Jhj Limited I v. Chevron U.S.A., Inc.

JHJ Limited I (JHJ), a drilling contractor, initiated this suit by filing in the Louisiana state court a petition for a writ of sequestration covering all right, title and interest of Chevron, U.S.A., Inc. (Chevron) in an oil and gas lease (the Wunsch Lease) entered into by Robert H. Wunsch and Chevron, including all oil and gas (and proceeds thereof) produced from the lease. The case was removed by Chevron to federal district court based upon diversity of citizenship and was tried upon a joint stipulation of facts. The district court held that JHJ’s lien under the Oil, Gas and Water Well…