Fletcher T. Cook, Jr. v. Cimarex Energy Co., PAC Production Company, Moonlight Investments, Ltd., and Texilvania, Ltd.

CourtCourt of Appeals of Texas
DecidedMarch 31, 2021
Docket07-19-00099-CV
StatusPublished

This text of Fletcher T. Cook, Jr. v. Cimarex Energy Co., PAC Production Company, Moonlight Investments, Ltd., and Texilvania, Ltd. (Fletcher T. Cook, Jr. v. Cimarex Energy Co., PAC Production Company, Moonlight Investments, Ltd., and Texilvania, Ltd.) 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
Fletcher T. Cook, Jr. v. Cimarex Energy Co., PAC Production Company, Moonlight Investments, Ltd., and Texilvania, Ltd., (Tex. Ct. App. 2021).

Opinion

In The Court of Appeals Seventh District of Texas at Amarillo

No. 07-19-00099-CV

FLETCHER T. COOK, JR., APPELLANT

V.

CIMAREX ENERGY CO., PAC PRODUCTION COMPANY, MOONLIGHT INVESTMENTS, LTD, AND TEXILVANIA, LTD, APPELLEES

On Appeal from the 84th District Court Ochiltree County, Texas Trial Court No. 14,376, Honorable Curtis Brancheau, Presiding

March 31, 2021 MEMORANDUM OPINION Before QUINN, C.J., and PIRTLE and DOSS, JJ.

Central to this case is whether Appellant, Fletcher T. Cook, Jr. granted Appellees

– Cimarex Energy Company, PAC Production Company, Moonlight Investments, Ltd.,

and Texilvania, Ltd., (collectively Cimarex1) – a right-of-way across Cook’s land to the

1 The record does not show the relationship between Cimarex, PAC Production Company, Moonlight Investments, Ltd., and Texilvania, Ltd. We refer to the four defendants collectively as “Cimarex” for simplicity. location of two wells that Cimarex operates. The district court rendered summary

judgment in favor of Cimarex on two motions and denied Cook’s motion for partial

summary judgment on a claim for declaratory relief. Because we conclude that the

releases in dispute are ambiguous and that neither party showed itself entitled to

summary judgment, we reverse the judgment of the district court and remand the case

for further proceedings.

Background

Cook owns the surface estate of sections 48, 49, and 129, Block 43, H&TC Ry.

Co. Survey, Ochiltree County, Texas. To access this property from Highway 281 to the

north, Cook holds an easement parallel to the western line of Section 136. Section 136

is immediately north of section 129 and section 129 is immediately north of section 48.

Section 48 adjoins section 49. A diagram depicts the relevant tracts of land as follows:

In June 2007, Cook and Cimarex executed a “Contract of Release” providing for

Cimarex’s payment of surface damages and use of a road so that Cimarex could perform

2 drilling operations and maintenance on the Brownlee #2 well on section 49 pursuant to

an oil and gas lease executed with third parties. The 2007 release states in relevant part:

The undersigned Land Owner represents that he is the Land Owner of record of an interest in the surface and surface rights in and to the following described lands situated in the County of Ochiltree, State of Texas, Section 49, Block 43-H & T C RR Survey . . . on which Cimarex Energy Co. proposes to drill the BROWNLEE #49-2 Well for and in consideration of $12,500 to be paid by Cimarex Energy Co. the sufficiency of which is hereby acknowledged as full and final payment for surface damages, the undersigned does hereby release Cimarex Energy Co. . . . of any and all liability for surface damage done or to be done to said lands in connection with the parties’ drilling operations and maintenance of oil and gas production on the subject tract of land. This Release is intended to cover only those damages normally and typically associated with drilling and completion. …

2.) Access will be from an existing road leading from Section 48 . . . Cimarex is paying an additional $2,500 for a roadway easement across that part of Section 129 and Section 48 . . . for access to the drillsite in Section 49.

A payment of $15,000 is to be made to the following: [Cook] (Boldface type in original).

In February 2012, Cimarex contracted with the Brownlees to drill two additional

wells on section 49. On July 17, 2012, Cook signed a “contract of release” specific to

each well for a consideration of $25,000 per release. In relevant part, the 2012 releases

provide:

The Undersigned Landowner represents that he is the Land Owner of record of the surface and surface rights in and to the following described lands situated in the County of Ochiltree, State of Texas, being Section 49, Block 43, H&TC Survey, on which Cimarex Energy Co. proposes to construct the surface location, reserve pit and road to drill the Brownlee 49 #3H [#4H] well (the “Well”), said Well surface hole

3 location being . . . in said section 49, for and in consideration of $25,000.00 to be paid by Cimarex Energy Co., the sufficiency of which is hereby acknowledged as full and final payment for surface damages and water use related [sic] the drilling, testing, completion, recompletion, reworking, reentry, producing, and operation of the Well, including the lease road and base material provided by Land Owner, reserve pit and frac pit.

This Release is intended to cover only those damages normally and typically associated with drilling, testing, completion, recompletion, reworking, re-entry, producing, and operation of the Well.

This agreement is subject to the surface provisions in those certain Oil and Gas leases between the mineral owners in said Section 49 and Cimarex Energy Co., dated February 22, 2012.

Disagreements arose between Cook and Cimarex surrounding the meaning of the

2012 releases’ language regarding use of roads to the #3H and #4H drill sites. Cook has

refused Cimarex’s tender. In December 2014, Cook wrote a letter to Cimarex stating in

relevant part:

Cimarex is using my private road thru 136, 129 and 49 [sic] to access your wells in 49. I find nothing in the law or leases which would require me to provide Cimarex with ingress or egress. You should get a county map and it will show you there is no public roads to these sections. Cimarex is using my private road and has not contributed any maintenance or repairs nor obtained permission to use same.

Cook filed suit against Cimarex in April 2017 alleging that use of the road over sections

129 and 48 constituted trespass and sought injunctive relief. Cimarex answered and filed

a traditional motion for summary judgment in January 2018 alleging that its use of the

road was authorized by Cook; alternatively, Cimarex urged the affirmative defenses of

equitable estoppel, quasi-estoppel, and waiver.

4 The district court sustained Cimarex’s objections to Cook’s summary judgment

affidavit and other evidence and rendered summary judgment that Cook take nothing on

his claims of trespass and for injunctive relief. Upon Cimarex filing a second motion, the

district court again sustained Cimarex’s objections to Cook’s summary judgment

evidence; the court also denied Cook’s motion for summary judgment and granted

Cimarex’s second motion for summary judgment. On March 5, 2019, it signed a final

judgment decreeing that Cook take nothing by his claims. This appeal followed.

Summary Judgment Standard

We review de novo the trial court’s ruling on a motion for summary judgment.

Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex. 2009).

The movant for summary judgment filing a traditional motion must establish that no

genuine issue of material fact exists and that the movant is entitled to judgment as a

matter of law. See TEX. R. CIV. P. 166a(c); Provident Life & Accident Ins. Co. v. Knott,

128 S.W.3d 211, 215-16 (Tex. 2003). The court takes as true evidence favorable to the

nonmovant, indulges every reasonable inference in favor of the nonmovant, and resolves

any doubts in favor of the nonmovant. Valence Operating Co. v. Dorsett, 164 S.W.3d

656, 661 (Tex. 2005); Knott, 128 S.W.3d at 215. Interpretation of a contract involves

questions of law we consider de novo. Bluestone Nat. Res. II, LLC v. Randle, No. 19-

0459, 2021 Tex.

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Fletcher T. Cook, Jr. v. Cimarex Energy Co., PAC Production Company, Moonlight Investments, Ltd., and Texilvania, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/fletcher-t-cook-jr-v-cimarex-energy-co-pac-production-company-texapp-2021.