Perry Gas Transmission, Inc. v. Vest

609 S.W.2d 816, 68 Oil & Gas Rep. 549, 1980 Tex. App. LEXIS 4097
CourtCourt of Appeals of Texas
DecidedNovember 13, 1980
DocketNo. 5495
StatusPublished

This text of 609 S.W.2d 816 (Perry Gas Transmission, Inc. v. Vest) 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
Perry Gas Transmission, Inc. v. Vest, 609 S.W.2d 816, 68 Oil & Gas Rep. 549, 1980 Tex. App. LEXIS 4097 (Tex. Ct. App. 1980).

Opinion

DICKENSON, Justice.

The principal issue in this condemnation case is whether the evidence is legally and factually sufficient to support the jury’s findings of market value, before and after taking, of the strip of land actually taken and of the remainder of a large ranch. Perry Gas Transmission, Inc. condemned a pipeline easement across the V-Bar Ranch in Childress County. The ranch is owned by Sam Vest, Individually and as Trustee. Perry Gas also sought and was awarded the right to maintain a road down the pipeline, “and to use existing roads for ingress and egress” to its pipeline. Following a trial by jury, the rancher was awarded judgment for $252,726.06. Perry Gas appeals. We affirm.

The jury’s findings may be summarized as follows:

1. The fair market value of the strip of land covered by the easement for pipeline purposes was $8,000.00 before the taking and $1,000.00 after the taking.
2. The average market value per acre of the remainder of the 37,875.45 acres of land in the Vest Ranch, exclusive of the 71.44 acre strip of land covered by the easement for pipeline purposes, was $112.50 per acre before the taking and $106.00 after the taking.

The record shows that on June 16, 1978, Perry Gas condemned a strip of land (which is sixty feet wide) through the middle of the ranch. The Vest ranch contains 37,875.-45 acres, or 59.18 square miles of land. It is more than ten miles from the North boundary of the ranch to the South boundary of the ranch, and the pipeline crosses numerous internal ranch fences. Perry Gas also sought the right to operate, use, construct and maintain roads to their pipeline, the right to maintain a road down the pipeline, and the right to use existing privately owned ranch roads. The trial court’s judgment awarded Perry Gas a right of way and easement “for constructing, locating, maintaining, operating, renewing, repairing, inspecting, replacing, restoring and removing one pipeline for the transportation of natural gas over, across, under and upon a strip of land sixty (60) feet in width” across the ranch by reference to a survey line, together with the right “to use a road or maintain a road down the pipeline, and to use existing roads for ingress and egress” to the pipeline. Those existing roads belong to Vest and extend throughout the entire ranch.

Three expert witnesses testified as to the values of the land before and after the taking. The major dispute was over the value of the “remainder of the ranch,” on [818]*818either side of the sixty foot strip which was taken.

The first expert, Seth Woltz, was called as a witness by the rancher, and the jury accepted his values. Mr. Woltz lives in Seminole, Texas. He has been a professional real estate appraiser, analyst and consultant since 1946. He is past International President of the International Society of Real Estate Appraisers. He has also served as President of the West Texas Chapter in Lubbock and of the Permian Basin Chapter in Midland and Odessa. He has qualified for three different professional designations: S.R.A. (senior residential appraiser), S.R.P.A. (senior real property appraiser), and S.R.E.A. (senior real estate analyst). He has taught many courses and spoken on the subject throughout the United States and Canada. He has written several articles for publication. He helped organize the Right-of-Way Department for the Texas Highway Department. He has done appraisal work for many of the agencies of the federal government. His “normal territory” is about seven states, and he has testified as an expert witness many times, sometimes for the landowners and sometimes for the condemning authorities. He appraised for the federal government when they acquired the land for Big Bend National Park, Texas, Carlsbad Caverns National Park, New Mexico and White River National Park, Arkansas. He has evaluated many cattle ranches. He and his employees spent about 40 to 45 man days of work in evaluating the market value of the Vest Ranch and the effect of the pipeline. He described the “animal unit” valuation of a ranch, which is referred to by the Soil Conservation Service as a “safe stocking rate.” He testified that ranch land is sometimes valued on a “cost per animal unit” by typical buyers and sellers of this type property. This is a way of ascertaining market value, or what a willing buyer would pay and what a willing seller would accept. In forming his judgment as to the values of the Vest ranch, he considered a combination of things: a study of the prevailing market conditions, price being paid per animal unit, the condition of the ranch, the management that was involved, and whether it was ready to go or would require a lot of money to get it ready. He testified that the highest and best use of the property was a “mother cow” cattle operation. Other witnesses testified that this is the current use of the ranch and as to the condition of the ranch and its improvements. Mr. Woltz said that the range of value for animal units on ranches of the approximate size of the Vest Ranch in June of 1978 was from $2,500.00 to $2,900.00 per animal unit. He then testified as to the factors, such as availability of water, condition of fences, and distractions, which influence the market value per animal unit. Mr. Woltz testified that the Vest Ranch equated to 1,600 animal units, at a before condemnation value which he appraised at $2,665.00 per animal unit, or $4,264,000.00. That gives a value of $112.50 per acre for the entire ranch. He testified that the market value of the Vest ranch was reduced from $112.50 per acre to $106.00 per acre because of the gas pipeline and the rights of ingress and egress. He also testified that the value of the 71.44 acre strip of land was reduced about $7,000.00 in value, from a value of approximately $8,000.00 before the condemnation of the easement.

The second expert, Sam Adams, was called by Perry Gas. Mr. Adams lives at Wellington, Texas. He is part-time in real estate and part-time in construction. He attended some extension courses of Amarillo College at the Complex in Wellington. He evaluated the Vest Ranch at $125.00 per acre prior to the taking. He testified that clearing the right-of-way actually increased the value of the 71.44 acre strip and that there was no change in value as to the rest of the ranch. On cross-examination he agreed that real estate is the minor end of his work and that building. houses is the major part of his work. .

The third expert, Calvin Taylor, was called by Perry Gas. Mr. Taylor lives at Richland Springs, near Brownwood, Texas. He is a rancher, and he has also been in the appraisal business for 18 years. He did some right-of-way appraisals for the Texas [819]*819Highway Department in the Brownwood area. He attended highway department seminars and a school sponsored by the Society of Real Estate Appraisers. He has also done appraisals for banks and savings and loan associations in Brownwood and Brady, for the Small Business Administration and for the Internal Revenue Service. He valued the Vest Ranch at $150.00 per acre before the taking of the easement. He valued the strip taken at $22.50 per acre after the taking. As to the remainder of the ranch, he testified there was no reduction in market value because of the pipeline easement.

Perry Gas has briefed twelve points of error.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re King's Estate
244 S.W.2d 660 (Texas Supreme Court, 1951)
Standard Fire Insurance Co. v. Reese
584 S.W.2d 835 (Texas Supreme Court, 1979)
Texas Pipe Line Co. v. Hunt
228 S.W.2d 151 (Texas Supreme Court, 1950)
Fountain v. Ferguson
441 S.W.2d 506 (Texas Supreme Court, 1969)
Strange v. Treasure City
608 S.W.2d 604 (Texas Supreme Court, 1980)
Southwestern Public Service Co. v. Vanderburg
581 S.W.2d 239 (Court of Appeals of Texas, 1979)
State v. Carpenter
89 S.W.2d 194 (Texas Supreme Court, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
609 S.W.2d 816, 68 Oil & Gas Rep. 549, 1980 Tex. App. LEXIS 4097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-gas-transmission-inc-v-vest-texapp-1980.