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.