Glass v. Skelly Oil Company

469 S.W.2d 237, 39 Oil & Gas Rep. 307, 1971 Tex. App. LEXIS 2820
CourtCourt of Appeals of Texas
DecidedMay 26, 1971
Docket6167
StatusPublished
Cited by7 cases

This text of 469 S.W.2d 237 (Glass v. Skelly Oil Company) 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
Glass v. Skelly Oil Company, 469 S.W.2d 237, 39 Oil & Gas Rep. 307, 1971 Tex. App. LEXIS 2820 (Tex. Ct. App. 1971).

Opinion

*238 OPINION

RAMSEY, Chief Justice.

Skelly Oil Company, Plaintiff Appellee, brought this action for declaratory judgment to determine the validity of oil and gas leases. The State of Texas intervened seeking validation of the leases. The Appellants, Lynda Ruth Ballenger Glass, et vir, and Barbara Sue Ballenger Squire, et vir, were Defendants, and filed a cross-action asserting the invalidity of the leases or, in the alternative, their right to participate in the proceeds from the leases. The trial Court upheld the validity of the leases and denied Appellant’s cross-action, from which judgment, this appeal was perfected. We affirm.

The land involved is mineral classified land. It was owned one-half by A. D. Neal and one-half by Roxie Neal. The minerals are owned by the State of Texas, subject to the right of the owner of the surface to execute oil and gas leases as provided in the Relinquishment Act, Art. 5367, Vernon’s Ann.Civ.St.

A. D. Neal died in 1950. His will, which was filed and probated, contained provisions concerning the land described as the “Alan H. Robertson Ranch”, being the land in question, as follows:

(a) “I give my nephew, Ira Stanley - Lethco, all of my interest in Section 20, Block 142, T. & St. L. Ry. Co. Survey, Pecos County, Texas, together with an undivided ⅛ interest in and to said Robertson Ranch, for and during his natural life, and upon his death, then to the children of his body that may survive him, in fee simple;
(b) “I give to my nephew, Nelson Lethco, a one-sixth (⅛) interest in and to said Robertson Ranch, exclusive of the aforesaid Section 20, Block 142 for and during his natural life, and upon his death, then to the children of his body that may survive him, in fee simple, but in the event of his death without leaving any child or children surviving him, then the remainder of his said one-sixth (⅛) interest shall pass to and vest in the children of Ira Stanley Lethco, in fee simple;
(c) “I give to my nephew, Jim Oliver Neal, an undivided one-sixth (⅛) interest in and to said Robertson Ranch, exclusive of the aforesaid Section 20, Block 142, for and during his natural life, and upon his death, then to the children of his body that may survive him, in fee simple, but in the event of his death without leaving a child or children surviving him, then the remainder of said one-sixth (⅛) interest shall pass to and vest in my niece, Dollie Ruth Neal Ballenger, for and during her life, and upon her death, then to the children of her body that may survive her, in fee simple;
(d) “I give to each of the foregoing life tenants, during the period of their life tenancies, the right and power to lease said lands for oil, gas, and mineral production, the primary term of any lease not to exceed ten (10) years in duration and so long thereafter as oil, gas or other minerals or either of them, are produced in paying quantities, and to lease said lands for grazing purposes for a term or terms not to exceed ten (10) years in duration. Each of said tenants shall collect, receive and retain as their own respective property all bonuses, delay rentals and royalties accruing from production and grazing rentals in proportion to the acreage so leased.”

The will further provided that the life estates were devised on condition that if any attempt was made by any of the life tenants to alienate, mortgage or sell the life estate or if any lien was attempted to be affixed by a life tenant, then all rights *239 of the life tenant should immediately cease and the property vest in the successor in interest as provided in the will.

Jim Oliver Neal died without issue, and his interest vested in Dollie Ruth Neal Ballenger. On December 1, 1967, Roxie Neal, a feme sole, Dollie Ruth Neal Bal-lenger, a feme sole, Ira Stanley Lethco and Nelson Lethco executed two leases, acting individually and as agents of the State of Texas, as Lessors, to Skelly Oil Company, as Lessee, and received therefor, the sum of $192,000.00 and a like amount being paid to the State of Texas.

The trial Court filed its findings of fact and conclusions of law. Appellants in their points of error three, four, five and six, complain that the Court erred in the following respects:

(1) In concluding that the life tenants are the “owners of the soil” as provided in the Relinquishment Act without the joinder of the remainder-men;
(2) In concluding that the leases are valid as covering the full interest; and,
(3) In concluding that the life tenants should receive the full consideration; and,
(4) In concluding that the remaindermen be denied any relief in their cross-action.

The Appellants (complaining remainder-men), are the daughters of Dollie Ruth Neal Ballenger.

The parties entered into a stipulation regarding the facts above recited. In addition, it was stipulated that the two Appellants and one other child not appealing, are all of the children of Dollie Ruth Neal Ballenger. That Ira Stanley Lethco has three children and Nelson L. Lethco has three children.

Appellants urge that in view of the fact that the State is the owner of the minerals, the only rights that A. D. Neal ever had were those granted under the Relinquishment Act, and therefore:

(1) He was entitled only to that portion of the benefits from leases he made during his lifetime (Citing Empire Gas & Fuel Co. v. State, 121 Tex. 138, 47 S.W.2d 265 (1932); and,
(2) Since he had no power to alienate the right during his lifetime, he would logically have no power to exercise control by his will, and such provision of his will should be declared void.

Under these four points of error, three basic proportions are to be determined, namely:

(1) Whether or not the oil and gas leases are valid; and,
(2) If valid, do the leases cover only the life estate interests of the lessors; and,
(3) Whether or not the remaindermen are entitled to share in the proceeds of the bonuses, rentals, and royalties.

The Relinquishment Act, Art. 5367, provides that the owner of the soil shall be the agent for the State and Article 5368 authorizes the owner to lease for oil and gas. The purpose of the act was to “promote the active cooperation of the owner of the soil and to facilitate the development of its oil and gas resources.” Greene v. Robison, 117 Tex. 516, 8 S.W.2d 655 (Sup.Ct.1928).

The Courts have applied a rather rigid and literal interpretation of the act and have thwarted various attempts to circumvent its provisions by contractual arrangements or otherwise. Lewis v. Oates, 145 Tex. 77, 195 S.W.2d 123 (1946); Holt v. Giles, 150 Tex. 351, 240 S.W.2d 991 (Sup.Ct.1951); and Ussery v.

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Bluebook (online)
469 S.W.2d 237, 39 Oil & Gas Rep. 307, 1971 Tex. App. LEXIS 2820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glass-v-skelly-oil-company-texapp-1971.