THIBODEAUX, Chief Judge.
Black River Crawfish Farms, LLC (Black River) filed suit against several mineral servitude owners, asserting restoration claims pursuant to La.R.S. 31:22 (hereinafter "Article 22") for the contamination of its property resulting from historical oil and gas exploration activities. Thereafter, certain alleged servitude owners, John Martin King, Michael Todd King, Stephen Paul King, and Deborah Ann King Rudolph, as Trustees of the Billy D. King, M.D. Revocable Trust (King Trustees), filed a peremptory exception of prescription of nonuse. The trial court granted the exception, dismissing Black River's claims with prejudice. Finding no error in the trial court's reasoning as to the effect of the extinguishment of the mineral servitude by prescription of ten years nonuse, we affirm the dismissal of Black River's claims against the King
Black River asks this court to decide:
This mineral law case involves 189 acres of land located in Concordia Parish, Louisiana, of which Black River is the current and undivided owner. It is undisputed that in 1946, Billy D. King and his siblings, Jack A. King and Mary King Carpenter, each owned an undivided one-third interest in the Horseshoe Plantation, which consisted of 1406 acres in Concordia Parish. That year, the siblings executed a mineral lease pursuant to which a producing well (BD King well) was drilled in 1953.
By deed dated September 4, 1953, Jack A. King conveyed his ownership interest in the land to his brother Billy D. King, while reserving a one-third mineral servitude over the property. On August 19, 1957, Mary King Carpenter executed a deed transferring her ownership interest in the Horseshoe Plantation to Billy D. King, while likewise reserving a one-third mineral servitude over the property. That same month, by deed dated August 21, 1957, Billy D. King transferred ownership of 320 acres of the plantation to Stella Calhoun, reserving a one-third mineral servitude in his favor over the 320-acre tract.
On April 20, 1988, Stella Calhoun sold approximately 189 acres of the 320-acre tract to Concordia Fisheries, Ltd. The deed contained no reservation of any interest in the underlying minerals, as at that time the three King siblings each held one-third mineral servitudes in the tract. In 1996, Billy D. King transferred his one-third mineral servitude to the Billy D. King, M.D. Revocable Trust (trust). On November 19, 2003, Concordia Fisheries, Ltd. sold the 189-acre tract to Black River. Again, there was no reservation of minerals in that transaction or assignments of any personal rights.
On February 22, 2012, Black River filed the present litigation against various defendants who were alleged to be mineral servitude owners, operators, and/or mineral lessees of its property, seeking restoration pursuant to Article 22, among other claims.
In response, the King Trustees initially filed a peremptory exception of no right of action, contending that Black River's claims were barred under the subsequent purchaser rule. They argued that the right Black River sought to enforce was a personal right belonging to the person who owned the land at the time the damage occurred, citing Eagle Pipe and Supply, Inc. v. Amerada Hess Corp., 10-2267, 10-2272, 10-2275, 10-2279, 10-2289 (La. 10/25/11), 79 So.3d 246.
Black River, however, contended that the mineral servitude created by the 1957 deed created a real right, which carried with it corresponding real obligations and, as such, was not governed by the subsequent purchaser rule. The trial court agreed, stating that a mineral servitude
After the trial court denied the exception, Black River filed its motion for partial summary judgment, seeking to establish the mineral servitudes burdening its property. The King Trustees, in turn, filed their peremptory exception of prescription of nonuse, arguing that their mineral servitude was last exercised, at the latest, in 1990, some thirteen years prior to Black River's acquisition of the property. Accordingly, they again asserted that the mineral servitude, forming the sole basis for Black River's claims against them, had lapsed, along with the correlative obligation to restore the property ten years following the last exercise of the servitude rights and three years before Black River acquired the property.
In support of their position, the King Trustees relied upon the undisputed expert report rendered on August 17, 2016, by Black River's expert, RBB Consulting, LLC. The report identified a total of four wells drilled on the property and provided the status of each well. Three of the four wells were "dry plugged," the latest one in 1981. The only well that actually produced, the BD King, "was spudded in 1953 and operated as a producing oil well until it was converted into a saltwater disposal well in 1982." It then operated as an injection well from 1982 until it was plugged and abandoned in 1989. Another well was
After hearing oral argument on both the motion and the exception and taking the matter under consideration, the trial court granted the motion for partial summary judgment "recognizing Black River as the current surface owner of the property and that three mineral servitudes created in 1953 and 1957 burdened Plaintiff's property." But it denied all the remaining issues Black River sought to establish. The trial court also granted the King Trustees' exception, holding that the mineral servitude was extinguished by prescription of ten years nonuse, at the latest, in January 2000. In so ruling, the trial court reasoned: "As there was no real right in existence in 2003 when Black River acquired the property, no correlative real obligation to restore the property was transferred to Black River." Black River now appeals the granting of the exception and the dismissal of its claims against the King Trustees.
An appellate court reviews the factual findings of a trial court under the manifest error-clearly wrong standard of review. Rosell v. ESCO, 549 So.2d 840 (La.1989). The trial court's legal conclusions on questions of law, however, are reviewed de novo. City of Bossier City v. Vernon, 12-78 (La. 10/16/12), 100 So.3d 301.
"All that must be considered in the peremptory exception of prescription is whether there is sufficient evidence to show that the alleged time period has run under the requirements of the particular code articles involved." Montgomery v. Breaux, 297 So.2d 185, 187 (La.1974). The time period at issue herein is set forth in La.R.S. 31:27, which provides, in pertinent part: "A mineral servitude is extinguished by ... prescription resulting from nonuse for ten years." "Prescription of nonuse of a mineral servitude commences from the date on which it is created" and "is interrupted by good faith operations for the discovery and production of minerals." La. R.S. 31:28 and 31:29. "Prescription commences anew from the last day on which actual drilling or mining operations are conducted." La.R.S. 31:30.
No one disputes that the evidence clearly and reasonably shows that the mineral servitude owned by the trust has not been exercised since January 1990, and, therefore, was extinguished by prescription of nonuse in January 2000, ten years after the last dry hole was drilled, plugged, and abandoned. Accordingly we find no error in the trial court's evaluation of the evidence and its conclusion as to the accrual of prescription. We note, however, that although styled as a peremptory exception of prescription of nonuse, the objection raised by the King Trustees is really one of no right of action, which, as an appellate court, we may notice on our own motion. La.Code Civ.P. art. 927.
"The function of the exception of no right of action is to determine whether the plaintiff belongs to the class of persons to whom the law grants the cause of action asserted in the suit." Hood v. Cotter, 08-237, p. 17 (La. 12/2/08), 5 So.3d 819, 829.
In ruling on an exception of no right of action, a court first looks to the pleadings, though evidence may also be considered, if properly introduced. Id. Black River, in its petition and amending petition, seeks to enforce the alleged mineral servitude owner's duty to restore the surface of the land set forth in Article 22, which provides:
"A real action is one brought to enforce rights in, to, or upon immovable property." La.Code Civ.P. art. 422. "An action to enforce an obligation is the property of the obligee." La.Code Civ.P. art. 426. Thus, the question central to the resolution of this matter is whether Black River has the right to enforce this obligation against the King Trustees.
Essential to the determination of this question is a proper understanding of the nature of the real obligation at issue herein. Under our modern civilian doctrine, "[a] real obligation is a duty correlative and incidental to a real right." La.Civ. Code art. 1763. "[A] real right can be understood as ownership and its dismemberments." Eagle Pipe, 79 So.3d at 258.
"Perfect ownership consists of the use, the enjoyment, and the disposal of the thing — the usus, fructus, and abusus." In re Morgan R.R. & S.S. Co., 32 La. Ann. 371, 374 (1880). These rights of ownership — "[t]he rights of use, enjoyment, and disposal" — may be dismembered by operation of law or intent of the owner. Id. at 375. A mineral servitude is one such dismemberment of ownership that confers a real right on the mineral servitude owner: "the right of enjoyment of land belonging to another for the purpose of exploring for and producing minerals and reducing them to possession and ownership." La.R.S. 31:21. As a correlative obligation governing the dismemberment of the usus and fructus rights of ownership of the land, the owner of a mineral servitude "is obligated, insofar as practicable, to restore the surface to its original condition at the earliest reasonable time." La.R.S. 31:22.
Significantly, however, "a real obligation does not exist in the absence of a real right." Eagle Pipe, 79 So.3d at 261. "Prescription of nonuse is a mode of extinction of a real right other than ownership as a result of failure to exercise the right for a period of time." La.Civ.Code art. 3448. Upon accrual of prescription, the real right is "no longer in existence[,]" and no real obligations correlative to that right remain. Wise v. Watkins, 222 La. 493, 62 So.2d 653, 656 (1952).
By operation of law, the real right of the mineral servitude at issue herein was extinguished by "prescription resulting from nonuse for ten years," at the latest, in
Furthermore, when the servitude was extinguished in January 2000, the dismembered portions of ownership, the mineral rights, reverted to the landowner. Neumin Prod. Co. v. Tiger Bend, Ltd., 10-1307 (La.App. 3 Cir. 3/9/11), 58 So.3d 1088, writ denied, 11-717 (La. 5/20/11), 63 So.3d 984. At that time, Concordia Fisheries, Ltd. became "the owner of the minerals on the property as the owner of the surface of the property." Id. at 1093. Pursuant to the rule of confusion, as both the owner of the land and the minerals, Concordia Fisheries, Ltd. could not be bound to render a performance to itself:
S. Litvinoff & R. Scalise, 5 La. Civil Law Treatise: Law of Obligations § 20.1 (2d ed. 2016) (footnotes omitted). In this manner, the real obligation set forth in Article 22 was extinguished by confusion in 2000 when the ownership of the surface estate was reunited with the ownership of the minerals, thus uniting the qualities of the obligee and the obligor in the same entity, Concordia Fisheries, Ltd.
Consequently, by January 2000, all real rights and correlative obligations arising from the mineral servitude were extinguished by law. It logically follows, therefore, that because neither the real right nor the correlative obligation existed when Black River acquired the property in 2003, Black River never acquired the right to enforce the real obligation to restore the surface.
For the foregoing reasons, we render judgment sustaining the peremptory exception of no right of action, properly noticed on our own motion, and affirm the trial court's dismissal of Black River's claims against the King Trustees.
Costs of this appeal are assessed to the Plaintiff/Appellant.
Id. at 256-57.