Americo Energy Resources, L.L.C. and Americo Oil and Gas Properties 2000 Lts v. David Moore and Jan K. Wheelis

CourtCourt of Appeals of Texas
DecidedAugust 29, 2008
Docket13-08-00097-CV
StatusPublished

This text of Americo Energy Resources, L.L.C. and Americo Oil and Gas Properties 2000 Lts v. David Moore and Jan K. Wheelis (Americo Energy Resources, L.L.C. and Americo Oil and Gas Properties 2000 Lts v. David Moore and Jan K. Wheelis) 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.

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Americo Energy Resources, L.L.C. and Americo Oil and Gas Properties 2000 Lts v. David Moore and Jan K. Wheelis, (Tex. Ct. App. 2008).

Opinion



NUMBER 13-08-00097-CV



COURT OF APPEALS



THIRTEENTH DISTRICT OF TEXAS



CORPUS CHRISTI - EDINBURG



AMERICO ENERGY RESOURCES,

L.L.C. AND AMERICO OIL AND

GAS PROPERTIES 2000 LTD., Appellants,



v.



DAVID MOORE AND JAN K. WHEELIS, Appellees.

On appeal from the 24th District Court of Victoria County, Texas.



MEMORANDUM OPINION



Before Justices Rodriguez, Garza, and Vela

Memorandum Opinion by Justice Garza

This case involves a dispute between a landowner and an oil company over the right to use the landowner's property for the construction and usage of a "shortcut" pipeline transporting oil and gas to a compressor station. Appellants, Americo Energy Resources, L.L.C. and Americo Oil and Gas Properties 2000 Ltd. ("Americo"), appeal the trial court's granting of a motion for partial summary judgment filed by appellees, David Moore and Jan K. Wheelis. Americo also takes issue with the trial court's: (1) order directing it to remove the pipeline from the property; and (2) overruling of its motion for reconsideration. We affirm.

I. Background

The land in question is located on the McFaddin Ranch in Victoria County, Texas. Americo is the owner of an oil and gas lease on portions of the ranch with Wheelis owning a non-participating royalty interest. (1) Moore is the "[r]anch foreman and consultant for Jan Wheelis on oil and gas matters on her . . . ranch." (2) Americo uses, owns, and operates a pipeline commonly called FPL 301, which passes over Wheelis's land. In 1930, Royston Nave and N.C. McGowen, previous landowners of the land now known as the Rio Vista Bluff Ranch, (3) granted an easement for the construction and usage of the FPL 301 pipeline

across the land. (4) Americo purchased the easement from other oil and gas producers in November 2003 and has continuously used the pipeline to transport oil and gas across Wheelis's property. In 1992, Wheelis granted Pennzoil, one of Americo's predecessors in title, a new easement from the northern terminus of the FPL 301 pipeline to a compressor station adjacent to the Wheelis property. A pipeline was constructed that ran parallel to railroad tracks marking the northern boundary of the Wheelis property until reaching the road marking the eastern boundary of the Wheelis property. The pipeline then angled to the south, running parallel to the road, in order to reach the compressor station.

Later, Americo apparently discovered that the FPL 301 pipeline was leaking and began constructing a new "shortcut" pipeline to the compressor station. This new pipeline, constructed in November 2006, extended in a northeasterly direction from FPL 301 directly to the compressor station. This pipeline allowed Americo to transport oil and gas to the compressor station while avoiding the circuitous route previously used.

After discovering that Americo was constructing the "shortcut" pipeline without obtaining consent, Moore and Wheelis denied Americo access to the property. In response, Americo, on January 26, 2006, initiated the underlying suit against Moore and Wheelis for "refusing to honor right of way easements and oil and gas lease contractual rights . . . and in barring them from access to the premises . . . ." In this petition, Americo sought a temporary restraining order ("TRO") to prevent Moore and Wheelis from denying Americo access to the land and damages. After a hearing, the trial court granted Americo's TRO; however, the trial court later granted Moore and Wheelis's motion to set aside the TRO. This dispute pertained to a disagreement over the usage of and the alleged damage caused by the operation of the FPL 301 pipeline.

On February 13, 2007, Moore and Wheelis filed their third amended counterpetition against Americo, asserting that Americo: (1) had been underpaying Wheelis royalties to which she was entitled; (2) had damaged and contaminated the Wheelis property by the negligent operation of the FPL 301 pipeline; and (3) had failed to reasonably develop the oil and gas lease and was in breach of contract. Moore and Wheelis also: (1) sought a declaration that the lease with Americo had terminated for failure to reasonably develop the property; (2) brought an action to quiet title; (3) sought an injunction for the removal of the "shortcut" pipeline; and (4) requested damages for trespass associated with the construction of the "shortcut" pipeline.

On September 18, 2007, Moore and Wheelis filed a motion for partial summary judgment on traditional grounds, contending that they were entitled to judgment as a matter of law on the trespass and injunction actions contained in their third amended counterpetition. Specifically, Moore and Wheelis alleged that Americo trespassed on Wheelis's property by constructing the new "shortcut" pipeline without obtaining her consent. In support of their motion, Moore and Wheelis both executed affidavits establishing that they observed Americo placing a six-inch pipeline in the ground on Wheelis's property and that no oil and gas leases or easements covered this part of the property.

On October 16, 2007, Americo filed a response to Moore and Wheelis's motion for partial summary judgment, asserting that the "shortcut" pipeline was constructed pursuant to the same Nave-McGowan easement covering the FPL 301 pipeline; therefore, Wheelis had consented to the construction of the pipeline and no trespass occurred. Accompanying Americo's response was a letter from O.F. Jones, III, counsel for Americo, stating that "[a]ppropriate affidavits in support of this response will be filed shortly."

On October 25, 2007, Americo filed a supplemental response to the motion for partial summary judgment. In this response, Americo re-asserted its contention that the "shortcut" pipeline was constructed pursuant to an easement, and it asserted that it had legal right to enter Wheelis's property because of its interest in various oil and gas leases executed many years ago that were still producing in paying quantities. Americo did not file any supporting affidavits or any other summary judgment evidence with its original or supplemental response. (5)

After a hearing, the trial court, on October 26, 2007, granted Moore and Wheelis's motion for partial summary judgment. In its order, the trial court noted the following:



The Court finds there is no genuine issue of material fact as to Defendant's counterclaim for Trespass and Defendants are entitled to summary judgment thereon.

The Court finds that Defendant/Counter Plaintiffs have proven the counterclaim and disproved the element of Plaintiffs/Counter Defendants claim for Consent.

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Americo Energy Resources, L.L.C. and Americo Oil and Gas Properties 2000 Lts v. David Moore and Jan K. Wheelis, Counsel Stack Legal Research, https://law.counselstack.com/opinion/americo-energy-resources-llc-and-americo-oil-and-g-texapp-2008.