Meiners v. Texas Osage Cooperative Royalty Pool, Inc.

309 S.W.2d 898, 9 Oil & Gas Rep. 88, 1958 Tex. App. LEXIS 2383
CourtCourt of Appeals of Texas
DecidedJanuary 8, 1958
Docket5256
StatusPublished
Cited by10 cases

This text of 309 S.W.2d 898 (Meiners v. Texas Osage Cooperative Royalty Pool, Inc.) 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
Meiners v. Texas Osage Cooperative Royalty Pool, Inc., 309 S.W.2d 898, 9 Oil & Gas Rep. 88, 1958 Tex. App. LEXIS 2383 (Tex. Ct. App. 1958).

Opinion

WILLIAMS, Justice.

This suit was instituted by appellant, Elvis W. Meiners, for himself and as independent executor of the estate of Julia Meiners, deceased, as well as testamentary trustee of the Julia Meiners testamentary trust, and also as sole heir of the estate of Louis Heller, deceased, to quiet title, remove clouds from title, and for damages. Trial was had before a jury. At the conclusion of the evidence both parties stated in open court that there were no issues of fact to be submitted to the jury, whereupon the trial judge withdrew the case from the jury and rendered judgment in favor of appellees.

At the close of the evidence, the plaintiff took a nonsuit as to that part of his suit wherein he claimed to be “sole heir of the Estate of Louis Heller.” At the trial it was stipulated that before the transactions hereinafter related took place, Louis Heller was the owner of two sections of land in Upton County, Texas, which formed the basis of this law suit, and as such he was the common source of title for both plaintiff and defendants. The purpose of this suit was to {determine the ownership o? one-half of the minerals under this land, the leáse next referred to having terminated.

On March 13, 1926, Mr. Heller executed an oil and gas lease on this property to one W. R. Chancellor. The primary term was ten years. The lease provided for one-eighth of the proceeds of the oil and gas produced to be paid to the lessor. The lease expressly allowed either party the privilege of assigning his estate in whole or in part.

On or about May 2, 1929, there was formulated and created a trust association known as Texas Osage Cooperative Royalty Pool. The first paragraph of this trust agreement is as follows:

“A declaration of trust mad’e this second day of May, A. D. 1929, creating a trust to be known as the Texas Osage Co-operative Royalty Pool for the purpose of owning, holding, developing and exploiting for the benefit of its certificate holders, oil, gas and other mineral interests in Texas lands.”

Other excerpts from this trust agreement will be referred to and quoted hereafter. Another association, known as Flag Oil Company of Texas, was created about this time. Later, these two associations incorporated and became the defendants in the suit below.

On February 26, 1930, Mr. Heller conveyed an undivided one-half interest in and to all of the oil, gas, sulphur and other minerals that may be produced from the land, to Texas Osage Cooperative Royalty Pool and Flag Oil Company of Texas, by an instrument which, at least in form, was a full and complete mineral deed. This instrument recited that the conveyance was made subject to the W. R. Chancellor lease, but the conveyance covered and included one-half part of all the oil royalty and gas rental, or royalty due or to become due under the terms of said lease, and further provided that in the event the Chancellor lease, for any-reason, became canceled, forfeited or inoperative, then the lease interest *900 on said lands for oil, gas, sulphur and other mineral rights or privileges “shall be owned jointly by grantor and grantees, the said grantees owning an undivided one-half interest in all of the minerals.”

On December 2, 1930, Louis Heller conveyed the land in question, by warranty deed, to Mrs. Julia Meiners. No mention was made in the deed of the Chancellor lease or the mineral deed, but both instruments had been duly recorded in Upton County, Texas.

The appellant, plaintiff below, claims that the court erred in not granting judgment for him, mainly because he says that no title to the minerals passed by the — what he terms “so-called mineral deed” — executed by Heller to the Osage Pool and Flag Oil Company above referred to, because: (1) he had no title, at the time, to said minerals, because he had theretofore conveyed them to Chancellor by the lease above referred to; (2) the so-called “mineral deed” was not a deed, but was a part of an executory contract because it was coupled with the Osage trust agreement above referred to. Appellant contends that the conditions in these instruments were conditions precedent and were never complied with, and, therefore, title never passed. (3) He further contends that, by the deed from Heller to Julia Meiners above referred to Heller, as a matter of law, abrogated and rescinded said contract. We will discuss the above contentions in order:

(1) Appellant’s proposition that Heller owned no interest in the minerals because of his lease to Chancellor is thought to be entirely without merit as he, at that time, certainly had a determinable fee estate with a reversionary interest which he could convey. 31-A, Texas Jurisprudence, 192 and 195; Murphy v. Dilworth, 1941, 137 Tex. 32, 151 S.W.2d 1004.

(2) For the contention that the so-called mineral deed must be read in conjunction with the trust agreement, and that the two constitute only an executory contract, appellant must rely on the language of the two instruments. The so-called mineral deed above referred to is regular in form and states the consideration to be $1 and other good and valuable consideration. The only language in it that lends any weight to appellant’s contention that it must be read in conjunction with the trust agreement is the regular and customary clause granting the right of ingress and egress for the purpose of mining, drilling, exploring said land for oil, gas, sulphur, etc. We do not think that the granting of this right of ingress and egress or right to drill, etc., could possibly be construed to be a condition precedent or a promise to drill or explore for oil, etc.

The purpose of the trust is declared to be:

“The purpose of the creation of this trust is to bring together and hold oil and gas royalties and mineral interests in lands in the various counties of the State of Texas, and to manage, control and exploit said interests and to collect the revenue therefrom and to make distribution of the net proceeds from time to time to the certificate holders as herein provided.”

Appellant’s brief contains the following:

“Thereafter, on or about the 2nd day of December, 1930, when Louis Heller discovered that Texas Osage Cooperative Royalty Pool and Flag Oil Company of Texas had no machinery, tools or equipment whatsoever and no money or means to effectively and efficiently exploit and explore said land for oil, gas and other minerals, and that they did not intend to do so at the time that they induced him by their said declaration of trust agreement to enter into the contract with Texas Osage Cooperative Royalty Pool and Flag Oil Company of Texas, he thereupon rescinded and abrogated the contract on the ground of fraud, by selling and conveying the property and premises involved in this suit to Julia Meiners *901 for and in consideration of $9,600.00 to him in cash in hand paid, and thereby ended and terminated the contract. Clark v. Texas Coop. Inv. Co. [Tex.Com.App.], 231 S.W. 381.”

Throughout his brief, appellant takes the position that the trust agreement above referred to was an obligation to drill and explore for oil and other minerals, and that the obligation was a condition precedent to title to the minerals passing.

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Bluebook (online)
309 S.W.2d 898, 9 Oil & Gas Rep. 88, 1958 Tex. App. LEXIS 2383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meiners-v-texas-osage-cooperative-royalty-pool-inc-texapp-1958.