Petrohawk Properties, L.P., and P-H Energy, L.L.C. v. Noel Diane Jones

Procedural entryThis page is a short order in Petrohawk Properties, L.P., and P-H Energy, L.L.C. v. Noel Diane Jones. Read the opinion of the Court — 455 S.W.3d 753
Court of Appeals of Texas·Decided January 29, 2015·No. 06-14-00003-CV·Published

Opinion

ACCEPTED

06-14-00003-CV

SIXTH COURT OF APPEALS

TEXARKANA, TEXAS

1/29/2015 6:40:03 PM

DEBBIE AUTREY

CLERK

No. 06-14-00003-CV

FILED IN

In the 6th COURT OF APPEALS TEXARKANA, TEXAS

Sixth Court of Appeals 1/29/2015 6:40:03 PM DEBBIE AUTREY

Texarkana, Texas Clerk

PETROHAWK PROPERTIES, L.P.

AND P-H ENERGY, L.L.C., Appellants,

v.

NOEL DIANE JONES, ET AL., Appellees.

On Appeal from the 71st District Court, Harrison County, Texas (Cause No. 11-0849)

MOTION FOR REHEARING

Reagan W. Simpson

State Bar No. 18404700

Marc S. Tabolsky

State Bar No. 24037576

YETTER COLEMAN LLP

909 Fannin Street, Suite 3600 Houston, Texas 77010

Tel. (713) 632-8000

Fax (713) 632-8002

(additional counsel listed on inside cover)

Counsel for Appellants

Harry L. “Gil” Gillam, Jr. State Bar No. 07921800 GILLAM & SMITH L.L.P. 303 S. Washington Avenue Marshall, Texas 75670-4157 Tel. (903) 934-8450 Fax (903) 934-9257

Guy S. Lipe State Bar No. 12394600 Jason M. Powers State Bar No. 24007867 Stacy M. Neal State Bar No. 24060322 Nicholas N. Shum State Bar No. 24075072 VINSON & ELKINS L.L.P. 1001 Fannin St., Suite 2500 Houston, Texas 77002 Tel. (713) 758-2522 Fax (713) 615-5809

TABLE OF CONTENTS

PAGE

Index of Authorities .................................................................................... 4 Argument .................................................................................................... 6 I. The Court’s Interpretation of Defensible Title Is Incorrect. ........... 8

II. The Court’s Discussion of Horne’s Opinion and the Purported Damages Evidence Relies on Factual Inaccuracies. .................................................................................... 18

Conclusion and Prayer ............................................................................. 24 Certificate of Compliance Under Appellate Rule 9.4 .............................. 26 Certificate of Service ................................................................................ 27

INDEX OF AUTHORITIES

PAGE(S)

Americo Life, Inc. v. Myer, 440 S.W.3d 18 (Tex. 2014) ........................................................ 14, 15, 16

Anglo-Dutch Petroleum Int’l, Inc. v. Greenberg Peden, P.C., 352 S.W.3d 445 (Tex. 2011) ...................................................... 14, 15, 16

Apex Fin. Corp. v. Brown, 7 S.W.3d 820 (Tex. App.—Texarkana 1999, no pet.)........................... 10

Balandran v. Safeco Ins. Co. of Am., 972 S.W.2d 738 (Tex. 1998) .................................................................. 12

Birmingham Fire Ins. Co. of Pa. v. Am. Nat’l Fire Ins. Co., 947 S.W.2d 592 (Tex. App.—Texarkana 1997, writ denied) ............... 13

Forbau v. Aetna Life Ins. Co., 876 S.W.2d 132 (Tex. 1994) .................................................................. 10

Houston Exploration Co. v. Wellington Underwriting Agencies, Ltd., 352 S.W.3d 462 (Tex. 2011) .................................................................. 14

Houston Unlimited, Inc. Metal Processing v. Mel Acres Ranch, 443 S.W.3d 820 (Tex. 2014) ............................................................ 18, 24

Lewis v. E. Tex. Fin. Co., 136 Tex. 149, 146 S.W.2d 977 (1941) ................................................... 13

Petrohawk Properties, L.P. v. Jones, — S.W.3d —, 2015 WL 170225 (Tex. App.—Texarkana Jan. 14, 2015, no pet. h.) ......................................................................... 6

Sun Oil Co. (Delaware) v. Madeley, 626 S.W.2d 726 (Tex. 1981) .................................................................. 13

Rules TEX. R. APP. P. 9.4 ..................................................................................... 26 TEX. R. APP. P. 9.5 ..................................................................................... 27

Appellants Petrohawk Properties, L.P. and P-H Energy, L.L.C.

(collectively “Petrohawk”) respectfully submit this motion for rehearing in response to the opinion issued by the Court on January 14, 2015. Petrohawk Properties, L.P. v. Jones, — S.W.3d —, 2015 WL 170225 (Tex. App.—Texarkana Jan. 14, 2015, no pet. h.). Petrohawk requests that the Court consider the following:

ARGUMENT

While Petrohawk respectfully disagrees with the Court’s resolution of many of the issues addressed in the Court’s opinion, Petrohawk does not seek in this motion to reurge every argument that this Court has already rejected. That said, Petrohawk does seek rehearing on two points where the Court either relied on grounds that were not raised by any of the parties or where, Petrohawk respectfully submits, the Court’s opinion appears to be based on factual inaccuracies.

First, Petrohawk moves for rehearing on the Court’s conclusion that the district court properly instructed the jury that under the July 2008 agreement, Petrohawk was obligated to lease minerals for tracts

where the Lessors did not own 100% of the gross mineral interest in the Haynesville Shale. See Opinion, Section II.B.3.c, pp. 34-38.

In rejecting Petrohawk’s argument that the district court improperly instructed the jury that Lessor’s did not have to own 100% of the Haynesville Shale mineral interest in a tract before Petrohawk was required to pay a lease bonus, the Court adopted an interpretation of the contract that was not raised by any party in the district court or this Court. Compare Op. at 37 with Appellants’ Br. 41-43; Appellees’ Br. 22-26; 2 CR 270-76. Because the Court’s opinion relies on a rationale not previously raised by the district court or any of the parties, Petrohawk responds to the Court’s interpretation of the July 2008 agreement. Petrohawk respectfully submits that the Court’s interpretation of the agreement’s definition of Defensible Title is both incorrect based on the text of the July 2008 agreement itself and also improperly relies on extrinsic evidence of the parties’ subjective intent.

Second, Petrohawk respectfully submits that the Court’s conclusion that there was “more than a scintilla of evidence that supports the jury’s implied finding of no market value, the evidence is legally sufficient to support the award of damages” is incorrect and is

based on certain factual inaccuracies. See Opinion, Section II.B.5, pp. 41-44. I. The Court’s Interpretation of Defensible Title Is Incorrect.

Whether the district court properly instructed the jury that the “language in paragraph 3(iii) reading: ‘the title to the properties comprising the Subject Interests includes all rights in the Haynesville Shale and rights owned by Lessors in the Bossier Shale’ does not require the Lessors to own 100% of the gross Haynesville Shale mineral acreage on the tract” turns on whether the district court correctly interpreted paragraph 3(iii). The parties do not dispute that Petrohawk only had to pay lease bonuses on properties on which the Lessors had Defensible Title as defined paragraph 3(i-iii). Appellees’ Br. 22; Appellants’ Reply Br. 20.

Where the parties and the Court differ is how to interpret paragraph 3(iii). Petrohawk argued that Paragraph 3(iii)’s plain text, properly interpreted, provided that Defensible Title existed only if the Lessors had to own 100% of the gross mineral interest in the Haynesville Shale. The text compels this interpretation because the agreement provides that Defensible Title required Lessors to own “all

rights in the Haynesville Shale” but only “rights owned by Lessors in the Bossier Shale” for Lessors to have Defensible Title. Plaintiffs, however, argued that the Court should simply add by implication the word “Lessors’” between “all” and “rights.”

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Related

Apex Financial Corp. v. Brown
7 S.W.3d 820 (Court of Appeals of Texas, 1999)
Sun Oil Co. (Delaware) v. Madeley
626 S.W.2d 726 (Texas Supreme Court, 1981)
Birmingham Fire Insurance v. American National Fire Insurance
947 S.W.2d 592 (Court of Appeals of Texas, 1997)
Balandran v. Safeco Insurance Co. of America
972 S.W.2d 738 (Texas Supreme Court, 1998)
Forbau Ex Rel. Miller v. Aetna Life Insurance Co.
876 S.W.2d 132 (Texas Supreme Court, 1994)
Houston Unlimited, Inc. Metal Processing v. Mel Acres Ranch
443 S.W.3d 820 (Texas Supreme Court, 2014)
Lewis v. East Texas Finance Co.
146 S.W.2d 977 (Texas Supreme Court, 1941)
Americo Life, Inc. v. Myer
440 S.W.3d 18 (Texas Supreme Court, 2014)