Calvert Joint Venture 140 v. Snider

816 A.2d 854, 373 Md. 18, 155 Oil & Gas Rep. 511, 2003 Md. LEXIS 36
CourtCourt of Appeals of Maryland
DecidedFebruary 13, 2003
Docket52, Sept. Term, 2002
StatusPublished
Cited by21 cases

This text of 816 A.2d 854 (Calvert Joint Venture 140 v. Snider) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calvert Joint Venture 140 v. Snider, 816 A.2d 854, 373 Md. 18, 155 Oil & Gas Rep. 511, 2003 Md. LEXIS 36 (Md. 2003).

Opinion

CATHELL, Judge.

This case arises out of a November 1987 land installment contract and subsequent conveyance between petitioner, Calvert Joint Venture # 140, 1 and respondents, Ross and Nancy Snider. In the contract, respondents contracted to convey the subject property (tracts 1, 2 and 3) to petitioner for the stated purpose of building a residential subdivision while reserving an interest in all “oil, gas, or other mineral rights” in the property. No express easements over the surface of the parcel were reserved with the mineral rights. This litigation centers on petitioner’s declaratory judgment action requesting a determination on respondents’ ability to enter and use the. surface of petitioner’s property in the exercise of respondents’ mineral rights pursuant to a deed emanating from a previous declaratory judgment action dealing with that land installment contract.

On November 23, 1987, petitioner contracted to purchase from respondents approximately 145 acres in Calvert County (the “Calvert Property”) pursuant to a land installment contract. That contract included language that the Calvert Property was being purchased by petitioner to develop into a residential subdivision, 2 as well as a provision whereby respon *25 dents reserved the Calvert Property’s mineral rights. In August 1995, a declaratory judgment action 3 was filed by petitioner in the Circuit Court for Calvert County, Maryland, alleging that respondents were unable to convey marketable title on tract 3, approximately 28 acres, of the Calvert Property. As a result of the declaration originating out of that action, a special warranty deed for tracts 1 and 2, the remaining approximately 115 acres of the Calvert Property, was delivered to petitioner on October 17, 1996, which included respondents’ reservation of mineral rights but failed to include the clause contained in the land installment contract, out of which the declaratory action and deed arose, that had references to the residential development purpose of the original contract. 4 Respondents kept title to, and possession of, tract 3, which abutted on the Calvert Property. Petitioner’s brief to the Court stated: “Appellees retained tract 3 that adjoined tracts 1 and 2” (emphasis added). Respondents do not contradict this statement of petitioners. Moreover, respondents adduced no evidence to the contrary, nor any that sought to quantify the effect of the abutment, adjacency or adjoinment.

It is not easy to discern from looking at the maps and plats in the record the extent of the respondents’ ownership of lands adjacent to the lands at issue. At least some of that type of *26 documentary evidence, standing alone, can certainly be construed as indicating minimal actual physical contact between the properties, i.e., tracts 1, 2 and 3, as depicted on the plat attached to the 1987 contract. However, no issue was raised or evidence adduced by respondents that they did not retain land abutting the subject property through which subsurface access might be possible.

At the trial below, accessing the minerals from the adjoining property of the respondents was touched-on in cross-examination of a witness for the petitioners.

Respondents’ counsel: “Why would you buy one [piece of property] that had mineral rights reserved?”
Petitioner: “Because it is not inconceivable that any oil and gas that they believe to be under the surface could be extracted without disturbing the surface.”
Later petitioner’s representative was asked:
Respondents’ counsel: “... .What rights do you think they have?”
Petitioner: “They have the right to any income that would be produced by any oil or gas that was removed from underground.”
Respondents’ counsel: “So long as that came from — was siphoned off without touching your property.”
Petitioner: “They have adjoining property.”
Respondents’ counsel: “That may be true and it may not be true, but so long as they don’t come on your property, as long as they can somehow magically get these minerals from outside your property, they can get to it. Is that what you are saying?”
Petitioner: “Yes.”

No evidence contrary to the testimony of this witness was presented by respondents. The evidence proffered by petitioner is the only evidence in the record as to accessibility from the adjoining property.

Additionally, in petitioner’s opening argument to this Court, it stated:

*27 “He [respondents] has an adjoining piece of property. He could drill a well, or whatever, to get down to gas, oil on his own property and he could take the substance out from under this property as long as he can do it without interference. That’s a reasonable use of his rights.”

Respondents, in their oral argument, as in their brief, never challenged petitioner’s assertions that they owned an abutting parcel of property, and never, at the trial, in their brief to this Court, or in oral argument, posited that any minerals, i.e., coal, gas or oil at issue could not be mined from that abutting property. During respondents’ oral argument, there were additional acknowledgments that respondents retained abutting property. The following occurred:

Judge Harrell: “What are your client’s rights with regard to that lot? Can you just come in there and — ”
Respondent’s Counsel: “ — start tearing it up”
Judge Harrell: “ — prospect with a test well?”
Respondent’s Counsel: “I think the answer to that question is that we have a reasonable right to access the minerals.” 5
Respondent’s Counsel: “I don’t think ... my client can go in and raze the development.”
Judge Cathell: “My understanding is when you reserve mineral rights you reserve the right to mine in from the side, but I could be wrong about that.”
Respondent’s Counsel: “I would respectfully disagree with that your Honor, but, if it were to be proven that was the least intrusive way to get at the minerals then that would be the most reasonable use.”
*28 Judge Wilner: “[Do your clients own] abutting property?” Respondent’s Counsel: “Yes.”
Judge Wilner: “So there is the possibility then of using that property to extract?”
Respondent’s Counsel: “But, we can’t speak to that possibility.”

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Bluebook (online)
816 A.2d 854, 373 Md. 18, 155 Oil & Gas Rep. 511, 2003 Md. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calvert-joint-venture-140-v-snider-md-2003.