AEP Texas Inc. v. Wilks Ranch Texas, LTD; Daniel H. Wilks; Staci Wilks; And Farjo Ranch LLC

CourtCourt of Appeals of Texas
DecidedJuly 31, 2025
Docket11-24-00149-CV
StatusPublished

This text of AEP Texas Inc. v. Wilks Ranch Texas, LTD; Daniel H. Wilks; Staci Wilks; And Farjo Ranch LLC (AEP Texas Inc. v. Wilks Ranch Texas, LTD; Daniel H. Wilks; Staci Wilks; And Farjo Ranch LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AEP Texas Inc. v. Wilks Ranch Texas, LTD; Daniel H. Wilks; Staci Wilks; And Farjo Ranch LLC, (Tex. Ct. App. 2025).

Opinion

Opinion filed July 31, 2025

In The

Eleventh Court of Appeals __________

No. 11-24-00149-CV __________

AEP TEXAS INC., Appellant V. WILKS RANCH TEXAS, LTD.; DANIEL H. WILKS; STACI WILKS; AND FARJO RANCH LLC, Appellees

On Appeal from the 91st District Court Eastland County, Texas Trial Court Cause No. CV-2246425

OPINION This case presents the question of whether Appellant, AEP Texas Inc. (AEP), pursuant to rights granted under 1927 easements, is permitted to replace the existing wooden H-frame electric transmission structures with taller steel monopoles on land owned by Appellees, Wilks Ranch Texas, Ltd., Daniel H. Wilks, Staci Wilks, and Farjo Ranch LLC (Wilks). Wilks filed suit against AEP for declaratory and injunctive relief seeking to prevent AEP from replacing the structures within the easements. The trial court granted summary judgment in favor of Wilks, declared that the easements do not permit AEP to change the materials and height of the structures, and awarded Wilks attorney’s fees and costs. In two issues, AEP argues that the trial court erred in: (1) declaring that the easements do not allow AEP to upgrade its poles and fixtures in support of the transmission line easement; and (2) awarding Wilks costs and attorney’s fees. We reverse and render in part and reverse and remand in part. Factual and Procedural History In 1927, West Texas Utilities Company (WTU) acquired easements in Callahan and Eastland counties for an electric transmission line. The easements shared the following pertinent language: [Grantors] for and in consideration of the sum of Fifty dollars ($50.00) dollars [sic], . . . paid by [WTU], . . . do hereby bargain sell and convey unto the said [WTU], its successors and assigns, an easement and right of way across [property description], with the right to construct[,] operate, patrol, maintain[,] and repair its transmission line, including easement for said purposes, and including necessary poles, and fixtures, and authority for cutting and trimming all trees along the line necessary to keep the wires cleared and with the right to set the necessary guy and brace poles and attach to trees and to maintain the needed guy wires, together with the right of ingress and egress across said property for the above named purposes. (Emphasis added). A description for the path of the right-of-way is included in each easement, without specifying a fixed width for the easement. Of the six easements, five do not limit the number of pole locations that may be placed, while the sixth limits the number to eleven, with an allowance for more upon the payment of additional consideration. While the language of the easements does not limit the transmission line construction in material or height, WTU initially built wooden H-frame structures on the property that were approximately 54-feet above ground

2 and operated at 69 kilovolts. Years later, Wilks acquired the property encumbered by the easements. In 2021, AEP, the present easement holder, announced its intention to “modernize” the transmission line by replacing the wooden H-frame structures with single 65-foot steel poles, improved conductors, and new wires. AEP asserted that the project would improve electric service reliability in the area. Prior to construction, Wilks sued AEP for declaratory and injunctive relief, and the recovery of attorney’s fees. Wilks sought a declaration that the plain language of the easements provides AEP’s range of permissible activities but does not include allowing AEP to reconstruct the transmission line. Alternatively, Wilks sought a declaration that the easements were ambiguous and should be strictly construed against the grantee, and that “AEP may only replace the [current] wooden H-frame structures with new wooden H-frame structures of like height[,] build[,] and wires limited to handling 69kV.” Wilks sought injunctive relief “to prevent the violation of the easement that would result” if AEP were permitted to proceed with the project. Following a hearing, the trial court granted a temporary injunction enjoining AEP from: (1) [R]emoving the existing 45-foot wooden H-frame structures on the land covered by the 1927 Easements; or (2) installing structures on the land covered by the 1927 Easements that are not of the same height, spacing, and material as the existing 45-foot wooden H-frame structures and conductors that are not of the same thickness as the existing conductors. AEP filed an interlocutory appeal with this court, which we dismissed as moot after the trial court entered a final judgment prior to our consideration of the merits. AEP Tex. Inc. v. Wilks Ranch Tex., Ltd., No. 11-22-00306-CV, 2024 WL 2335837 (Tex. App.—Eastland May 23, 2024, no pet.) (mem. op.). While that appeal was pending, Wilks filed a motion for partial summary judgment in the trial court on its claim for

3 a declaration that the easements are unambiguous and “do not allow AEP to reconstruct the transmission line with larger, steel monopoles and wires of a thicker diameter.” Accordingly, Wilks’s position has consistently been that the easement language allows the replacement of poles and fixtures but not with new materials or of increased height. AEP filed an amended answer and alternative cross-bill for condemnation; but AEP later nonsuited its alternative cross-bill. See TEX. PROP. CODE ANN. § 21.017(a) (West 2025). AEP also filed a motion to strike Exhibits D, E, and F to Wilks’s motion for partial summary judgment, arguing that the exhibits constituted inadmissible extrinsic evidence intended to vary the meaning of an unambiguous written instrument. Those exhibits were of testimony from the temporary injunction hearing and two expert reports. The experts offered opinions regarding the good working order of the transmission line’s current structures and that one reason that AEP intended to replace them was to increase its profits. AEP then filed a response to Wilks’s motion as well as its own motion for partial summary judgment. In both pleadings, AEP argued that the easements unambiguously permitted it to proceed with the improvements—to construct, operate, repair, and maintain a transmission line, specifically “including [the] necessary poles, and fixtures.” AEP argued that “[a]bsent express limitations on use, broad language like that in the 1927 [e]asements confers the right to change use as reasonably necessary over time.” Wilks filed a response to AEP’s motion for partial summary judgment, to which AEP filed a reply, as well as a reply in support of its own motion. The trial court denied AEP’s motion to strike the exhibits and granted Wilks’s motion for partial summary judgment. Following a hearing on Wilks’s motion for attorney’s fees, the trial court signed a final judgment incorporating its earlier summary judgment ruling, declaring “that the 1927 Easements require that if the 4 Defendant reconstructs the existing wooden H-frame support structures and wires on Plaintiffs’ properties it must do so with support structures of the same height and material and the same diameter wires[,]” and awarding Wilks $471,064.33 in attorney’s fees, as well as costs and contingent appellate attorney’s fees. This appeal followed. Standard of Review – Summary Judgments We review a trial court’s grant of summary judgment de novo. Fort Worth Transp. Auth. v. Rodriguez, 547 S.W.3d 830, 837 (Tex. 2018). To prevail under the traditional summary judgment standard, the movant has the burden to establish that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. TEX. R. CIV. P. 166a(a), (c); ConocoPhillips Co. v. Koopmann, 547 S.W.3d 858, 865 (Tex. 2018). If the movant meets its summary judgment burden, the burden shifts to the nonmovant to raise a genuine issue of material fact that would preclude the grant of summary judgment. Amedisys, Inc. v.

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AEP Texas Inc. v. Wilks Ranch Texas, LTD; Daniel H. Wilks; Staci Wilks; And Farjo Ranch LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aep-texas-inc-v-wilks-ranch-texas-ltd-daniel-h-wilks-staci-wilks-and-texapp-2025.