<PAGE>
 
                                 SCHEDULE 13D


                   Under the Securities Exchange Act of 1934
                               (Amendment No. 7)


                  The Louisiana Land and Exploration Company
           ---------------------------------------------------------
                               (Name of Issuer)


                            Shares of Common Stock
                       --------------------------------
                        (Title of Class of Securities)


                                   546268103
                      ----------------------------------
                                (CUSIP Number)

                              Michael S. Paquette
                         Vice President and Controller
                   Fund American Enterprises Holdings, Inc.
                                The 1820 House,
                                 Main Street,
                          Norwich, Vermont 05055-0850
                                (802) 649-3633
                  ------------------------------------------
           (Name, Address and Telephone Number of Person Authorized
                    to Receive Notices and Communications)

                               November 15, 1995
              --------------------------------------------------
            (Date of Event which Requires Filing of this Statement)

     If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box _____.

     Check the following box if a fee is being paid with this statement _____.
(A fee is not required only if the reporting person:  (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of five percent or less of
such class.  See Rule 13d-7.)

     NOTE:  Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.

<PAGE>
 
                              CUSIP NO. 546268103
 
- --------------------------------------------------------------------------------

(1)  Name of Reporting Person. S.S. or I.R.S. Identification No. of Above Person

                   Fund American Enterprises Holdings, Inc.
                                  94-2708455

- --------------------------------------------------------------------------------

(2)  Check the Appropriate Box if a Member     (a)  _______________________
     of a Group (See Instructions)
                                               (b)  _______________________

- --------------------------------------------------------------------------------

(3)  SEC Use Only

- --------------------------------------------------------------------------------

(4)  Source of Funds (See Instructions)             N/A (see Item 3)

- --------------------------------------------------------------------------------

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
     or 2(e)

- --------------------------------------------------------------------------------

(6)  Citizenship or Place of Organization      Delaware
                                               --------

- --------------------------------------------------------------------------------
     Number of Shares    (7)  Sole Voting Power
     Beneficially Owned       ----------------------
     by Each Reporting
     Person With         (8)  Shared Voting Power
                              ----------------------
                              2,928,100

                         (9)  Sole Dispositive Power
                              ----------------------
 
                         (10) Shared Dispositive Power
                              ------------------------
                              2,928,100

- --------------------------------------------------------------------------------

(11) Aggregate Amount Beneficially Owned by Each Reporting Person
     2,928,100

- --------------------------------------------------------------------------------

(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
     Instructions)

- --------------------------------------------------------------------------------

(13) Percent of Class Represented by Amount in Row (11)  Approximately 8.75%

- --------------------------------------------------------------------------------

(14) Type of Reporting Person (See Instructions)      HC, CO

- --------------------------------------------------------------------------------

                                    2 of 11

<PAGE>
 
                                 CUSIP NO. 546268103

- --------------------------------------------------------------------------------

(1)  Name of Reporting Person. S.S. or I.R.S. Identification No. of Above Person

                        Fund American Enterprises, Inc.
                                  51-0328932

- --------------------------------------------------------------------------------

(2)  Check the Appropriate Box if a Member     (a)  _______________________
     of a Group (See Instructions)
                                               (b)  _______________________

- --------------------------------------------------------------------------------

(3)  SEC Use Only

- --------------------------------------------------------------------------------

(4)  Source of Funds (See Instructions)      N/A (see Item 3)

- --------------------------------------------------------------------------------

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
     or 2(e)

- --------------------------------------------------------------------------------

(6)  Citizenship or Place of Organization      Delaware
                                               --------
- --------------------------------------------------------------------------------

     Number of Shares                   (7)  Sole Voting Power
     Beneficially Owned                      -----------------
     by Each Reporting                  
     Person With                        (8)  Shared Voting Power      
                                             -------------------
                                             596,565                  
                                        
                                        (9)  Sole Dispositive Power    
                                             ----------------------    
                                                                       
                                        (10) Shared Dispositive Power  
                                             ------------------------  
                                             596,565                    

- --------------------------------------------------------------------------------
 
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
                         596,565

- --------------------------------------------------------------------------------

(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
     Instructions)

- --------------------------------------------------------------------------------

(13) Percent of Class Represented by Amount in Row (11)  Approximately 1.78%

- --------------------------------------------------------------------------------

(14) Type of Reporting Person (See Instructions)            CO

- --------------------------------------------------------------------------------

                                    3 of 11

<PAGE>
 
                              CUSIP NO. 546268103

- --------------------------------------------------------------------------------

(1)  Name of Reporting Person.  S.S. or I.R.S. Identification No. of Above
     Person

                                  FFOG, Inc.
                                  51-0301710

- --------------------------------------------------------------------------------

(2)  Check the Appropriate Box if a Member   (a)  _______________________
     of a Group (See Instructions)
                                             (b)  _______________________

- --------------------------------------------------------------------------------

(3)  SEC Use Only

- --------------------------------------------------------------------------------

(4)  Source of Funds (See Instructions)      N/A (see Item 3)

- --------------------------------------------------------------------------------

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
     or 2(e)

- --------------------------------------------------------------------------------

(6)  Citizenship or Place of Organization    Delaware
                                             --------

- --------------------------------------------------------------------------------

     Number of Shares                        (7)  Sole Voting Power
     Beneficially Owned                           ----------------------
     by Each Reporting  
     Person With                             (8)  Shared Voting Power
                                                  ----------------------
                                                  2,331,535

                                             (9)  Sole Dispositive Power
                                                  ----------------------
 
                                             (10) Shared Dispositive Power
                                                  ------------------------
                                                  2,331,535

- --------------------------------------------------------------------------------
 
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
                                                  2,331,535

- --------------------------------------------------------------------------------

(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
     Instructions)

- --------------------------------------------------------------------------------

(13) Percent of Class Represented by Amount in Row (11)  Approximately 6.97%

- --------------------------------------------------------------------------------

(14) Type of Reporting Person (See Instructions)         CO

- --------------------------------------------------------------------------------

                                    4 of 11

<PAGE>
 
                              CUSIP NO. 546268103

- --------------------------------------------------------------------------------

(1)  Name of Reporting Person.  S.S. or I.R.S. Identification No. of Above
     Person

                   Source One Mortgage Services Corporation
                                   38-2011419

- --------------------------------------------------------------------------------

(2)  Check the Appropriate Box if a Member   (a)  _______________________
     of a Group (See Instructions)
                                             (b)  _______________________

- --------------------------------------------------------------------------------

(3)  SEC Use Only

- --------------------------------------------------------------------------------

(4)  Source of Funds (See Instructions)      N/A (see Item 3)

- --------------------------------------------------------------------------------

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
     or 2(e)

- --------------------------------------------------------------------------------


(6)  Citizenship or Place of Organization    Delaware
                                             --------

- --------------------------------------------------------------------------------
 
     Number of Shares                        (7)  Sole Voting Power
     Beneficially Owned                           ----------------------
     by Each Reporting  
     Person With                             (8)  Shared Voting Power
                                                  ----------------------
                                                         0

                                             (9)  Sole Dispositive Power
                                                  ----------------------
  
                                             (10) Shared Dispositive Power
                                                  ------------------------
                                                         0

- --------------------------------------------------------------------------------
 
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
                                                       0

- --------------------------------------------------------------------------------

(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
     Instructions)

- --------------------------------------------------------------------------------

(13) Percent of Class Represented by Amount in Row (11)  0%

- --------------------------------------------------------------------------------

(14) Type of Reporting Person (See Instructions)       CO

- --------------------------------------------------------------------------------

                                    5 of 11

<PAGE>
 
ONLY ITEMS REPORTED IN THIS AMENDMENT NO. 7 TO SCHEDULE 13D ARE AMENDED FROM THE
FILING ON SCHEDULE 13D ("THE SCHEDULE 13D") WITH THE SECURITIES AND EXCHANGE
COMMISSION, AS SUBSEQUENTLY AMENDED. ALL OTHER ITEMS REMAIN UNCHANGED. UNLESS
OTHERWISE SPECIFIED, ALL DEFINED TERMS USED HEREIN HAVE THE MEANING PREVIOUSLY
ASCRIBED TO THEM IN THE SCHEDULE 13D.

Item 2.  Identity and Background.
         ------------------------

         The name, business address, present principle occupation or employment
(and the name, principle business and address of any corporation or other
organization in which such employment is conducted) and citizenship of each
director and executive officer of FAEH, FAE and FFOG is set forth on Schedule I,
attached hereto, and incorporated herein by reference.

Item 3.  Source and Amount of Funds or Other Consideration.
         --------------------------------------------------

         None of the Reporting Persons is making additional purchases of the
Issuer's Common Shares. However, with respect to the matters reported under Item
4 below, any funds used by each Reporting Person in connection with its holding
or voting the securities as provided in Item 4 below will be obtained from each
such Reporting Person's working capital and other general corporate funds and
not from borrowings.
 

Item 4.  Purpose of Transaction.
         -----------------------

         FAEH has sent a letter dated November 15, 1995 (the "Board Nominee
Letter") to H. Leighton Steward, the Chairman and Chief Executive Officer of the
Issuer, in which FAEH requests that the Issuer add three designees of FAEH to
managment's nominees for election as directors at the Issuer's annual meeting of
stockholders in May 1996. A copy of the Board Nominee Letter is


                                    6 of 11

<PAGE>
 
attached hereto as Exhibit 1 and the text of the Board Nominee Letter is
incorporated by reference herein.

         As stated in the Board Nominee Letter, FAEH is dissatisfied with the
Issuer's performance and the lack of attention that the Issuer's board of
directors has generally exhibited to the concerns of the Issuer's stockholders,
and FAEH desires to have three of its nominees appointed to the Issuer's board
to help the board to be more attentive to the interests of the Issuer's
stockholders.

         The Reporting Persons may vary the request set forth in the Board
Nominee Letter following any discussions which may take place with the Issuer or
otherwise. In addition, the Reporting Persons will continue to consider various
alternative courses of actions that may be available to them which will result
in the Issuer's board of directors being more attentive to the interests of the
Issuer's stockholders and they will in the future take such actions with respect
to the Issuer as they deem appropriate in light of the circumstances then
existing.

         Except as set forth above, the Reporting Persons have no present plans
or proposals that relate to or would result in any of the actions described in
subparagraphs (a) through (j) of Item 4 of Schedule 13D.


Item 5.  Interest in Securities of the Issuer.
         -------------------------------------

         (a) FAEH owns all 2,928,100 Common Shares indirectly; 596,565 Common
Shares through FAE and 2,331,535 Common Shares through FFOG. The aggregate
number of Common Shares and the corresponding percentage of the outstanding
Common Shares such number represents is as follows:


                                    7 of 11

<PAGE>
 

<TABLE>
<CAPTION>
                                               Percentage of
                                Common Shares  Common Shares
                                Beneficially    Beneficially
                       Person       Owned          Owned
                       -------  -------------  --------------
                       <S>      <C>            <C>
                       
                        FAEH      2,928,100         8.75%
                                                  
                        FAE         596,565         1.78%
                                                  
                        FFOG      2,331,535         6.97%
 
</TABLE>


         (b) FAEH shares voting power and dispositive power with respect to
596,565 Common Shares with FAE and 2,331,535 Common Shares with FFOG.

         Neither Mr. Arthur Zankel, a director of FAEH, nor First Manhattan Co.,
a partnership in which Mr. Zankel is a general partner, directly owns any Common
Shares. Mr. Arthur Zankel does not have discretionary authority over any Common
Shares owned by First Manhattan's clients. No other partners in First Manhattan
Co. (not including Mr. Zankel) own any Common Shares but have discretionary
authority over 342 Common Shares owned by First Manhattan Co.'s clients.
         (c)  None
         (d)  None
         (e)  Not Applicable

Iten 7.  Material to be Filed as Exhibits.
         ---------------------------------

         Exhibit 1. Board Nominee Letter dated November 15, 1995 from Fund
American Enterprises Holdings, Inc. to H. Leighton Steward, Chairman and Chief
Executive Officer of the Issuer.

                                    8 of 11

<PAGE>
 
                                   SIGNATURE

  After reasonable inquiry and to the best of the knowledge and belief of the
undersigned, the undersigned certifies that the information set forth in this
statement is true, complete and correct.


Dated:  November 15, 1995

                                  FUND AMERICAN ENTERPRISES HOLDINGS, INC.



                                  BY:
                                     ---------------------------------------
                                     Name:  Michael S. Paquette
                                     Title: Vice President and Controller



                                  FUND AMERICAN ENTERPRISES, INC.



                                  BY:
                                     ---------------------------------------
                                     Name:  Terry L. Baxter
                                     Title: President and Secretary



                                  FFOG, INC.



                                  BY:
                                     ---------------------------------------
                                     Name:  Michael S. Paquette
                                     Title: Vice President and Secretary



                                    9 of 11

<PAGE>
 
                                 SCHEDULE I TO SCHEDULE 13D
                                 --------------------------

         Following is a list of the directors and executive officers of Fund
American Enterprises Holdings, Inc. ("FAEH"), Fund American Enterprises, Inc.
("FAE"), and FFOG, Inc. ("FFOG") setting forth the business address and present
principal occupation or employment (and the name, principal business and address
of any corporation or organization in which such employment is conducted) of
each such person. Each such person is a citizen of the United States of America.


<TABLE>
<CAPTION>
 
                                                                 Present       
Name and                                                    Principal Occupation
Business Address                 Office                        or Employment   
- ----------------                 ------                     -------------------- 
<S>                              <C>                       <C>                  
FAEH

Dennis P. Beaulieu               Corporate Secretary       Corporate Secretary
Fund American Enterprises        of FAEH                   of FAEH
   Holdings, Inc.
The 1820 House, Main Street
Norwich  VT  05055-0850
 
John J. Byrne                    Chairman of the Board,    Chairman of the Board,
Fund American Enterprises        President & Chief         President & Chief
   Holdings, Inc.                Executive Officer of      Executive Officer of
The 1820 House, Main Street      FAEH, Chairman of the     FAEH
Norwich  VT  05055-0850          Board of FAE and FFOG
 
Howard L. Clark                  Director                  Retired
200 Park Avenue, Suite 4501      of FAEH
New York  NY  10166
 
Howard L. Clark, Jr.             Director                  Vice Chairman of Lehman
Lehman Brothers Holdings Inc.    of FAEH                   Brothers Holdings Inc.
American Express Tower
New York  NY  10128
 
Robert P. Cochran                Director                  President & Chief
Financial Security Assurance     of FAEH                   Executive Officer of
   Holdings Ltd.                                           Financial Security Assurance
350 Park Avenue                                            Holdings Ltd.
New York  NY  10022
 
George J. Gillespie, III         Director                  Partner in Cravath,
Cravath, Swaine & Moore          of FAEH                   Swaine & Moore
825 Eighth Avenue
New York  NY  10019
 
K. Thomas Kemp                   Executive Vice President  Executive Vice President
Fund American Enterprises        of FAEH, Director of      of FAEH
   Holdings, Inc.                FAEH, FAE and FFOG
The 1820 House, Main Street
Norwich  VT  05055-0850
 
Gordon S. Macklin                Director                  Chairman of White River
8212 Burning Tree Road           of FAEH                   Corporation
Bethesda  MD 20817
</TABLE>



                                   10 of 11

<PAGE>
 
                      SCHEDULE I TO SCHEDULE 13D (cont.)
                      ----------------------------------

<TABLE>
<CAPTION>
                                                                Present        
Name and                                                  Principal Occupation
Business Address               Office                        or Employment   
- ----------------               ------                    --------------------
<S>                            <C>                       <C>                  
FAEH
 
Michael S. Paquette            Vice President &          Vice President &
Fund American Enterprises      Controller of FAEH,       Controller of FAEH
   Holdings, Inc.              Director of FAE and FFOG
The 1820 House, Main Street
Norwich  VT  05055-0850
 
Allan L. Waters                Senior Vice President &   Senior Vice President &
Fund American Enterprises      Chief Financial Officer   Chief Financial Officer
   Holdings, Inc.              of FAEH, Director of      of FAEH
The 1820 House, Main Street    FAE
Norwich  VT  05055-0850
 
Arthur Zankel                  Director                  Co-Managing Partner
First Manhattan Co.            of FAEH                   First Manhattan Co.
437 Madison Ave.
New York  NY 10022


FAE

Terry L. Baxter                President & Secretary     President & Secretary of FAE
Fund American Enterprises,     of FAE,  
 Inc.                          Director of FAE 
The 1820 House, Main Street             
Norwich  VT  05055-0850    
                           


FFOG

K. Thomas Kemp                 President                      (see above)
(see above)

Michael S. Paquette            Vice President & Secretary     (see above)
(see above)

</TABLE>
 
                                   
                                   11 of 11





<PAGE>
 
                                                                       Exhibit 1



                                             November 15, 1995

H. Leighton Steward
Chairman of the Board and
  Chief Executive Officer
The Louisiana Land and Exploration Company
909 Poydras Street
New Orleans, Louisiana 70112

Dear Leighton:

     I am sending this letter to follow up on my telephone call earlier today.
I will try in this letter to summarize the views I expressed in our phone
conversation.

     As you know we are The Louisiana Land and Exploration Company's ("the
Company") largest stockholder, with approximately 2.9 million shares (about
8.75%) of the Company's common stock.  We initially made our investment over
eight years ago and we have been very patient about our investment despite the
poor performance of the Company's common stock throughout that period and the
lack of attention that the Company's board of directors has generally exhibited
to the concerns of the Company's shareholders.

     For years we have been concerned about the Company's disappointing earnings
performance and management's continued extensive commitment of capital to an
exploration, development and property acquisition program which has failed to
produce satisfactory results. In fact, over the five-year period from 1990 
through 1994, the Company produced
 aggregate cash flows from operations of more 
than $1 billion yet delivered an aggregate net loss over the same period of
approximately $150 million. However, our frustration reached a new level in 1995
when the Company announced a 76% reduction in the dividend in order to conserve
even more cash for management's ineffective capital spending program.

     Our dissatisfaction with the Company's performance, and with the absence of
focus by the board on enhancement of shareholder value, has reached the point
that we think the time has come for some changes in the Company's board of
directors.  Based on views that have often been expressed to us by a number of
the Company's other institutional stockholders, we believe that we are not alone
in either our dissatisfaction with the Company's performance and the board's
failure to take appropriate action or in our view that the composition of the
board should be changed to add some individuals who will be more attentive to
the interests of the Company's stockholders.