Alpine Construction Corp. v. Fenton

1988 OK 123, 764 P.2d 1340, 102 Oil & Gas Rep. 61, 1988 Okla. LEXIS 137
CourtSupreme Court of Oklahoma
DecidedNovember 1, 1988
Docket70603, 71030
StatusPublished

This text of 1988 OK 123 (Alpine Construction Corp. v. Fenton) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alpine Construction Corp. v. Fenton, 1988 OK 123, 764 P.2d 1340, 102 Oil & Gas Rep. 61, 1988 Okla. LEXIS 137 (Okla. 1988).

Opinion

LAVENDER, Justice:

In a warranty deed executed February 1, 1950 Douglas Arthur Bly and Ruby May Bly conveyed the property involved in this controversy to Thomas Luther Leird and *1341 Robbie 0. Leird. The deed contained the following exception clause:

EXCEPT all coal and asphalt lying in or under said land with right of ingress and egress to go upon said land and remove said coal and asphalt by strip mining method, which is hereby reserved unto the grantors herein, their heirs, successors or assigns, and said grantors, their heris [sic] successors or assigns shall pay to the grantees herein, their heirs successors or assigns the sum of $25.00 per acre as surface damages for the first ten acres so strip mined, and $35.00 per acre for all acres strip mined thereafter.

The Leirds, by warranty deed executed November 27, 1954, conveyed their interest to M.E. Beaty and Phurdy E. Beaty. The Beatys in turn conveyed the property to respondents Billy Wayne and Patricia Ann Fenton by warranty deed executed March 3,1959. The deed of conveyance to respondents contained the following provision in the description of the property conveyed:

[A]nd also less an undivided one-fourth (¼) interest in and to all of the oil and gas in and under and that may be produced from said lands heretofore reserved by Douglas Arthur Bly and Ruby May Bly, husband and wife, in that certain deed dated February 1, 1950, from said Douglas Arthur Bly and Ruby May Bly, husband and wife, to Thomas Luther Leird and Robbie O. Leird, husband and wife, of record in said County Clerk’s office in Book 149 at Pages 170-71, and also less an undivided three-fourths (¾) interest in and to all of the coal and asphalt in and under and that may be produced from said lands reserved by said Douglas Arthur Bly and Ruby May Bly, husband and wife, in the deed last described.

Petitioner Alpine Construction Corporation leased the coal mining rights reserved in the aforementioned conveyances from Douglas A. and Ruby M. Bly. This lease was executed April 23, 1986.

The present dispute arose when Alpine attempted to gain access to the property covered by the lease to begin strip mining operations. Alpine was denied access by the Fentons and so instituted the present action to obtain injunctive relief to prevent the Fentons from interfering with Alpine’s exercise of its rights under the lease. The Fentons answered Alpine’s petition with a denial of Alpine’s rights to take coal on the property and counter-claimed for damages arising from Alpine’s alleged trespass, and alternatively demanded that Alpine be required to follow eminent domain procedures to acquire the right to use property for strip mining purposes.

In the course of the ensuing dispute the trial court was requested to rule by way of partial summary adjudication on two questions:

“Assuming that ALPINE does have rights of ingress and egress for coal mining purposes upon the subject property, does the surface damage payment provision as contained in the reservation clause of Petitioners’ “Exhibit 2” control as to the compensation the surface owners, FENTON, are entitled to receive as a result of such mining operations?” “Assuming ALPINE has the rights of ingress and egress for coal mining purposes upon the subject property, but that the compensation provisions of FEN-TON’S predecessors in title do not apply, what is the proper manner to determine compensation for surface damages to FENTON in the instant case?”

The trial court’s ruling on the first question was:

ALPINE has rights of ingress and egress but the $25-35 per acre compensation is not applicable in that this Court has decided that the original agreement as to said amount is not binding upon subsequent grantors or grantees because of the intent requirement at the time of the transaction.

As to the second question, the court ruled:

THEREFORE, the answer to Question #2 (measure of Damages) is that said damages (is [sic] any) should be decided under the provisions of the Surface Damages Act, Title 52, Section 318.2, et seq.

The trial court’s reasoning in support of its rulings was that it would be inequitable to allow a compensation amount set in 1950 *1342 to apply to land values in 1988. The court concluded that this could not be the intent of the parties. The trial court also concluded that the oil and gas surface damages act, 52 O.S.Supp.1982 § 318.2 et seq., would provide an equitable guide to determining the amount of damages recoverable by the Fentons. The court certified these rulings for interlocutory review. Alpine petitioned for certiorari to obtain review of the rulings by this Court. We have previously granted the petition.

I.

In the case of McNeill v. Shaw, 1 this Court stated in syllabus:

Where a written contract is complete in itself, and viewed in the entirety, is unambiguous, its language is the only legitimate evidence of what the parties intended. Whatever mineral interest or royalty interest is conveyed or reserved depends upon the terms of the instrument.

In the course of its order the trial court found that the language of the exception clause is clear and unambiguous. Our review of the record brings us to the same conclusion; the exception clause in this case is complete, is without ambiguity and is sufficient to reserve unto the grantors the rights specified. 2 The rights explicitly here reserved were: 1) the right to ingress and egress on the surface of the property; 2) the right to remove coal and asphalt by the strip mining method; and 3) the right to pay surface damages in a sum certain.

The trial court and the Fentons, in support of the trial court’s ruling, state that the third right above stated may be considered separately from the reservation as a whole and extrinsic material may be examined to determine whether the parties intended the third right to be binding on the parties’ heirs, successors and assigns. In taking this position both the trial court and the Fentons assume that the compensation clause may be denominated a covenant and thus separate from the reservation as a whole. This assumption begs the question.

The question as it appears to this Court is whether there is ambiguity relating to the reservation which would allow the consideration of extrinsic evidence. The single case upon which the trial court and the Fentons support the consideration of extrinsic evidence of intent is Town of Skiatook v. Brummett. 3 In that case the town of Skiatook accepted a grant of right of way for a water line which contained a covenant which bound the town to supply water to the grantor or his successors. The dispute arose when the grantor attempted to subdivide his property and took the position that the town would be required to furnish water to all of the houses on the new subdivision.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

McNeill v. Shaw
1956 OK 42 (Supreme Court of Oklahoma, 1956)
Erwin v. Poole
1968 OK 157 (Supreme Court of Oklahoma, 1968)
Meeks v. Harmon
1952 OK 326 (Supreme Court of Oklahoma, 1952)
Town of Skiatook v. Brummett
1963 OK 256 (Supreme Court of Oklahoma, 1963)
McKee v. Thornton
1920 OK 282 (Supreme Court of Oklahoma, 1920)
Williamson v. Davis
1917 OK 421 (Supreme Court of Oklahoma, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
1988 OK 123, 764 P.2d 1340, 102 Oil & Gas Rep. 61, 1988 Okla. LEXIS 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alpine-construction-corp-v-fenton-okla-1988.