Red Boot Production Company, Inc., Barbara Landrum, Widow of Claude John Landrum, Eric Landrum, Matthew Wayne Landrum, Scott Michael Landrum, Dawn Ewing Mills, Tamara Ewing, Sean Ewing, Laura Ewing, J. Patrick Morris Sr., Joseph J. Morris v. Samson Exploration, LLC and SM Energy Company F/K/A St. Mary Land & Exploration Company

Court of Appeals of Texas·Decided October 1, 2015·No. 09-14-00191-CV·Published

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

NO. 09-14-00191-CV

RED BOOT PRODUCTION COMPANY, INC., BARBARA LANDRUM, WIDOW OF CLAUDE JOHN LANDRUM, ERIC LANDRUM, MATTHEW WAYNE LANDRUM, SCOTT MICHAEL LANDRUM, DAWN EWING MILLS, TAMARA EWING, SEAN EWING, LAURA EWING, J. PATRICK MORRIS SR., JOSEPH J. MORRIS, THOMAS A. MORRIS, WILLIAM D. MORRIS, MICHAEL M. MORRIS, KATHLEEN MORRIS REINE AND ROBERT J. J. MORRIS, INDIVIDUALLY AND AS TRUSTEE FOR TROY EWING, Appellants

V.

SAMSON EXPLORATION, LLC AND SM ENERGY COMPANY F/K/A ST. MARY LAND & EXPLORATION COMPANY, ANN HARDER, PAULINE HARDER AS EXECUTRIX OF THE ESTATE OF RAY EDWARD HARDER JR., AND EDRA HARDER BOGUCKI, Appellees _______________________________________________________ ______________

On Appeal from the 172nd District Court Jefferson County, Texas

Trial Cause No. E-190,319 ________________________________________________________ _____________

MEMORANDUM OPINION

In this trespass to try title appeal that concerns oil and gas interests, the parties to the appeal dispute whether the trial court properly granted summary

judgment quieting title to a strip of land in use as an irrigation canal. Based on the summary judgment evidence, the trial court determined that a 1908 deed and a 1916 deed conveyed the grantor’s interest in the two tracts to the centerline of a canal that runs between the tracts. We hold that the summary judgment evidence was conclusive, and that the two deeds at issue indicate the grantor intended to convey his interest in the tracts that he sold to the centerline of the canal. Therefore, the trial court properly granted summary judgment in favor of the parties who acquired their minerals based on the grants in the 1908 and 1916 deeds, and we affirm the trial court’s judgment, which found against the parties claiming the 1908 and 1916 deeds did not include the right to explore and produce the minerals lying beneath the canal.

Background

This dispute concerns whether the deeds executed by a grantor that sold the tracts on both sides of a canal owned and intended to convey his fee simple interest in the property lying beneath the canal. The dispute over the ownership of the property arose after an oil and gas exploration company completed two successful gas wells that produce minerals in a location that lies beneath the canal.

In 2004, the Broussards 1 and the Harders 2 entered into an agreement with Samson Lone Star, LLC (now known as Samson Exploration, LLC, “Samson”) and St. Mary Land and Exploration Company (now known as SM Energy Company, “SM Energy”) to pool various mineral leases in which they owned interests to allow Samson and SM Energy to form the Paggi-Broussard Unit. Currently, Samson operates the Unit, which covers approximately 640 acres of land out of the James Gerish Jr. Survey in Jefferson County, Texas. Two producing gas wells are located within the boundaries of the Paggi-Broussard Unit.

A 200-foot-wide, 38-acre canal, which is currently operated by the Lower Neches Valley Authority (LNVA), runs across the surface of the tracts that form the Unit. The canal was constructed over a century ago after August Delaune, in

1 The Broussards are Louis M. Broussard, William Arthur Roane and William Arthur Roane Jr., Trustees of the William Arthur Roane Land Trust, Joe Broussard II and Martin Eloi Broussard, Trustees of the Loretta B. Casey Mineral Trust, James C. Broussard, Louis M. Broussard Jr. and Roland Polk, Agents and Attorneys-in-Fact for the J. E. Broussard Heirs Mineral Agency agreement, and Mixson Land Company. The Broussards were nonsuited after the trial court granted the motion for summary judgment, and they have not participated in the appeal.

2 The Harders are Ann Harder, Pauline Harder as Executrix of the Estate of Ray Edward Harder Jr. and Edra Harder Bogucki. The Harders, Samson, and SM Energy were some of the defendants who were parties when the trial court rendered the take-nothing judgment, and they have submitted briefs in the appeal.

1898, granted the Beaumont Irrigating Company a private easement to build a canal.

In 1908, Delaune executed the first of the deeds that is at issue in the appeal.

In the deed, Delaune conveyed the tract that lies on the south side of the canal; the parties dispute whether the 1908 deed included Delaune’s interest in the strip that lies between the southern edge of the canal and the center of the canal. The problem regarding whether the grantor intended to include the strip between the south border of the canal and the center relates to the 1908 deed’s metes and bounds description, which generally calls for borders that run along the “south edge of the Beaumont Irrigating Company’s Canal.” However, the 1908 deed indicates that Delaune intended to convey the entire tract, as “more particularly described” by the metes and bounds description that followed the general language conveying all of Delaune’s interest in the tract. Additionally, the deed does not contain any express reservation of Delaune’s interest in the strip of property that lies within the Canal Tract, and he did not reserve any interest in the minerals in the tract that lies to the south of the canal. The Broussards, the current property owners, trace their mineral interest to Delaune’s 1908 deed.

In 1916, Delaune executed the second deed that is at issue in this appeal. In it, Delaune conveyed a 480 acre tract that lies on the north side of the canal. With

respect to the property conveyed, the 1916 deed’s metes and bounds description, describes the boundary of the property as being in a corner “in the north line of the right of way of the Beaumont Irrigating Company canal; thence in an easterly direction following the north boundary line of the right of way[.]” The 1916 deed contains no express reservation of title to the strip of property lying beneath the canal, nor did Delaune reserve any of the minerals in the tract lying on the north side of the canal. The Harders, the current property owners, trace their ownership rights to the mineral estate to Delaune’s 1916 deed.

In 2009, Delaune’s descendants 3 leased the minerals that are at issue in this appeal to Red Boot Production Company, Inc. According to Red Boot, the metes and bounds descriptions in the two deeds indicate that Delaune never intended to convey the two strips lying beneath the canal, the Canal Tract, based on the language in the 1908 and 1916 deeds. In 2011, Red Boot sued Samson, SM Energy, the Broussards, and the Harders, and claimed that it had acquired a valid

3 The descendants of Delaune who were parties in the trial court and to the appeal consists of the following people: Barbara Landrum, Widow of Claude John Landrum, Eric Landrum, Matthew Wayne Landrum, Scott Michael Landrum, Dawn Ewing Mills, Tamara Ewing, Sean Ewing, Laura Ewing, J. Patrick Morris Sr., Joseph J. Morris, Thomas A. Morris, William D. Morris, Michael M. Morris, Kathleen Morris Reine and Robert J. J. Morris, individually and as Trustee for Troy Ewing. These parties filed a brief, which Red Boot, in addition to filing its own brief, joined.

oil and gas lease to the minerals beneath the Canal Tract. After some of the defendants filed a motion to join additional parties, Delaune’s descendants joined the suit as intervenors. In their petition in intervention, Delaune’s descendants alleged that they were the rightful owners of the Canal Tract, a strip of property that consists of approximately 38 acres that lies between the two tracts that Delaune sold in 1908 and 1916.

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Red Boot Production Company, Inc., Barbara Landrum, Widow of Claude John Landrum, Eric Landrum, Matthew Wayne Landrum, Scott Michael Landrum, Dawn Ewing Mills, Tamara Ewing, Sean Ewing, Laura Ewing, J. Patrick Morris Sr., Joseph J. Morris v. Samson Exploration, LLC and SM Energy Company F/K/A St. Mary Land & Exploration Company, (Tex. Ct. App. 2015).

Red Boot Production Company, Inc., Barbara Landrum, Widow of Claude John Landrum, Eric Landrum, Matthew Wayne Landrum, Scott Michael Landrum, Dawn Ewing Mills, Tamara Ewing, Sean Ewing, Laura Ewing, J. Patrick Morris Sr., Joseph J. Morris v. Samson Exploration, LLC and SM Energy Company F/K/A St. Mary Land & Exploration Company (Red Boot Production Company, Inc., Barbara Landrum, Widow of Claude John Landrum, Eric Landrum, Matthew Wayne Landrum, Scott Michael Landrum, Dawn Ewing Mills, Tamara Ewing, Sean Ewing, Laura Ewing, J. Patrick Morris Sr., Joseph J. Morris v. Samson Exploration, LLC and SM Energy Company F/K/A St. Mary Land & Exploration Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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