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J & L Oil Co. v. Km Oil Co. LLC

Court of Appeals of Louisiana, Second Circuit

February 28, 2018

J & L OIL COMPANY Plaintiff-Appellant
v.
KM OIL COMPANY, LLC, HAYMARY, INC., BIG M OIL COMPANY, and FEIST PROPERTIES, LLC Defendants-Appellees

         Appealed from the First Judicial District Court for the Parish of Caddo, Louisiana Trial Court No. 551, 859 Honorable Craig Owen Marcotte, Judge

          JUSTIN H. COURTNEY Counsel for Appellant

          KEVIN W. HAMMOND Counsel for Appellees, KM Oil Company, LLC, Haymary, Inc., and Big M Oil Company.

          WEINER, WEISS & MADISON Counsel for Appellee, By: John McGinty Frazier Feist Properties, LLC.

          Before MOORE, COX, and STEPHENS, JJ.

          COX, J.

         J & L Oil Company filed suit against defendants, KM Oil Company, LLC, Haymary, Inc., Big M Oil Company, and Feist Properties, LLC (collectively referred to as "Defendants") for impinging upon J & L's oil, gas, and mineral lease (hereinafter referred to as "OGML"). Both J & L and Defendants filed motions for summary judgment. In a written ruling, the district court denied J & L's motion for summary judgment and granted Defendants' motion for summary judgment. J & L appeals the granting of Defendants' motion for summary judgment. For the following reasons, .

         FACTS

         This suit arises out of the production of oil from a tract of land (hereinafter referred to as the "Feist Land") located in Section 25, Township 21 North, Range 15 West, Caddo Parish, LA, comprising 55 acres, more or less, more particularly described as follows:

The South Half of the Northwest Quarter (S/2 of NW/4), less the West 825 Feet thereof, Section Twenty-Five (25), Township Twenty-One (21) North, Range Fifteen (15) West, Caddo Parish, Louisiana.

         The following instruments establish the parties' interests in the Feist Land:

         A. OGML (hereinafter referred to as the "1951 Lease")

Eunice W. Feist, et al (Lessors) Executed 11/19/1951
Imperial Agency Corp. (Lessees) Recorded 1/28/1952
"[T]his lease… shall give the Lessors no rights to strata lying below Twenty-Five Hundred (2500) Feet mean Gulf level, all rights below that level are being retained by Lessor [.]"

         B. Assignment of OGML

Imperial Production Co. (Assignor) Effective 1/1/1966[1]
Miriam Ann Trahan (Assignee) Recorded 1/3/1966
Document shows an assignment of interest in the 1951 Lease.

         C. Assignment of OGML

Miriam Ann Trahan, et al[2] (Assignor) Executed 6/7/1999
Jimmy Courtney, et al[3] (Assignees) Recorded 7/20/1999
Document shows an assignment of interest in the 1951 Lease.

         D. OGML[4]

Feist Properties, LLC (Lessor) Executed 5/27/2008
KM Oil Company, LLC (Lessee) Recorded 5/28/2008
"[T]his lease covers the right to explore and produce… minerals only from the interval located between a depth of 2, 500 feet below the surface of the earth and a depth of 3, 500 feet below the surface of the earth, called the "Leased Interval[.]"

         E. Assignment of OGML

KM Oil Company, LLC (Assignor) Executed 5/28/2008
Haymary, Inc. (Assignee) Recorded 5/28/2008
Document shows an assignment of 2/3 interest in the ...

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