Collingwood Appalachian Minerals III, LLC, Oxy USA, Inc., Collingwood Appalachian Minerals I, LLC, and WACO Oil & Gas Co, Inc. v. Richard L. Erlewine

CourtWest Virginia Supreme Court
DecidedJune 15, 2023
Docket22-013921-0140
StatusPublished

This text of Collingwood Appalachian Minerals III, LLC, Oxy USA, Inc., Collingwood Appalachian Minerals I, LLC, and WACO Oil & Gas Co, Inc. v. Richard L. Erlewine (Collingwood Appalachian Minerals III, LLC, Oxy USA, Inc., Collingwood Appalachian Minerals I, LLC, and WACO Oil & Gas Co, Inc. v. Richard L. Erlewine) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Collingwood Appalachian Minerals III, LLC, Oxy USA, Inc., Collingwood Appalachian Minerals I, LLC, and WACO Oil & Gas Co, Inc. v. Richard L. Erlewine, (W. Va. 2023).

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA FILED January 2023 Term June 15, 2023 released at 3:00 p.m. EDYTHE NASH GAISER, CLERK SUPREME COURT OF APPEALS OF WEST VIRGINIA

Nos. 22-0139 and 22-0140

COLLINGWOOD APPALACHIAN MINERALS III, LLC, OXY USA, INC., COLLINGWOOD APPALACHIAN MINERALS I, LLC, and WACO OIL & GAS CO., INC., Defendants Below, Petitioners

v.

RICHARD L. ERLEWINE, Plaintiff Below, Respondent

Appeal from the Circuit Court of Wetzel County The Honorable David W. Hummel, Jr. Case No. 20-C-54

REVERSED AND REMANDED

Submitted: April 18, 2023 Filed: June 15, 2023

Michael C. Cardi, Esq. Andrew R. Cutright, Esq. Jordan C. Maddy, Esq. Roger L. Cutright, Esq. Bowles Rice LLP Cutright Law PLLC Morgantown, West Virginia Morgantown, West Virginia Counsel for Petitioners Collingwood Counsel for Respondent Appalachian Minerals I, LLC and Collingwood Appalachian III, LLC

W. Taylor Frankovitch, Esq. Bowles Rice LLP Canonsburg, Pennsylvania Counsel for Petitioner Oxy USA, Inc.

Richard W. Gallagher, Esq. Stephen F. Gandee, Esq. Robinson & McElwee PLLC Charleston, West Virginia Counsel for Petitioner Waco Oil & Gas Co., Inc.

CHIEF JUSTICE WALKER delivered the Opinion of the Court.

JUSTICE HUTCHISON concurs, in part, and dissents, in part, and reserves the right to file a separate opinion. SYLLABUS BY THE COURT

1. “‘A circuit court’s entry of a declaratory judgment is reviewed de

novo.’ Syllabus Point 3, Cox v. Amick, 195 W. Va. 608, 466 S.E.2d 459 (1995).” Syllabus

Point 1, City of Martinsburg v. Berkeley Cnty. Couns., 241 W. Va. 385, 825 S.E.2d 332

(2019).

2. “‘In case of two assessments of the same land, under the same claim

of title, for any year, one payment of taxes, under either assessment, is all the State can

require.’ Syllabus point 2, State v. Allen, 65 W. Va. 335, 64 S.E. 140 (1909).” Syllabus

Point 2, Orville Young, LLC v. Bonacci, 246 W. Va. 26, 866 S.E.2d 91 (2021).

3. “‘A deed made pursuant to a tax sale under a void assessment is void.’

Syllabus point 4, Blair v. Freeburn Coal Corp., 163 W. Va. 23, 253 S.E.2d 547 (1979).”

Syllabus Point 3, Orville Young, LLC v. Bonacci, 246 W. Va. 26, 866 S.E.2d 91 (2021).

4. “In order to create an exception or reservation in a deed which would

reduce a grant in a conveyance clause which is clear, correct and conventional, such

exception or reservation must be expressed in certain and definite language.” Syllabus

Point 2, Hall v. Hartley, 146 W. Va. 328, 119 S.E.2d 759 (1961).

5. “The term ‘ambiguity’ is defined as language reasonably susceptible

of two different meanings or language of such doubtful meaning that reasonable minds

i might be uncertain or disagree as to its meaning.” Syllabus Point 4, Est. of Tawney v.

Columbia Nat. Res., L.L.C., 219 W. Va. 266, 633 S.E.2d 22 (2006).

ii WALKER, Chief Justice:

Petitioners and Respondent each participated in a tax sale in 1989 after a

delinquent taxpayer failed to pay taxes on 135 acres of property1 and twenty-five percent

of its subjacent oil and gas estate. 2 Respondent bought the 135-acre property, and, on the

same day, Petitioners bought the twenty-five percent interest in the oil and gas estate.3 In

1993, Petitioners bought another twenty-five percent interest in the same oil and gas estate

after a tax sale resulting from a different taxpayer’s tax delinquency.4 Then, almost three

decades later, despite purchasing only the 135-acre property in the 1989 tax sale,

Respondent sued Petitioners and claimed he owned the fifty percent interest in the oil and

gas estate Petitioners purchased at the prior tax sales. Respondent argued that he owned

the oil and gas interest Petitioners purchased at the 1989 tax sale because the tax assessor

assessed the former, delinquent taxpayer inappropriately. And Respondent contended that

he owned the other twenty-five percent interest in the oil and gas estate purchased by

Petitioners in 1993 because the delinquent taxpayer had conveyed all of his oil and gas

As used in this Opinion, “135 acres of property” or “135-acre property” means the 1

property less its oil and gas estate. 2 The parties maintain, and the circuit court found, that all of the interests at stake in this appeal are total of a fifty percent interest in the oil and gas. But, as noted in the facts below, the deeds in the record prior to the 1991 and 1995 tax deeds refer to these interests as interests in the “oil and gas royalty.” To avoid confusion, we will refer to these interests as the parties did, rather than as the deeds provided. 3 These respective interests were conveyed to the parties by tax deeds issued in 1991. 4 This interest was conveyed to Petitioners by tax deed issued in 1995. 1 interest years earlier and did not own the oil and gas interest for which his taxes were

delinquent. The circuit court granted summary judgment for Respondent.

On appeal, we reverse the circuit court as to Petitioners’ 1991 deed because

Respondent, a fellow tax-sale purchaser, lacks grounds under the relevant statute to

challenge how the assessor assessed the delinquent taxpayer or the procedure by which the

sheriff sold the delinquent tax payer’s property interests. And we reverse the circuit court

as to Petitioners’ 1995 deed because the delinquent taxpayer clearly owned the twenty-five

percent interest in the oil and gas estate for which his taxes were delinquent. We remand

with directions that the circuit court enter summary judgment for Petitioners and to restore

the parties’ ownership interests to what they bargained for at the tax sales.

I. FACTUAL AND PROCEDURAL BACKGROUND

In 1909, J.E. Huff conveyed a 135-acre tract known as Huff Ridge to James

W. Sivert. The deed reserved “one-half of all the oil and gas royalty” to Mr. Huff. So, Mr.

Sivert owned the 135-acre property and fifty percent of the oil and gas royalty underlying

it. Starting in 1930, the Wetzel County Assessor taxed Mr. Sivert’s unsevered oil and gas

interests separately from the remaining value of the 135-acre property.

Next, Mr. Sivert conveyed the 135-acre property and twenty-five percent of

the oil and gas estate to Joseph and Myrtle Rogers by deed dated September 13, 1944; the

deed reserved to Mr. Sivert “one fourth of all the oil and gas royalty.” Then the Rogerses

2 conveyed to Osburn Dunham, by deed dated September 8, 1945, the 135-acre property and

their twenty-five percent interest in the oil and gas royalty. Mr. Sivert later conveyed “one-

fourth of all the oil and gas royalty” to Joseph Palmer by deed dated November 1, 1945.

And Mr. Palmer, by deed dated November 4, 1945, conveyed “the undivided 1/4 interest

of all the oil and gas royalty” to Mr. Dunham. So, as of November 1945, Mr. Dunham

owned the 135-acre property and fifty percent of the oil and gas royalty.5 He continued

paying separate tax assessments for the 135-acre property and subjacent oil and gas

interest.

Then by deed dated April 22, 1968, Mr. Dunham conveyed to Russell F.

Stiles “the same land” the Rogerses conveyed to Mr.

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Collingwood Appalachian Minerals III, LLC, Oxy USA, Inc., Collingwood Appalachian Minerals I, LLC, and WACO Oil & Gas Co, Inc. v. Richard L. Erlewine, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collingwood-appalachian-minerals-iii-llc-oxy-usa-inc-collingwood-wva-2023.