Quality Environmental Processes, Inc., Michael X. St. Martin and Virginia Rayne St. Martin VS I P Petroleum Company, Inc., International Paper Co., Montgomery, Barnett, Brown, Read, Hammond, & Mintz, LLP, & John Y. Pearce

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NOT DESIGNATED FOR PUBLICATION STATE OF LOUISIANA COURT OF APPEAL F1RST CIRCUIT 2012 CA 0776 QUALITY ENVIRONMENTAL PROCESSES INC MICHAEL X ST MARTIN AND VIRGINIA RAYNE ST MARTIN VERSUS L P PETROLEUM COMPANY INC INTERNATIONAL PAPER COMPANY MONTGOMERY BARNETT BROWN READ HAMMOND MINTZ LAND P JOHN Y PEARCE Judgment Rendered FEB 2 5 2013 On Appeal from the 32nd Judicial District Court In and for the Parish of Terrebonne Trial Court Number 149 973 The F3onarable John R Walker Judge Presiding Gray III Lake Charles Louisian A J Counsel for Plaintiffs Appellees ity xivironmental Processe Oua F Inc Michael X St Martin and Virginia Rayne St Martin H Alston Johnson III Baton Rouge Counsel for Defendants Appellants I P Petroleum Company Inc et al Louisiana and Brent B Barriere New Orleans Louisiana W Shelby McKenzie Amy C Lambert Baton Rouge Louisiana Counsel for Defendants Appellants Montgomery Barnett Brown Read Hammond Mintz L et al P BEFORE PARRO HUGHES AND WELCH JJ l z cLi G v 2 HUGHES J This is an appeal of a judgment rendered in favor of the plaintiffs in an action for mineral rights and royalties decreeing 100 ownership of the mineral rights in the plaintiffs and ordering the payment of over eleven million dollars in royalties penalties inter and attorney fees to plaintiffs st The defendants have appealed asserting the trial court erred in failing to grant a declinatory exception of lis pendens in failing to grant an exception of prescription and in awarding damages Finding this appeal appropriate for disposition as a summary opinion pursuant to the Uniform Rules of Louisiana Courts of Appeal Rule 2 we set forth only the controlling 16 facts and law A June 23 1992 cash sale from Contran Realty Corporation to plaintiff Michael X St Martin conveying the immovable property at issue in this case provided in pertinent part as follows VENDOR and VENDEE acknowledge with the exception of the tract rnore particularly described on E ibit B and without intending to interrupt any prescriptive periods which may presently be accruing that the oil gas and other minerals lying in on or under the subject property have been previously conveyed and that the existence of mineral servitudes shall not constitute a failure of title under the limited warranty set forth hereinabove VENDOR specifically reserves all of the oil gas and other minerals situated on or under the tract described on ibit EB VENDOR and VENDEE agree that the act of sale herein is made subject to all such servitudes and pipeline rights of or way canal servitudes and other noncancelable surface leases as are in actual existence or of record including without limitation the following to wit We note that the defendants motions to strike azid exceptions of no cause of action no right of action and lis pendens wexe denied by the trial court on May 23 2007 and the defendants applications for supervisory review as to the motions and exceptions resulted in writ denials by this court See Quality Environmental Processes Inc v I P Petroleum Company Inc 2007 2007 La App 1080 1081 1 Cir 8 07 7 unpublished We find no reason to disturb the ruling of this court as to the exception of lis pendens 2 a Cana1 Use Agreement dated January 26 1970 by and between Southdown Inc and Union Oil Company of Califomia recorded in COB 489 k 685 under Entry No olio 376196 records of Tenebozuie Parish Louisiana b Surface Lease dated April 6 1983 by and between Contran Corporation and The Superior Oil Company recorded in COB 919 Folio 627 under Entry No 703480 records of Terrebonne Parish Louisiana Exhibit B to the St Martin cash sale stated in pertinent parY as follows A tract of land comprising 105 acres more or less being the Southwesternmost 105 acres more or less in the SW of 4 Section 3 T18S Terrebonne Parish Louisiana a plat of R16E which is attached as Exhibit D to that certain Mineral Conveyance from Southdown Inc to Southdown Exploration Inc dated August 31 1966 recorded under Entry No 315794 Records of Terrebonne Parish Louisiana Since the June 23 1992 cash sale to Mr St Martin did not purport to transfer any mineral rights in the property he was put on notice that he was not receiving at that time any mineral rights in the property Further at the time Mr St Martin purchased the immovable property at issue the 1966 conveyance referenced in E B of the cash sale to ibit him had been recorded and appeared in the public records The recorded 1966 Deed purported to convey the mineral rights under dispute in this case and it is not disputed that minerals vvere produced and royalties were paid under the 1966 deed and ursuant to subsequent dispositions and or or to successors Though the 1966 deed its did not contain a metes title in lf and bounds description it stated in pertinent part SOUTHDOWN INC a Louisiana corporation hereinafter referred to as Grantor does hereby grant bargain sell convey set over and deliver unto SOUTHDOWN EXPLORATION INC a Louisiana corporation hereinafter referred to as Grantee all of Grantor sright title and interest in and to the oil gas and other minerals located in on or under the lands outlined in blue on the plats marked Exhibits A through H which said Exhibits are attached hereto and made a part hereof in full by reference covering lands located in St James Terrebonne Ascension 3 and Lafourche Parishes Louisiana The lands outlined in blae on E A through ibits H are herein sometimes referred to as Productive Area Grantor and Grantee herein agree to execute such further instruments as may be necessary or desirable to effect the conveyance set out hereinabove in this connection the parties agree forthwith to cause an accurate survey to be made of each of the areas outlined in blue and the detailed survey plats when approved by the parties and filed of rec shall be substituted rd for E A through H and hall constitute a part o F this ibits agreement It is agreed particularly thaY if the area outlined in blue does not include ail existing uriits or acreage assigned to producing wells within the Productive Area the conveyance will be illegible text dated retroactively to include such additional acreage On the plats annexed hereto to E A through C ibits there is outlined in red an additional area adjacent to each of the Productive Areas shown on said plats The lands lying between the limits of the Productive Area as outlined in blue and the red outline in each instance are hereinafter referred to as the Protective Area The Protective Area shall also be surveyed forthwith and the detailed survey plats when approved by the parties and filed of record shall also be substituted for Exhibits A through G and shall constitute a part of this agreement For all purposes of this agreement the sands known to be productive or capable of production in the Productiue Area which may be subject to the additional assignments herein provided for relating to the Protective Area are ageed by the parties to be described and fully identified on the descriptive list thereof attached hereto and expressly made a part hereof as Exhibit I hereinafter referred to collectively as Known Productive Sands or individually as Known Productive Sand As an essential and integral part of the consideration paid for this conveyance Grantor binds and obligatzs itself to convey to Grantee from time to time as required all of its right title and interest in to the oil gas and other minerals in each and Known Productive Sand when and if such sand is established to be productive or capable of production in the Protective Area It shall be considered that a Known Productive Sand in the Protective Area will have been established to be productive or capable of production when a well located in the Protective Area is completed in such sand as a produc or as a well r capable of production of oil or gas or whenever any Known Productive Sand in the Protective Area shall have been included within the geographical confines of a unit created for such sand by or pursuant to an order of the Louisiana Department of Conservation or other governmental ageucy having jurisdiction to create units if said unit has as the unit well a well productive or capable of production If and when any Known 2 The copy of the 1966 deed filed into evidence was a poor copy of the original and several words were illegible however the illegible portions were minor and do not affect the decision we render herein 4 Productive Sand is eto be roductive or capable of tablished production within tlxe Protecti Area is above provided Grantor shall then be obligaYed to convey ta Grantee the mineral rights in such Know Prociuctive Sand as to the entirety of that Protective Area and this obligation shall eXist irrespective of whether the productive portion af the Protection Area forms a common reservoir with the present Productive Area ofsaid Known Productive Sansi or is separated therefrom For the purposes hereof any unit on which is located a in shut gas well shall be deemed to constitute a producing Conservation Unit The term onservation Unit shall al so include units hereafter estai existing units hereafter rshed l revised and reservoir or field units now or hereafter wide wide established or revised Each obligation to make such additional mineral conveyances as to Known Productive Sands shall arise whenever Known immediately and automatically any Productive Sand is established to be productive or capable of production in any portion of the Protective Area as provided above This agreement and obligation of Grantor is and shall be a continuing one wh shall be binding during the entire life tch of the mineral owna uf Grantee in the respective ship Productive Areas provided that Crrarxtor obligation under this s agreement shall terminate and nolonger be effective as to any mineral servitude created hereunder which may have prescribed As heretofore provided conveyances shall be made from time to time whenever the conditions set forth above shall occur and the execution of the conveyance of mineral rights in an area or as to one Known Productive Sand shall not relieve Grantor of the obligation to make additional conveyances in the same area or as to additional Known Productive Sands if the forth above requiring such additional conveyances thereafter occur ach F conveyance shall be effective as of the date that a Known Producti Sand or ve Known Productive Sands is established to be productive or capable af production in th Protective Area Each obligation of Grantor to make an additional assig ahall be subject to nment enforcement through specific performance by Grantee Grantor further agrees that during the existence of this obligation any alienation moi or encumbrance granted by rgage Grantor and affeciir the Protectiti Areas lying between the g e conditions set blue lines and the red lines on E A through G will hibits specifically stipulate that the vendee mortgagee or grantee thereunder shall accepY the same subject to the terms and conditions of this agreement and shall commit itself to the performance of Grantor obligations hereunder as to the lands s affected by such alienation mortgage or encumbrance unless Grantor in such Act reserves all mineral rights as to such lands This Agreement is herein specificaliy made subject to the terms and conditions of the present Oil Gas and Mineral Leases covering and affecting the Productive Area together with all recorded agreements instruments ar documents presently in 5 force and effect covering and affecting the said leases and presently binding upon Grantor This A and ull ri interests and titles of the reement hts parties hereto shall be bindin ccpon and inure to the benefit of the respective parties thear hedrs uccessors and assiQns Emphasis added Exhibit I to the 19 Deed Zi nnore than sixty separate 6 d t Sands in the parishes of St James Terreboruie Ascension and Lafourche twenty of which were in the Lake Hatch Sunrise Field Terrebonne Parish Louisiana E D to the 1966 Dee3 consisted of a map captioned ibit as the Lake Hatch Field Although the Sunrise F eld Terrebonne Parish LA map lacked certain other identifying information the designation 16E appeared in large type in the lower left hand corner the map was gridded in numbered sections Lake Hatch was depicted as falling at the intersection of Sections 11 12 and 14 the Intracoastal Waterway was shown as traversing Sections 1 the Minor Canal was 3 shown as descending through Sections 2 12 and 13 and the names of various landowners were inscribed on tracts throughout the map mineral rights disputed by the plaintiffs all within this fieid The Further though the 1966 conveyance required subsec accixrate surveys to be uent made and thereafter substituted for Exhibits A through H which was not done it also required title to any subsequently discovered Productive Sand to be conveyed and that the Ag and all rights interests and eement titles of the parties hereto shall be binding upon and inure to the benefit of the respective parties their heirs successors and assigns 3 Though the word Range ciid not appear with the designation 16E on the map ibit E P to the conveyance showed a11 of he twenty Sands for which mineral rights were being conveyed in the Lake Hatch Sunrise Field Terrebonne Parish L ouisiana and these were stated as being in I2ange 16 East The 5ection numbers appearing en the map reading irom the upper 3e8 corner hand were 3 82 three annumbered seGtions these section nixmbers are shown by Exhibit A filed as an exhibit in the instant suit to be 60 61 and 62 6 64 65 66 i 3 10 1I 12 13 14 and 15 6 After a thorough revieiv of the record presented in this appeal we conclude that the June 23 1992 cash sale fo Mr St Martin did not transfer any mineral rights in the property sold as the parties thereto expressly stated that no mineral rights in the properiy were being conveyed therefore Mr St Martin had actual notice that the mineral right were owned by some other person s See McClendon v Thomas 99 La App 1 Cir 1954 00 22 9 768 So 261 264 indicating that where possible the intent of 2d the parties should govern the extent of the property conveyed We also conclude that the public records were at ali pertinent times sufficient to give plaintiffs notice that Mr St Martin did not obtain ownership of any mineral rights by virtue of the June 23 1992 cash sale as the 1966 conveyance of mineral rights referenced hereinabove and subsequent transfers to successors were sufficient notice of such title in other title in persons See Citizens National Bank v National Union Fire Insurance Company 597 So 1130 2d 1131 La App 1 Cir 1992 Amoco Production Company v Slaughter 491 So 760 763 La App 1 Cir 2d writs denied 494 So 333 540 541 and 542 La 1986 Bishop Homes 2d Inc v Devall 336 Sa2d 313 318 La App 1 Cir writ denied 338 19 2d So 1155 La 1976 holding that ii is well settled in Louisiaria law that where a deed is partially defective or erroneous as to description it is nevertheless susceptible of conveying property provided the property intended to be transferred can be ascertained with certainty with the aid of such extrinsic evidence as is admissible under the rules of evidence For these reasons we find the trial court erred in holding that the plaintiffs obtained one hundred percent ownership rights on the date of purchase sncompassing the mineral rights at issue and in awarding damages penalties interest attomey fees and costs to plaintiffs in this 7 matter Therefore we vacate the October 28 2011 judgment However because the ruling by the trial court obviated the need for the trial court to render judgment as to the plaintiffs claims based on after tities to acquired the mineral rights at issue z by subsequently mineral deed e aequired s or and settlement agreement sby andlor with Nobl Energy Inc and or Phillips Petroleum Company we remand for a ruling on these claims by the trial court CONCLUSION For the reasons assigned the judgment of the trial court granting judgment in favor of the plaintiffs Michael X St Martin Virginia Rayne St Martin and Quality Environmental Processes Inc is vacated and the matter is remanded for further proceedings in accordance with the foregoing All costs of this appeal are to borne by the plaintiffs Michael X St Martin Virginia Rayne St Martin and Quality Environmental Processes Inc JUDGMENT VACATED REMANDED 8

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