Kenneth Hahn v. William Paul Gips, Lucille Fay Gips and Conoco Phillips Company

CourtCourt of Appeals of Texas
DecidedOctober 26, 2017
Docket13-16-00336-CV
StatusPublished

This text of Kenneth Hahn v. William Paul Gips, Lucille Fay Gips and Conoco Phillips Company (Kenneth Hahn v. William Paul Gips, Lucille Fay Gips and Conoco Phillips 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
Kenneth Hahn v. William Paul Gips, Lucille Fay Gips and Conoco Phillips Company, (Tex. Ct. App. 2017).

Opinion

NUMBER 13-16-00336-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

KENNETH HAHN, Appellant,

v.

WIILLIAM PAUL GIPS, LUCILLE FAY GIPS AND CONOCO PHILLIPS COMPANY, Appellees.

On appeal from the 267th District Court of DeWitt County, Texas.

MEMORANDUM OPINION Before Justices Rodriguez, Contreras, and Benavides Memorandum Opinion by Justice Benavides

This appeal arises out of the trial court’s granting of summary judgment regarding

a legal dispute over the ownership of mineral interests in certain land located in DeWitt

County. By nine issues, which we construe as two central issues with various sub-issues,

appellant Kenneth Hahn asserts the trial court erred by: (1) making certain rulings on

Kenneth’s summary judgment evidence; and (2) granting appellee William Paul Gips and Lucille Fay Gips’s (the Gipses) motion for summary judgment and denying his cross

motion for partial summary judgment. We reverse and render in part and remand in part.

I. BACKGROUND

A. Pre-Partition Ownership Interests

This case concerns an approximately 74.15-acre tract of land (the Parent Property)

located in DeWitt County. Various interests in the Parent Property were conveyed at

different times by George T. Hahn and Louise Hahn. The parties relevant to this appeal

are as follows: appellant Kenneth Hahn (Kenneth); his siblings George N. Hahn (George),

Charles Hahn (Charles), and Doris Steubing (Doris); appellees the Gipses; and appellee

ConocoPhillips Company (Conoco).

Prior to August 23, 2002, ownership of the Parent Property was divided as follows:

 Kenneth owned an undivided one-half interest of the Parent Property’s surface estate, with an undivided one-fourth interest in the mineral estate of the Parent Property;

 George owned an undivided one-half interest of the Parent Property’s surface estate, with an undivided one-fourth interest in the mineral estate of the Parent Property;

 Charles owned an undivided one-fourth interest in the mineral estate of the Parent Property; and

 Doris owned an undivided one-fourth interest in the mineral estate of the Parent Property.

B. The Partition Deeds

In August 2002, Kenneth and George executed two separate partition deeds. The

first partition deed recited that George and Kenneth were tenants in common of the surface

estate of the Parent Property and desired to partition their interests. The first partition

2 deed granted “all of that certain real estate lying and being situated” in George’s 37.07-

acre interest of land (Tract A) to Kenneth,

SUBJECT TO Reservation of one-half (1/2) of the minerals as stated in deed dated July 26, 2000, from Louise Hahn to Kenneth Hahn and George N. Hahn . . . .

SUBJECT TO Louise Hahn’s reservation of her undivided one-half (1/2) of the minerals as stated in deed dated July 26, 2000 from Louise Hahn to Kenneth Hahn and George N. Hahn . . . .

SUBJECT TO Gift Mineral Deed dated March 7, 2002 from Louise Hahn to Kenneth Hahn et al. . . .

SUBJECT TO all reservations, restrictions, oil, gas and mineral leases, covenant and charges, if any, affecting the above described property, which are valid and existing in the Office of the County Clerk of DeWitt County, Texas.

The second partition deed recited that George and Kenneth were tenants in common of

the Parent Property and desired to partition off their interests. The second partition deed

granted “all of that certain real estate lying and being situated” in Kenneth’s 37.07-acre

interest of land (Tract B) to George,

SUBJECT TO Reservation of one-half (1/2) of the minerals as stated in [a] deed dated July 26, 2000, from Louise Hahn to Kenneth Hahn and George N. Hahn . . . .

SUBJECT TO Louise Hahn’s reservation of her undivided one-half (1/2) of the minerals as stated in deed dated July 26, 2000 from Louise Hahn to Kenneth Hahn and George N. Hahn . . . .

SUBJECT TO Gift Mineral Deed dated March 7, 2002 from Louise Hahn to Kenneth Hahn et al. . . .

SUBJECT TO all reservations, restrictions, oil, gas and mineral leases, covenant and charges, if any, affecting the above described property, which are valid and existing in the Office of the County Clerk of DeWitt County, Texas.

3 A month later, Kenneth and George filed correction partition deeds replacing the

August 23, 2002 partition deeds, both of which contain essentially the same recitals and

conveyances, and stated that the correction partition deeds were effective “as of August

23, 2002.”

C. Sale to the Gipses and Subsequent Oil and Gas Lease

In late September 2002, Kenneth entered into an earnest money contract with the

Gipses to sell Tract A. The contract recites the following in relevant part:

A. Minerals, Royalties, and Timber Interests:

(1) Presently outstanding in third parties:

[M]ineral interest is owned in equal, undivided shares by George N. Hahn, Charles Hahn, Doris Steubing, and Kenneth Hahn[.]

(2) To be additionally retained by Seller:

Seller will include his undivided one-fourth (1/4th) mineral interest in the sale, but will retain one-half (1/2) of the royalty interest in that undivided one-fourth (1/4th) mineral interest (i.e. Seller will retain a one-eighth (1/8th) royalty interest).

In the time between entering into the contract and the closing of the sale on Tract

A, attorneys for the Gipses and Kenneth exchanged correspondence seeking modification

to the commitment for title insurance form regarding the parties’ respective mineral

interests. On December 3, 2002, Kenneth executed the general warranty deed for Tract

A to the Gipses (the Gips deed), which contained the following reservation:

SAVE AND EXCEPT and there is hereby reserved unto [Kenneth] herein, his heirs and assigns, an undivided one-half (1/2) non-participating interest in and to all of the royalty [Kenneth] now owns, (same being an undivided one-half (1/2) of [Kenneth’s] one-fourth (1/4) or an undivided one-eighth (1/8) royalty) in and to all of the oil royalty, gas royalty and royalty in other minerals in and under and that may be produced from the herein described property. [Kenneth] . . . shall not participate in the making of any oil, gas or mineral lease covering said property, nor shall they participate in any rental or shut-

4 in gas well royalty to be paid under any such lease. However, such reservation is subject to reversionary interest to surface owner 15 years from the date of the death of George T. Hahn, Deceased, by virtue of the Last Will and Testament of George T. Hahn, Deceased . . . .

In July 2010, the Gipses entered into an oil and gas lease with Burlington

Resources Oil & Gas, a subsidiary of Conoco. In 2011, Conoco requested that Kenneth

and the Gipses “stipulate as to their ownership” in Tract A. Pursuant to this request,

Kenneth and the Gipses stipulated that:

. . . . [I]t was the intent of the parties in the deed from [Kenneth] to [the Gipses] . . . that the interest reserved was a one-eighth (1/8) “of royalty” for a term of 15 years from June 9, 2002.

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Kenneth Hahn v. William Paul Gips, Lucille Fay Gips and Conoco Phillips Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenneth-hahn-v-william-paul-gips-lucille-fay-gips-and-conoco-phillips-texapp-2017.