ConocoPhillips Co. v. Ramirez

534 S.W.3d 490
CourtCourt of Appeals of Texas
DecidedJune 7, 2017
DocketNo. 04-15-00487-CV
StatusPublished
Cited by2 cases

This text of 534 S.W.3d 490 (ConocoPhillips Co. v. Ramirez) 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
ConocoPhillips Co. v. Ramirez, 534 S.W.3d 490 (Tex. Ct. App. 2017).

Opinion

OPINION

Opinion by:

Rebeca C. Martinez, Justice

ConocoPhillips Company and Rodolfo C. Ramirez, Individually and as Independent Administrator of the Estate of Ileana Ramirez, and El Milagro Minerals, Ltd. appeal the trial court’s judgment declaring that appellees Leon Oscar Ramirez, Jr., individually, and Jesus M. Dominguez, as Guardian of the Estate of Minerva Clem-entina Ramirez, an Incapacitated Person, each own a 1/12 mineral interest in the Las Piedras Ranch, and that ConocoPhillips’s three leases are not binding on their mineral interests because, as contingent re-maindermen, they were required to sign the leases and did not. ConocoPhillips also challenges the • amount of cotenancy accounting awarded and the award of attorneys’ fees. Based on our analysis set forth below, we affirm the trial court’s judgment in its entirety,1 except fór a reformation to correct a clerical error.

Background and Procedural History

This appeal arises out of a dispute over the ownership of a ¼ interest in the mineral estate underlying a 1,058-acre tract of land known as “Las, Piedras Ranch” in Zapata County, Texas. ConocoPhillips owns several leases on the land which have produced oil and gas since 1995. Conoco-Phillips has been paying royalties on the production to the members of the Ramirez family who signed the leases in 1993 and 1997. Appellees Léon Oscar Ramirez, Jr. and his sister Minerva Clementina Ramirez, whose estate is represented by a guardian due to her incapacity, (collectively, “the Grandchildren”) are not signatories on the leases and sued ConocoPhillips, as well as their uncle Rodolfo Ramirez and his company El Milagro Minerals, Ltd., to recover damages for their share of production from Las Piedras Ranch.

The early part of the chain of title to the mineral estate in Las Piedras Ranch is undisputed. Leon Juan Ramirez and his sister Felicidad each inherited a ½ undivided interest (surface and minerals) in seven tracts of land totaling 7,016 acres located in Zapata Gounty, Texas. In 1941, they partitioned the surface estate so each fully owned 3,508 surface acres, but they expressly reserved their ⅛ undivided interests in the mineral • estate underlying the whole 7,016 acres. In the surface partition, Leon Juan received the land that includes the 1,058-acre Las Piedras Ranch. Leon Juan died in 1966 and his will de[497]*497vised half of his real property interests to his wife Leonor and half to their-three children, Rodolfo, Ileana, and Leon Oscar, Sr. Therefore, Leonor inherited a ½ interest in the 3,508-acre surface estate, which includes Las Piedras Ranch, and a ¼ undivided mineral interest (half of Leon Juan’s undivided ½ mineral interest) in the entire 7,016 acres, which includes Las Piedras Ranch. The three children as a group inherited the same, with each owning a 1/6 interest in the. 3,508-acre surface estate and a 1/12 undivided mineral interest in the whole. The three children, Rodolfo, Ileana, and Leon Oscar, Sr., are referred to by the parties as, “the Older Generation.”

Ownership of the surface estate of Las Piedras Ranch is not at issue in this case. It is important to note, however, that, during the 1970s, Leonor and her three children, i.e., the Older Generation, engaged in a series of partitions and exchanges of the surface estate they eo-owned, with' each partition and exchange agreement containing an express reservation of their undivided mineral interests in the whole 7,016 acres. In the 1975 Partition Agreement, Leonor and the Older Generation partitioned the 3,508-acre surface estate they inherited from Leon Juan into separate tracts of farm and ranch land using names such as “Headquarters Ranch,” “East El Milagro Pasture,” and “Las Piedras Pasture.” As a result of the partition, Ileana and Leon Oscar, Sr. jointly and equally owned the full surface estate of the 1,058 acres “situated partly in the north one-half ... of Porción 21 and partly in Porcion 22, known as Las Piedras Pasture.” In the 1978 Exchange Deed, Leonor exchanged her full interest in the surface estate of Headquarters Ranch for Ileana’s ½ surface interest in the “1,058 acres of land ... known as ‘Las Piedras Ranch.’ ” Both Leonor and Ileana expressly reserved' their undivided mineral interests. Thus, at the time Leonor executed her Will in 1987, she owned a ⅛ interest in the surface estate of Las Piedras Ranch (with the other ⅛ interest owned by her son Leon Oscar, Sr;), and an undivided ¼ mineral interest in the whole 7,016 acres, which included Las Pie-dras' Ranch. Each of the Older Generation’s 1/12 undivided mineral interest in the whole similarly remained unchanged by the partition and exchange deeds.

• The disputed portion of the chain of title to Leonor’s ⅛ mineral interest in Las Pie-dras-Ranch begins in 1990, when Leonor’s Will was probated. In her Will, Leonor devised to her son Leon Oscar, Sr. “all of my right, title and interest in and to Ranch ‘Las Piedras’ out of Porciones 21 & 22' ... during the term of his natural life.” (emphasis added); Leonor’s Will further provided that, upon Leon Oscar, Sr.’s death, “the title shall vest in his children then living in equal shares.” (emphasis added). Finally, Leonor’s Will contained a residuary clause providing that the residue of her estate would pass in equal shares to her three children, Leon Oscar, Sr., Ileana, and Rodolfo (i.e., the Older Generation). Leon Oscar, Sr.’s life estate terminated when he died in 2006. The current dispute concerns whether “the title” inherited by. Leon Oscar, Sr.’s three children, Leon, Jr., Minerva, and Rosalinda (who are Leonor’s grandchildren and are referred to collectively as “the Grandchildren”)2 was only to Leonor’s ½ interest in the 'surface estate of Las Piedras Ranch, or also included Leonor’s ⅛ mineral interest in Las Piedras Ranch. '

[498]*498In 2010, the Grandchildren filed suit against ConocoPhillips3 and their uncle Rodolfo and.his company El Milagro Minerals, Ltd., seeking the following declarations: (1) together the Grandchildren own a ¼ mineral interest in Las Piedras Ranch pursuant to the chain of title; (2) the three oil and gas leases with ConocoPhillips that were signed by the Older Generation in 1993 and 1997 (the “Leases”) are not binding on their collective ⅛ mineral interest because, as contingent remaindermen of their father’s life estate at that time, their signatures on the leases were required; and (3) they are entitled to a cotenancy accounting and payment for their proportionate share of production by ConocoPhil-lips pursuant to the Leases. In addition to their request for declaratory judgment on the above matters, the Grandchildren pled a.trespass to try title claim and a cotenan-cy accounting claim for their share of gas proceeds under the Texas Natural Resources Code, and pled for recovery of their attorney’s fees under the Natural Resources Code. The Grandchildren also pled other claims for fraud and bad faith cotenancy, which were dismissed.

Multiple summary judgment motions were filed by all parties and ruled on by the trial court over the four-year course of the litigation. In relevant part, the trial court granted partial summary judgment in favor of the Grandchildren on their trespass to try. title claim and. held that the Leases are not binding as to their mineral interests. The trial court denied Conoco-Phillips’s motion for partial summary judgment on “will construction,” and denied summary judgment on ConocoPhillips’s affirmative, defenses of limitations, ratification, and estoppel.

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534 S.W.3d 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conocophillips-co-v-ramirez-texapp-2017.