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Knighton v. Texaco Producing

762 F. Supp. 686 (1991)

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Knighton v. Texaco Producing

United States District Court for the Western District of Louisiana
762 F. Supp. 686 (1991)

RW

Facts

Louisiana law empowered conservation officials to create pooled-drilling units consisting of multiple tracts of land. Within each unit, adjacent landowners had to share, or pool, their interests in fugacious minerals found and captured under any one of their tracts. Pooled-drilling orders always specified the minerals, usually oil or gas, to which each order applied. Order 196-C applied to a tract owned by Texaco Producing, Inc. (Texaco) (defendant), as well as to neighboring tracts owned by Ruth Knighton and others (neighbors) (plaintiffs). The order specifically applied to the byproducts and pollutants produced by drilling for oil and gas. Texaco discovered nonperipatetic oil on its tract and drilled a well that produced the oil in profitable quantities. The neighbors sued Texaco for a share of the well’s profits.

Rule of Law

Issue

Holding and Reasoning (Little, J.)

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