Oryx Energy Co. v. Shelton

942 S.W.2d 637, 1996 Tex. App. LEXIS 5449, 1996 WL 687025
CourtCourt of Appeals of Texas
DecidedNovember 26, 1996
Docket12-94-00045-CV
StatusPublished
Cited by14 cases

This text of 942 S.W.2d 637 (Oryx Energy Co. v. Shelton) 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
Oryx Energy Co. v. Shelton, 942 S.W.2d 637, 1996 Tex. App. LEXIS 5449, 1996 WL 687025 (Tex. Ct. App. 1996).

Opinion

OPINION ON MOTIONS FOR REHEARING

HOLCOMB, Justice.

Both Oryx Energy Company and R.B. Shelton filed motions for rehearing. After reconsidering the holding of our original opinion and other questions raised by the parties’ motions, we grant R.B. Shelton’s mo *640 tion in part, overrule Oryx Energy Company’s motion, withdraw our original opinion, and substitute the following opinion:

Appellant Oryx Energy Company (“Oryx”) appeals the trial court’s judgment which awarded R.B. Shelton, Independent Executor and Trustee of the Estate of Marian Shelton (the “Estate”), $13,500 in actual damages for unreasonable use of the surface rights in a certain tract and $60,000 in punitive damages. Oryx presents five points of error complaining that the evidence was both legally and factually insufficient to support the jury’s verdict. In its last point of error, Oryx contends that the trial court erred in failing to instruct the jury on the duties owed by an oil company to the surface owner. We will affirm in part and reverse and render in part.

In 1904, the owners of a 1,081 acre tract of land near Hitts Lake formed the Hitts Lake Association (the “Association”). The Association members agreed to limit ownership in the tract to eight shares. Each owner held an undivided one-eighth interest in the tract and was entitled to set off twenty acres for construction of a residence. J.A. Bergfeld (“Bergfeld”) held one of the eight shares of the Association.

In 1944, the Association members entered into an oil and gas lease with Sun Oil Company, which later became known as Oryx. Bergfeld ratified the lease in 1948. Although the parties executed the lease in 1944, Sun first drilled a well in 1953. Since 1953, Sun, or its successor Oryx, has drilled approximately fifty wells on the lease.

Upon Bergfeld’s death, his share in the Association passed to his children, Marian Shelton, Marie Dillard, and Julius L. Berg-feld. After the death of Marian Shelton in 1984, her son, R.B. Shelton, on behalf of Marian’s estate, acquired Marie and Julius’ interests in the Association share.

In 1987, R.B. Shelton, individually (“Shelton”), filed a lawsuit against Sun alleging that it had negligently conducted its oil field operations, had excessively used the surface, and had polluted the property and the lake. In 1987, Shelton did not own an interest in the Association share. In February 1993, Shelton amended his petition to assert these same claims against Sun’s successor, Oryx, and to make such allegations in his capacity as independent executor and trustee of Marian’s estate (the “Estate”). Based on the two-year statute of limitations, the trial court limited the Estate’s claims against Oryx to actions of Oryx which occurred on or after February 26, 1991. The jury found that Oryx had not been negligent in its lease operations, but that Oryx had used more of the surface than was reasonably necessary. The jury awarded the Estate $13,500 in actual damages for permanent damage to the Hitts Lake property. Additionally, the jury found that Oryx’s actions amounted to gross negligence or malice and awarded the Estate $60,000 as punitive damages. The trial court rendered judgment based on the verdict, and Oryx appeals the judgment.

In its first, second, and third points of error, Oryx contends that the evidence was legally or factually insufficient to support the jury’s findings that Oryx used more of the surface than was reasonably necessary, that the Estate suffered any permanent damages as a result of Oryx’s conduct after February 26, 1991, and that Oryx engaged in any conduct at any time which caused damage to the Estate.

To consider a “no evidence” point, an appellate court must consider only the evidence and inferences which tend to support the finding of the jury and disregard all evidence and inferences to the contrary. Federal Pac. Elec. Co. v. Woodend, 735 S.W.2d 887, 893 (Tex.App.—Fort Worth 1987, no writ). If there is any probative evidence to support the jury’s finding, the appellate court must overrule the “no evidence” point and uphold the jury’s finding. On the other hand, an appellate court must sustain a no evidence point “when the record discloses: (1) a complete absence of evidence of a vital fact; (2) the rules of law or evidence bar consideration of the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a mere scintilla; or (4) the evidence conclusively shows the opposite of the vital fact.” Cadle Co. v. Castle, 913 S.W.2d 627, 633 (Tex.App.—Dallas 1995, no writ).

*641 Once an appellate court determines that there was some evidence to support the jury’s verdict, the court must then determine if the evidence is factually sufficient. When reviewing a jury verdict for factual sufficiency, an appellate court must consider and weigh all of the evidence and set aside the verdict only if it is so contrary to the overwhelming weight of the evidence as to be clearly wrong and unjust. Cain v. Bain, 709 S.W.2d 175, 176 (Tex.1986). “The appellate court is not a factfinder, and may not substitute its judgment for that of the jury, even if a different answer could be reached on the evidence.” Lehmann v. Wieghat, 917 S.W.2d 379, 384 (Tex.App.—Houston [14th Dist.] 1996, writ denied).

The holder of an oil and gas lease, in the absence of a specific contractual provision relating to surface damages, has the legal right to use as much of the surface as is reasonably necessary to comply with the terms of the lease and to carry out its purposes. Macha v. Crouch, 500 S.W.2d 902, 904 (Tex.Civ.App.—Corpus Christi 1973, no writ); Finder v. Stanford, 351 S.W.2d 289, 291-92 (Tex.Civ.App.—Houston 1961, no writ). “A person who seeks to recover from the lessee for damages to the surface has the burden of alleging and proving either specific acts of negligence or that more of the land was used by the lessee than was reasonably necessary.” Humble Oil & Ref. Co. v. Williams, 420 S.W.2d 133, 134 (Tex.1967). A plaintiff must adduce evidence that the actions of an oil and gas operator were not reasonably necessary. Id.

Considering only the evidence that tends to support the jury’s finding of excessive use of the surface of the land, there is more than a scintilla of evidence to support the jury’s finding that Oryx unreasonably used more of the surface of the land at Hitts Lake than was necessary for the operations that it conducted on or after February 26,1991.

Question Two, as submitted to the jury, inquired as follows:

Did [Oryx] use more of the surface than was reasonably necessary proximately causing damages to Plaintiff?

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Bluebook (online)
942 S.W.2d 637, 1996 Tex. App. LEXIS 5449, 1996 WL 687025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oryx-energy-co-v-shelton-texapp-1996.