTES PIPE LINES 225
Section 1. Be it enacted by the General Assembly of the
State of Louisiana: That corporations, whether domestic or
foreign, organized with the power of constructing and oper-
ating pipe lines for the transportation of oil or gas, or either,
shall have the right to expropriate rights of way for such pipe
lines and for telegraph, and telephone lines incident to the
operations of such pipe lines and lands for tank and pumping
stations, making part of such lines, or of storage stations con-
nected therewith, and necessary to the purpose thereof.
Section 2. Be it further enacted, etc., That said right of
expropriation shall be exercised in the same manner, and by
the same proceedings, and under the same limitations now im-
posed by law on railroads and other quasi-public corporations.
Section 3. Be it further enacted, etc., That said corpora-
tions shall have a right of way not exceeding ten (10) feet
wide for the laying of their pipe lines under and across all
public lands of the State.
Section 4. Be it further enacted, etc., That such corpora-
tion shall have the right, with their pipe lines to cross all pub-
lic streams and waters of the State, but in such case, the lines
shall be so constructed as not to impede or interfere with the
navigation thereof, if such streams and waters are navigable,
nor with the drainage through said streams and waters,
whether navigable or not.
Section 5. Be it further enacted, etc., That said corpora-
tion shall have the right to lay and maintain its pipe lines
along, under and across all public rural highways and roads,
and along, under and across all streets and public places in
cities and towns, with the consent of the local authorities
having jurisdiction or control thereof, and upon such terms
as such authorities may impose.
226 STATUTES PIPE LINES
Section 6. Be it further enacted, etc., That the right con-
ferred by this law upon any such corporation to lay its pipe
lines under and across public lands and along and across pub-
lic highways, streams and waters and streets upon the terms
stated, shall also permit said corporation availing itself of
such right, to construct and maintain along the route of such
pipe lines, telegraph and telephone lines incident to the opera-
tion of such pipe lines.
Section 7. Be it further enacted, etc., That no such corpor-
ation shall have power to exercise any right of expropriation
herein conferred, until it shall have filed with the Secretary
of State, a resolution of its Board of Directors, duly certified
under its seal Consenting and agreeing that said corporation
shall be a common carrier of either gas or oil, or both, and
that it shall and will transport that product whereof it has
declared itself a common carrier, for all persons and corpora-
tions up to the capacity of its pipe line, without discrimination
or preference.
J. W. HYAMS,
Speaker of the House of Representatives.
J. Y. SANDERS,
Lieutenant Governor and President of the Senate.
Approved: June 29th, 1906.
NEWTON C. BLANCHARD,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
STATUTES PIPE LINES 227
Pipe Lines Crossing Levees.
ACT No. 45 of 1921.
Senate Bill No. 53. By Mr. Butler.
AN ACT.
Requiring the Board of Commissioners of all Levee Dis-
tricts to notify owners of pipe lines of the construction of new
levees, where such pipe lines are under or over such levees;
requiring that pipe line owners be given thirty days in which
to move such pipe lines and requiring said board of commis-
sioners of all levee districts, on failure to give such notice, to
pay cost of removing said pipe lines.
Section 1. Be it enacted by the Legislature of Louisiana,
that, except in cases of immediate emergency, due to caving
river banks, or a breach, or an approaching breach' of the
maintaining line of the public levee, whenever any new levee
is to be built, or any old levee is to be moved in any levee dis-
trict in the State of Louisiana, and said new levee to be con-
structed, or old levee to be moved, shall cross, or be built along
or upon any oil, gas, or water pipe line, the Board of Com-
missioners of said Levee District building such levee, or mov-
ing such old levee, be, and they are hereby required to notify
the owners of said oil, gas, or water lines at least thirty (30)
days prior to beginning said new levee construction ,or work
of removal, in order to enable said owners to move said pipe
lines.
Section 2. That, except as specified in Section 1 of this
Act, whenever any old levee is to be moved, the Board of
Commissioners of the Levee District wherein the said levee
is located, be, and they are hereby required to give the owners
of all oil, gas, and water lines crossing said levee thirty (30)
228 STATUTES PIPE LINES
days notice of the intended removal in order that the owners
of such oil, gas and water lines may have sufficient time in
which to move said pipe lines, and make necessary prepara-
tions for the construction of new pipe lines.
Section 3. That, except as specified in Section 1, whenever
the Board of Commissioners of any Levee District shall fail,
neglect, or refuse to give the notice herein required to the
owners of any oil, gas or water lines, and shall construct levees
along, across, or on any oil, gas or water lines, then said Board
of Commissioners shall be required to pay the cost of remov-
ing said oil, gas or water lines from under said levee, provided
that maps or plats of said pipe lines, in the form of blue prints
or otherwise shall have been previously filed in the office of
the State oBard of Engineers
Section 4. That all laws, or parts of laws, in conflict here-
with be, and the same are hereby repealed.
Approved: By the Lieutenant-Governor and Acting Gover-
nor.
A true copy:
JAMES J. BAILEY,
Secretary of State.
Common Carriers.
ACT No. 76 of 1920.
House Bill No. 111. By Mr. Douglass.
AN ACT.
To amend and re-enact Act No. 36 of the General Assem-
bly of the State of Louisiana for the year 1906, entitled, "An
Act to declare pipe lines common carriers and to place them
STATUTES PIPE LINES 229
under the control and regulation of the railroad commission
of Louisiana," by defining the terms "Common Carrier" and
"pipe line," granting to common carrier pipe lines the right
of eminent domain; providing for the exchange of crude
petroleum tonnage between common carrier pipe lines and
the furnishing of reasonable facilities therefor ; requiring the
Railroad Commission to prescribe reasonable rules and regu-
lations for the operation of common carrier pipe lines and the
use of all facilities and equipment used in connection wfith such
business; empowering the Railroad Commission to fix rea-
sonable rates and charges for service rendered by common
carrier pipe lines, prohibiting discrimination by common car-
rier pipe lines in regard to facilities furnished, services ren-
dered or rates charged; empowering the Railroad Commis-
sion to define marketable crude petroleum and to provide how
deduction from crude petroleum delivered for transportation
may be made and for what causes; empowering the Railroad
Commission to require common carrier pipe lines to make re-
ports and to install and maintain reasonable tank facilities for
all crude petroleum transported; providing the procedure un-
der which any party in interest may seek relief hereunder or
may contest any order, rule, rate or regulation of the Railroad
Commission issued or made in pursuance to the provisions of
this Act or may appeal from any judgment rendered by a trial
court hereunder; and generally vesting the said Railroad
Commission with jurisdiction and power to make and enforce
all needful and reasonable rules and regulations, either gen-
eral in their nature or applicable to particular oil fields, cover-
ing and prescribing fully the duties of common carriers as
herein defined; and providing for penalties for violations of
this Act.
Section 1. Be it enacted by the general assembly of the
State of Louisiana that Act No. 36 of the General Assembly of
236 STATUTES PIPE LINES
Louisiana for the year 1906; entitled, "an act to declare pipe
line common carriers and to place them under the control and
regulation of the Railroad Commission of Louisiana," be
amended and re-enacted so as to read as follows :
Section 2. Be it further enacted, etc., That all pipe lines
through which crude petroleum is conveyed from one point
in the State to another point in the State are hereby declared
to be common carriers, as hereinafter defind and provided,
and are placed under the control of, and subject to regulation
by, the Railroad Commission of Louisiana.
Section 3. Be it further enacted, etc., That the term "Com-
mon Carrier' 'as used in this Act shall include all persons,
firms or corporations engaged in the transportation of crude
petroleum as "Common Carriers" for hire; or which upon
proper showing may be legally held to be a "Common Car-
rier" from the nature of the business conducted or from the
manner in which such business is carried on.
Section 4. Be it further enacted, etc., That the power and
authority are hereby vested in the Railroad Commission of
Louisiana and it is hereby made its duty to adopt, change, or
make reasonable and just charges or regulations to govern
and regulae all common carrier pipe lines in this State
through which crude petroleum is conveyed from one point
in the State to another point in the State.
Section 5. Be it further enacted, etc., That the term "pipe
line" when used in this Act shall be deemed to include the real
estate, rights of way, pipe in line, tank facilities as herein
designated, and necessary for the proper conduct of its busi-
ness as a common carrier, all fixtures, equipment and per-
sonal property of every kind owned, controlled, operated, used
or managed, in connection with, or to facilitate the transpor-
STATUTES PIPE LINES 231
tation, distribution and delivery of crude petroleum through
lines constructed of pipe.
Section 6. Be it further enacted, etc., That the right to
lay, maintain and operate pipe lines, together with telegraph
and telephone lines incident to and designed for use only in
connection with the operation of such pipe lines along, across,
over or under any navigable streams or public highway,
street, bridge or other public place in this state is hereby con-
ferred upon all persons, firms, associations of persons, or cor-
porations coming within any of the definitions of a common
carrier pipe line as herein set forth. This right to run along,
across, over or under any public road, bridge or highway, as
before provided for, may only be exercised upon condition
that the traffic thereon be not interfered with, and that such
road or highway be promptly restored to its former condition
of usefulness, as the expense of the pipe line owner, the re-
storation threof to be subject also to the supervision and ap-
proval of the proper local authority, and, provided, that in
the exercise of the privilege herein conferred, such pipe lines
shall compensate the parish, municipality or road district, re-
spectively, for any damage done to such road, in the laying
of pipe lines, telegraph or telephone lines, along, under, over
or across the same ; and nothing herein shall be construed to
grant any pipe line company the right to use any public street
or alley or any incorporated city, town or village, except by
express permission from the city or governing authority
thereof.
Section 7. Be it further enacted, etc., That the Railroad
Commission shall have, and is hereby vested with, the power
to establish and enforce reasonable rates or charges and regu-
lations for gathering, transporting, loading and delivering
crude petroleum by any such common carrier in this State,
and for the furnishing and use of reasonable tank facilities
232 STATUTES PIPE LINES
necessarily incident to such transportation and that may be
necessary, in its capacity as a common carrier only, to take
care of all crude petroleum transported by it for a reasonable
time ,and to prescribe and enforce rules and regulations for
the government and control of such common carriers in re-
spect to their pipe lines and receiving, tank, delivering, trans-
ferring and loading facilities. It shall be its duty to exercise
such power upon petition by any person showing a substantial
interest in the subject. No order requiring the furnishing of
such facilities or establishing or prescribing rates, rules and
regulations shall be made, except after hearing and at least
ten days and not more than thirty days notice to the person,
firm or corporation, partnership or association of persons
owning, controlling, managing or operating the pipe line or
pipe lines affected. In the event any rate shall be filed by any
pipe line and complaint against same or petition to reduce
same shall be filed by any shipper or owner of crude petro-
leum, and such complaint be sustained, in whole or in part
all owners and shippers of crude petroleum who shall have
paid rates so filed by the line shall have the right to repara-
tion or reimbursement of all excess in transportation charges
so paid over and above the proper rate as finally determined,
on all shipments made within six months prior to the date of
the filing of such complaint.
Section 8. Be it further enacted, etc., That every common
carrier as above defined shall exchange crude petroleum ton-
nage with each like common carrier and shall furnish reason-
able connections and facilities for the interchange of such ton-
nage, subject to such reasonable rates and regulations as may
be fixed by the Commission. And any such common carrier
under like rules and regulations shall be required to install
and maintain reasonable facilities for the recipt and delivery
of crude petroleum at such points along its lines as may be
STATUTES PIPE LINES 233
reasonable necessary for the proper conduct of its business as
a common carrier.
No carrier shall be required to receive or transport any
crude petroleum except such as may be marketable as defined
under reasonable rules and regulations to be established by the
commission which is hereby empowered and required to make
reasonable rules for the ascertainment of the amount of water
and other foreign matter in oils tendered for transportation
and for deduction therefor and for the amount of deduction
if any, to be made for temperature, leakage, seepage, and
evaporation ; provided, however, that the recital herein of par-
ticular powers on the part of said Commission shall not be
constructed to limit the general powers conferred by this Act.
Every order, decision, rule, rate and regulation of the Com-
mission adopted under this Act shall go into effect at such
time as may be fixed by the Commission and shall remain in
effect and be complied with, unless and until set aside by the
Commission or by a final judgment of a court of competent
jurisdiction rendered on final trial in a suit to set aside and
annul the same ; provided, nothing herein contained shall deny
to any court of competent jurisdiction the right to suspend
such order, decision, rule, rate or regulation by injunction
or otherwise, upon bond in amount and condition as may
be fixed by said court; and, provided, further, that in the
event such order or injunction be set aside by final judgment,
any parties showing interest and injury may sue and recover
on said bond.
Section 9. Be it further enacted, etc., That all common
carriers of crude petroleum shall make and publish their tar-
iffs and charges under and according to such reasonable rules
and regulations as may be prescribed by said Commission,
and the Commission may require them to make reports and
234 STATUTES PIPE LINES
may investigate all their books and records kept in connection
with such business. Upon petition of any shipper alleging in-
jury or showing substantial basis to fear injury by reason of
inadequate facilities as herein defined, the Commission may
require from such common carrier pipe line reports, duly veri-
fiod under oath, of the total quantities of crude petroleum
owned by such pipe line and that held by them in its distribu-
tion, provided no publicity shall be given by the Commission
to the reports as to stock of crude petroleum on hand of any
particular pipe line, but the Commission shall have the power
and authority to hear and determine complaints, to require
attendance of witnesses, pay their expenses and to institute
suits and sue out such writs and process as may be necessary
for the enforcement of its orders.
Section 10. Be it further enacted, etc., That no such com-
mon carrier in its operations as such shall discriminate be-
tween or against shippers or owners of crude petroleum in
regard to facilities furnished, or service rendered, or rates
charged under same or similar circumstances in the transpor-
tation of crude petroleum; nor shall there be any discrimina-
tion in favor of the transportation of crude petroleum pro-
duced or purchased by itself, directly or indirectly. In this
connection, common carrier pipe lines shall be considered as
shippers or receivers of crude petroleum produced or pur-
chased by themselves, directly or indirectly and handled
through their facilities. No such carrier in such operations
shall, directly or indirectly, charge, demand, collect or receive
from any one a greater or less compensation for any service
rendered than from another for a like and contemporaneous
service; provided, that this shall not limit the right of
the commission to prescribe different rules and regu-
lations for transportation from or to other places, as it may
determine. Nor shall any carrier be guilty of discrimination
STATUTES PIPE LINES 235
when obeying any order of the Commission. When there
shall be offered for transportation more crude petroleum than
can be immediately transported, the same shall be equitable
and ratably apportioned. The Commission shall make and
enforce general or specific regulations in this regard. Sub-
ject to these provisions, pipe lines shall accept ratably and
equitably for transportation all marketable crude petroleum
tendered; provided, that no common carrier pipe line shall at
any time be required to receive for shipment from any person,
firm, corporation or association of persons, exceeding three
Ihousand barrels of petroleum in any one day.
The commission shall have the power to employ a compe-
tent expert ,or experts, possessing experience in the business
of producing crude petroleum to aid the Commission in car-
rying out the provisions of this Act; the selection of such
agent, or agents, to be made from among those recommended
by the oil producing interests of the state.
Section 11. Be it further enacted, etc., That the Commis-
sion shall make and enforce all other needful rules and regu-
lations, either general in their nature or applicable to particu-
lar oil fields, covering fully the duties of common carrier as
herein defined.
Section 12. Be it further enacted, etc., That pipe lines com-
ing under the provisions of this Act at their election, may
deliver to consignee either the identical crude petrolum re-
ceived for transporation subject to such consequence of mix-
ing with other crude petroleum as are incident to pipe line
transporation, or they may make delivery from their com-
mon stock at destination; provided, if this be done the de-
livery shall be of substantially like kind and equal market
value.
Section 13. Be it further enacted, etc., That when any
236 STATUTES PIPE LINES
order of the Railroad Commission of Louisiana, make and
entered upon its records, under the jurisdiction and powers
vested in it under this Act, shall be objected to by any party
in interest, any such party in interest may, within three
months after such order is made and become effective, and
not thereafter, file in a Court of Competent jurisdiction at
the domicile of the Commission a petition setting forth
therein the particular cause or causes of objection to the
order or regulations of said Commission so complained of.
All such cases shall be tried in the same manner as ordinary
civil cases and shall be given precedence over all other civil
cases in the said court, and shall be heard and determined
as speedily as possible to the end that the public interests
may not suffer by reason of such proceeding. Any such
Court shall have the power and authority to affirm the order
of said Commission so complained of or to change, modify,
alter, or set aside, the same, as justice may require.
Section 14. Be it further enacted, ett., That no suit
not filed within the delay provided by the foregoing section
of this Act to set aside, change, alter or modify any order
of. the Commission shall be hereafter filed or entertained,
the delay fixed by the preceding section of this Act being
hereby declared to be the prescriptive period after which no
such suits may be filed, entertained or heard.
Section 15. Be it further enacted, etc., That except as
herein otherwise provided, the rules of practice and pro-
cedure now or that may be hereafter prescribed and en-
forced with respect to proceedings before the said Commis-
sion in order matters over which it has jurisdiction, shall
apply to and govern proceedings before said Commission
under this Act. The right of and delays for appeal from
the judgment of any trial court rendered hereunder, and the
STATUTES PIPE LINES 237
delay therefor, shall be the same as now or may hereafter
be fixed by the Constitution and laws of the State of Louisi-
ana governing appeals in other cases affecting the rules,
orders and regulations of said Commission.
Section 16. Be it further enacted, etc., That any common
carrier as herein defined, who shall wilfully violate any pro-
vision of this act, or who shall fail to perform any duty herein
imposed, or to obey any valid order of the Commission when
not stayed or suspended by order of court, shall be deemed
guilty of a misdemeanor and shall be subject to a penalty
of not less than One Hundred Dollars ($100.00), nor more
than Five Thousand Dollars ($5,000.00) for each offense,
such penalty to be recoverable at suit of the Attorney Gen-
eral of the State of Louisiana in the name of the state and
for its own use. Such penalty may also be recovered by and
for the use of any person, firm, corporation, or association
of persons, against whom there shall have been an unlawful
discrimination as herein defined; such suit to be brought in
the name and for the use of the party aggrieved. Such suit
may be maintained in any court of competent jurisdiction
having due regard to the ordinary statutes of venue.
Section 17. Be it further enacted, etc., That for the wil-
ful violation of any of the povisions of this Act forbidden
discrimination on the part of common carriers, it is hereby
provided that the owners, officers, agents or employees of
such carriers who may be guilty of such discrimination shall
be deemed guilty of a misdemeanor. Each violation of such
provisions shall be deemed a separate offense, and upon con-
viction thereof, the party violating same shall be fined in the
sum of not less than fifty dollars ($50.00), nor more than
One Thousand Dollars ($1,000.00), and may be further
punished by confinement in the parish jail for not less than
238 STATUTES PIPE LINES
ten days (10), nor more than six months (6) at the discretion
of the court. The venue for all prosecutions for violation of
this act shall be in the District Court of the parish in which
the offense is committed.
Section 18. Be it further enacted, etc., That this Act
shall be cumulatice of all the laws of this state which are
not in direct conflict herewith regulating the control of com-
mon carrier pipe line companies.
Section 19. Be it further enacted, etc., That if any sec-
tion, part of section, or provision, of this Act shall be held
unconstitutional, or for any other reason shall be held to be
void, or if more than one section or provision of this Act shall
be held to be void or unconstitutional, such holding shall not
have the effect or nullifying the remaining parts of this Act,
but the parts not so held to be void or unconstitutional shall
nevertheless remain in full force and effect.
Section 20. Be it further enacted, etc., That all laws or
parts of laws in conflict with the provisions of this Act be,
and the same are, hereby repealed.
R. F. WALKER,
Speaker of the House of Representatives.
HEWITT BOUANCHAUD,
Lieutenant Governor and President of the Senate.
Approved: July 6, 1920.
JOHN M. PARKER,
Governor of the State of Louisiana.
A True Copy:
JAMES J. BAILEY,
Secretary of State.
STATUTES SCHOOL LANDS 239
Lease of School Lands.
ACT NO. 142 of 1918.
House Bill No. 401. By Mr. Erbelding.
Substitute for House Bill No. 281 by Mr. Erbelding.
AN ACT.
To amend and re-enact Section 59 of Act No. 120 of 1916,
entitled "An Act" In relation to free public schools and to
regulate public education in the State of Louisiana; to pro-
vide a revenue for the same and to impose certain penalties;
to apply fines imposed by district courts and amounts col-
lected on bonus for the purpose of public education; to pro-
vide free passage of school children over certain ferries,
bridges and roads and to punish violation of such pro-
visions; and to amend the title of said Act by adding after
the word "Provisions" in line eight of said title the follow-
ing: To authorize the sale, of the sixteenth section lands,
sell the timber; lease the mineral rights on these lands and
to designate the proper officials to execute the contract of
lease or sale, and to repeal Acts 214 of 1912 and 39 of 1910
and all other laws in conflict with the provisions of this
Act.
Section 1. Be it enacted, by the General Assembly of
the State of Louisiana, that Section 59 of Act 120 of the
Session of the Legislature of Louisiana of 1916 be amended
and re-enacted so as to read as follows:
That parish school boards shall have authority to rent
sixteenth) section lands, sell timber or lease mineral rights
of same, by resolution of the boards and without the
authority of a vote of the electors of the township in which
the lands are located. All leases for the sixteenth section
240 STATUTES STATE LANDS
lands and sales of timber on sixteenth sections shall be
executed by the Superintendent and Treasurer of the Par-
ish school board. The leases of mineral rights of sixteenth
section lands and the sale of sixteenth section lands shall be
executed by the parish Treasurer of the parish in which
the sixteenth section lands are located. All elections to
authorize the sale of sixteenth section lands, shall be con-
ducted by the parish school boards. All funds realized from
these sources shall be placed to the credit of the current
school fund of the parish in which the sixteenth section lands
are located.
HEWITT BOUANCHAUD,
Speaker of the House of Represetnatives.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
Approved: July 10, 1918.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy:
JAMES J. BAILEY,
Secretary of State.
Lease of State Lands.
ACT NO. 30 of 1915.
House Bill No. 22. By Mr. Fontenot.
AN ACT.
Authorizing the Governor to lease lands, including lake
and river beds and other bottoms, beloning to the State,
and providing the terms and conditions of such leases.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, that the Governor be and is hereby
STATUTES STATE LANDS 241
authorized to lease any lands, including lake and river beds
and other bottoms, belonging to the State of Louisiana, for
the development and production of oil, coal, gas, salt,
sulphur, lignite and other minerals, under the terms and con-
ditions hereinafter set forth.
Section 2. Be it further enacted, etc., That when any
person, firm, association or corporation shall desire to lease,
as hereinafter provided, any of such lands belonging to this
State, he, they or it shall make application to the Governor
in writing of his their or its desire to lease the same, giving
the description or character of the land in such application,
accompanying the application with a certified check for fifty
dollars ($50.00) to be deposited with the Register of the
State Land Office as evidence of the good faith of such ap-
plication, which sum is to be returned to the applicant
should he bid for and fail to secure the lease of such land
as herein provided.
Section 3. Be it further enacted, etc., That upon re-
ceipt of application for the lease of land, subject to the pro-
visions of this act, accompanied by the above deposit, the
Governor of the State may cause the Register of the State
Land Office to make an inspection of the land sought to be
leased and after receiving a report from the State Land
Office as to the nature and character and surroundings of
such land th$ Governor may cause to be published in the
official journal of the State and in the official journal of the
parish wherein such land is located an advertisement to
be published for a period of not less than fifteen days (15).
setting forth therein a description of the land to be leased
bv the State, and the time when bids therefor will be received,
a short summary of the terms and conditions of the lease or
leases to be executed, and, in his discretion, the royalty to
be demanded should he deem it to the interests of the State
242 STATUTES STATE LANDS
to call for bids on the basis of a royalty fixed by him; pro-
vided that if such lands be situated in two or more parishes
such advertisement shall appear in the official journals of
all of the parishes where such land may partly lie.
Section 4. Be it further enacted, etc., That at the date
and hour mentioned in the said advertisement for the con-
sideration of bids for the said lease or leases the same shall
be opened in public at the State Capital by the Governor, who
is hereby vested with full authority to execute said lease or
leases, to the highest bidders therefor under the terms and
conditions fixed by him; provided, that no lease shall be
executed for less than one-eight (^) of the oil or other
minerals produced or for less than two hundred dollars
($200.00) per year for each gas well; and provided further,
that the Governor shall have the right to reject any and all
bids.
Section 5. Be it further enacted, etc., That all laws and
parts of laws in conflict herewith be and the same are hereby
repealed; provided that nothing herein contained shall have
the effect of annulling or impairing in any way contracts of
lease heretofore executed covering any such property.
L. E. THOMAS,
Speaker of the House of Representatives.
THOMAS C. BARRETT,
Lieutenant Governor and President of the Senate.
Approved: June 14, 1915.
L. E. HALL,
Governor of the State of Louisiana.
A true copy:
W. F. MILLSAPS,
Secretary of State.
STATUTES STATE LANDS 243
State Lands.
ACT NO. 21 of 1915.
House Bill No. 19. By Mr. Locke.
A ACT.
Approving the action and policy of the Governor of the
State of Louisiana with respect to the oil, gas and other
mineral wealth of the State and to ratify and confirm all
oil, gas and mineral leases of public lands, river and lake
bottoms, made by the Governor on behalf of the State to
various individuals, firms and corporations.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That the action and policy of the Gov-
ernor of Louisiana with respect to the oil, gas and other
mineral wealth of the State be and the same are hereby ap-
proved.
Section 2. Be it further enacted, etc., That the action of
the Governor in leasing to various individuals, firms and
corporations, public lands, river and lake bottoms for the
production therefrom of oil, gas and other minerals, and all
lease contracts so entered into, are hereby ratified and con-
firmed; provided that nothing in this Act shall be deemed
or held to apply to any lands or lake bottoms title to which
was in contest in the courts on or before May 15th, 1915.
L. E. THOMAS,
Speaker of the House of Representatives.
THOMAS C. BARRETT,
Lieutenant Governor and President of the Senate.
Approved: June 10, 1915.
L. E. HALL,
Governor of the State of Louisiana.
A true copy :
W. F. MILLSAPS,
Secretarv of State.
244 STATUTES STATE LESSEES
INJUNCTIONS WILL NOT ISSUE AGAINST
STATE OR ITS LESSEES.
Act 29, E. S. 1915, P. 61.
An Act prohibiting the issuance of writs of injunction to
restrain the exploitation of lands, river and lake bottoms, for
oil, gas or other minerals where such lands or bottoms are
owned or claimed by the State and where the State has
leased the same for such exploitation ; prescribing the remedy
of the plaintiff in suits brought against the lessees, officers
or employees of the State; providing a method by which the
defendant in any such suit may release the product, or the
proceeds of the sale of the product, obtained from such
property; providing for the sale of such oil and for the de-
posit of the proceeds of such sale or sales at interest pending
the final termination of the litigation ; and repealing all laws
in conflict or inconsistent herewith.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana. That the writ of injunction shall not lie
in any suit brought against the lessees of the State, or the
officers or employees of the State to restrain the exploitation
for oil, gas, or other mineral lands, river bottoms, 1 or lake
bottoms, the ownership of which is in the State, but in all
such cases the remedy of the plaintiff in such suit shall be
confined to a demand that the product of such exploitation,
or the proceeds of the sale thereof, shall be judicially seques-
trated, until the rights of all persons asserting any lawful
claim to such product or proceeds shall be determined.
Section 2. Be it further enacted, etc.. In all such cases
the party defendant may releave the product or the proceeds
of the sale thereof from such judicial sequestration on giving
a bond payable to the Clerk of the Court, with solven and
STATUTES LEVEE BOARD LANDS 245
sufficient surety, in a sum equal to the value of the product
or proceeds, such bond to be fixed in amount and approved
by the court, and conditioned to require the defendant to
account to the plaintiff only for the value of the oil at the
date of its release, with legal interests from said date in the
event that final judgment should be rendered in such suit
against the defendant.
Section 3. Be it further enacted, etc., That at any time
prior to the release of oil on bond, as herein provided, the
Judge of the District Court in which any such suit may be
pending, may on application by either party to such suit, and
after due hearing, issue any interlocutory decree ordering
the sheriff to sell the oil so sequestrated at the highest market
price then obtainable and to deposit the proceeds of such sale
or sales in a separate account in such bank or banks to be
designated by court, which will pay the highest rate of in-
terest on such deposits pending the final termination of the
litigation.
Section 4. Be it further enacted, etc., That all laws or
parts of laws inconsistent or in conflict herewith be and the
same are hereby repealed.
Gael do Levee Board Lands.
ACT No. 268 of 1908.
House Bill No. 145. By Mr. Smith.
AN ACT.
Authorizing the Board of Commissioners of the Caddo
Levee District to lease or farm out the oil, gas or mineral
lands within the limits of said district for a portion of the oil
gas or other mineral produced or mined from such lands.
246 STATUTES LEVEE BOARD LANDS
Section 1. Be it eacted by the General Assembly of the
State of Louisiana, That the Board of Commissioners of the
Caddo Levee District be and they are hereby authorized and
empowered to lease or farm out the gas, oil or mineral lands
within the limits of said district, and to accept in payment of
such leases a portion of the oil, gas produced or mined from
such lands, under such terms and conditions as said Board
of Commissioners may deem best and for such time as they
may find proper, provided the royalty to be received' shall
not be less than one-eight of said oil or gas.
Section 2. Be it further enacted, etc., That the said Board
of Commissioners of said Caddo Levee District shall be and
they are hereby authorized to sell and dispose of such oil, gas
or other mineral so received by them from such lesaes of said
lands at such prices and at such times, and on such conditions
as they may deem proper.
Section 3. Be it further enacted, etc., That this Act shall
take effect from and after its passage.
H. G .DUPRE,
Speaker of House of Representatives.
P. M. LAMBREMONT,
Lieutenant Governor and President of the Senate.
Approved: July 9, 1908.
J. Y. SANDERS,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
STATUTES LEASE BY MINORS 247
Lease of Lands of Minors.
ACT No. 192 of 1916.
House Bill No. 390. By Mr. Dimick.
AN ACT.
Authorizing tutors to execute mineral leases on lands be-
longing to their wards in whole or in part on the advice and
recommendations of a family meeting.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That tutors and tuturixes be and they are
hereby authorized and empowered to execute mineral leases
on the lands belonging to their wards in whole or in part when-
ever authorized to do so on the advice and recommendations
of a family meeting duly called.
Section 2. Be it further enacted, etc., That said family
meeting shall fix the terms and conditions of such leases, and
its recommendations shall on being approved by the under
tutor be submitted to the court for approval and if approved
by judgment of the court, the same shall be full authority for
the tutor or tutrix as the case may be to enter into and execute
a mineral lease on the property of such minors in accordance
with the terms fixed thereby.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
Approved: July 6, 1916.
R. G. PLEASANT,
Governor of the State of Louisiana.
A.true copy:
JAMES J. BAILEY,
Secretary of State.
248 STATUTES LEASE BY MINORS
Lease of Lands of Minors and Interdicts.
ACT No. 116 of 1920.
Senate Bill No. 45. By Mr. Warren.
AN ACT.
To authorize tutors and curators to execute mineral leases
on lands belonging to their wards in whole or in part and to
execute contracts affecting the whole or any part of the min-
erals in and upon such lands, upon the advice and recommen-
dation of a family meeting, duly homologated; and repealing
conflicting and inconsistent laws, especially Act No. 192 of
the General Assembly of 1916.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That the tutors of minors and curators of
interdicts may execute mineral leases upon lands owned in
whole or in part by their wards, for the purpose of having
them explored, developed, drilled and mined for oil, gas and
other minerals, and may execute such contracts as are author-
ized by law affecting the whole or any part of the share of the
minors or interdicts in the minerals, including oil and gas,
upon, in and under the lands belonging to them in whole or
in part, whether discovered or undiscovered, upon the advice
and recommendation of a family meeting, duly homologated.
Section 2. Be it further enacted, etc., That such family
meeting shall fix the terms and conditions of such leases or
contracts, and its recommendations, when approved by the
under-tutor or under-curator, and homologated by the Judge,
or by the Clerk of the District Court in case there be no oppo-
sition, shall be full authority for the tutor or curator to exe-
cute the same in accordance with such terms and conditions.
Section 3. Be it further enacted, etc., That all laws or
STATUTES CROSS LAKE LANDS 249
parts of laws in conflict or inconsistent herewith, especially
Act No. 192 of the General Assembly of 1916 approved July 6,
1916, are hereby repealed.
HEWITT BOUANCHAUD,
Lieutenant Governor and President of the Senate.
R. F. WALKER,
Speaker of the House of Representatives.
Approved: July 7, 1920.
JNO. M. PARKER,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
Cross Lake Lands.
ACT No. 149 of 1920.
House Bill No. 157. By Mr. Douglas.
AN ACT.
To amend and re-enact Sectio n 3 of Act 31 of the General
Assembly of the State of Louisiana for the year 1910, being
an act authorizing the Register of the Land Office to sell and
convey to the City of Shreveport the bed of what is known as
Cross Lake in the Parish of Caddo, and fixing the terms and
conditions of such sale, reserving to the State of Louisiana all
minerals and mineral rights on and under said land.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana that Section 3 of Act No. 31 of the Gen-
eral Assembly of the State of Louisiana, for the year 1910,
be amended and re-enacted so as to read as follows:
250 STATUTES DRILLING CONTRACTS
Section 3. Be it further enacted, etc., That in order to pro-
tect the public health, said lands so conveyed to the City of
Shreveport shall be used by it as a reservoir or storage basin
for water to be used by said City and the inhabitants thereof,
for the purpose of supplying said City, its citizens and other
persons visiting said City, with a good and wholesome supply
of water, and should the said City of Shreveport fail to utilize
the said bed of said lake for said purposes, on or before July
1, 1926, or afterwards should ever cease to utilize it for said
purposes, then the said land shall revert back and become the
property of the State of Louisiana, subject to the repayment
to the City of Shreveport of the purchase price, but without
any interest.
R. F. WALKER,
Speaker of the House of Representatives.
HEWITT BOUANCHAUD,
Lieutenant Governor and President of the Senate.
Approved: July 7, 1920.
JAMES J. BAILEY,
Secretary of State.
Drilling Contracts.
ACT No. 232 of 1916.
Senate Bill No. 122. By Mr. Leon R. Smith.
AN ACT.
Relative to drilling contracts in this State; providing for
the bond to be given therein for the protection of the owner,
subcontractor, workmen, laborers, mechanics and furnishers
of materials, for the recordation of the same and the proceed-
ings to be had thereunder.
STATUTES DRILLING CONTRACTS 251
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That every contract for one thousand
dollars or more, hereafter made or entered into for the drill-
ing of any well for oil, gas or water shall be reduced to writ-
ing and signed by all parties and shall be recorded in the of-
fice of the Recorder of Mortgages of the Parish wherein the
said work is to be executed, before the day fixed on which said
work is to commence and not later than thirty days after the
date of said contract.
Section 2. Be it further enacted, etc., That such recorda-
tion in the office of the Recorder of Mortgages shall create
a lien and privilege on the well and appurtenances and appli-
ances thereto attached for its equipment, and operation and
on the ground immediately next to the well, not to exceed ten
acres, however; provided that the vendor's lien and privilege
on such appliances and appurtenances that have not lost their
identity and may be segregated shall remain unimpaired and
retain its present status as provided for by existing laws. In
the event the owner of the well is not the owner of the ground
on which the well is located, but is the lessee of the sam'e,
then the lien and privilege shall attach to the lease, and to the
owner's other rights on the land.
Section 3. Be it further enacted, etc., That the owner of
said well shall require of the said contractor or undertaker a
bond with good and solvent surety for not less than one-half
the amount of the contract, which bond shall be attached to
and recorded with the contract in the mortgage office as above
set forth, and the conditions of the bond shall be the true and
faithful performance of the contract and the payment of all
sub-contractors, workmen, laborers, mechanics and furnishers
of materials by the contractor or undertaker; the said bond
to be made in favor of the owner, sub-contractor, workmen,
252 STATUTES DRILLING CONTRACTS
laborers, mechanics and furnishers of materials jointly as
their interest may appear.
Section 4. Be it further enacted, etc., That every person
having a claim against the contractor or undertaker shall,
after the date of completion of said work by, or the date of
default of the contractor or undertaker, file a sworn state-
ment thereof, with the owner and record a sworn statement
thereof, or his contract if it has been reduced to writing, in
the office of the Recorder of Mortgages for the Parish in
which said work has been done, within thirty days after the
registry of notice with Recorder of Mortgages of the said
Parish by the owner of his acceptance of the work, until which
time the delay to file privilege will not run.
Section 5. Be it further enacted, etc., That if at the expira-
tion of the said thirty days there are no such recorder claims
filed, the Recorder of Mortgages shall ,upon written demand
of any party interested, cancel and erase from the books of
his office all inscriptions resulting from the recordation of
said contract or bond. If at the expiration of said thirty days
there are such recorded claims filed, the owner shall file a
petition in the court of competent jurisdiction citing said
claimants, the contractor or undertaker, against whom said
claims are filed, and the surety of said bond, and the owner
shall assert whatever claim he has against any or all of them
in said petition and require said claimants to assert their
claims and all said claims shall be tried inconcttrsus. In the
event that the owner has a claim in concursus with the other
claimants who have a lien and privilege under the provisions
of this Act, they shall be paid in preference to the owner. If
no objections are made by any of the sai dclaimants to the
sufficiency or solvency of said bond within ten days after the
filing of said concursus, the Clerk of Court shall give to any
STATUTES DRILLING CONTRACTS 253
party interested a certificate to that effect and on presenta-
tion of said certificate to the Recorder of Mortgages he shall
cancel and erase all inscriptions created by the recordation
of said contract, bond or said claims. If objections are made
to the sufficiency or solvency of the surety, they shall be tried
summarily and if the surety is found to be not solvent or in-
sufficient to cover the full amount for which he is bound, or if
the owner fails to exact bond, or if he fails to cause same to be
recorded in the office of the Recorder of Mortgages in the man-
ner or in the time hereinabove provided the owner shall be in
default and shall be liable to the same extent as the surety
would have been, and all sub-contractors, workmen, laborers,
mechanics and furnishers of materials shall have a first privi-
lege on said well and the said land on which it is located, and
in the event the owner of the well does not own the said land
then this first privilege shall exist on the lease or other right
on said land under \vhich the well is drilled, to secure the
amount due them when their claims are served and recorded
as herein provided.
Section 6. Be it further enacted, etc., That the purpose of
this act is to require owners to secure bond with solvent and
sufficient security of the contractor or undertaker for the
protection of all parties interested in the contract, and as their
interest may appear, in which said surety is to stand in place
and stead of a defaulting contractor or undertaker.
Section 7. Be it further enacted, etc., That the owner shall
not make the last payment due on said contract, which shall
not be less than one-fifth of the contract price, until the thirty
days, during which liens may be filed in accordance with the
provisions of this Act, have elapsed.
Section 8. Be it further enacted, etc., That all laws and
254 STATUTES MORTGAGE OF LEASES
parts of laws in conflict with the provisions of this Act be and
the same are hereby repealed.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
Approved: July 6, 1916.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
Mortgage of Leases.
ACT No. 232 of 1910.
Senate Bill No. 130.
AN ACT.
Authorizing the lessees or the owners of contracts grant-
ing the right to explore and develop lands for oil, gas and
ether minerals to mortgage such leases or contracts, together
with such improvements as they may place on such leased
lands, and to issue bonds secured by such mortgage, and to
validate industry in this State, mineral leases or contract un-
der secure bonds or other forms of indebtedness.
Whereas, on account of the rapid development of the min-
eral industry in this State, mineral leases or contracts under
which the lessee or grantee is granted the right or given the
option, at his cost and expense, to explore and develop lands
for the purpose of testing the mineral charcter thereof and of
STATUTES MORTGAGE OF LEASES 255
mining and exploring the same for oil, gas and other min-
erals, are becoming exceedingly numerous in this State ; and,
Whereas, such industries will be encouraged and promoted
by facilitating the securing of capital by those who under-
take such mining operations, to the great advantage and up-
building of the State; and,
Whereas, in a number of instances the owners of such
leases and contracts, in order to secure the necessary funds
to carry on such development, have mortgaged their proper-
ties to secure bonds and other indebtedness and included in
suhc mortgages such leases and contracts.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That it shall be lawful for lessees or own-
ers of contracts under which the right to develop and explore
lands for the purpose of mining for and securing oil, gas and
other minerals, to mortgage such leases or contracts, together
with all buildings, constructions and improvements placed
and erected thereon, and if such owners or lessees so desire,
to issue bonds, secured by such mortgages, such bonds to be
issued in such amounts, at such rate of interest and to run for
such length of time,not exceeding the term of such leases or
grants, as the said lessees or grantees may determine.
Sction 2. Be it further enacted, etc., That all mortgages
heretofore executed for the purpose of securing bonds or other
evidence of indebtedness, by any prson or corporation, which
include and are made to cover the rights and equities of the
mortgagor in mineral leases or contracts, granted for the pur-
pose of securing the development of lands for oil, gas and
other minerals, are hereby validated to the extent that such
leases and mineral contracts are hereby declared to be suscep-
tible of mortgage.
256 STATUTES GAS PLANTS
Section 3. Be it further enacted, etc., That noting in this
Act or in such mortgages as have been heretofore executed
and are by this Act validated, or that may be hereafter exe-
cuted by virtue of this Act, shall be held or construed in any
manner to affect, diminish or destroy the lien and privilege
of the lessor or grantee upon such improvements and other
works for the payment of rent and the enforcement of the
other stipulations of such leases or contracts.
Section 4. Be it further enacted, etc., That all laws or
parts of laws in conflict with this Act are hereby repealed and
that this Act shall take effect from and after its passage.
P. M. LAMBREMONT,
Lieutenant Governor and President of the Senate.
H. G. DUPRE,
Speaker of the House of Representatives.
Approved: July 6, 1910.
J. Y. SANDERS,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
Municipalities and Parishes Authorized to Acquire
Gas Plants, etc.
ACT No. 70 of 1921.
House Bill No. 132. B y Mr. Alexander.
AN ACT.
Authorizing parishes and municipalities in the State of
Louisiana to own, acquire, construct, or lease gas manufac-
turing plants, distribution systems, pipe lines, and other prop-
erties needed for supplying their inhabitants with either or
STATUTES GAS PLANTS 257
both artificial and natural gas and to operate such systems
and properties in the interest of the public; authorizing par-
ishes and municipalities to make contracts with one another
for the purpose of supplying gas to their respective inhabi-
tants; authorizing municipalities to extend service beyond
their corporate limits; authorizing expropriation of privately
owned gns properties under certain conditions; authorizing
parishes and municipalities to make such contracts with pro-
ducers of natural gas as may be necessary in order to obtain
an adequate supply to meet requirements; authorizing par-
ishes and municipalities to acquire and own gas leases and
lands and to develop same when deemed expedient so to do;
authorizing parishes and municipalities to mortgage their gas
properties and to pledge all revenues derived therefrom and
to issue bonds secured by such mortgages and pledges; au-
thorizing parishes and municipalities, under certain condi-
tions, to levy special taxes and to issue bonds against same
for the purpose of carrying out the provisions of this act, and
making mandatory' the calling of special elections required
therefor; providing for the submission of all plans, proposals
or ordinances to referendum under certain conditions; pro-
viding for the creation of a Gas Commission by each parish
or municipality taking advantage of this act, and defining its
powers and duties ; providing that the commission council of
cities operating under Commission form of government and
owning and operating public utilities, shall have full power
to carry out the provisions of this act, and to repeal all laws
or parts of laws in conflict herewith.
Sec. 1. Be it enacted by the Legislature of Louisiana, That
all parishes and municipalities in the State of Louisiana are
hereby authorized to construct, acquire, purchase, lease, own
and operate gas manufacturing plants, gas distributing sys-
tems, g-ns wells, gas lands, gas holdings or gas leases and gas
258 STATUTES GAS PLANTS
pipe lines and to distribute and sell gas both artificial and
natural to their respective inhabitants and said parishes and
municipalities are hereby further authorized to make con-
tracts covering a period of years with each other relative to
the distribution and sale of gas within their respective terri-
tory and to distribute and sell gas to their respective inhabi-
tants and to the inhabitants of other parishes and municipali-
tines in accordance with such contracts; and to make con-
tracts covering a period of years with owners of gas plants,
gas wells, gas fields, gas lands, gas leases, gas holdings, gas
pipe line companies, or gas distributing companies for the
purchase or use of some or all of their products, or for the
leasing or purchase of gas wells, gas fields, gas lands, gas
leases, or gas holdings for the purpose of drilling and oper-
ating gas wells; provided that where a parish does not avail
itself of the benefits of this act municipalities therein without
their corporate limits.
Section 2, That parishes and municipalities that take ad-
vantage of the authority granted in this act are hereby author-
ized to pledge the revenue derived from gas manufacturing
plants, gas distribution systems, gas fields, gas lands, gas
leases, gas holdings, gas wells, and gas pipe lines for the ac-
quiition, construction, operation, maintenance and gas supply
thereof, and may mortgage said property and the equipment
accessory thereto belonging to said parishes and municipali-
ties and issue bonds secured by such pledge and mortgage.
Section 3. That .such parishes and municipalities may levy
upon themselves a special tax (not to exceed five mills on the
dollar per annum) in order to raise the necessary funds with
which toacquire or construct, maintain and operate the above
described properties, provided an election is held in due and
legal form and a majority both in number and amount shall
have voted in favor of the tax.
STATUTES GAS PLANTS 269
Section 4. That any Parish or Municipality electing
through its governing body to take advantage of the provi-
sions of this act, be and the same is hereby required to sub-
mit all plans, proposals or ordinances hereunder to a referen-
dum upon petition demanding same being signed by ten per
cent of the qualified voters thereof presented to the said gov-
erning body of the Parish or Municipality within thirty (30)
days after publication in the official journal of the parish or
municipality of final action by said governing body on any
plans, proposals or ordinances under the provisions of this
act ; and that a majority of the votes cast at such referendum
shall decide for or against the adoption of the said plans, pro-
posals or ordinances.
Section 5. That such parishes or municipalities shall have
the right to expropriate existing gas plants, gas wells, gas
distributing systems, land, rights of way or other property
needed for the operation of such plants or distributing sys-
tems, within their respective boundaries, such expropriation
proceedings to be conducted in the manner already provided
by law.
Section 6. That such parish or municipality, through its
governing body, electing to take advantage of the authority
granted by this act, shall three months or more after the go-
ing into effect of this act, appoint a commission to be desig-
nated as Gas Commission, who alone shall be vested with full
power and authority to carry out all the provisions of this
act above enumerated, and who in addition thereto shall ex-
ercise full powers of administration, supervision and control
of purchases of properties, construction, and operation of
same, and to fix rates not to exceed cost of service plus a
reasonable reserve fund for extensions, additions and im-
provements, plus a reasonable amortization fund to be accu-
mulated and used for amortizating all mortgages and pledges
260 STATUTES GAS PLANTS
against the properties. Said Gas Commission shall be com-
posed of three qualified electors and shall have overlapping
terms of office. The first commissioners shall be appointed
or chosen by the said governing body (Commission Council,
Town Council or Police Jury as the case may be) as follows:
one to serve two years, one to serve four years, and one to
serve six years, and thereafter, as their terms expire, their suc-
cessors shall be appointed for a full term of six years. The
Commissioners shall serve without pay, and may be removed
by the appointing power at any time for malfeasance, neglect
of duty, or incompetence after ten days notice to commission-
er to be removed, and full and free opportunity to be heard,
publicly in his own defense the right being reserved to such
commissioner to appeal to the courts, should he so desire.
Said commission shall have the right to employ all labor, ex-
perts, etc., required for the operation of the system or systems
under its control, and to fix their compensation, and to dis-
charge them at will. The Gas Commission shall have full
control all revenues and expenditures, and shall select its
own fiscal agent in the manner provided for by law ; provided
that the appointment of a Gas Commission shall not be neces-
sary in the case of cities operating under a commission form
of government and owning and operating public utilities, but
the Commission Council of such cities shall have full pow r er
and authority to carry out all the provisions of this act and
perform all services herein delegated to the Gas Commission.
Section 7. That all laws or parts of laws in conflict here-
with be and the same are hereby repealed.
Aprpoved: By the Lieutenant-Governor and Acting Gover-
nor. November 17, 1921.
A true copy :
JAMES J. BAILEY,
Secretary of State.
STATUTES GAS PLANTS 261
Gas Plants.
ACT No. 37 of 1917.
House Bill No. 9. By Mr. Nix.
AN ACT.
Prohibiting any person from wilfully and maliciously de-
stroying, damaging or injuring or rendering unavailable, or
attempting to destroy, damage, injure or render unavailable,
any gas, electric, telegraph or telephone plant or interfering
with the conveyance or transmission of the product thereof,
and providing penalties for the violation of this Act.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That any person who shall wilfully and
maliciously destroy, damage or injure or render unavailable,
or attempt to destroy, damage, injure or rendere unavailable,
any gas, electric, telegraph or telephone plant or interfere with
the conveyance or transmission of the product thereof shall,
on conviction, be punished by a fine of not less than five hun-
dred dollars, nor more than five thousand dollars and by im-
prisonment in the State Penitentiary for not less than one
year, nor more than five years.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
Approved: July 26, 1917.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
262 STATUTES DIVERTING GAS
Diverting Gas.
ACT No. 208 of 1916.
House Bill No. 257. By Mr. W. C. Jones, by request.
AN ACT.
To prevent the diversion of electric current from electric
wire cables; or gas from gas pipes or mains; or water from
any water pipes or mains; and to prevent any person from
altering or breaking any meter for measuring and registering
the amount of electric current, gas or water passing through
any such meter; and to provide penalties for the violation of
this Act.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That whoever shall, knowingly, and for
the purpose of defrauding or injuring the owner thereof, take
or divert electric current from electric wires or cables, or gas
from any gas pipes or mains, or water from any water pipes
or mains, with intent to use or waste such electric current,
or gas, or water, without paying therefor, shall be guilty of
a misdemeanor, and upon conviction shall be punshied by a
fine of not more than one hundred dollars, or by imprison-
ment in the Parish Jail for not more than three months, or
both, in the discretion of the Court.
Section 2. Be it further enacted, etc., That whoever shall,
knowingly and for the purpose of defrauding or injuring the
owner thereof, alter or break any meter for measuring and
registering the amount of electric current, gas or water pass-
ing through such meter, so as to make such meter register
less than it would when in good order, shall be guilty of a
misdemeanor, and upon conviction shall be punished by a
fine of not more than one hundred dollars, or by imprison-
ment in the Parish Jail for not more than three months, or
both, in the discretion of the Court.
STATUTES DIVERTING GAS 263
Section 3. Be it further enacted, etc., That all laws or
parts of laws in conflict or inconsistent with this act be and
the same are hereby repealed.
HEWITT BOUANCHAUD,
Speaker of the House of Representatives.
FERNAND MOUTON,
Lieutenant Governor and President of the Senate.
Approved : July 6, 1916.
R. G. PLEASANT,
Governor of the State of Louisiana.
A true copy :
JAMES J. BAILEY,
Secretary of State.
Diverting Gas,
ACT No. 63.
Senate Bill No. 43. By Mr. Clinton, (by request.)
AN ACT.
Making it unlawful to prevent electric current, water or
gas from passing through any meter or meters; to prevent a
meter from duly registering the quantity of electricity, water
or gas supplied, or interfering with its proper action or just
registration; to divert any electric current from any wire or
cable or water or gas from any pipe or main without the con-
sent of the manufacturer or seller thereof; to retain posses-
sion of or refuse to deliver any meter, lamp or other appli-
ances to the owner thereof with the intent to defraud such
owner ; defining what shall be prima facie evidence of a viola-
tion of the provisions hereof ; making any violation of the pro-
visions of this act a misdemeanor and providing a penalty
therefor; and repealing all laws in conflict therewith, partic-
ularly Act 154 of the General Assembly of the State of Louisi-
ana of the vear 1900.
264 STATUTES DIVERTING GAS
Section 1. Be it enacted by the Legislature of Louisiana,
That whoever, intentionally, by any means or device, prevents
electric current, water or gas from passing through any
meter or meters belonging to any person, firm or corporation
engaged in the manufacture, sale or distribution of electricity,
water or gas for lighting, power or other purposes, furnished
such person, to register the current or electricity, water or
gas, passing through meters, or intentionally prevents the
meter from duly registering the quantity of electricity, water
or gas supplied, or in any way interferes with its proper ac-
tion or just registration, or, without the consent of such per-
son, firm or corporation, intentionally diverts any electrical
current from any wire or cable, or water or gas from any pipe
or main of such person, firm or corporation, or otherwise in-
tentionally uses, or causes to be used, without the consent of
such person, firm or corporation, any electricity or gas man-
ufactured, or water produced or distributed, by such person,
firm or corporation, or any person, firm or corporation who
retains possession of, or refuses to deliver any meter or
meters, lamp or lamps, or other appliances which may be, or
may have been, loaned them by any person, firm or corpora-
tion for the purpose of furnishing electricity, water or gas,
through the same, with the intent to defraud such person,
firm or corporation, shall be guilty of a misdemeanor and,
upon conviction, shall be punished by a fine of not less than
ten dollars and not more than one hundred dollars, or by im-
prisonment in the parish jail not more than three months, or
by both fine and imprisonment in the discretion of the court.
Section 2. That the presence at any time on or about such
meter or meters, wire, cable, pipe or main of any device or
pipe or wire resulting in the diversion of electric current,
water or gas, as above defined, or resulting in the prevention
of the proper action or just registration of the meter or meters
STATUTES DIVERTING GAS PIPE LINE COMPANIES 265
as above set forth, shall constitute prima facie exidence of
knowledge on the part of the person, firm or corporation
having custody or control of the room or place where such
device or pipe or wire is located, of the existence thereof and
the effect thereof, and shall constitute prima facie evidence
of the intention on the part of such person, firm or corpora-
tion to defraud and shall bring such person, firm or corpora-
tion prima facie within the scope, meaning an dpenaltiee of
this act.
Section 3. That all laws or parts of laws in conflct here-
with and particularly Act 154 of the General Assembly of
the State of Louisiana for the year 1900 be and the same are
hereby repealed.
Approved: By the Lieutenant Governor and Acting Gover-
nor.
ovember 17, 1921.
A true copy :
JAMES J. BAILEY, .
Secretary of State.
Fuel Pipe Line Companies May Borrow Money,
etc.
ACT No. 172 of 1902, p. 326.
An act to authorize Fuel Oil Pipe Line Companies, organ-
ized under the laws of this State, to contract debt and borrow
money for the purpose of contracting, repairing or acquiring
property- or franchises connected with the business of such
Fuel Oil Pipe Line Companies ; to issue bonds and other obli-
gations secured by mortgage or other pledge on the franchises
and the property, real and personal, the income, revenues,
contributions and receipts of such Fuel Oil Pipe Lines Com-
panies; to prescribe the terms, time and place for the pay-
ment of such bonds or other obligations, and to vest in the
266 STATUTES PIPE LINE CO.'S CONTAMINATION OP WATERS
Board of Directors, Trustees, Managers, or Commissioners,
power to sell, pledge or otherwise dispose of such bonds or to
contract such obligations.
Section 1. Be it enacted by the General Assembly of the
State of Louisiania, That any Fuel Oil Pipe Line Company
organied under the laws of this State, whether under or by
special or general act, may borrow from time to time sums of
money as may be required for construction or repair, for the
acquisition of property or franchises, and for this purpose
may issue bonds or other obligations secured by mortgage or
pledge as incomes, revenues, contributions and receipts of
said company ,and payable in such terms and at such times
and places as the Board of Directors Trustees, Managers or
Commissioners may direct or designate, with power to sell,
pledge or otherwise dispose of said bonds, on such terms as
the company may direct or deem expedient.
Contamination of Waters.
ACT No. 213 of 1906.
By Mr. Barrett, by request. Senate Bill No .113.
AN ACT.
To protect the water supply of cities and prohibiting any
contamination thereof or any acts tending to contaminate
same and providing punishment for the violation of these
acts :
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That it shall be and is hereby declared
unlawful and a misdemeanor to knowingly and wilfully con-
taminate any stream, wells, lake, pond or body of water from
which the public water supply of any city of this State is taken,
by knowingly and wilfully placing or causing to be placed
therein the dead body of any animal or animals or any offen-
STATUTES CONTAMINATION OP WATERS 267
sive or filthy matter, or from doing any other act tending to
corrupt, injure or contaminate said water supply; or for any
one knowingly and wilfully to permit to escape or drain from
his premises into said water supply any substance or fluid
tending to contaminate or injure said water supply, or wil-
fully and knowingly to permit to escape from his premises or
property any sewerage or fluid into the said water supply,
that would injure the quality of the said water or contamin-
ate it.
Section 2. Be it further enacted, etc., That for each and
every violation of this statute there shall be imposed a fine
of not less than $5.00 nor more than $100.00 or imprisonment
not less than one day or more than 30 days in the parish jail ;
one or both at the discretion of the court.
J. Y. SANDERS,
Lieutenant Governor and President of the Senate.
J. W. HYAMS,
Speaker of the House of Representatives.
Approved: July 12, 1906.
NEWTON C. BLANCHARD,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
Contamination of Waters.
ACT No. 183 of 1910.
House Bill No. 19.
AN ACT.
To protect the rice planters and owners of the canals who
use water for irrigation purposes against tthe pollution of
268 STATUTES CONTAMINATION OF WATERS
the streams by salt water, oil and other substances, and also
to protect the fish in said streams and making it a misde-
meanor to contamniate said streams by draining or permit-
ting the said water to be drained in said streams.
Section 1. Be it enacted by the General Assembly of the
State of Louisiana, That it is hereby declared unlawful and
a misdemeanor for any officer, manager, o remployee of any
corporation or any person acting for himself, or for any one
else to knowingly and wilfully empty or drain into, or permit
to be drained from any pumps, reservoir, wells, or oil fields
into any of the natural streams or drains of the said State,
from which water is taken for irrigation purpose any oil, salt
water, or other noxious or poiisonous gases or substances
which would render said water unfit for irrigation purposes
or would destroy the fish in said stream. Provided, that the
operators or owners of wells shall have the right to turn their
water from wells, reservoirs or tanks into the rivers, bayous,
streams or other waterways, between September 1st, and
March 1st of each year, and are prohibited from doing so be-
tween March 1st and September 1st of each year. Said own-
ers or operators shall provide reservoirs or tanks and shall
keep the water out of the said streams of waterways during
the close season, and shall pay for a watchman night and day
to prevent leaks, breaks, secret pipes or violations of this law.
It shall also be the duty of said operators or owners to plain-
ly indicate to whom each reservoir or tank belongs by post-
ing same, and shall be subject to inspection at all times by
the legal authorities.
Section 2. Be it further enacted, etc., That for each and
every violation of said Act there shall be imposed upon any
person so offending, whether acting in his individual capacity
or for others, a fine not less than one hundred dollars
($100.00) nor more than two thousand dollars ($2000.00),
STATUTES CONTAMINATION OF WATERS TAXATION 269
or imprisonment in the parishi jail not less than thirty days
nor more than three months in the discretion of the court
trying the same.
Section 3. Be it further enacted, etc., That for each and
every day that said oil, salt water, or other substances is per-
mitted to flow into such streams, shall constitute a separate
offense.
Section 4. Be it further enacted, etc., That all laws and
parts of laws in conflict herewith are hereby repealed.
H. G. DUPRE,
Speaker of the House of Representatives.
P. M. LAMBREMONT,
Lieutenant Governor and President of the Senate.
Approved: July 6, 1910.
J. Y. SANDERS,
Governor of the State of Louisiana.
A true copy:
JOHN T. MICHEL,
Secretary of State.
Constitution of 1921 Article X.
Section 4. The following property, and no other, shall be
exempt from taxation:**********
For ten years from date of completion, all pipe lines,
pumping plants and other property actually used in the trans-
portation and distribution of natural gas, for fuel and light
purposes, wholly within this State; provided, such line shall
have been constructed after the adoption of this Constitution
and shall have been completed prior to Jan. 1, 1926; and,
provided, this exemption shall not apply to any property
270 STATUTES TAXATION
within a municipality, nor to pipe lines built to cities or
towns already supplied with natural gas.
Section 21. ******Taxes may be levied on Natural re-
sources severed from the soil or water, to be paid porportion-
ately by the owners thereof at the time of severance. Such
natural resources may be classified for the purposes of taxa-
tion and such taxes predicated upon either the quantity or
value of the product at the time and place where it is severed.
No severance tax shall be levied by any praish or other local
subdivision of the State.
No further or additional tax or license shall be levied or
imposed upon oil or gas leases or rights, nor shall any addi-
tional value be added to the assessment of land, by reason of
the presence of oil or gas therein or their production there-
from. Provided, that until the Legislature shall have enacted
laws carrying into effect the provisions of this section, all
existing laws relating to severance taxes or licenses, and to
the assessment and taxation of land producing oil or gas
shall be and remain in full force and effect. Notwithstanding
any legislative appropriation heretofore made or any alloca-
tion in this Constitution made, the Legislature shall allocate
a portion of the severance tax on oil or gas not less than one-
fifth of the amount collected therein to the parish from within
which such tax is collected; provided, that the amount thus
allocated shall not exceed two hundred thousand dollars
($200,000.00) to any parish in any one year.
The Legislature shall provide for the distribution of the
funds allocated to the parishes under this provision among
the governing authorities having jurisdiction over the terri-
tory froni within which such resources are severed and tax
collected.
CONSERVATION RULES 271
APPENDIX "B."
RULES AND REGULATIONS OF THE DEPART-
MENT OF CONSERVATION.
Rules, Regulations and Requirements Governing
the Conservation of Natural Gas and
Crude Oil or Petroleum.
Oil or Petroleum.
Rule 1. Waste Prohibited. Natural gas and crude oil or
petroleum shall not be produced in the State of Louisiana
in such manner and under such conditions as to constitute
waste.
Rule 2. Waste Defined-Protection. The term "waste"
as used herein^ in addition to its ordinary meaning, shall
include economic waste, underground waste, surface waste,
and waste incident to the production of crude oil or petro-
leum in excess of transportation, storage, or marketing facil-
ities.
Rule 3. Gas To Be Confined-Strata To Be Protected.
Whenever natural gas in commercial quantities, or a gas
bearing stratum known to contain natural gas in such quan-
tities is encountered in any well drilled for oil or gas in this
State such gas shall be confined to its original stratum until
such time as the same can be produced and utilized without
waste, and all such strata shall be adequately protected from
infiltrating waters.
Rule 4. Approved Methods Of Preventing Waste To Be
Used. All operators, contractors, or drillers, pipe line com-
panies, gas distributing companies or individuals, drilling
272 CONSERVATION RULES
for or producing crude oil or natural gas, or piping oil or
gas for any purpose, shall use every possible precaution in
accordance with the most approved methods, to stop and
prevent waste of oil or gas, or both, in drilling and produc-
ing operations, storage, or piping or distributing, and shall
not wastefully utilize oil or gas, or allow same to leak or
escape from natural reservoirs, wells, tanks, containers, or
pipes.
Rule 5. Notice of Intention To Drill, Deepen, Pull,
Plug, or Abandon. Written notice to drill, deepen, pull or
plug a well or wells shall be given to the Department of
Conservation, made out on such blank forms as provided or
designatad by the Department of Conservation for that pur-
pose.
Rule 6. A Complete And Accurate Log Of Each Well
Drilled or Deepened Required. Oil and gas operators in
Louisiana shall keep an accurate and complete log of each
and every well they drill or deepen, and furnish the De-
partment of Conservation with two typewritten copies of
same, not later than ten days after the completion of any
and all such work.
Rule 7. Plugging Dry And Abandoned Wells. All dry
or abandoned wells must be plugged by confining all oil, gas
or water in the strata in which they occur by the use of mud-
laden fluid, and in addition to mud-laden fluid, cement and
plugs may be used. These wells must first be thoroughly
cleaned out to the bottom of the hole and before the casing
is removed from the hole, the hole must be filled from the
bottom to the top with mud-laden fluid of maximum density
and which shall weigh at least 25 per cent more than an
equal volume of water, unless the Department of Conserva-
tion directs that some other method shall be used.
CONSERVATION RULES 273
Rule 8. Proper Anchorage To Be Laid. Before >any
well is begun in any field where it is not known that high
pressure does not exist, proper anchorage shall be laid, so
that the control casing-head may be used on the two outer
strings of casings at all times, and this type of casing-head
shall be kept in constant use unless it is known from previous
experience and operations on wells adjacent to the one being
drilled that high pressure does not exist or will not be en-
countered therein.
Rule 9. Equipment For Conserving Natural Gas To Be
Provided Before "Drilling in." In all proven or well de-
nned gas fields, or where it can be reasonably expected that
gas in commercial quantities will be encountered, adequate
preparation shall be made for the conservation of gas before
"drilling in" any well; and the gas sands shall not be pene-
trated until equipment (including mud pumps, lubricators,
etc.) for "mudding in" all gas strata' or sands, shall have
been provided.
Dule 10. Separate Slush Pit To Be Provided. Before
Commencing to drill a well, a separate slush pit or pump
hole shall be constructed by the owner, operator or contrac-
tor for the reception of all pumpings from clay or soft shale
formations in order to have the same on hand for the mak-
ing of mud-laden fluid.
Rule 11. Wells Not To Be Permitted To Produce Oil and
Gas From Different Strata. No well shall be permitted to
produce both Oil and Gas from different strata unless it be
in such manner as to prevent waste of any character to either
product. Therefore, if a stratum should be encountered
bearing gas or the owner, operator, or contractor should go
deeper in search for' either gas or oil bearing sands, the
stratum first penetrated and likewise each and every sand
274 CONSERVATION RULES
in turn, shall be closed separately, and if it is not wanted
for immediate use, it shall be securely shut in so as to pre-
vent waste, either open or underground.
Rule 12. Strata To Be Sealed Off. No Well shall be
drilled through or below' any oil, gas or water stratum with-
out sealing off such stratum or the contents thereof, after
passing through the sand, either by the mud-laden fluid pro-
cess or by casing and packers, regardless of volume or
thickness of sand.
Rule 13. Mud-Laden Fluid To Be Applied. No gas sand
or stratum upon being penetrated shall be drilled or left
open, except at the discretion of the Department of Conser-
vation without the application of mud-laden fluid to prevent
the escape of gas while further drilling in or through such
sand or stratum.
Rule 14. Fresh Water To Be Protected. Fresh Water,
whether above or below the surface, shall be protected from
pollution, whether in drilling or plugging.
Rule 15. Gas to Be Separated From Oil. No gas found
in the upper part of a level of sand which can be separated
from the oil in the lower part of same sand or in a lower
or different sand shall be allowed or used to flow oil to the
surface and all gas, so far as it is possible to do so, shall be
separated from the oil and securely protected.
Rule 16. Separating Device To Be Installed Upon Order
Of The Department of Conservation. Where oil and gas are
found in the same stratum and it is impossible to separate
the one from the other, the operator shall, upon being so
ordered by the Department of Conservation, install a sep-
arating device of approved type, which shall be kept in
place and used as long as necessity therefore exists, and
CONSERVATION RULES 275
after being installed such device shall not be removed, nor
the use thereof discontinued withuot the consent of the De-
partment of Conservation.
Rule 17. Notification of Fires and Breaks or Leaks in
Lines. AH drillers, operators, pipe line companies, and in-
dividuals operating oil and gas wells or pipe lines shall im-
mediately notify the Department of Conservation by tele-
graph or telephone and by letter of all fires which iccur at
oil and gas wells or oil tanks owned, operated, or controlled
by them or in their property, and shall immediately report
all tanks struck by lightning and any other fires which de-
stroy crude oil or natural gas, and shall immediately report
in the manner heretofore described any breaks or leaks in
the tanks or pipe lines from which oil and gas are escaping.
In all reports of fires, breaks, or leaks in pipes, or other
accidents of this nature, the location of the well, tank or
line break shall be given, showing location by quarter, sec-
tion, township and range.
Rule 18. Drilling Records to be kept at Well during the
process of drilling. All operators, contractors, or drillers,
shall keep ?t each w r ell accurate records of the drilling, re-
drilling, deepening of all wells, showing all formations drill-
ing through, casing used and other information in connection
with drilling and operation of the propert yand any and all of
its information shall be furnished to be Department of Con-
servation upon request, or to any Conservation Agent of the
Department.
Rule 19. Conservation Agents to have acess to all Wells.
Conservation agents of the Departments shall have access to
all wells at any and all times, and all companies, contractors,
or drillers shall permit any Conservation Agent of the Depart-
ment of Conservation to come upon any lease or property
276 CONSERVATION RULES
operated or controlled by them, and to inspect any and all
wells, etc., provided, that information so obtained by conser-
vation agents shall be considered official information and
shall be reported only to the Department of Conservation.
Rule 20. Notice to Contractors, Drillers/ and others to
observe Rules. All contractors and drillers carrying on busi-
ness or doing work in the oil or gas field of the State, as well
as lease holders, land owners, and operators generally, shall
take notice of any, and are hereby directored to obsrve and
apply the foregoing rules and regulations ; and all contractors,
drillers, land owners, and operators will be held responsible
for infraction of said rules and regulations.
Rule 21. Three Strings of Casings to be used in Ouchita,
Morehouse, Richland, and Union parishes. In drilling any
and all wells in the above mentioned parishes it shall be un-
lawful for any operator or operators to use less than three
strings of casings made up of 10", 8", and 6". The first two
strings to exclude the upper waters and the 6" cemented as
near the gas or oil sands as possible. The casing so used shall
be cemented and the cement brought up on the hole outside the
casing so as to effectually shut off all water. The casing must
be properly set in suitable formation and cemented with a
liberal quantity of cement. Should it become necessary at any
time to use different size casings, other than the sizes men-
tioned here, a special permit must be secured from the De-
partment of Conservation to do so. Any and all such requests
must be accompanied by a full explanation setting forth the
reasons, etc., for it. Any person, firm, association, or cor-
poration who drills a well in the above mentioned parishes
for either gas or oil or for testing or relief purposes of any
description shall adhere strictly to the above rule in the prose-
cution of anv and all such work.
CONSERVATION RULES 277
Rule 22. Protection of the Shallow Oil Strata in Claiborne
Parish. In setting 6" casing, two sacks of cement to sack of
sand must be used as follows :
Size
Outside
Sacks of
Sacks of
of
Diameter
Cement to
Sand to
Hole.
of Pipe.
Be Used.
B* Used.
7 7-8"
6.625
8.52
4.26
8 1-2"
6.625
12.15
6.25
9 7-8"
6.625
23.54
11.77
The above table is figured for a depth of 100 feet, and on
the assumption that hole is drilled true to dimensions. De-
viations from the above, caused by uneveness of hole or fall-
ing dirt, to be left to the descretion of the driller. Any per-
son, firm, association or corporation desirous of deepening
any shallow well, or wells that are now in or hereafter brought
in, shall adhere strictly to the above rule in the prosecution
of any and all such work.
Rule 23. Only 25 per cent of Capacity of Gas Wells to be
taken. All operators, companies, associations, corporations,
pipe lines and transportation companies are hereby prohibited
from taking more than 25 per cent of the daily natural flow of
any and all gas wells within the limits of the State of Louisi-
ana.
Rule 24. Flambeau Lights Unlawful. It shall be unlawful
for any operator, contractor, driller, company, association,
or corporation to use natural gas for illuminating purposes in
what is known as FLAMBEAU LIGHTS, but nothing herein
shall prohibit the use of "JUMBO" burners or other burners
in glass globes consuming no more gas than such "JUMBO"
burners.
Rule 25. Gas to be Metered. All gas produced from na-
278 CONSERVATION RULES
ture's deposits in the State of Louisiana shall be measured
through property constructed and accurately adjusted meter
or meters. Each producing well must be on a separate meter
at all times and accessible to any Conservation Agent at any
time.
Rule 26. Burning Gas During the Day. No gas shall be
used or burned for illuminating purposes between the hours
of eight o'clock a. m. and five o'clock p. m., unless the same is
regulated by meter.
Rule 27. Disposition of Waste from Wells. No inflam-
mable product from any oil or gas well shall be permitted to
run into any tank, pool, or stream used for watering live
stock, and all waste of oil and refuse from tanks or wells must
be drained into proper receptacles at a safe distance from the
tanks, wells, or buildings, and be immediately burned or trans-
ported from the premises, and in no case shall it be permitted
to flow over the land. Salt water shall not be allowed to
flow over the surface of the land.
Rule 28. Reports from Oil and Gas Well Operators and
Pipe Line Companies Required. The Department of Conser-
vation requires monthly report on forms or blanks furnished
or designated by the Department of Conservation to be filled
out completely, showing their completed oil and gasi wells,
and their oil and gas production by Parishes and the pipe line
runs by Parishes.
Rule 29. It shall hereafter be unlawful for any person,
firm corporation, or association to commence the erection in
the State of Louisiana of any carbon plant or plants for the
manufacture of carbon black from natural gas or to make any
extensions or enlargements of such carbon plant or plants
hereafter begun, or enlargements of existing plants wherein
the erection of such enlargements have not been commenced
CONSERVATION RULES 279
prior to the promulgation hereof, without having first obtained
from the Department of Conservation of the State of Louisi-
ana a special permit, officially signed.
All permit applications as referred to here must be accom-
panied by a complete and accurate copy of the plans and
specifications of the proposed work, having the size of the
plants, number of houses to each unit of each plant, etc., to-
gether with the plant location, name and post office address
of theh company or owner of such plant or plants.
All special permits so issued by the Department of Conser-
vation automatically expires 12 months from date of such
permit or permits, and the renewals thereof shall be left
to the discretion of the Department of Conservation as to
whether or not the available supply of natural gas, at the time
such application or applications for permits are received by
the Department of Conservation, is sufficient to justify fur-
ther drain on the natural gas resources in the territory or
district from which the gas is taken.
Rule 30. Extraction of Gasoline from Natural Gas Used
by Carbon Plant. Before any carbon plant or manufacturer
can utilize any natural gas in Louisiana, known to contain
gasoline, (to make the extraction therefrom beneficial and
profitable) for making or manufacturing carbon, the gaso-
line therein must be extracted and saved.
Rule 31. Taking Control of Abandoned and Other Wells.
Any oil or gas w ! ell, or wells, or any abandoned well, or wells
in the State of Louisiana that is not properly drilled, capped,
or plugged according to law, or any oil or gas well, or wells
wasting oil or gas, or both, in violation of the state laws or
the rules and regulations of the Department of Conservation,
the said Department of Conservation will exercise its rights,
privileges, and power under Act No. 250 of 1920 in such cases,
280 CONSERVATION RULES
and take charge and control of any and all such well, or wells
with the view and purpose of correcting any defect or waste
therefrom, etc., that might be in violation of the state's laws
or the rules and regulations of theh Department of Conser-
vation. This act gives a lien and privilege in favor of the
Department of Conservation, State of Louisiana, for all rea-
sonable expenses and costs incurred by it or under its author-
ity, in the closing, capping, plugging, or correcting the condi-
tions of each and every such well, o rwells, and extending this
lien and privilege to all leases, property, equipment and min-
eral products therefrom that is owned by any such company,
firm, individual, corporation, or association.
Rule 32. Conservation Agents to Assist in Enforcement of
Rules. All conservation agents of the Department shall as-
sist in the enforcement of these rules and shall immediately
notify the Department of Conservation upon observance of
any infraction thereof.
Rule 33. Additional Rules Will Be Prescribed From Time
to Time. The Department of Conservation will from time to
time prescribe additional rules, regulations, and requirements
for the conservation of crude oil, or petroleum, and natural
gas.
Rule 34. Notice of Intention to Plug. Before plugging
dry or abandoned well or wells, advance written notice (in-
cluding a complete description as to the location of any such
wel lor wells, and the date and time of day (near as possi-
ble), as to when the work will be done), shall be given to the
Department of Conservation in order that a representative
of the Department of Conservation might be present to wit-
ness the plugging or abandonment of any such well or wells
in the State of Louisiana.
CONSERVATION RULES 281
Rule 35. Any rule or regulation or any part of any rule,
or regulation in conflict herewith is hereby repealed.
This order adopted October 1, 1920, and to be in full force
and effect thirty (40) days thereafter.
Regulations as to Drilling in Ouachita and More-
house Parishes.
Adopted March 15th, 1920 Under Authority of Act 268 of
1918.
In the drilling of any and all wells in the future in the above
mentioned parishes, it shall be unlawful for any operator or
operators to use less than three strings of casing made up of
10 inch, 8 inch, and 6 inch. The first two strings to exclude
the upper waters and the 6 inch cemented as near the Gas or
011 sands as possible The casing so used shall be cemented
and the cement brought up in the hole outside of the casing so
as to effectually shut off all water. The casing must be prop-
erly set in suitable formation and cemented with a liberal
quantity of cement.
Any person, firm, association, or corporation who drills
a well in the above mentioned parishes for either gas or oil or
for testing or relief purposes of any description shall adhere
strictly to the above rule in the prosecution of any and all
such work.
Regulation for Protection of Shallow Oil Strata in Clai-
borne Parish. Adopted September 1st, 1919, under Author-
itv of Act 268 of 1918.
282 CONSERVATION RULES
In setting 6 inch casing, two sacks of cement to one sack
of sand must be used as follows :
Size
Outside
Sacks of
Sacks of
of
Diameter
Cement to
Sand to
Hole.
of Pipe.
Be Used.
Be Used.
7 7-8"
6.625
8.52
4.26
8 1-2"
6.625
12.15
6.25
9 7-8"
6.625
23.54
11.77
The above table is figured for a depth of 100 feet, and on
the assumption that hole is drilled true to dimensions. De-
viations from the above, caused by uneveness of hole or fall-
ing dirt should be left to the discretion of the driller.
Regulation Requiring the Use of Meters in Measuring
Natrual Gas. Adopted April 7th, 1919, Under Authority of
Section 4 of Act 270 of 1918.
All gas produced from the deposits of the State shall be
meauserd by meter to be installed and furnished by the pro-
ducer at some point other than at the well, then the meter
shall be located at such point or as near thereto as may be
convenient.
Meters used for such purposes must be properly installed
and connected up in such a manner that the Department of
Conservation or its agent or agents, may correctly and con-
veniently determine the amount of gas sold or produced per
day or per month.
All meters used for such purposes must be carefully tested
by a competent person and found to be correct in their meas-
urements before they are connected or put into service, and
they must be kept accurately adjusted at all times by the per-
CONSERVATION RULES 283
son, firm or corporation owning them, and at their expense,
and in continuous service.
Authorized agents of the Department of Conservation shall
at all times have access to any and all such meter, or meters,
and the Department of Conservation must be advised in writ-
ing by the owner or owners of such meter or meters as to their
location or change in their location, etc., from time to time.
RESOLUTION No. 36.
In order to further conserve the gas resources and the pro-
ducts taken therefrom in the State of Louisiana, the follow-
ing has been adopted and promulgated by the Department of
Conservation, State of Louisiana:
It shall be unlawful for any person, firm, association, or
corporation to use a joint of pipe or casing in a well or wells
in Ouachita. Union, Morehouse and Richland Parishes,
Louisiana, without first testing same by plugging or capping
both ends and filling same with cold water under a pressure
of not less than 1 500 pounds to the square inch, or to use any
joint of pipe or casing in any well that does not fully stand
such a test without injury thereto, and each joint of pipe or
casing, so used, shall be tested separately, and the test shall
not be made earlier than thirty (30) days prior to the use of
any such casing in any well or wells.
The foregoing is promulgated as a resolution of the De-
partment of Conservation, State of Louisiana, under the au-
thority of Act 250 of 1920, and adopted this llth day of
April, 1921, and it is required that the provisions of this reso-
284 CONSERVATION RULES
lution be complied with within 15 days from date of its adop-
tion.
DEPARTMENT OF CONSERVATION,
STATE OF LOUISIANA,
By M. L. ALEXANDER,
Commissioner.
J. K. RENAUD, Secretary.
New Orleans, La.
April 11, 1921.
RESOLUTION No. 37.
In order to further conserve the gas resources and the pro-
ducts taken therefrom in the State of Louisiana, the follow-
ing has been adopted and promulgated by the Department of
Conservation, State of Louisiana.
It shall be unlawful for any person, firm, association, or
corporation to use less than one hundred (100) sacks of
standard brand cement in setting 6" casing in a well or wells
drilled in Ouachita, Morehouse, Richland, and Union Par-
ishes, Louisiana, and all cement used for such purposes must
be given or allowed ten (10) days in which to set. Every
known precaution must be taken by the well owner or owners,
or contractor or contractors to see that all cement, so used,
reaches the place for which it is intended with the desired
effect.
The foregoing is promulgated as a resolution of the De-
partment of Conservation, State of Louisiana, under the
authoritiy of Act 250 of 1920, and adopted this llth day of
April, 1921, and it is required that the provisions of this reso-
CONSERVATION RULES 285
lution be complied with within 15 days from date of its adop-
tion.
DEPARTMENT OF CONSERVATION,
STATE OF LOUISIANA,
By M. L. ALEXANDER,
Commissioner.
J. K. RENAUD, Secretary.
New Orleans, La.
April 11, 1921.
(RESOLUTION No. 38 INOPERATIVE.)
RESOLUTION No. 39.
Regulation for Standard Pressure Base.
In order to establish a standard basis for the measurement
of natural gas in the State of Louisiana, the following is
adopted and is hereby promulgated by the Department of Con-
servation, State of Louisiana.
The standard of pressure in all measurement of natural gas
delivered from wells in the State of Louisiana shall be ten
(10) ounces above an atmospheric pressure of fourteen and
four-tenths (14.4) pounds to the square inch, regardless of
the atmospheric pressure at the point of measurement, and
the standard of temperature shall be sixty (60) degrees
Fahrenheit, and all measurements of gas shall be reduced by
a computation to these standards, no matter what may have
been the pressure and temperature at which the gas was ac-
tually measured.
Thus done and signed on this, the 3rd day of October, 1921,
as per authority vested in me as Commissioner of Conserva-
tion, under Act 250 of 1920, and it is required that the provi-
286 CONSERVATION RULES
sions of this resolution will be in full effect in fifteen (15)
days from the date of its adoption.
DEPARTMENT OF CONSERVATION,
STATE OF LOUISIANA,
By M. L. ALEXANDER,
Commissioner.
(STATE SEAL.)
J. K. RENAUD, Secretary.
RESOLUTION MINERAL No. 40.
In order to further conserve the crude oil resources of the
State of Louisiana, the following has been adopted and pro-
mulgated by the Department of Conservation, State of Louisi-
ana.
It shall be unlawful for any person, firm, association or cor-
poration to drill for oil in the State of Louisiana without fully
complying with the provisions as set forth in this resolution.
In order to further conserve and protect the oil horizons in
the State of Louisiana, the use of the casing swab or other
like devices used for lifting oil to the surface by means of wire
cables and suction tools is hereby prohibited, except:
1. Where swabbing is necessary in the bringing in or
stimulating the well for short periods and not for general pro-
duction. .,
2. Where a complete extra string of casing is inserted into
the well, to bottom, inside of and in addition to the last string
of casing used to exclude water from the oil horizons.
The foregoing is promulgated as a resolution of the De-
partment of Conservation, State of Louisiana, under athority
of Act 250 of 1920, and adopted this 25th day of November,
CONSERVATION RULES 287
1921, and it is required that the provisions of this resolution
be complied with within tend days from date of its adoption.
DEPARTMENT OF CONSERVATION,
STATE OF LOUISIANA,
By M. L. ALEXANDER,
Commissioner.
J. K. RENAUD, Secretary.
RESOLUTION MINERAL No. 41.
In order to further protect the gas and oil sands found in
the State of Louisiana, the following has been adopted and
promulgated by the Department of Conservation, State of
Louisiana.
Three Strings of Casing to be Used in Webster.
The Webster gas field, or area, shall be known as that area
in North Webster and Bossier Parishes which lies north of
the south boundary line of Township 22.
In drilling any and all wells in this area it shall be unlaw-
ful to use less than 10", 8" and 6". The 10" to be used as
surface casing and the 8" to be set at least 1200' deep. Both
strings must be thoroughly cemented, according to the best
practice. The 6" must be landed and cemented with not less
than 100 sacks of neat cement at a point as near the gas rock
as is safe and possible. Should it become necessary at any
timje to use different size casing, other than the sizes men-
tioned here, a special permit must be secured from the De-
partment of Conservation to do so. Any and all such requests
must be accompanied by a full explanation setting forth the
reasons, etc., for it. Any person, firm, association or cor-
poration who drills a well in the above mentioned area for
either gas or -oil or for testing or relief purposes of any de-
288 CONSERVATION RULES
scription shall adhere strictly to the above rule in the prosecu-
tion of any and all such work.
The foregoing is promulgated as a resolution of the De-
partment of Conservation, State of Louisiana, under the
authority of Act 250 of 1920, and adopted this 14th day of
February, 1922, and it is required that the provisions of this
resolution be complied with within ten (10) days from date
of its adoption.
DEPARTMENT OF CONSERVATION,
STATE OF LOUISIANA,
By M. L. ALEXANDER,
J. K. RENAUD, Secretary.
RESOLUTION MINERAL No. 42.
Recognizing the necessity of further conserving the natural
resources of the field known as the Monroe Gas Field, located
in the Parishes of Ouachita, Morehouse, and Union, State of
Louisiana, therefore, by authority vested in me under Act Two
Hundred Fifty (250) of the Acts of the General Assembly of
the State of Louisiana of 1920, and more particularly Section
Three (3) of said Act, the following rule is hereby promul-
gated :
All persons, operators, companies, partnerships, associa-
tions, or corporations, whether owners or lessees of a well or
wells in the Monroe gas field, and who may be producing
therefrom natural gas in connection with the manufacture of
carbon black, or other manufacturing enterprises, or for do-
mestic consumption are hereby prohibited from taking more
that twenty (20) per cent of the daily natural flow of any
such well or wells within the limits of said field.
CONSERVATION RULES 289
The foregoing supersedes Rule 23, Appendix, Rules and
Regulations, Act Two Hundred Seventy (270) of 1918.
Adopted this 21st day of February, 1922, and it is required
that the provisions of this rule be complied with on or before
April 1, 1922.
DEPARTMENT OF CONSERVATION,
STATE OF LOUISIANA,
By M. L. ALEXANDER,
Commissioner.
Approved :
JOHN M. PARKER,
Governor.
J. K. RENAUD, Secretary.
290 FORMS SALE OF MINERAL RIGHTS
APPENDIX "C"
Forms, etc.
Sale of Mineral Rights.
STATE OF LOUISIANA,
Parish of
BE IT KNOWN, That this day before me...
NOTARY PUBLIC in and for the Parish of-
Louisiana, duly commissioned and sworn, came and appeared
whose wife's
name is residents of
the Parish of , Louisiana,
who declare that do
by these presents, GRANT, BARGAIN, SELL, CONVEY
AND DELIVER, with full guarantee of title and with com-
plete subrogation of all rights and actions against all former
proprietors of the property herein conveyed unto
residents of ,
the following described property, towit :
of all our
entire interest in and to all the oil, gas and other minerals
and mineral rights, on, in and under the following described
FORMS SALE OF MINERAL RIGHTS 291
tracts of land (together with full right of ingress and egress
at all times), situated in
_ Parish, Louisiana, to-wit.
It is understood between parties hereto that this conveyance
is made subject to a certain mineral lease which we have here-
tofore made to
as recorded in
Book Page Conveyance Records
_ Parish.
TO HAVE AND TO HOLD, said described property unto
said purchasers...- .heirs and assigns forever.
This sale is made for the consideration of the sum of
dollars,
cash in hand paid, the receipt which is hereby acknowledged.
The certificate of mortage is hereby waived by the parties
an devidence of the payment of taxes produced.
DONE AND PASSED, at my office, in said Parish of
, Louisiana,
in the presence of and
.. competent wit-
r esses, on this. day of 192
292 FORMS OIL AND GAS LEASE
ATTEST:
Notary Public.
Oil and Gas Lease.
AGREEMENT, Made and entered into day
of , 192 .,
by and between
of party of the
first part, hereinafter called lessor (whether one or more),
and , party of
the second part, lessee.
WITNESSETH, That the said lessor, for and in consider-
ation of Dollars,
cash in hand paid, and other good and valuable considera-
tions, receipt of which is hereby acknowledged and of the cove-
nants and agreements hereinafter contained on the part of
the lessee to be paid, kept and performed, has granted, de-
mised, leased and let and by these presents does grant, demise,
lease and let unto the said lessee, for the sole and only purpose
of mining and operating for oil and gas, and laying pipe lines,
and building tanks, power stations and structures thereon to
produce, save and take care of said products, all that certain
tract of land situated in the Parish of
State of Louisiana, described as follows, to-wit:
FORMS OIL AND GAS LEASE 293
of Section , Township , Range ,
and containing acres, more or less.
It is agreed that this lease shall remain in force for a term
of years from this date, and as long there-
after as oil or gas, or either of them,, is produced from said
land by the lessee.
In consideration of the premises the said lessee covenants
and agrees :
1st. To deliver to the credit of lessor, free of cost, in the
pipe line to which he may connect his wells, the equal one-
eighth part of all oil produced and saved from said leased
premises.
2nd. To pay the lessor Dollars
each year in advance, for the gas from each well where gas
only is found, while the same is being used off the premises,
and lessor to have gas free of cost from any such well for all
stoves and all inside lights in the principal dwelling house on
said land during the same time by making his own connections
with the wells at his own risk and expense.
3rd. To pay lessor for gas produced from any oil well ana
used off the premises or for the manufacture of casing-head
gas, Dollars
per year, for the tinte during which such gas shall be used,
said payments to be made each three months in advance.
If no well be commenced on said land on or before the
day of _ , 192
this lease shall terminate as to both parties, unless the lessee
294 FORMS OIL AND GAS LEASE
on or before that date shall pay or tender to the lessor, or to
the lessor's credit in the
Bank at
or its successors, which shall continue as the depository re-
gardless of changes in the ownership of said land, the sum of
Dollars,
which shall operate as a rental and cover the privilege of de-
ferring the commencement of a well for months
from said date. In like manner and upon like payments or
tenders the commencement of a well may be further deferred
for like periods of the same number of months successively.
And it is understood and agreed that the consideration first
recited herein, the down payment, covers not only the privi-
leges granted to the date when said first rental is payable as
aforesaid, but also the lessee's option of extending that period
as aforesaid, and any and all other rights conferred.
Should the first well drilled on the above described land be
a dry hole, then, and in that event if a second well is not com-
menced on said land within twelve months from the expira-
tion of the last rental period which rental has been paid, this
lease shall terminate as to both parties, unless the lessee on
or before the expiration of said twelve months shall resume
the payment of rentals in the same amount and in the same
manner as hereinbefore provided. And it is agreed that upon
the resumption of the payment of rentals as above provided,
that the last preceding paragraph hereof, governing the pay-
ment of rentals and the effect thereof, shall continue in force
just as though there has been no inierruption in the rental
payments.
If said lessor owns a less interest in the above described land
than the entire and undivided fee simple estate therein, then
the royalties and rentals herein provided shall be paid the les-
FORMS OIL AND GAS LEASE 295
sor only in the proportion which his interest bears to the whole
and undivided fee.
Lessee shall have the right to use, free of cost, gas, oil and
water produced on said land for its operations thereon, except
water from wells of lessor.
When requested by lessor, lessee shall bury his pipe line be-
low plow depth.
No well shall be drilled nearer than 200 feet to the house or
barn now on said premises, without the written consent of the
lessor.
Lessee shall pay for damages caused by his operations to
growing crops on said land.
Lessee shall have the right at any time to remove all ma-
chinery and fixtures placed on said premises, including the
right to draw and remove casing.
If the estate of either party hereto is assigned, (and the
privilege of assigning in whole or in part i shreeby expressly
allowed) the covenants hereof shall extend to their heirs,
executors, administrators, successors or assigns, but no
change in the ownership of the land or assignment of rentals
or royalties shall be binding on the lessee until after the lessee
has been furnished with a written transfer or assignmnt or
a true copy thereof; and it is hereby agreed in the event this
leaes shall be assigned as to a part or as to parts of the above
described lands and the assignees of such part of parts shall
fail or make default in the payment of the proportionate part
of the rents due from him or them, such default shall not
operate to defeat or affect this lease in so far as it covers a
part or parts of said lands upon which the said lessee or any
assignee thereof shall make due payment of said rental.
296 FORMS OIL AND GAS LEASE
Lessor hereby warrants and agrees to defend the title to the
lands herein described, and agrees that the lessee shall have
the right at any time to redeem for lessor, by payment, any
mortgage, taxes or other liens on the above described lands,
in the event of default of payment by lessor, and be subrogated
to the rights of the holder thereof.
In testimony whereof we sign, this the day of
, 192
Witness : ( Seal )
, (Seal)
(Seal)
_ (Seal)
STATE OF LOUISIANA,
Parish of....
BEFORE ME, , a
Notary Public in and for
Parish, Louisiana, on this day of 192 ,
personally came and appeared ,
who in the presence of me, said authority, and
and
competent witnesses, declares and acknowledges that he
the identical person who executed the
foregoing instrument in writing, that signature
thereto own true and genuine signature , and
that he executed said instrument of
own free will , and for the purposes and considera-
tions therein expressed.
Thus done and passed on the day and date hereinabove
FORMS OIL AND GAS LEASE 297
written, in the presence of the before named and undersigned
competent witnesses, who have hereunto subscribed their
names, together with said appearer ,and me, said Notary,
after reading the whole.
WITNESSES :
STATE OF LOUISIANA,
Parish of....
BEFORE ME, the undersigned authority, this day person-
ally appeared .
j JT i
to me personally known to be the identical person whose name
is subscribed to the foregoing instrument as an attesting wit-
ness, who being first duly sworn, on his oath, says : That he
subscribed his name to the foregoing instrument as a witness,
and that he knows .
the Grantor named in said instrument, to be the identical per-
son described therein, and who executed the same, and saw
sign the same as voluntary act and deed,
and that he, the said _
subscribed his name to the same at the same time as an attest-
ing witness.
Sworn to and subscribed before me, this day of
, ; 192
Notary Public in and for _ Parish,
Louisiana.
298 FORMS ASSIGNMENT OF LEASE
Assignment of Lease.
STATE OF LOUISIANA,
Parish of
KNOWN ALL MEN BY THESE PRESENTS
That ,
of Parish, Louisiana,
hereinafter styled Assignor (whether one or more), in con-
sideration of the sum of
dollars paid by
the receipt of which is hereby acknowledged, and the further
consideration hereinafter mentioned ha granted, bar-
gained, sold and conveyed, and do by these presents
grant, bargain, sell and convey unto
hereinafter styled assignee successors and assigns, all
rights, title, and interest in and to that certain oil, gas and
mineral lease executed by
of Parish, Louisiana,
in favor of
of covering the
following described land situated in
Par i sh , Lou i s i an a ,
FORMS ASSIGNMENT OF LEASE 299
only in so far as said lease covers and applies to the following
described land :
The said assignee agrees to faithfully carry out all the provi-
sions of the original lease in so far as it applies to that portion
of tract conveyed
It is understood between the parties to this agreement that
all conditions between the parties hereunto shall extend to
their heirs, executors, administrators, successors and assigns.
IN WITNESS Whereof, this instrument is signed on this
the day of A. D. 1 92
Witnesses :
300 FORMS ASSIGNMENT OF LEASE
STATE OF LOUISIANA,
Parish of
BEFORE ME, , a
Notary Public in and for
Parish, Louisiana, on this. day of 192 ,
personally came and appeared
who in the presence of me, said authority, and
and
competent witnesses, declares and acknowledges that he
the identical person who executed the
foregoing instrument in writing, that signature
thereto own true and genuine signature ,
and that he executed said instrument of
own free will , and for the purpose and considerations
therein expressed.
Thus done and passed on the day and date hereinabove
written, in the presence of the before named and undersigned
competent witnesses, who have hereunto subscribed their
names, together with said appearer , and me, said Notary,
after reading the whole.
WITNESSES:
Notary Public.
FORMS ASSIGNMENT OF LEASE 301
STATE OF LOUISIANA,
Parish of.
BEFORE ME, the undersigned authority, this day person-
ally appeared .
to me personally known to be the identical person whose name
is subscribed to the foregoing instrument as an attesting wit-
ness who being first duly sworn, on his oath, says : That he
subscribed his name to the foregoing instrument as a witness,
and that he knows
the Grantor named in said instrument, to be the identical per-
son described therein, and who executed the same, and saw
sign the same as voluntary act and
deed, and that he, the said
subscribed his name to the same at the same time as an attest-
ing witness.
Sworn to and subscribed before me, this _..
day of , 192 _
Notary Public in and for Parish,
Louisiana.
302 WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO.
APPENDIX "D"
Unreported decision.
UNITED STATES OF AMERICA,
STATE OF LOUISIANA
SUPREME COURT OF THE STATE OF LOUISIANA
New Orleans, Monday, January 6, 1913.
The Court was duly opened, pursuant to adjournment.
Present Their Honors:
Joseph A. Breaux, chief justice; Frank A. Monroe, Alfred
D. Land, Walter B. Sommerville, associate justices.
Absent: Olivier O. Provosty, associatte justice.
His Honor, the chief justice, pronounced the opinion and
judgment in the following case :
Breaux, C. J. January 6, 1913.
No. 19,315.
R. F. WATKINS, et al,
vs.
ATLANTA & SHREVEPORT OIL & GAS COMPANY.
Appeal from the First Judicial District Court, Parish of
Caddo.
Plaintiffs, alleging that defendant slandered their title,
brought an action in jactitation.
WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO. 303
Defendant claimed ownership of the property consisting
of mineral rights, including oil and gas; also the right of in-
gress and egress.
Plaintiffs became defendants in a petitory action, and de-
fendant, plaintiff.
The muniment of title of plaintiff in the converted action
is a deed on S. A. Watkins, dated May 4, 1901. Defendant
conveyed in this deed the minerals, including oil and gas, and
the right to enter upon the place for the purpose of mining
and marketing the minerals.
Defendant in the converted action (plaintiff in the first
suit) pleaded the ten years prescription (liberandi causa)
averring that nothing further than the right to drill for oil
or gas and of passage way, as well as room for mining, was
conveyed to the Atlanta and Shreveport Oil and Gas Com-
pany; that this was a real right in the property, a secondary
right or lesser right never exercised in any way.
It is true that the suit is limited to a claim for oil and gas ;
there is no claim before this Court to solid substance or min-
erals in place; it is prayed that the demand of ingress and
egress be recognized.
Ten years elapsed from the date of the deed before men-
tioned to the date this suit was brought, and no attempt was
made during these ten years to exercise the rights claimed.
In other words, there was a complete non user.
It is evident that oil and gas not confined to the land in
which they are produced are not necessarily part of the land ;
they are different in this respect from solid minerals.
It is the merest truism to state that movable property may
become immovable by destination and immovable property
304 WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO.
may become movable by separating it from the immovable
of which it forms part. Until oil or gas are brought to the
surface, they may in a sense be considered immovable, but
not susceptible to identification. After they are brought to
the surface, they are movable and become property. Beneath
the surface, the minerals, gas and oil, can not be identified;
the owner of the land has no idea of what property he may
have in oil nor at what moment it may by transmission pass
to an adjacent estate. These minerals are unstable and tran-
sitory. The law requires that a sale shall consist of some-
thing susceptible of identification, and that one should not
sell the property of another. Nemo dat quod non habet.
An interesting decision, pertinent to the subject, was ren-
dered in Brown vs. Spilman, 158 U. S. 665, in which the
Court held that these minerals, because of their peculiar na-
ture, unlike coal and other solid substances, have no situs.
A vendor should sell his own and not the property of which
he does not know whether or not he is the owner.
In another case it was decided, in substance, that Courts
will take judicial notice of the vagrant character of petro-
leum; That it may be attracted from a distance and drain
large reservoirs.
Wettengal vs. Gormerly, 160 Pa. 559.
Another decision quite pertinent was handed down in the
Federal Supreme Court through its able Chief Justice, in
Ohio Oil Company vs. Indiana, 177 U. S. 200. The Court
said, substantially, that oil and gas are not owned by one until
they become property by being reduced to actual possession;
and that they are subject to different rules from property.
In a number of State jurisdictions, the Courts of last ap-
peal have expressed similar views. We have not found a
WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO. 305
decision directly to the contrary, nor have we found anything
to the contrary in the decisions of the Courts of last appeal
of France.
The laws of jurisprudence of that country relate particu-
larly to floWing waters, but are made to apply to all flowing
minerals as well.
In referring to the principles laid down in a number of
decisions we have cited, and others we have read, but have
not cited, it is not our purpose to go to the length that they
have gone. The question before us is the effect of non user.
We treat the sale, for the purpose of the decision, as having
had some effect at the date that it was passed, but to have be-
come lost by non user.
Les eaux perdent leurs caractises d'eaux priveas losquelles
torn bent dans un cour d'eau qu illes servent a alimonter. Buc.
Vol. 4, p. 347.
The same is true of oil and gas.
Until they are brought to the surfce, belongs to no-
body. They transmit themselves and may be within the limits
of the land of one person at one hour and of the other the
next. C. C. 450.
Dalloz has it that :
II n'y en effect que les courants a qua proflu, ens qu'ume
chose commune.
Dalloz Repertoire de Legislation, Vol. 38, p. 208, para. 78.
The French authorities treat as similar questions relating
to underground nature fluids and those growning out of prop-
erty in common at and above the surface.
They while in the earth obey the law of gravity only and
306 WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO.
like rivers and seas while thus obeying they are not subject
to the ownership of any person.
We next take up for decision the prescription pleaded, par-
ticularly directed against the right of ingress and egress and
the occupancy of sufficient land for mining purposes. We
will begin by stating that there was a dismemberment of the
property; t he title itself remain in the owner while the real
right before mentioned passed to third persons. This real
right was prescriptable under the Art. 3529 of the Civil Code,
which provides that the owner may obtain his release from
every species of real right in his property by the prescription
of ten years. The dismemberment takes place when a real
right, such as the usurfruct or servitude, is acquired. Every
species of real right, according to the article Just cited, is
prescribable by the prescription of ten years in case of non
user. The right claimed is unquestionably a species of real
right. If one sells that right and the vendee chooses to stay
away ten years, it would be strange if after that time he
might insist that he would still have the right to bore for oil.
The idea is that valuable property should be exploited and
utilized within a reasonable time, and that it should not be
kept in suspense and neglected without the danger of loss
occasioned by the current of prescription.
We are brought to the question of ingress and egress, and
necessary space for mining. They are certainly lost by non
user. The passage of the land is in the nature of a servitude.
No attempt ever having been made to claim the servitudes, it
is lost. The effect of non user was considered in St. Louis
Cypress Co. vs. Thibodeaux, 120 La., and in other cases since,
affirming it. This is a strange case for the non user con-
tinued to a sufficient length of time to render the claim sub-
ject to prescription. There was no question of prescription in
the case just cited; for sufficient time had not elapsed. The
WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO. 307
right is one of servitude as to which prescriptions arises from
non usage during the time required to produce its extinction.
Civil Code 783.
Another proposition debated at bar was that there was no
current of prescription because the contract contained a con-
tinuing acknowledgment of plaintiff's right. We think it
sufficient answer to state that prescription exists as a rule of
property and of public order; and it cannot be waived in ad-
vance of the least current of prescription.
Lastly, plaintiff, in the converted action, interposed the
plea of estoppel on the ground that defendant, or his author
in title, was a stockholder in the Atlanta and Shreveport Oil
and Gas Company and has collected his pro rata of that
stock. It remains that the company is an independent, judi-
cial person ; its acts of non user are not binding upon defen-
dant as relates to prescription for the fact that he, or his
author in title, has received dividend from the company.
For reasons assigned, the judgment is affirmed.
Land, J., "I dissent and am authorized to state that Mr.
Justice Provosty joins in this dissent."
SYLLABUS.
( 1 ) As the Atlanta and Shreveport Oil and Gas Company
had only a real right which it failed to exercise within ten
years, it lost it by prescription provided by Art. 3529 of the
Revised Civil Code.
(2) The right of ingress to and egress from the proper-
ty, together with the right to use sufficient property for min-
ing purposes, constituted a real right which was also subject
to the above mentioned prescription.
308 WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO.
(3) The fact that a stockholder in a corporation shares
in the dividends of that corporation does not thereby estop
him from pleading prescription liberandi causa against it
when it attempts to assert a real right against property owned
by him. As the corporation is a distinct judicial person from
the stockholder he is not bound by its acts.
Breaux, C. J. January 11, 1913.
No. 19,315.
R. F. WADKINS
vs.
ATLANTA AND SHREVEPORT OIL AND GAS CO.
In preparing the decree handed down on the 6th inst, an
oversight occurred.
For that reason the decree handed down on the said day,
in this case, is recalled, avoided and reversed; and the decree
of the District Court also is recalled, avoided and reversed.
For reasons stated in the opinion handed down, it is or-
dered, adjudged and decreed that there is judgment in favor
of R. F. Wadkins and against the Atlanta and Shreveport
Oil and Gas Co., perpetually enjoining and restraining the
said Atlanta and Shreveport Oil and Gas Company from in
any manner claiming or asserting and right or title to the
said property. Petitioners fee simple title thereto and peti-
tioners are quieted and maintained in their possession of the
property. The plea of prescription is maintained.
It is ordered that the action for damages is dismissed, and
that defendant, the Atlanta and Shreveport Oil and Gas Com-
pany, pay costs of both courts.
WATKINS VS. ATLANTA & SHREVEPORT O. & G. CO. 309
AT CHAMBERS.
June 22, 1914. No. 19,315.
R. F. WADKINS, et al.
vs.
ATLANTA AND SHREVEPORT OIL AND GAS CO.
Per Curiam:
In the above numbered and entitled cause, counsel for the
plaintiff and counsel for the defendant, having filed a joint
motion suggesting to this court that "they have entered into
a compromise agreement in full settlement of all the issues
raised in this case," and that they now desire that this cause
on rehearing be stricken from the trial docket, of this court,
and that the case be considered as having been fully disposed
of, and that a certified copy of the original judgment be sent
down to the District Court.
Therefore, in compliance with the wishes of counsel for the
respective parties : It is ordered by the court that the above
numbered and entitled cause on rehearing be stricken from
the trial docket of the court, and that the case be considered
as having been fully disposed of, and that a certified copy of
the original judgment be sent down to the District Court.
TABLE OF CASES CITED.
References are to Pages.
Adeline Sugar Factory Co., Lt., v. Evangeline Oil Co., 121 La., 961 ; 101.
Alexander et al. v. Standard Oil Co. of La., 140 La., 45; 131.
Allen v. Atlas Oil Co., 140 La. 184; 130.
Allison v. Brown, 148 La. 530; 65, 68, 97.
American Well & Prospecting Co. v. Lillie Oil Co., et al. 128 La. 660; 96.
Anse LaButte Oil & Min. Co. v. Babb, 122 La. 415; 35, 38, 39, 49, 54,
58, 62,63,66,84,91,92, 118.
Atchafalaya Land Co. v. James, 146 La. 109; 15.
Atkins v. Garnett, 270 Fed. 942; 145.
Atlas Oil Co. v. Standard Oil Co. of La., 142 La. 601 ; 105.
Baird v. Atlas Oil Co., 146 La. 1091; 28, 30, 31, 34, 39, 40, 43, 64,
71, 120.
Beck v. Natalie Oil Co., 143 La. 153 ; 124.
Berl v. Kehoe, 130 La. 1020; 44, 55, 56, 87, 88, 120.
Black Bayou Oil Co. v. Pyron et al., 129 La. 117; 69, 116.
Bradley v. Shreveport Gas, Elec. Lt. & Pr. Co., 139 La. 1029; 124.
Bradley v. Shreveport Gas, Elec. Lt. & Pr. Co., 142 La. 49; 131, 138.
Bristo v. Christine Oil & Gas Co., 139 La. 321 ; 37, 58, 82.
Brooks v. Peerless Oil Co., 146 La. 383 ; 128.
Brown et al. v. Producers Oil Co., 134 La. 672; 38, 44, 46, 56, 72, 73, 87.
Brown v. Spillman, 155 U. S. 665 ; 9, 10, 11.
Burkholder v. Consolidated Progressive Oil Corp., 149 La. ; 24, 27,
28, 39, 43, 68.
Busch-Everett Co. v. Vivian Oil Co., 128 La. 886; 25, 36, 37, 39, 46,
54, 60, 61, 64, 66.
Butler v. Marston et al., 145 La. 41 ; 45, 116:
Caddo Oil & Mining Co. v. Producers Oil Co. 134 La. 701; 9, 10, 11,
41, 44, 56, 61, 72, 74, 87, 88, 116, 117.
Calcasieu Long Leaf Lbr. Co. v. Reid, 146 La. 77; 132.
Caldwell v. Hennen, 5 Rob. 20; 147.
Calhoun v. Ardis, 144 La. 311 ; 13, 14, 36, 78, 79.
Calhoun v. Christine Oil & Gas Co., 139 La. 316; 37, 82.
312 TABLE OF CASES CITED
Cedar Grove Oil & Gas Co. v. Southwestern Gas & Elec. Co., 141 La.
452; 98.
Chadwick v. Standard Oil Co., 147 La. 668; 38, 64, 123.
City dT Crowley v. Ellworth, 114 La. 308; 132.
City of Shreveport v. Pierce Oil Co., 141 La. 372; 135.
Cochran v. Gulf Refining Co. of La., 139 La. 1010; 20, 33, 40, 42, 46,
57, 70, 88.
Cochran Oil & Dev. Co. v. Arnaudet et al., Ill La. 563; 24, 117.
Cole v. Louisiana Gas Co., 121 La. 771 ; 131, 136.
Connett v. right, 149 La. ; 18, 35, 148.
Conroy v. Pine Belt Lbr. Co., 143 La. 879 ; 98.
Constantine Ref. Co. v. Day, 147, La. 623 ; 107, 136.
Constantine Ref. Co. v. Ricaud, 147 La. 634, 136.
Continental Supply Co. v. Tucker Rose Oil Co., 146 La. 671 ; 146.
Cook v. Gulf Refining Co., 127 La. 592; 4, 25, 26, 27, 29, 36, 38, 68,
76, 85, 93.
Cook v. Gulf Refinery Co., 135 La. 609; 10, 12, 13, 21, 26, 36, 37, 38,
73, 74, 93, 120.
Cooper v. Jennings Refinery Co., 118 La. 181; 145.
Cox et al. v. Busch-Everett Co. et al., 131 La. 817; 24.
Craig v. Summers, 47 Minn., 189, 49 N. W. 742, 15 L. R. A. 236; 28.
Creed & Cripple Creek Co., v. Unita Tunnel Co., 196 U. S. 337, 9 L.
Ed. 501 ; 16.
Crichton v. Louisiana Oil Ref. Co. et al., 144 La. 649; 144.
Croom v. Noel, 143 La. 189; 47.
Crusel v. Brooks, 121 La. 243 ; 126.
Crusel v. Brooks, 133 La. 477; 17, 104, 148.
Crusel v. Hermitage Planting Co., 114 La. 920; 102.
Crusel v. Houssiere-Latreille Oil Co., 122 La. 913 ; 145.
Crusel v. Tierce, 118 La. 292; 100.
Dahl v. Raunmeim, 132 U. S. 269, 35 "L. Ed. 324; 16.
Davis v. Safety First Oil Co., 138 La. 89; 123.
Davis & Orr v. Stringfellow, 138 La. 94; 124.
DeMoss v. Sample, 143 La. 243; 9, 11, 13, 14, 15, 17, 36, 46, 77, 78,
79, 82, 134.
Denham v. McCormick, 139 La. 317; 37, 82.
Denman v. Wilder, 148 La. 481; 32, 116.
Department of Conservation v. Louisiana Gas & Fuel Co., Inc., 144 La.
962; 115.
TABLE OF CASES CITED 313
DeSoto's Heirs v. Standard Oil Co. of La., 139 La. 965 ; 22, 28, 31, 120.
Dickinson v. Robinson, 145 La. 438; 13.
Dickinson v. Texana Oil & Ref. Co., 144 La. 489; 126.
Dickinson v. Texana Oil and Ref. Co., 147 La. 341 ; 6, 36, 62, 71, 84.
Dellinger v. Smith, 142 La. 1009; 63.
Dreyfous et al. v. Process Oil & Fuel Co., 142 La. 564; 146.
Elder v. Ellerbe et al., 135 La. 990; 10, 11, 12, 20, 22, 34.
Elder v. Sun Co., 135 La. 943; 120, 123.
Elston v. Atlas Oil Co., 147 La. 1048; 37, 91.
Escoubas et al. v. Louisiana Petroleum & Coal Oil Co., 22 A. 280; 1,
36,51,67,68,70,72,86.
Etchison Drilling Co. v. Flournoy, Tax Collector, 131 La. 442; 7, 132.
Evangeline Oil Co. v. Trahan, 126 La. 243 ; 124.
Federal Oil Co. v. Western Oil Co., 112 Fed. 376; 118.
Ferringer v. Crowley Oil & Min. Co., 122 La. 441 ; 128.
Ford v. Louisiana Gas Co., 121 La. 771 ; 131, 136.
Frost-Johnson Lbr. Co. v. Nabors Oil & Gas Co., 149 La. ; 10, 11,
14, 15, 37, 41, 79.
Frost-Johnson Lbr. Co. v. Sailings, 149 La. ; 9, 10, 15, 35, 78, 82.
Fuchs et al, v. Kansas City Southern Ry. Co., 132 La. 782; 129.
Gates v. Renfroe, 7 A. 769; 147.
Goodson v. Vivian Oil Co., 129 La. 955; 44, 46, 55, 66, 81, 85, 88.
Gray v. Spring et al., 129 La. 345; 40, 44, 55, 61, 72, 76, 84, 120.
Green v. Standard Oil Co., 146 La. 935 : 38, 42, 46, 86, 90.
Green et al. v. United States, 274 Fed. 145; 16, 21.
Greening v. Brinkerhoff, 145 La. 760; 16.
J. M. Guffey Petroleum Co. v. Murrell, Tax Collector, et al., 127 La.
466; 5, 6, 132.
Guffey Petroleum Co. v. Oliver, Tex. Civ. Ap., 79 S. W. ; 86.
Gulf Refining Co. of La. v. Carroll, 145 La. 299; 18, 33, 34, 70, 116.
Gulf Refining Co. of La. v. Hart et al., 130 La. 51 ; 24, 34.
Gulf Refining Co. of La. v. Haynes et al., 138 La. 555; 18, 25, 26, 30,
33, 35.
Gulf Refining Co. of La. v. Hayne et al.,.148 La. 328; 10, 13, 18, 21,
28, 31, 34, 39, 68, 70, 73, 75, 100, 118, 124.
Gulf Refining Co. of La. v. Jeems Bayou Hunting & Fishing Club, 129
La. 1021 ; 24.
Hahn v. Southwestern Gas Co., 145 La. 212; 137.
Hamman vl Emerson et al., 135 La. 629; 148.
314 TABLE OF CASES CITED
Hammond Oil & Dev. Co. v. Feitel; 115 La. 132; 95.
Hanby y. Texas Co., 140 La. 189; 9, 10, 11, 13, 23, 27, 77.
Hardin v. Higgins Oil & Fuel Co., 147 La. 453 ; 128.
Hart v. Standard Oil Co., 146 La. 885 ; 42, 89, 94.
Hayne v. Assessor, 143 La. 697; 135.
Haynes v. Fisher Oil Co. et al., 142 La. 890; 129.
Heller v. Vailey, 28 Ind. 555, 63 N. E. 490; 39.
Henderson v. Shreveport Gas, Electric Light & Power Co., 134 La.
39; 140.
Higgins Oil & Fuel Co. v. Guaranty Oil Co., 145 La. 233; 9, 10, 19, 94.
Hinton v. Smith, 149 La. ; 44, 59, 61, 66.
Hope v. State Bank, 4 A. 213 ; 147.
Houssiere-Latreille Oil Co. v. Jennings-Heywood Oil Syndicate, 115
La. 107; 29, 39, 52, 53, 60, 65, 67, 70, 73, 79, 84, 119.
Moussiere-Laterille Oil Co. v. Jennings-Heywood Oil Syndicate, 116
La. 347; 125.
Houston Ice & Brewing Co.v . Murray Oil Co., 149 La. ; 19, 22, 120.
Hudspeth et al. v. Producers Oil Co., 134 La. 1013 ; 38, 39, 56, 58, 60,
62, 85, 92.
Hutichinson et al. v. Atlas Oil Co., 148 La. 540; 65, 86, 90, 123.
Hutter v. Indian Oil Ref. Co., 134 La. 478; 145.
Interocean Oil Co. v. Ames, 149 La. ; 107.
Iddle v. Hamler Boiler & Tank Wks., 138 La. 97; 130.
Jackson v. Texas Co., 143 La. 21 ; 139.
Jennings-Heywood Oil Syndicate v. Heywood Oil Co., 117 La. 536;
99,121. < m
Jennings-Heywood Oil Syndicate v. Home Oil & Dev. Co., Ltd., 113
La. 383; 30, 34, 75.
Jennings-Heywood Oil Syndicate v. Houssiere-Latreille Oil Co., 114
La. 573; 124, 125.
Jennings-Heywood Oil Syndicate v. Houssiere-Latreille Oil Co., 116
La. 1053; 120, 125.
Jennings-Heywood Oil Syndicate v. Houssiere-Latreille Oil Co., 117
La. 960; 120, 125.
Jennings-Heywood Oil Syndicate v. Houssiere-Latreille Oil Co., 118
La. 262; 121, 126.
Jennings-Heywood Oil Syndicate v. Houssiere-Latreille Oil Co., 119
La. 793 ; 2, 4, 9, 35, 36, 46, 53, 55, 56, 62, 65, 67, 70, 81, 1 16, 117, 120.
TABLE OF CASES CITED 31G
Jennings-Heywood Oil Syndicate v. Houssiere- Latreille Oil Co., 119
La. 864; 123. .
Jennings-Heywood Oil Syndicate v. Houssiere-Latreille Oil Co., 127
La. 971 ; 22, 35, 84, 99, 103, 126.
Jolley v. Vivian Oil Co., 131 La. 937; 122, 123.
Jones v. Hoffman et al., 114 La. 996; 145.
S. M. Jones Co. v. Houma Oil & Dev. Co., 124 La. 148; 145.
Keene v. Logan, 147 La. 80; 39, 62, 63, 67, 68.
Kenner v. Southwestern Oil Co., 113 La. 80; 145.
Keoughan & Co. v. Equitable Oil Co., 116 La. 773; 124.
Knight Bros. v. Standard Oil Co., 147 La. 272 ; 27, 29, 35, 63, 72, 92, 93.
Langston v. Shaw et al., 147 La. 644 ; 83.
Latimer's Heirs v. Gulf Refining Co. of La., 146 La. 249; 24.
Louisiana-Texas Oil & Pipe Line Co. v. Atlanta Oil & Gas Co., 124 La.
385; 96, 99.
Leonard v. Busch-Everett Co., 139 La., 1099; 58, 63, 67, 82.
Lock et al v. Russell et al, 75 W. Va. 602, 845 S. E. 948; 87.
Lone Star Salt Co. v. Texas S. L. R., 99 Tex. 445, 90 S. W. 867, L. R.
A. (N. S.),835; 118.
Long v. Sun Co., 132 La. 601 ; 36, 44, 46, 55, 56, 69, 81, 85, 86.
McCann & Harper Drlg. Co. v. Busch-Everett Co., 131 La. 888; 96.
McClendon v. Busch-Everett Co., 138 La. 722; 27, 29, 41, 44, 46, 57,
58, 62, 88.
McClung v. Atlas Oil Co., 148 La. 674; 18, 41, 80, 83.
McFarland v. Jennings-Heywood Oil Syndicate, 118 La. 537; 98.
Malone v. Barket, 2 Rob. 369; 147.
Marks v. Lowenburg, 143 La. 196; 147.
Marston v. Elliott, Sheriff et al, 138 La. 574; 134.
Martel et al v. Jennings-Heywood Oil Syndicate, 114 La. 351; 12, 21,
40, 43, 44, 46, 51, 56, 71, 73, 82, 85, 116, 124.
Martel et al v. Jennings-Heywood Oil Syndicate, 114 La. 903; 17, 34,
121, 125.
Martel et al v. Jennings-Heywood Oil Syndicate, 115 La. 451 ; 124.
Martel et al v. Jennings-Heywood Oil Syndicate, 115 La. 615; 119.
Martel et al, v. Jennings-Heywood Oil Syndicate, 115 La. 622; 119.
Martel et al v. Jennings-Heywood Oil Syndicate, 118 La. 391 ; 121, 126.
Miller et al v. Crusel, 135 La. 649; 103, 146.
Miller v. Vivian Oil Co., 131 La. 761 ; 24.
Mining Co. v. Kerr, 130 U. S. 256, 32 L. Ed. 906; 16.
316 TABLE OF CASES CITED
Minro's Estate v. Crusel, 124 La. 590; 103.
Mohawk Oil Co. v. Layne, 147 La. 895, 254 U. S. 651, 65 L. Ed. 210;
123.
Mohawk Oil Co. v. Layne, 270 Fed. 841 ; 123.
Mohawk Oil Co. v. Layne, 270 Fed. 851 ; 25, 41, 84, 85, 122, 123.
Moore v. Gulf Ref. Co., 124 La. 607; 24.
Morris v. Municipal Gas Co., 121 La. 1016; 139.
Murphy v. Standard Oil Co. of La., 140 La. 557; 130.
Murray v. Barnhart, 117 La. 1923; 3, 33, 35, 44, 46, 51, 52, 53, 55, 56,
58, 60, 63, 65, 67, 71, 73, 85, 91, 92, 120.
Myers v. Myers et al, 148 La. 174; 18, 33, 123.
Nabors et al v. Producers Oil Co., 140 La. 985; 11, 29, 35, 42, 76, 88,
94.
Nabors Oil & Gas Co. v. McCormick, 145 La. 88 ; 42, 90.
Natalie Oil Co. et al. v. Louisiana Ry. & Nav. Co., 137 La. 706; 3, 9,
10, 11, 12, 13, 20, 26, 74.
Nervis v. McCormick, 139 La. 318; 37, 82.
New Orleans Gas Co. v. Paulding, 12 Rob. 388; 140.
New Orleans Gas Light Co. v. La. Light etc. Co., 115 U. S. 650, 6 S.
Ct. 252, 19 L. Ed. 516; 139.
New Orleans Gas Light Co. v. New Orleans Drainage Comn., Ill La.
838; 140.
Nilson v. Brinkerhof f , 146 La. 697 ; 120.
Norris v. Snyder & McCormick, 139 La. 316; 37, 63, 82.
Norwood v. Lake Bisteneau Oil Co., 145 La. 823; 128.
Ohio v, Indiana, 177 U. S. 190; 9, 10, 11.
Ohio Iron Co. v. Auburn Iron Co., 64 Minn. 404, 67 N. W. 221 ; 28.
Ohio Oil Co. v. Delmore, 73 N. E. 908, 34 L. R. A. 62 ; 4, 35.
Oil City Iron Works v. Pelican Oil Co., 115 La. 265; 145.
Palmer Co. v. Cotton Queen Oil Co., 141 La. 305 ; 16, 127.
Palmer Co., Inc., et al v. Police Jury of Red River Parish, 142 La.
1076; 134.
Parks v. Hughes, 145 La. 221 ; 74, 145.
Parrott v. Kirschler, 139 La. 320; 37, 63, 82.
Parrott v. McCormick, 139 La. 318; 37.
Partee, v. Succession of Hill, 12 A. 767; 147.
Perrin v. McMicken's Heirs, 15 A. 154; 147.
Philps v. Guy Drilling Co., 143 La. 951 ; 128.
Porter v. Rogers Oil & Gas Co., 139 La. 1050; 129.
TABLE OF CASES CITED 317
Prince et al v., Standard Oil Co., 147 La. 283 ; 28, 36, 64, 88.
Producers Oil Co. v. Hanzen et al, 132 La. 691, 238 U. S. 325, 59 L.
Ed. 1330; 16,22, 119.
Pye v. Southwestern Gas & Elec. Co., 147 La. 537; 128.
Pure Oil Op. Co. v. Gulf Refining Co. of La., 143 La. 284; 63, 66, 120.
Rains v. Dunson, 143 La. 321 ; 123.
Rains v. Dunson, 145 La. 528; 40, 43, 58, 61, 64, 82, 91, 116.
Rains v. Dunson, In re Bernstein, 145 La. 1011; 126, 148.
Receivership of Cotton Queen Oil Co., 143 La. 2; 145.
Reed v. Nelson, 133 La. 968; 132.
Richardson v. Liberty Oil Co., 143 La. 130, 250 U. S. 648, 63 L. Ed.
1188; 146.
Rives et al v. Gulf Refining Co. of La., 133 La. 178; 3, 8, 9, 10, 11, 12,
13, 16, 22, 25, 26, 30, 36, 39, 75, 120.
Rogers v. S. H. Bolinger Co., 149 La. . . ; 116.
Rohr v. New Orleans Gas Light Co., 136 La. 546; 131, 138.
Rowe v. Atlas Oil Co., 147 La. 37; 39, 43, 62, 71, 92.
Russell et al v. Producers Oil Co., 138 La. 184; 19, 84.
Russell v. Producers Oil Co., 143 La. 217; 19, 26, 31.
Russell v. Producers Oil Co., 146 La. 481 ; 19, 31, 100, 104.
Saint v. Martel, 122 La. 93; 83.
Saint v. Martel, 123 La. 815; 123.
Saint v. Martel, 126 La. 245; 123.
Saint v. Martel, 127 La. 73; 17, 118.
Saunders v. Busch-Everett Co., 138 La. 1049; 10, 12, 13, 23, 26, 27,
45, 52, 54, 57, 58, 122.
Silverman v. Caddo Oil & Gas Co., 127 La. 928; 102.
Slattery v. Arkansas Natural Gas Co., 138 La. 893; 15, 24, 120.
Smith v. Shippers Oil Co., 120 La. 640; 145.
Snyder v. Wilder, 146 La. 811 ; 40, 82, 118.
Southern Cotton Oil Co., v. New Orleans N. E. R. Co., 146 La. 541 ;
107.
Spence et al v. Lucas et al, 138 La. 763; 3, 12, 13, 23, 25, 26, 27, 28,
30, 33, 40, 70, 74.
Standard Oil Co. of La. v. Marlow et al, 141 La. 52 ; 72, 99.
Standard Oil Co. of La. v. Drummers Oil Co., 138 La. 94; 123.
Standard Oil Co. of La. v. Police Jury of Red River Parish, 140 La.
42; 134. i ; i I] !
Standard Oil Co. v. Webb, 149 La. . ; 13, 39, 40, 76.
318 TABLE OF CASES CITED
State v. Capdevielle, 146 La. 93, 252 U. S. 581 ; 15.
State v. King, 133 La. 568; 111.
State v. New Orleans Gas Light Co., 108 La. 67; 140.
State v. New Orleans Lighting Co., 118 La. 440; 141.
State v.* New Orleans Lighting Co., 2 Or. Ap. 269; 141.
State v. Richardson et al, 140 La. 329; 16, 127.
State v. Stiles, 137 La. 540; 134.
State v. Union Gas & Oil & Pipe Line Co., 147 La. 701 ; 144.
State ex rel. Atty. General v. Vivian Gas Oil & Pipe Line Co., 147 La.
701 ; 144.
State ex rel. Jennings-Heywood Oil Syndicate v. DeBallion, Judge,
113 La. 572; 30, 39, 40, 120, 124.
State ex rel. Jennings-Heywood Oil Syndicate v. DeBallion, Judge,
113 La. 619; 120, 124, 125.
State ex rel. Saint v. Martel, 123 La. 853; 123.
Strobecker v. Robinson, 147 La. 652 ; 16.
Strother v. Mangham, 138 La. 437; 10, 12, 13, 23, 27, 76.
Succession of Cochran, 29 A. 232 ; 147.
Succession of Franklin, 7 A. 395 ; 147.
Thompson et al v. Busch-Everett Co., 133 La. 938; 24.
Twin-Lick Oil Co. v. Marbury, 91 U. S. 592, 23 L. Ed. 331 ; 117.
Union Sulphur Co. v. Reed, 249 Fed. 172; 136.
United Fruit Co. v. Louisiana Pet. Co., 115 La. 181; 103.
VanVleet v. Evangeline Oil Co., 127 La. 919; 145.
VanVleet v. Evangeline Oil Co., 129 La. 406; 144.
VanVleet v. Evangeline Oil Co., 133 La. 72 ; 145.
Vestal v. Producers Oil Co. et al, 135 La. 984; 24.
Vincent Oil Co. v. Gulf Refining Co. of La., 195 Fed. 434; 31.
Vinton Oil Co. v. Park, 115 La. 800; 145.
Vinton Oil & Sulphur Co. v. Gray, 135 La. 1049; 24.
Vinton Oil & Sulphur Co. v. Reed, 249 Fed. 172; 136.
Wadkins v. Producers Oil Co. et al, 129 La. 848 ; 124.
Wadkins v. Producers Oil Co. et al, 130 La. 308, 227 U. S. 368, 57 L.
Ed. 551 ; 24, 124.
Watkins v. Atlanta & Shreveport Oil & Gas Co., (Not reported see
Appendix) ; 10, 78.
Webster v. Harmon, 148 La. 1080 ; 145.
Wells et al v. Files, 131 La. 736; 122.
Wells et al, v. Files, 133 La. 219; 122.
TABLE OF CASES CITED 319
Wemple v. Eastham, 144 La. 957; 15.
Wemple v. Pasadeba Pet. Co., 147 La. 532 ; 28, 30.
Wemple v. Producers Oil Co. 145 La. 1031 ; 65, 87.
Westmoreland Gas Co. v. DeWitt, 130 Pa. 235, 18 Atl. 724, 5. L. R. A.
731 ; 10.
Wiggins v. Standard Oil Co. of La., 141 La. 532; 130.
Wilder v. Norman, 147 La. 413; 43, 44, 58, 62, 68, 71.
Wilkins et al v. Penn.-La. Oil & Gas Co., Inc., 149 La. . . ; 145.
Williams v. McCormick, 139 La. 319; 37, 63.
Wilson v. Pierson, 143 La. 287; 11, 75, 80, 120.
Winterb'aler v. Hoffman, 119 La. 125; 145.
Wolff v. Shreveport Elec. Light & Pr. Co., 138 La. 743; 131, 137.
Woodruff v. Producers Oil Co., 142 La. 368; 128.
Zagst Co. v. Southern Surety Co., 148 La. 328; 128.
INDEX.
REFERENCES ARE TO PAGES.
A.
ABANDONED
well to be plugged, 272.
well to be controlled by Dept. of Conservation, 279.
ABANDONMENT
right of, 47.
in general, 69, 71.
of lease, 69, 71.
of joint lease, 71.
question of fact and intention, 72.
removal of machinery after, 72.
as termination of lease, 69.
of drilling contract, 95.
as reason for receiyership, 145.
ABSURD CONCLUSIONS
contracts not construed so as to lead to, 36.
ABUSE
of rig, damages for, 99.
ACCEPTANCE
of benefits under lease, 28, 60.
of gas rentals, 64, 89.
of rentals and payments, 62.
refusal of, 63, 66.
of development under lease, 60, 61.'
of sufficiency of development, 91, 92.
of well under contract, 96.
ACCEPTANCE OF SUCCESSION
affect on previous lease, 33, 40, 41.
322 INDEX
ACCESS
to wells by conservation agents, 275.
ACCESSORIES TO WELL
machinery, etc., 99.
ACCIDENTAL
stipulations of law in re oil and gas, 3.
ACCOUNTING
by co-owners of minerals, 71.
for sequestered oil, 126.
by partners, 148.
ACCRETIONS
on banks of waters, etc., 16.
ACKNOWLEDGMENTS
of leases, etc., 296.
ACQUISITION
of oil and gas, 10.
of minerals and mineral rights, 23.
of, lease, 26.
ACQUIESCENCE
in expenditures, etc., 60, 61.
in sufficiency of development, 91, 92.
in drilling contract, 95, 96.
in judgment, 122.
ACTIONS (see PROCEDURE).
ADEQUATE CONSIDERATION
for lease, 45.
ADJOINING LANDOWNERS
rights of 10.
in general, 11.
must abstain from damaging neighbor, 19.
not obliged to save neighbor from loss, 19.
cannot complain of lawful acts of neighbor, 18.
royalty due to rightful owner of land, 31.
use of pumps, 94.
INDEX 323
ADVERSE CLAIMS -
to lands, 24, 116.
ADVICE OF COUNSEL -
possession on, 21.
as to interpretation of contract, 37.
AGENTS -
listing lease with for sale, 13.
of Department of Conservation, 207, 275, 280.
AMBIGUOUS -
clauses in lease, 4.
clauses construed against vendor, 37.
AMOUNT -
of consideration, 45.
of production, 92.
ANALYSIS -
of conservation laws, 107.
of tax laws, 132.
of corporation laws, 141.
of blue sky law, 146.
ANCHORAGE -
well must have proper, 273.
ANCILLARY SEQUESTRATION -
in general, 124.
ANIMALS FARAE NATURAE
oil compared to, 9.
ANTIQUATED PROVISIONS
of law, 3.
APPEAL (see PROCEDURE).
from Railway Commission Rules, 106, statute, 228.
to courts from conservation rules, 111.
dismissal of, 122.
sequestration after, 124.
review of matters involving discretion of lower court, 121.
324 INDEX
ARREARS
cutting off gas for, 140.
ARTIFICIAL GAS -
license tax on manufacturers of, 141.
ASSESSMENT -
for taxation, 5, 134.
ASSIGNMENT -
by husband of wife's leases, 32.
in general, 39.
of lease, 39.
rights and liabilities of transferree, 39.
descriptions in, 40, 41.
form of, 298.
ASSUMPTION -
of husband's obligations by wife, 32.
ATTORNEYS -
acquiring interest in land, 18.
advice of, 21, 37.
acquiring interest in mineral rights, 80.
fees for cancellation of lease under statute, 149.
fees under gasoline tax law, 164.
B.
BAILEE -
of oil, 104.
BAD FAITH (see FRAUD, Etc.)
of possessor, 21.
where acting on advice of counsel, 37.
in selling property to corporation, 145.
BAD TITLE (see TITLE).
to lease, 24.
warranty, 75.
BANK-
deposit of payments in, 63.
notification to of refusal to accept deposit, 66.
INDEX 325
BANKS OF STREAMS
in general, 16.
BASIS -
of pressure, 285.
BEDS OF LAKES, etc.
in general, 15.
BEGINNING OPERATIONS
in general, 92.
BENEFITS
acceptance of, 28, 60.
BLANKS -
leaving in form lease, 27.
BLOWING OUT PIPE -
injury from, 138.
BLUE SKY LAW-
resume of, 146.
BOARD OF HEALTH -
inspection of oil by, 131.
BONDS -
injunction, 74.
for running oil, 104.
to release sequestration, 125.
corporate, given in payment of property, 145.
BONUSES (see PAYMENTS).
illegal possessor owes to owner, 22.
in general, 62.
BORING -
by owner, 12.
BOSSIER PARISH
field, 3.
drilling in, 287.
BOTTOMS OF LAKES, etc.
in general, 15.
326 INDEX
BOUNDARIES
between leases, 19.
action of, 19.
BREACH OF CONTRACT
to deliver oil, 102.
to furnish transportation by steamer, 107.
damages and specific performance, 118.
BREAKS IN LINES -
notification of, 275.
BULL -BAYOU
field, 12.
BURDEN OF PROOF -
on broker claiming commission, 13.
of payment, 62.
on one claiming forfeiture, 71.
of fraud, 116, 123.
BUSINESS TRUSTS
in general, 147.
BY-PRODUCTS
other substances than oil, 1, 86.
C.
CADDO
fields, 2.
CADDO LEVEE BOARD LANDS -
lease of 32; statute, 245.
CANCELLATION (see TERMINATION).
in general, 69.
lessor and lessee necessary parties to suit for, 28, 31, 120.
of lease from records, 71; statute, 149.
CAPITAL -
required for development, 6.
CAPITAL STOCK
of corporations, 141.
paying dividends out of, 144.
replacement of 144.
INDEX 327
CARBON BLACK -
statute giving power over to Dept. of Conservation, 214.
plants, 278.
use of gas for in Ouachita, Morehouse, Union, 288.
CARS (see TANK CARS).
conditional sale of tank cars, 106.
CASING (see PIPE).
line on, 98.
removal of, 99.
mortgage of, 99.
injury from, 130.
kind to be used in Ouachita, Morehouse, Richland, and Union Par-
ishes, 276, 283, 284.
to be used in drilling, 282.
to be used in Webster and Bossier, 287.
CASINGHEAD GASOLINE -
payment for, 87.
CASUAL STIPULATIONS OF LAW-
relative to minerals, 3.
CESSATION -
time between, and resumption of operations, 93.
CHARACTER OF OIL AND GAS -
in general, 9.
CHARGES -
for storage and piping, 103, 104.
CHECKS -
as payment, 65.
CHATTEL INTEREST
as name for lease, 36.
CHATTEL MORTGAGE -
of machinery, pipe, ets., 99.
CHATTEL REAL -
as name for lease, 36.
328 INDEX
CITIES (see MUNICIPALITY).
CITY ORDINANCES (see POLICE POWER).
against storage of oil, 132.
fixing gas rates, 140.
CIVilL CODE, PROVISIONS OF-
as applied to oil and gas, 3.
friuts, 12.
ownership of soil, 13.
possessors, 21.
sales and leases, 26.
potestative condition, 47.
litigious rights, 83.
CLAIBORNE
protection of shallow strata in, 277, 281.
CLAIMS -
to mineral lands, 24, 116.
COAL-
as mineral in place, 14.
oils, inspection of by Board of Health, 131.
CODE NAPOLEON
provisions of relative to potestative condition, 48.
CODE OF PRACTICE
as applied to oil and gas, 3.
provisions of relative to dismissing lessee from action, 22.
COLLUSION (see FRAUD).
in general, 116.
COMMENCEMENT OF OPERATIONS -
in general, 92.
COMMINGLING OIL OF DIFFERENT OWNERS
effect of, 104.
COMMISSION -
action for by agent, 13.
for sale of oil, 103.
INDEX 329
COMMISSION, CONSERVATION (see CONSERVATION).
generally, 107.
COMMON CARRIERS -
pipe lines as, 105.
statutes, 223.
COMMON PURCHASERS --
legislation relative to, 23.
statute, gas, 184.
statute, oil, 208.
COMMON STOCK -
stored oil as, 103.
COMMUNITY LEASE -
in general, 43.
as containing potestative condition, 58.
COMMUNITY PROPERTY -
lease of, 32.
COMPENSATION, WORKMEN S'-
law, 127.
COMPLAINT OF LESSOR -
where contract complied with, 27.
CONDEMNATION (see EMINENT DOMAIN).
CONDITIONS -
implied in lease, 29, 87.
potestative, 47, 60.
CONDITIONAL SALE-
of tank cars, 107.
CONSENT -
of co-owner to exploration, 18.
to extension of lease, 38.
330 INDEX
CONSERVATION (see RULES OF DEPT. OF CONSERVATION),
under police power, 23.
in general, 107.
resume of statutes, 107.
closing wild wells, 170, 177.
waste, 170, 173, 176, 180, 181.
powers and duties of Department of, 188, 202, 214.
control of gas production, 180.
name of Commission changed to "Department," 204.
salary of Commissioner, 206.
agents, 207.
purchasers of oil, 208.
powers during periods of over-production, 209.
powers relative to carbon industry, 214.
CONSERVATION COMMISSION (see CONSERVATION).
generally, 107.
CONSIDERATION -
in general, 43.
one dollar as, 44.
serious required, 44, 45, 46.
recital that consideration is deemed sufficient, 44.
want of, 44.
twenty dollars as, 44.
royalty as, 44.
promise of development as, 44, 46.
assumption on as to seriouseness of, 44.
inadequate, 44.
substantial, 44, 46.
discrepancy in, 45.
for wildcat lands, 45.
amount of, 45.
for reservation, 46.
potestative condition, 59.
for extension of lease, 67.
development as, 85.
CONSTITUTION
articles of, 269.
INDEX 331
CONSTRUCTION AND INTERPRETATION
in general, 35.
ambiguous clauses construed against vendor, 37.
intention of parties, 35.
intention, how inferred, 35.
language as showing intention, 35.
terms employed in instrument, 35.
intention must be lawful, 35.
instrument construed as a whole, 36.
word used in describing contract, 36.
unambiguous language, 36.
against lessee, 36.
of parties to contract, 36.
against party writing contract, 36.
by counsel, 37.
leading to absurd conclusions, 37.
courts will not re-write contracts, 37.
forfeiture not favored, 70.
CONTAMINATION -
of waters, 17, 97; statutes 266, 267.
conservation rules, 274.
CONTEMPLATION OF LAWMAKERS -
in re oil and gas, 3.
CONTRACTS -
treated as leases, 26.
form of lease, 27.
construction and interpretation, 35.
unilateral, 59.
termination, 70.
drilling, 95.
breach of, for transportation, 107.
lesion, fraud, error in, 116.
drilling, statute in re. 250.
CONVERSION -
in general, 99.
damages for, 100.
332 INDEX
CONVEYANCE-
as name for lease, 36.
CO-OWNERS -
in general, 17, 33.
accounting by, 17.
dismissal of suit after conveying interest, 18.
no partition of kind of oil Jands, 18.
right to partition, 18.
injunction against lessee, 18.
one acting for all, 18.
of minerals and surface not tenants in common, 17.
exploration by one, 18.
lease of lands of, 33.
possession of undivided interests, 33.
lease void as to, 33.
lease of undivided interest, 33.
may join in lease, 33.
need not own whole to lease, 33.
heirs taking possession, 33.
suit to annul part of lease, 34.
eviction from part of lease, 34.
abandonment of lease by, 73.
sequestration by, 124.
CORPORATIONS -
resume of law, 141.
dividends out of capital stock, 144.
transactions with officers, 145.,
value of property given for bonds, 145.
receivership, 145.
COST-
of drilling well, when deducted by wrongful possessor, 21,
COSTS -
of sequestration, 125.
COUNSEL (see ATTORNEYS).
INDEX 333
COURTS (see PROCEDURE, APPEAL).
interpretations by, 4.
as making law, 4.
will protect equitable owner, 16.
will not re-write contracts, 36.
when will order specific performance, 117.
jurisdiction of in sequestration proceedings, 125.
COVENANTS (see CONDITIONS, etc.)
CRIMES AND OFFENSES
Under
contamination of waters, 17, 97; statutes, 266, 267.
gas tax law, 165.
severance tax law, 157, 158.
closing wild wells, 171.
waste, 175, 180.
common purchasers of gas, 237.
conservation statutes, 202.
over-production statute, 212.
rules of Department of Conservation, 219.
pipe line law, 237.
damage to gas plants, 261.
diverting gas, 262, 263.
CROSS LAKE LANDS -
reservation of minerals, 17, 261.
CROSSING ROADS AND STREAMS -
by pipe lines, 105.
CROSSING LEVEES
by pipe lines, 105.
CUPIDITY -
of lessors and lessees, 4.
CUSTOMS -
leasing, 25.
of field, as to development, 90.
of drilling offsets, 94.
charges for storage and piping, 104.
334 INDEX
CUTTING OFF GAS -
for arrears, 140.
DAMAGES (see PERSONAL INJURIES).
due by unlawful possessor, 21.
due to lessee for slander of title, 31.
construction of lease not against lessee in suit for, 36.
rentals construed as liquidated, 63.
in general, 73.
for failure to drill, 73.
for usurpation of rights of lessee, 73.
must be certain, 73.
for insufficient development, 74.
under drilling contract, 95.
from waste oil, 97.
for abuse of rig, 99.
for conversion of oil, 99.
for failure to deliver oil, 100, 103.
for failure to transport oil by steamer, 107.
in relation to specific performance, 118.
for personal injuries, 127, 129.
for failure to cancel lease, 150.
to gas plants, 261.
DAMNUM ABSQUE INJURIA-
doctrine as to waste oil, 98.
DATION EN PAIEMENT
giving leases under, 32.
DEDUCTION OF COST OF DRILLING -
by illegal possessor, 21.
DEED-
as name for lease, 26.
DEFAULT -
in general, 66, 68.
party in, cannot claim, 67.
when necessary and unnecessary, 68.
when lessor puts himself in, 68.
INDEX 335
DEFINITION OF "WASTE" -
under statute, 181.
DELAY -
return of payments cannot be asked after, 65.
as relieved by equity, 66.
vis major, as excuse for, 81.
DELIVERY OF OIL
failure to, 101, 103.
DEMAND (see DEFAULT).
when payments are due on, 67.
DENIAL OF TITLE -
of lessor, by lessee, 30.
DEPARTMENT OF CONSERVATION (see CONSERVATION).
generally, 107.
DEPARTMENT OF MINING AND MINERALS -
reference to, 109.
DEPOSIT -
of payments in bank, 63.
notification of refusal to accept, 66.
DERRICK -
erection of as compliance with lease, 91, 92.
lien on, 98.
defective, injury from, 128.
DESCRIPTION -
in assignments, leases, etc., 40, 41.
DE SOTO
fields, 2.
DEVELOPMENT
requisites of, 6, 84.
pumps, etc., 18, 94.
use of mechanical means, 19.
by usufructuary, 20.
by possessors and trespassers, 21.
336 INDEX
DE VELOPMEN T ( Continued )
cost of by illegal possessor, 21.
cost of producing, transporting, selling, 21.
subject to police power, 23.
risk of, 25.
drilling well before lease signed, 26.
starting operations as curing defects, 27.
compliance by lessee as curing complaints, 27.
divisibility of drilling operations, 41.
promise of as consideration, 44.
as consideration, 46, 85.
"sole and only" clause, 54.
cures potestative condition, 60.
tender of performance, 65.
vis major as excuse for delay, 81.
storage necessary, 84.
right to use surface, 84.
in general, 84.
time for, 85.
rights in oil as giving right to gas, 85.
enures to right of lessee, 85.
unexpected substances, 86.
implied obligation to drill, 87.
diligence, sufficiency, 87.
erection of derrick as compliance, 91.
what constitutes commencement, 92.
amount of production, 92.
cessation and resumption, 93.
offsets, 94.
pumps, etc., 94.
drilling contracts, 95.
waste oil, 97.
storage, piping, transportation, 103.
conservation, 107.
fraud in, 116.
cessation as cause for receivership, 145.
sequestration, 118.
inspection of oil, explosive oils, etc., 131.
INDEX 337
DIFFICULTY
of interpreting leases, 4.
DILIGENCE -
in general, 87.
"due diligence," 94.
DISCOVERY
value of land after, 24, 116.
claims after, 24, 116.
DISCREPANCY
in consideration, 45.
DISCRETION OF COURT
in re injunction, 121.
in re sequestration, 125.
DISMEMBERMENT OF TITLE
to land and minerals, 13.
DISMISSAL -
of suit after conveying interest, 18.
of appeal, 122.
DISSOLUTION OF LEASE (see TERMINATION).
generally, 69.
claim by lessor on ground that he does not own land, 28.
after consideration received and kept, 28.
DISTANCE
drawing oil from, 9.
of offsets, custom, 9.
DIVERTING GAS
misdemeanor, 262, 263.
DIVIDENDS
payment out of capital stock, 144.
DIVISIBILITY
of obligation to drill, 41.
of lease in general, 41.
of gas from oil under lease, 42.
838 INDEX
DOCTRINES APPLICABLE TO OIL AND GAS
in general. 12.
DOLLAR AS CONSIDERATION -
not serious, 44.
DRAINAGE -
of oil, etc., into waters, 17, 97.
of oil by adjoining land owners, 18.
of oil by use of pumps, etc., 94.
of oil, claim for damages for, 74.
DRAWING OIL-
from distance, 9.
DRILLER (see DRILLING).
DRILLING (see RULES OF DEPARTMENT OF CONSERVATION).
by surface owner, 11, 12.
usurpation of rights of, 13.
cost of by illegal possessor, 21.
before signing lease, 26.
obligation indivisible, 41.
injunction against, 74.
rights of persons, 84.
"due diligence," 94.
by hand, danger of, 129.
records to be kept, 272, 275.
DRILLING CONTRACT
in general, 95 ; statute, 262.
abandonment of, 95.
negligence under, 95.
claim for damages under, 95.
lien under, 95.
"to satisfaction" clause, 96.
reducing size of hole, 97.
DRY WELL
to be plugged, 272.
"DUE DILIGENCE"
clause in lease, 94.
INDEX 339
E.
EARLY CASES
oil and gas, 1.
EARNEST -
payment of, 82.
EARTHERN TANKS
storage In, 104.
EASEMENTS (see SERVITUDES, RIGHT-OF-WAY, PIPE LINES, etc.)
EGRESS AND INGRESS
right of lessee, 29.
ELEMENTS OF OWNERSHIP
dismemberment of, 14.
EMERGENCY
of river banks from water, 16.
EMINENT DOMAIN -
right of by pipe lines, 105.
EMPLOYERS' LIABILITY ACT
reference to, 8, 127.
ENTRY -
of Government lands, 16, 22.
EQUIPMENT
in general, 99.
deducting cost of by unlawful possessor, 21.
proper, required for gas wells, 273.
EQUITABLE
ownership, 22.
sequestration, 124.
EQUITY -
as relieving delay, 66.
ERECTION OF DERRICK -
as compliance with lease, 91, 92.
340 INDEX
ERROR -
in lease contract, 36, 45.
in general, 116.
must be proved, 116.
ESCAPING OIL
damage from, 98.
ESSENCE OF CONTRACT -
time as, 85.
ESTOPPEL -
after receiving benefits under lease, 60.
permitting expenditures, 84.
as to location of well, 84.
accepting gas rentals, 89.
EVICTION (see WARRANTY).
from interest in lease, 34.
EVIDENCE (see PROOF).
written, required showing right to explore, 11.
of ownership of minerals, 23.
presumption as to receipt of letter, 63.
EXCEPTIONS (see RESERVATIONS).
in general, 13, 76.
EXCLUSIVE RIGHT OF OWNER
to drill, 12.
EXEMPLARY DAMAGES -
against unlawful possessor, 21.
EXEMPTIONS FROM TAXATION
in general, 6, 7, 136.
constitutional provisions, 269.
EXHAUSTION
of surroudning territory by well, 9.
EXPECT ANCY-
title in, 16.
INDEX 341
EXPENDITURES -
by possessors and trespassers, 21.
acquiescence in, 60, 61.
EXPENSE OF PRODUCTION
consideration of, 12.
by possessors and trespassers, 21.
EXPERIENCE -
required for development, 6, 84.
EXPLOSION -
in tank car, 129.
from oil, 132.
EXPLOSIVE OILS-
storage of, 132.
EXPLOITATION (see DEVELOPMENT).
as fight of ownership, 10.
by co-owners, 18.
in general, 84.
EXPROPRIATION
right of by pipe lines, 224.
EXTENSION
by usufructuary, 20, 67.
by consent, 38.
in general, 67.
by former owner, 67.
by implication, 67.
consideration for, 67.
must have title to grant, 67.
EXTRA-JUDICIAL PARTITION -
in general, 70.
EXTRACTING -
oil, cost of by illegal possessor, 21.
gasoline from gas, 279.
342 INDEX
F.
FACT-
abandonment is question of, 72.
FAILURE -
to comply with contract, 70.
to drill, damages, 73.
to deliver oil, 101, 103.
to transport oil by steamer, 107.
to cancel lease, 150.
FARAE NATURAE
animals, doctrine of, 9, 10.
FARM LEASE -
compared to oil lease, 26.
FEDERAL LEASING ACT
reference to, 32.
FEE
sale of as including minerals, 24.
sale of terminates rights of lessor, 28.
FEES (see ATTORNEYS).
FENCES -
duty of lessor and lessee as to, 28.
FINDING UNEXPECTED SUBSTANCES
in general, 1, 86.
FIRE
loss of stored oil by, 103.
notification of, 275.
FIRST OIL AND GAS CASE
reference to, 1.
FIXED STATUS OF MINERALS
reference to, 6.
FLAMBEAU LIGHTS
unlawful, 277.
INDEX 343
FLUCTUATING VALUE -
of oil lands, 117.
FORECLOSURE -
as terminating lease, 69.
FORFEITURE (see TERMINATION).
in general, 70.
by lessor who has parted with title, 28.
must be declared, 36, 71.
payments to prevent, 62.
ipso facto clause, 65.
not favored, 70.
burden on one claiming, 71.
FORM-
of lease, in general, 27.
leaving blanks when filling in, 27.
FORTUITOUS EVENT
loss of oil by, 103.
ris major as excusing delay, 81.
FRAUD -
possessors, 21, 37.
in contract, 45.
in general, 116.
must be proved, 116, 123.
in transfer of property for corporate bonds, 145.
FRENCH -
authorities, reference to, 48.
FRUITS -
oil and gas as, 12, 22.
FUGITIVE CHARACTER OF OIL AND GAS-
consideration of, 9.
FURNISHERS OF MATERIALS
lien of, 98.
344 INDEX
GAS- G.
legal status of, 6.
as mineral, 6.
divisibility from oil under lease, 42.
acceptance of rentals, 64, 89.
well, as compliance with oil lease, 85.
in general, 136.
use and production of, 136.
connecting pipe, 137.
leaking pipes, 137.
odorless, 137.
responsibility of supplying company, 137.
as dangerous substance, 137.
blowing out pipe, 138.
duty as to pipes in highway, 138.
rights of taxpayers in re use of streets, 139.
use of streets for mains, 139.
cutting off for arrears, 140.
rights of municipality to acquire, 140.
rates, 140.
larceny of, 141.
consolidation of companies, 141.
fixtures, 141.
manufacturers of, 141.
control by Department of Conservation, 180.
common purchaser statutes, 184.
municipalities and parishes may acquire lines, etc., 256.
damage to plants, 261.
diverting, 262, 263.
exemption of pipe lines from taxation, 269.
to be confined to original stratum, 271.
proper equipment for wells, 273.
and oil not to be produced from same strata, 273.
and oil to be separated, 274.
how much may be taken from well, 277?
flambeau lights unlawful, 277.
to be metered, 277, 282.
burning in day, 278.
extraction of gasoline from, 279.
INDEX 345
GASOLINE
casinghead, 87.
storage of, 131.
statute in re, 160.
extracting from gas, 279.
GOOD FAITH -
of possessor, 20, 21, 25.
GOVERNMENT LANDS (see PUBLIC LANDS),
minerals under, 15.
lease of, 31.
GRANT -
as name for lease, 36.
GUSHER BEND
field, 2.
H.
HAND DRILLING -
danger of, 129.
HAYNESVILLE
fields, 3.
HAZARDOUS BUSINESS
producing as, 128.
refining as, 131.
HEIRS
take subject to lease, 33, 40.
obligations of, 41.
succession sale as terminating lease, 69.
HERIDITAMENT-INCORPOREAL -
as name for lease, 36.
HIGH WATER MARK
as determining ownership of land, 16.
HIGHWAYS -
gas lines crossing, 105.
gas pipes in, 138.
346 INDEX
HISTORY -
of oil industry in Louisiana, 1.
HOLE (see WELL).
well means, 92.
reducing size of, 97.
HOMER
field, 3.
HOMESTEAD -
lease of, 33.
HOOK -
injury from, 129.
HOPE-
acquired by lessee, 29.
HOT WATER PIPE -
injury from, 128.
HOUSE LEASE -
compared to oil lease, 26.
HUSBAND AND WIFE-
in general, 32.
paraphernal property, 32.
joinder of in lease, 32, 33..
lease of homestead by, 33.
rights of husband, 32.
I.
ILLEGAL POSSESSOR (see POSSESSOR).
generally, 21.
ILLUMINATING OIL
inspection of by Board of Health, 131.
IMMOVABLES
interests in minerals as, 23.
IMPLIED OBLIGATIONS AND CONDITIONS -
to drill, 29, 87.
clearly expressed obligation not construed as, 36.
INDEX 347
IMPROVEMENTS -
by possessors, 21, 25.
INADEQUATE CONSIDERATION -
for lease, 44.
INCIDENTAL EXPENSES -
of drilling, by illegal possessor, 21.
INCORPOREAL HERIDITAMENT
as name for lease, 36.
INDEPENDENT OPERATORS -
reference to, 4.
INDIVISIBLE OBLIGATIONS -
in general, 41.
INDIVISION, OWNERS IN (see CO-OWNERS).
in general, 17, 33.
INDUSTRY -
oil in general, 1.
mining as new, 3.
misunderstandings of, 4.
INFANTS (see MINORS).
INGRESS AND EGRESS -
by lessee, 29.
INJUNCTION (see PROCEDURE).
by co-owner, 18.
as remedy against trespasser, 22, 120.
against drilling, etc., 74.
when not proper remedy, 120.
discretion of court, 121.
against lessee of State, 127, 244.
against Department of Conservation, 220.
INJURIES, PERSONAL (see PERSONAL INJURIES).
in general, 127.
INNOCENT THIRD PARTIES (see THIRD PERSONS).
in general, 39.
348 INDEX
INSEVERABLE OBLIGATIONS -
in general, 42.
INSPECTION OF OILS-
in general, 131.
INSTRUMENT, WRITTEN -
construction and interpretation of, 36.
INSUFFICIENT -
consideration, 45, 47.
development, claim for damages for, 74.
INTENTION (see CONSTRUCTION AND INTERPRETATION).
of parties to lease, 35.
to abandon, 72).
to plug well, notice of, 280.
INTERDICTS -
lease of lands of, 32, 260.
INTEREST -
undivided, 17, 33.
INTERPRETATION (see CONSTRUCTION AND INTERPRETATION).
in general, 35.
difficulty of, 4.
French, in re potestative condition, 48.
INTERRUPTION OF PRESCRIPTION -
of mineral rights, 15, 76.
INTERVENTION -
in suit affecting lease, 120.
INTRODUCTION-
to book, 1.
IPSO FACTO FORFEITURE CLAUSE
in lease, 65.
ISLANDS
ownership, 15.
INDEX 349
JENNINGS
field, 2.
JOINT OWNERS (see CO-OWNERS).
in general, 17, 33.
JOINT LEASE
by husband and wife, 32, 33.
in general, 42.
JOINT OBLIGATION
to drill, 42.
JUDGMENT (see PROCEDURE).
acquiescence in, 122.
sequestration holds until final, 125.
JUDICIAL NOTICE
of vagrant character of oil and gas, 9.
of dangerous character of gas, 136.
of odorless nature of natural gas, 137.
JUDICIAL PARTITION (see PARTITION
of mineral lands, 18, 30, 67, 70.
JURISDICTION-
in re. sequestration, 125.
JUS IN RE
conveyance of interest in minerals as, 23.
KIND
no partition of oil lands in, 18.
KNOCKING DOWN PIPE
injury from, 130.
KEROSENE
inspection of by Board of Helath, 131.
explosion of, 132.
L.
LACHES
in asserting claim to land, 24, 116.'
350 INDEX
LAKE BOTTOMS-
ownership of, 15.
LAND
fruits of, 12.
waste, 15.
islands, 15.
beds of streams, lakes, etc., 15.
public, 15.
swamps and overflowed, 15.
silt, etc., 15.
partition of, 18.
LANDLORD* (see LESSOR).
in general, 27.
LANDOWNERS-
loss by, 4.
cupidity of, 4.
complaints as to neighbors use of land, 10.
agent of, 13.
adjoining, 18.
LANGUAGE OF CONTRACT
showing intention, 35.
LAW-
antiquated provisions in re. minerals, 3.
statutory, 3.
stipulations relative to oil and gas, 3.
provisions of codes, 3.
made by courts, 4.
reference to U. S. statutes, 7.
termination of contract by effect of, 69.
LAWFUL
intention of contract, must be.
LAWMAKERS
silence of as to oil and gas, 3.
did not contemplate oil fileds, 5.
INDEX 351
LAWYERS (see ATTORNEYS).
advice of, 21, 37.
LEAKS
in valve on tank car, 107.
in pipe, 137.
LEASE (see LESSOR, LESSEE).
first, 1.
ambiguities in, 4.
by owner of surface, 12.
listing for sale with agent, 13.
top or second, 13, 30, 40, 76.
of lands of co-owners, 18, 33.
of lands of usufructuary, 20.
of right-of-way, 20.
name given is immaterial, 25.
in general, 25.
in class by itself, 26.
compared to lease of farm and houses, 26.
legal provisions applied to, 26, 29.
well drilled before singing, 26.
how acquired, 26.
signatures to, 27.
blanks in, 27.
form of, 27.
lessor in general, 27.
lessee in general, 29.
of public lands, 31.
of lands of minors, 32.
of lands of interdicts, 32.
of lands of married women, 32.
of community property, 32.
wife assuming obligations under, 32.
Federal Leasing Act, 32.
of homestead, 33.
of lands of co-owners, 33.
eviction from portion of, 34.
construction and interpretation, 35.
name given is immaterial, 36.
362 INDEX
LEASE (see LESSOR) (CONTINUED).
term, 37.
assignment, 39.
third persons, 39.
recordation of, 40.
divisibility, 41.
joint lease, 42.
community, 43, 59.
consideration, 43.
potestative condition, 47.
"sole and only" clause, 54.
rentals, 62.
payments, 62.
tender of payments under, 65.
extensions, 67.
default in payments and performance, 67.
termination of, 69.
abandonment, 71.
damages for non-performance, usurpation, etc., 73.
mortgage of, 74; statute, 254.
warranty of, 75.
option under, 81.
as license, 82.
development under, 84.
development of substance not covered by, 86.
diligence required under, 87.
commencement, 92.
amount of production, 92.
cessation and resumption, 93.
lesion, fraud, error, 116.
statute in re. school lands, 239.
statute in re. state lands, 240, 243.
statute in re. Caddo Levee Board lands, 245.
statute in re. minors and interdicts, 247, 248.
statute in re. Cross Lake Lands, 249.
statute in re. cancellation of, 149.
form of, 292.
LEGAL STATUS-
of oil and gas, 6.
INDEX 353
LEGISLATION-
reference to, 3, 4, 6, 7.
LESION-
in general, 45, 116.
LESSEE (see LEASE).
in general, 29.
right to unexpected substances, 1.
cupidity of, 4.
not to be dismissed from suit upon disclosing lessor, 22, 31.
duty as to fences, 28.
hope acquired by, 29.
real right of, 29.
need only comply with terms of lease, 29.
rights to surface, 29.
administration of surface, 29.
no rights after parting with title, 30.
possession against lessor, 30.
as tenant, 30.
cannot force change in lessor's title, 30.
taking two leases, must pay rentals on both, 30.
must be disturbed in possession to sue, 30.
denial of lessor's title, 30.
slander of title, 31.
duty to deliver royalty to proper party, 31.
necessary party to suit, 31, 120.
entitled to well drilled by lessor, 31.
lease construed against, 36.
obligations indivisible, 41.
when cannot demand return of payments, 65.
injunction against lessee of State, 244.
duty to furnish cancellation, 149.
LESSOR (see LEASE).
in general, 27.
cannot grant valid top lease, 13.
usurpation of rights of lessee, 21, 28, 29.
disclosure of by lessee when sued, 22.
must have title, 24, 30.
354 INDEX
LESSOR (see LEASE) (CONTINUED).
custom to lease land, 25.
cannot complain when there is development, 27.
no rights after parting with title, 28.
cannot claim he is not owner, 28.
refusing to perform, should abandon, 28.
necessary party to suit, 28.
must look after fences, etc., 28.
cannot keep consideration and ask dissolution, 28.
owes proceeds of well to lessee, 31.
obligations indivisible, 41.
can demand cancellation, 149.
LETTER -
presumption as to receipt of, 63.
LEVEES -
pipe lines crossing, 106; statute, 227.
LIABILITY, EMPLOYERS'
reference to law, 127.
LICENSE -
as name for lease, 36.
leases as, 44.
lease terminable at will, 82.
lease is not, 82.
in general, 82.
LICENSE TAX-
reference to, 133, 136.
on manufacturers of gas, 141.
statutes, 153.
constitutional provisions, 270.
LICENSEE
injury to, 131.
LIENS -
under drilling contract, 95.
for work and materials, 98.
LIMITATIONS, STATUTES OF (see PRESCRIPTION,).
for non-user of mineral rights, 15, 76.
INDEX 355
LINES -
meander and high water, 16, 17.
action of boundary, 19.
LIQUIDATED DAMAGES -
rentals as, 63.
LIS PENDENS
notice of, 40, 41.
LITIGATION -
development pending, 85.
LITIGIOUS RIGHTS
sale of, 83.
LOG OF WELL-
required, 272.
LOCATION -
on U. S. lands, 16.
of wells, 19.
LOSS -
of oil from forfuitous cause, 103.
of oil from storage, 104.
of oil from failure to close valve in tank car, 107.
LOUISIANA PUBLIC SERVICE COMMISSION (see RAILROAD
COMMISSION).
formerly Railroad Commission, 106.
LUNATICS -
lease by, 32, 248.
M.
MACHINERY, etc.
line on, 98.
in general, 99.
right to remove from lease, 99.
damages for abuse of, 99.
mortgage of, 99.
as accessory to well, 99.
356 x INDEX
MAILING LETTER
presumption of receipt, 63.
MARRIED WOMEN (see HUSBAND AND WIFE,).
MATERIALS -
lien for furnishing, 98.
MEAN HIGH WATER MARK-
ownership of land controlled by, 16.
MECHANICAL MEANS -
of producing oil, 19.
MEANDER LINES -
as controlling ownership of land, 17.
MEASURE OF DAMAGES (see DAMAGES).
MIGRATORY
character of oil and gas, 14.
MINES -
contrasted to oil wells, 5.
defined under Employers' Liability Act, 8.
right of usurfructuary to, 19.
laws in re, 23.
MINERALS (see OIL AND GAS, MINERAL RIGHTS, etc.)
oil and gas as, 6, 7.
waters, 7.
with fixed situs, 11.
ownership of, 15.
in place, 20.
conveyance of as jus in re, 23.
proof of ownership of, 23.
acquisition of, 23, 26.
MINERAL RIGHTS -
in general, 13, 76.
as servitude, 15, 78.
prescription of, 15, 78.
reservation in Cross Lake, 17.
owner of not tenant in common with surface owner, 17.
INDEX 357
MINERAL RIGHTS (CONTINUED).
conveyance as jus in re, 23.
acquisition of, 23.
as immovables, 23.
as covered by sale of fee, 24.
sale of, 76, 77.
segregation or dismemberment of, 76.
reservation of, 77.
exception of, 77.
consideration for reservation, 78.
whether corporeal or incorporeal, 79.
interruption of prescription, 79.
possessessory action, 79.
selling interest to attorney, 80.
MINING -
a new industry in State, 3.
"mining pursuits," 6.
producing oil and gas, as, 8.
laws in re, 23.
MINING AND MINERALS, DEPARTMENT OF-
reference to, 109.
MINORS -
lease of lands of, 32.
injuries to, 131.
statutes, 259, 260.
MISDEMEANORS (see CRIMES AND OFFENSES).
MISUNDERSTANDINGS OF OIL INDUSTRY -
reference to, 4.
MIXING OIL-
in storage, 103.
MORAL GOOD FAITH -
of possessor, 21.
MOREHOUSE
drilling in, 276, 281, 283, 284.
use of gas in, 288.
358 INDEX
MORTGAGE -
in general, 74.
of lease, 74; statute, 254.
of pipe lines, 106; statute, 265.
of tank cars, 107.
MUNICIPALITY -
right to acquire gas lines, 106, 140; statute, 256.
storage of oil within, 132.
exemption of gas pipe lines for taxation, 270.
MUTUALITY -
lack of in lease, 59.
N.
NAME GIVEN CONTRACT
is immaterial, 25.
NATURAL GAS (see GAS).
NATURAL RESOURCES -
tax on, 270.
NAVIGABLE STREAMS -
ownership of, 15.
NECESSARY PARTIES TO SUIT
affecting leases, 28, 31.
NECESSITY
of piping and storing oil, 103.
NEGLIGENCE (see PERSONAL INJURIES).
under drilling contract, 95.
leaking tank car, 107.
in general, 127.
NEGOTIABLE RECEIPTS
for oil, 107.
NEIGHBORS (see ADJOINING LANDOWNERS)"
in general, 18.
NON-USER, EFFECT OF
on mineral rights, 15, 78.
INDEX 359
NOTICE (see JUDICIAL NOTICE).
judicial, as to character of oil and gas, 9.
of refusal to accept payments, 66.
of intention to drill, 272.
of fires, breaks in lines, etc., 275.
to observe conservation rules, 276.
of intention to plug well, 280.
NUDUM PACTUM-
perpetual option as, 37, 82.
generally, 59.
payments under, 66.
O.
OBLIGATIONS -
assumption by wife, 32.
implied as to drilling, 29, 87.
when cl^r.rly expressed not considered as implied, 36.
in indivision, 41.
joint, 42.
ODOR OF GAS
judicial notice of, 137.
OFFENSES (see CRIMES AND OFFENSES).
OFFICERS -
transactions with corporation, 45.
OFFSETS -
drilling, 94.
OIL AND GAS-
industry in general, 1.
unknown when old laws were passed, 3, 5.
legal status of, 6, 8.
vagrant character, 9, 14, 19.
situs of, 9.
analogy to water, 10.
must be reduced to possession, 10.
ownership of, 10, 12.
compared to minerals with fixed situs, 11.
as part of realty, 11.
360 INDEX
OIL AND GAS (CONTINUED).
not fruits, 12.
owner's rights to, 12.
severance, exception, reservation, 13, 16.
as covered by sale, 14.
right of usufructuary to, 20.
proof of ownership of, 23.
included in sale of fee, 24.
lease, 25.
divisibility under laese, 42.
options, 80.
license, 82.
development, 84.
gas well as compliance with lease, 85.
finding and producing other substances than, 86.
amount produced, 92.
pumping, 94.
drilling contracts, 95.
waste of, 97.
conservation of, 99.
conversion of, 99.
sale of, 100.
failure to deliver, 103.
commission for sale of, 103.
storage, piping, transportation, 103.
conservation, 107.
sequestration, 118.
inspection of, 131.
explosive, 131.
loss from storage, 104.
commingling while in storage, 104; statutes, 149.
conservation rules, 271.
not to be produced from different strata, 273.
to be separated, 274.
forms, 290.
unreported decision, 303.
OLD AND STALE CLAIMS -
not looked on with favor, 24, 116.
INDEX 361
ONE DOLLAR
as consideration, 44.
OPERATIONS (see DEVELOPMENT).
beginning as curing defects in lease, 27.
what constitutes commencement of, 92.
OPERATORS, INDEPENDENT -
reference to, 4.
OPTIONS -
termination of for failure to make payment, 62.
in general, 80.
must be exercised, 81.
to terminate lease, 81.
perpetual, 81.
to drill or not, 82.
payment of earnest, 82.
to refuse to carry out contract, 118.
ORDINARY AND INCIDENTAL EXPENSES
of drilling, 21.
OUACHITA
drilling in, 276, 281, 283, 284.
use of gas in, 288.
OUTLET CAP ON TANK CAR
leaking, 107.
OUTPUT OF \YELL -
sale of, 101.
OVERFLOWED LANDS
ownership of, 15.
OVER PRODUCTION
statute in re, 209.
OWNERS
of minerals, 11.
of soil, 12, 13.
of surface, rights of, 12, 14, 19, 23.
burning wefts, 12.
362 INDEX
OWNERS (CONTINUED).
lease by, 12.
cannot usurp rights of lessee, 13.
of banks of streams, etc., 16, 22.
equitable, 16, 22.
of wells, boundary, 19.
in indivision (see Co-Owners).
entitled to oil produced by trespassers, 21.
may claim royalty delivered to wrong party, 31.
using own pipe lines, 105.
OWNERSHIP OF MINERALS -
subject to possession, 10.
in general, 12, 15.
dismemberment of title, 14.
gives right to use land legitimately, 18.
public lands, 15.
co-owners, 17.
adjoining landowners, 18.
usufructuaries, 19.
right-of-way, 20.
trespassers and illegal possessors, 21.
subject to police power, 22.
in indivision, 33.
of stored oil, 103.
P.
PARAPHERNAL PROPERTY -
lease of, 32.
PARISHES
right to acquire pipe lines, 106.
right to acquire gas lines and plants, statute, 256.
entitled to part of license tax, 270.
PAROL EVIDENCE -
of ownership, 23.
PART OF REALTY -
oil and gas as, 11.
INDEX 363
PARTIES
third, 39.
to suit, 121.
PARTITION
of oil lands, 18.
lessee cannot force, 30.
sale terminates lease, 67.
extra-judicial, 70.
PARTNERSHIP -
in general, 148.
accounting, 148.
PAYING QUANTITIES CLAUSE -
in lease, 38, 92, 93.
PAYMENTS -
in general, 62.
illegal possessor owes to owner, 22.
ex-lessor cannot urge failure of, 28.
ex-lessee cannot make, 30.
must be made on both leases where two are taken, 30.
royalty must be delivered to right party, 31.
failure to make when due, 62.
to prevent forfeiture, 62.
when due, 62.
burden of proof on one alleging, 62.
mailing, 63.
"within" certain time, 63.
"after" certain time, 63.
refusal to accept, 63.
acceptance under void lease, 63.
past due, 63, 65.
deposit in bank, 63.
as liquidated damages, 63.
suspension of, 64.
evidence of, 64.
by former lessee, 64.
acceptance of, 64.
term of, 64.
364 INDEX
PAYMENTS (CONTINUED).
agreement that none made, 64.
for unexpected substances, 64.
by check, 65.
after discovery, 65.
tender of, 65.
cannot demand return of after delay, 65.
refusal of, 63, 66.
notice of refusal to accept, 66.
when due on demand, 67.
default in, 68.
PENALTIES (see CRIMES AND OFFENSES).
PENDENCY OF SUIT-
lis pendens, 40, 41.
development during, 85.
PERCOLATING WATER
reference to, 10.
PERFORMANCE
tender of, 65.
default in, 68.
damages for failure of, 73.
specific, 117.
PERPETUAL LEASE -
consideration of, 81.
PERSONAL INJURIES -
damages for, 127.
in general, 127.
from hot water pipe, 128.
from defective derrick and swivel, 128.
from hand drilling, 129.
from broken hook, 129.
from defective tongs, 129.
from explosion in tank car, 129.
from pulling pipe, 130.
from pump, 130.
from knocking down pipe, 130.
INDEX 365
PERSONAL INJURIES (CONTINUED).
from falling from scaffold, 130.
while building tank, 130.
to licensee, 131.
to minor, 131.
from exploding oil, 132.
from gas, 137.
PERSONS, THIRD (see THIRD PERSON:).
in general, 39.
PETITORY ACTION
reference to, 120.
PETROLEUM (see OIL AND GAS).
as mineral, 6.
character of, 6.
PINE ISLAND
field, 2.
PIPE-
in highways, 47.
lien on, 98.
mortgage of, 99.
removal of, 99.
injury from hot water, 128.
injury from pulling, 130.
injury from knocking down, 130.
leaking, 137.
connecting gas, 137.
blowing out, 138.
PIPE LINES (see also PIPING).
in general, 103.
as common carriers, 105 ; statutes, 223, 228.
owners using, 105.
crossing levees, 106; statute, 227.
mortgage of, 106; statute, 265.
acquisition by municipalities, 106.
acquisition by parishes, 106; statute. 21'6.
gas, 136, 137, 138, 139.
366 INDEX
PIPE LINES (CONTINUED).
old incorporation law, 145.
common purchasers of gas, 184.
purchasing oil, 208.
right of expropriation, 224.
rights and duties of, statute, 229.
powers of Railroad Commission over, statute, 229.
exemption of gas from taxation, 269.
notification of breaks in, 275.
PIPING
in general, 103.
reasonableness of charges for, 103, 104.
necessity of, 103.
bond for running oil, 104.
cost of in sequestration, 126.
PLUGGING -
dry and abandoned wells, 272.
notice of, 280.
POLICE
of lease by lessee not required, 29.
POLICE POWER -
in general, 22.
in re storage of oil, 132.
POLLUTION (see CONTAMINATION).
POSSESSION
of oil and gas, necessary, 10.
right to reduce to, 12.
writ of, 17, 121.
of lessee against lessor, 30.
taking by heirs, 33.
of undivided interest, 33.
POSSESSORS
in general, 20, 21.
damages due by unlawful, 21.
under Civil Code, 21.
INDEX 367
POSSESSORS (CONTINUED).
improvements by, 21, 25.
in bad faith, 21.
injunction against, 22, 120.
of Government lands, 22.
illegal, liable for value of oil, 22.
illegal, liable for rents and revenues, 22.
illegal, not entitled to minerals, 22.
stale claims against, 25.
of surface, lessor, 28.
must be disturbed to sue, 30.
on advice of counsel, 37.
POSSESSORY ACTION -
reference to, 119.
POTESTATIVE CONDITION
codal provisions, 45.
in general, 47.
insufficient consideration, 47, 62.
obligation to develop, 47.
right to abandon, 47.
Code Napoleon, 48.
right to bore on several tracts, 49.
lease for 99 years, 51.
right to withdraw, 53, 55.
"sole and only" clause, 53.
community lease, 58.
fulfillment cures, 60.
action to annul on account of, 60.
development cures, 60.
work on land of another, 60.
estoppel, 61.
partial performance, 61.
who may complain, 61.
POWER OF SELF-TRANSMISSION
of oil and gas, 9.
PRAIRIE MAMOU
field, 2.
368 INDEX
PRESERVING OIL-
cost of by illegal possessor, 21.
by sheriff of sequestered oil, 103, 124.
PRESCRIPTION -
of mineral rights, in general, 15, 76.
interruption of, 15, 76.
PRESSURE -
standard basis of, 285.
PRESUMPTION -
as to letter mailed, 63.
PRICE
in question of lesion, 116.
PROCEEDS -
of well drilled by lessor, 31.
PROCEDURE -
in general, 118.
rights of equitable owner, 16.
writ of possession, 17, 121.
injuction against lessee of co-owner, 18.
judicial partition, 18.
dismissal of suit by co-owner, 18.
actions of boundary, 19.
injunction against trespasser, 22.
lessor necessary party to suit, 28.
lessee must be disturned in possession to sue, 30.
lessee may claim damages for slander of title, 31.
lessee necessary party to suit, 31.
suit to annul part of lease, 34.
direct action to annul for potestative condition, 60.
possessory action in re mineral rights, 80.
appeal from Railroad Commission rules, 106.
appeal From Department of Conservation rules, 111.
trial of oil and gas cases by preference, 119; statute, 150.
Railroad Commission matters, 119.
Department of Conservation, powers, 119, 220.
possessory action, 119.
INDEX 369
PROCEDURE (CONTINUED).
action to rescind lease, 120.
question of title, 120.
slander of title, 120.
intervention, 120.
petitory action and trespass, 120.
injunction, 120. (see INJUNCTION).
parties to suit, 121.
review of discretionary matters, 121.
judgments, 122. (see JUDGMENTS).
sequestration, 124. (see SEQUESTRATION).
statute in re cancellation of leases, 149.
statutes relative to lessees of State, 244.
dismissal of appeal, 122.
PROCESS OF MINING -
reference to, 7.
PRODUCING SUBSTANCES OTHER THAN OIL AND GAS-
in general, 86.
PRODUCTION (see DEVELOPMENT).
amount of, 92.
PRODUCERS -
understanding of, 40.
PROOF -
burden on agent claiming commission, 13.
of ownership, 23.
burden on one alleging payment, 62.
burden on one claiming forfeiture, 71.
of fraud and error, 116, 123.
PROPERTY -
community, 32.
tax, 134.
PROMISE -
of development, 44.
PRORATING OIL IN STORAGE
effect of, 103.
370 INDEX
PROTECTION (see OFFSETS).
PROVISIONAL SALE-
of tank cars, 107.
PUBLIC LANDS -
in general, 15, 31.
locators on, 16.
equitable owners of, 16.
Cross lake, 1 7 ; statute, 249.
State lands, lease, 31, 32; statutes, 240, 243.
United States, 32.
school, 32 ; statute, 239.
Caddo Levee Board, 32 ; statute, 245.
PUBLIC RECORDS -
cancelling lease from, 71.
PULLING PIPE -
from abandoned well, 71.
injury from, 130.
PUMPS
use by adjoining landowner, 10, 18.
in general, 94.
injuries from, 130.
PUNISHMENT (see CRIMES AND OFFENSES).
PURCHASERS
common, of gas, 23 ; statute, 184.
of oil, 23 ; statute, 208.
PUTTING IN DEFAULT
in general, 66, 68.
Q.
QUANTITIES
oil, in paying, 38, 93.
of oil, as fixing taxation, 270.
QUARRIES -
rights of usufructuaries to, 19.
QUARTERLY PAYMENTS (see PAYMENTS).
INDEX 371
R.
RAILROAD COMMISSION
jurisdiction over pipe lines, 105; statutes, 241.
now Louisiana Public Service Commission, 106.
RAILROAD RIGHT-OF-WAY
minerals under, 20.
RATES
pipe line, 105.
gas, 140.
REAL RIGHT
grant or reservation as, 15.
drilling as, 11.
of lessee, 29.
as name for lease, 36.
REALTY
oil and gas as part of, 11.
REASONABLENESS
of storage and piping charges, 103, 104.
RECEIPTS
warehouse for oil, 107; statute, 168.
RECEIVERSHIP
CEASING OPERATIONS as cause for, 145.
of corporations, 145.
RECISSION (see TERMINATION).
cannot be claimed by lessor who has sold part, 30.
right to because of eviction from part, 34.
procedure, 120.
RECORDS -
need not show action of lessee, 39.
of title, 40.
cancellation of lease from, 71, 149.
RED RIVER -
field 2.
372 INDEX
REDUCTION
to possession, oil, 10.
REFINING -
. as dangerous business, 131.
REFUSAL -
to accept payments, 63, 66.
REGISTRY -
of action under lease, 39.
REGULATIONS -
under police power, 23.
REIMBURSEMENT
of illegal possessors, 21.
REMEDY (see PROCEDURE).
REMOVAL -
of machinery from lease, 72.
RENTALS (see PAYMENTS).
due by illegal possessor, 22.
refusal to accept, 63.
construed as liquidated damages, 63.
REPLACEMENT -
of capital stock, 144.
REPORTS -
required under license tax law, 154.
to be furnished under gasoline tax law, 160.
by sellers and users of gas, 180.
required by Conservation Department, 278.
by corporations, 141.
RESERVATION S-
in general, 13, 76.
of minerals in Cross lake, 17, 249.
no consideration necessary for, 46.
of acreage around wells, 73.
INDEX 373
RESUMPTION
of development after cessation, 93.
RETURN OF RENTALS-
cannot be asked after delay, 65.
REVIEW (see APPEAL).
REVOCATION -
of lease, 44.
.RICHLAND
drilling in, 276, 283, 284.
RIGHT-OF-WAY-
ownership of minerals, 20.
RIGHTS -
of drilling, 11.
of owner of surface, 12.
to use of surface, 14.
of way, 20.
of possessors and trespassers, 21.
sale of mineral, 76.
litigious, 83.
RIPARIAN OWNERS
in general, 15.
RISK OF DEVELOPMENT
landowners do not generally take, 25.
RIVER BEDS
ownership of minerals in, 15.
accretions, 16.
emergence of banks, 16.
ROADS
crossing by pipe lines, 105.
pipe lines in, 138.
ROYALTY (see PAYMENTS).
illegal possessor owes to owner, 22.
must be paid to right party, 31.
promise of as consideration, 44.
374 INDEX
RULES OF DEPARTMENT OF CONSERVATION -
waste, 271.
waste defined, 271.
gas to be confined to original stratum, 271.
methods of preventing escape of gas, 272.
notice of intention to drill, 272.
log of well required, 272.
plugging dry and abandoned wells, 272.
proper anchorage required, 273.
equipment for conserving gas to be provided, 273.
separate slush pit to be provided, 273.
producing oil and gas from different strata, 273.
strata to be sealed off, 274.
mud laden fluid to be applied, 274.
fresh water to be protected, 274.
gas to be separated from oil, 274.
separating device to be installed, 274.
notification of fires and breaks in line, 275.
drilling record to be kept at well, 275.
conservation agents to have access at well, 276.
notice to observe rules, 276.
drilling in Ouachita, Richland, Union and Morehouse, 276, 281,
283.
protection of shallow sands in Claiborne, 277, 281.
capacity of gas wells permitted to be taken, 277.
flambeau lights unlawful, 277.
gas to be metered, 277, 282.
burning gas in day, 278.
disposition of waste from wells, 278.
reports required, 278.
carbon plants, 278.
extracting gasoline from gas, 279.
taking control of wells, 279.
agents to assist in enforcement of rules, 279.
additional rules to be promulgated, 280.
notice of intention to plug well, 281.
repeal of inconsistent rules, 282.
standard pressure base, 285.
swabbing wells, 286.
INDEX 375
RULES OF DEPARTMENT OF CANSERVATION (CONTINUED)
drilling in Bossier and Webster, 287.
use of gas in Ouachita, Morehouse, Union, 288.
casing to be used in drilling, 281.
SALE
of oil as real right, 11.
of right to explore, 12.
by land owner after listing with agent, 13.
of fee as covering minerals, 24.
laws of, applied to leases, 26.
of fee as terminating right of lessee, 28.
succession, terminated lease, 69.
foreclosure, terminates lease, 69.
partition, terminates lease, 69.
of mineral rights, 76.
of oil, 100.
of output of well, 101.
speculation in sale of oil, 102.
commission for, 103.
of tank cars, 107.
of mineral rights, form, 290.
SALT WATER -
damage from, 98.
contaminating streams, etc., 266, 267.
SATISFACTION-
clause in drilling contract, 96.
SCAFFOLD -
injury on, 130.
SCHOOL LANDS
lease of, 3 ; statutes, 239.
SCIENTIFIC CLASSIFICATION
of oil and gas, 6.
SECOND LEASE
effect of, 13, 30, 40.
SKLF-TRANSMISSION -
by oil and gas, 9.
376 INDEX
SELLING
cost of by illegal possessor, 21.
SEPARATE -
interest of owners of surface and minerals, 17.
property, 32.
SEQUESTRATION -
in general, 124.
by co-owner, 124.
ex-officio by court, 124.
after appeal, 124.
as incidental demand, 124.
equitable, 124.
jurisdiction, 125.
bonding, 125.
ancillary, 125.
holds until judgment, 125.
conventional, 126.
accounting for, 126.
duty of judge, 127.
SERIOUS CONSIDERATION
required for lease, 44, 45, 46.
SERVITUDE
mineral rights as, 15, 78.
SEVERANCE -
of elements of ownership, 13, 14.
tax, 133; statute 153; constitution, 270.
SEVERALTY (see CO-OWNERS).
ownership in, 33.
SIGNATURES -
to lease, 26, 27.
SHALLOW -
wells, as compliance with lease, 91.
strata, protection of in Claiborne, 277, 281.
SHERIFF -
sale by, affect on lease, 40.
duties in re sequestration, 126.
INDEX 377
SHIPPERS (see TRANSPORTATION).
over pipe lines, 105.
SHORE LINES
in general, 16.
SHREVEPORT
fields, 2.
SILENCE
of lawmakers as to oil and gas, 3.
estoppel by, 60, 84, 89.
SILT
in general, 15.
SITUS OF OIL AND GAS -
in general, 9.
rules relating to minerals with fixed, 11.
SIZE-
of casing to be used, 276.
of hole, under drilling contract, 97.
SLANDER OF TITLE
lessee may claim damages for, 31.
in general, 120.
SLOPES, etc. -
reference to, 8.
SLUSH PIT-
to be provided, 273.
SOIL
ownership of 13.
sale of with reservation, 14, 15.
sale of as carrying minerals, 24.
"SOLE AND ONLY" CLAUSE
in lease, 54.
SOLID MINERAL LEASES -
compared to oil and gas, 26.
378 INDEX
SPECIFIC PERFORMANCE
tender of performance, 66.
in general, 117.
where parties agree to stay out of court, 118.
and damages, 118.
SPECIFIC OIL AND GAS -
sale as covering, 14.
SPECULATION -
in leases, 4.
on purchase of oil, 102.
STAGE OF WATER -
affecting ownership of lands, 16.
STALE CLAIMS
to oil lands, 24, 116.
STANDARD PRESSURE -
. base of, 285.
STARTING OPERATIONS -
in general, 27.
STATE LANDS (see PUBLIC LANDS).
minerals, 15.
lease of, 31 ; statutes, 240, 243.
lessee, injunction against, 127; statute, 244.
STATUS OF OIL AND GAS
in general, 6.
STATUTE OF LIMITATIONS (see PRESCRIPTION).
of mineral rights, 15, 76.
STATUTES (see LAWS).
STEAMER -
breach of contract to carry oil by, 107.
STIPULATIONS
in re oil and gas, 3.
INDEX 379
STOCK (see CORPORATIONS).
common, oil as, 103.
capital, paying dividends out of, 144.
blue sky law, 146.
STORAGE -
necessary for development, 84, 103.
piping, and transportation, 103.
oil, 103.
reasonableness of charges for, 103, 104.
mixing oil in, 103, 104.
loss while in, 103.
of oil, as common stock, 103.
making common stock, 103.
in earthern tanks, 104.
negotiable receipts for, 107.
costs, under sequestration, 126.
of explosive oils, 132.
statute in re, 168.
of gasoline, 131.
STREAMS -
navigable, 15.
accretions, 16.
crossing by pipe lines, 105.
STRATA -
confining gas to, 271.
producing oil and gas from different, 273.
to be sealed off, 274.
protecting shallow, in Claiborne, 277, 281.
STREETS -
use of for pipe lines, 139.
SUBSTANCES -
unexpected, 86.
SUBSTANTIAL CONSIDERATION
for lease, 44, 46.
"SUCCESS"
well as, 93.
380 INDEX
SUCCESSION
acceptance of as affecting lease, 33, 40.
obligations of heirs, 41.
sale, as terminating lease, 69.
SUFFICIENCY
of development, 87.
SUIT (see PROCEDURE).
development pending, under agreement, 85.
SULPHUR INDUSTRY ~
reference to, 1.
like minerals in place, 14.
license tax on, 133, 163, 270.
SUMMARY TRIAL
of oil and gas cases, 150.
SUPERVISION
of lease by lessee, 29.
SURFACE
oil and gas must be brought to, 11.
rights of owner of, 12.
owner of, 12.
right of use of, 14, 84.
sale of with reservation, 14.
use of, subject to police power, 23.
lessor, legal possessor of, 28.
rights of lessee to, 29.
SURVEYS
Government, 17.
SUSPENSION
of payments and rentals, 64.
SWABBING
well, 286.
SWAMP LANDS
in general, 15.
SWIVEL
defective, 128.
INDEX 381
T.
TANK
cars, provisional sale of, 107.
mortgage of, 107.
storage in earthen, 104.
lien on, 99.
explosion in car, 129.
loss of oil from failure to close valve on car, 107.
injury while building car, 130.
TARIFFS
of pipe lines, 105.
TAXATION
assessments, 5, 134.
exemptions, 6, 7, 136, 269.
in general, 132.
constitutional provisions, 132.
severance, 133; statute, 153, 270.
property, 134.
license, 136.
manufacturers of gas, 141.
gasoline, 160.
constitutional provisions, 269.
TAXPAYERS
rights of in re use of streets by gas company, 139.
TECHNICAL AND SCIENTIFIC
classification of oil and gas, 6.
TEN YEAR PRESCRIPTION
of mineral rights, 15, 76.
TENANTS IN COMMON (see CO-OWNERS).
owners of surface and minerals are not, 17.
TENANT (see LESSEE).
lessee as, 30.
382 INDEX
TENDER
in general, 65.
of payments, 65.
of performance, 65, 66.
failure of 65.
refusal to accept, 66.
refusal under nudum pactum, 66.
TERM-
in general, 37.
lease must have, 37.
perpetual, 37.
need not be expressed in words of time, 37.
must be definite, 38.
paying quantities clause, 38.
conditioned on production, 38.
extension of by consent, 38.
extended where lessor prevents development, 39.
operations must be begun within, 71.
TERMINATION
in general, 69.
of rights of lessor by sale of fee, 28.
consideration for, 43.
for failure to make payments, 62.
by effect of law, 69.
by succession sale, 69.
by foreclosure sale, 69.
by partition sale, 69.
by forfeiture, 70.
by failure to comply with terms, 70.
cancellation of lease, 149.
TERMS OF CONTRACT -
compliance with, 27, 29.
failure to comply with, 70.
TERMS
employed in contract, 35.
INDEX 383
THIRD PERSONS
in general, 39.
not affected by acts of ex-lessee, 30, 39.
no registry of action under lease necessary, 39.
may rely on record, 39, 40.
heirs take subject to acts of ancestor, 40.
take subject to prior lease, 40.
not affected by actions after acquisition, 40.
not affected by unrecorded instrument, 41.
TIDEWATER LANDS -
in general, 15.
TIMNER-
duty of lessor and lessee as to, 28.
TIME-
allowed to remove from abandoned well, 72.
for development, 85.
as essence of contract, 85.
between cessation and resumption of operations, 93.
TITLE
to minerals as real right, 11.
dismemberment of, 13.
to specified oil and gas, 14.
of Government, 15.
in expectancy, 16.
to minerals not proved by parol, 23.
to minerals, how acquired, 23.
bad, 24.
of person alienating or leasing, 24.
lessor necessary party to suit affecting, 28.
lessor who has parted with, 30.
lessee cannot contest or change lessor's, 30.
lessee as party to suit, 30.
lessee who takes two leases must pay on both, 30.
lessee may claim damages for slander of, 31.
record governs, 40.
warranty, 75.
questions of the possessory action, 119.
slander of, 120.
384 INDEX
TONGS
defective, 129.
TOP LEASE -
lessor granting, 13, 30.
takes precedence over prior void lease, 40.
warranty, 76.
TRANSFER (see ASSIGNMENT, SALE).
TRANSPORTATION -
cost of by illegal possessor, 21.
of oil, 103.
tank cars, 106.
damages for failure of, 107.
TRESPASS (see POSSESSORS).
in general, 21.
injunction against, 22, 120.
settler on government lands, 22.
TRIAL (see PROCEDURE).
summary, of oil and gas suits, 150.
TRUSTS AND TRUSTEES -
in general, 147.
TUBING (see CASING, PIPING).
line on, 99.
U. '
UNEXPECTED SUBSTANCES -
in general, 1, 86.
salt and sulphur, 87.
casinghead gasoline, 87.
UNIFORM WAREHOUSE RECEIPTS -
for oil, 1071 ; statute, 168.
UNILATERAL CONTRACT -
considered as containing potestative condition, 59.
UNDIVIDED INTEREST (see CO-OWNERS).
lease of, 33.
INDEX 385
USURPATION
of rights of lessee and lessor, 13, 21.
damages for, 73.
USUFRUCTUARY
in general, 19.
extension of lease by, 20.
development by, 20.
UNLAWFUL POSSESSORS (see POSSESSORS).
UNDERGROUND WORKINGS
reference to, 8.
UNDIVIDED INTEREST (see CO-OWNERS).
in minerals, 17, 33.
UNION
drilling in, 276, 283, 284.
use of gas in, 288.
UNREPORTED DECISION
Watkins v. Atlanta & Shreveport Oil & Gas Co., 302.
V.
VAGRANT CHARACTER
of oil and gas, 9.
VALUE -
deductions from, 21.
awaiting enhacement of before making claim, 24.
of consideration, 45.
when determined in action for lesion, 116.
of oil properties, 117.
of property transferred to corporations, 145.
as fixing license tax, 270.
VALVE -
leaky, 107.
VIS MAJOR- I
as excuse for delay, 81.
loss of oil by forfeiture event, 103.
386 INDEX
VOID LEASE
top lease takes precedence over, 40.
W.
WANT OF CONSIDERATION
of lease, 44.
WAREHOUSE RECEIPTS -
for oil, 107.
WARRANTY -
in general, 75.
in lease, 75.
where portions of title bad, 75.
WASTE -
lands, 5.
oil, 97.
statute in re, 170, 173, 176, 181.
Conservation rules, 271.
methods of preventing, 272.
disposing of, from wells, 278.
WAY
right of (see RIGHT-OF-WAY).
WATERS -
mineral, 7.
analogy to oil and gas, 10.
accretions, 16.
emergency of banks from, 16.
high mark, 16.
contamination of, 17, 97; statutes, 266, 274, 278.
Shreveport's supply, 17.
WELLS -
exhaust surrounding territory, 9.
bored by owner. 12.
drilling before signing lease, 26, 27.
royalty due to owner of land on which located, 31.
mean "hole," 92.
offset, 94.
INDEX 387
WELLS (CONTINUED).
reducing size under contract, 97.
lien on, 98.
accessories to, 99.
sale of output of, 101.
wild, 170, 173, 176, 177, 180, 181.
log required, 272.
WHOLE -
instrument must be construed as, 36.
WIFE (see HUSBAND AND WIFE).
WILDCAT -
explorations, 1.
consideration for lands, 45.
WILD WELLS
statutes, 170, 173, 176, 177, 180, 181.
WILL-
lease revocable at, 44.
exercise of under potestative condition, 48.
WORDS -
used in describing contact, 36.
WORK-
lien for, 98.
WORKINS, UNDERGROUND
reference to, 8.
WORKMEN'S COMPENSATION
reference to, 127.
\VRIT (see INJUNCTION).
of possession, 17, 121.
of sequestration, 124.
WRITTEN EVIDENCE -
when necessary, 1 1 .
WRITTEN INSTRUMENT -
construction of, 36.
construed against party writing, 36.
