Reed v. Wylie

554 S.W.2d 169, 57 Oil & Gas Rep. 607, 20 Tex. Sup. Ct. J. 445, 1977 Tex. LEXIS 270
CourtTexas Supreme Court
DecidedJuly 8, 1977
DocketB-6184
StatusPublished
Cited by37 cases

This text of 554 S.W.2d 169 (Reed v. Wylie) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. Wylie, 554 S.W.2d 169, 57 Oil & Gas Rep. 607, 20 Tex. Sup. Ct. J. 445, 1977 Tex. LEXIS 270 (Tex. 1977).

Opinions

ON MOTION FOR REHEARING

REAVLEY, Justice.

The judgment of the Court of Civil Appeals was affirmed by our judgment on May 25, 1977. The motion for rehearing of Bette Reed, Trustee, is hereby overruled, but the opinion of May 25 is withdrawn and the following opinion delivered in its stead.

The ultimate question in this case is whether a 1950 deed, which reserved to the grantor one-fourth interest “in and to all oil, gas and other minerals on and under the land and premises herein described and conveyed,” reserved one-fourth of the interest in coal and lignite. The trial court rendered a summary judgment in favor of the owner of the granted surface estate, but the Court of Civil Appeals held that the proof did not support a summary judgment and remanded the case for trial. 538 S.W.2d 186. We agree with the Court of Civil Appeals that the summary judgment was unwarranted. We also agree that Acker v. Guinn, 464 S.W.2d 348 (Tex.1971) rules the ultimate issue of the case, but questions raised in the lower courts require that we make certain the effect of Acker v. Guinn before the case proceeds further.

By a deed dated September 30, 1950 W. C. Wylie and wife, Iva Jack Wylie, conveyed 223.385 acres of land in Freestone County to James F. Baker. That deed contained the following reservation:

In addition to the above and foregoing exception there is hereby excepted and reserved to the Grantors herein a one-fourth (V4) undivided interest in and to all oil, gas and other minerals on and under the land and premises herein described and conveyed; and it is hereby expressly agreed and understood that Grantors herein, their heirs and assigns shall have, and they hereby have the right of ingress and egress for the sole and only purpose of mining and operating for oil, gas and all other minerals, on and under said land, and to produce, mine, save and take care of said products, and to take all usual, necessary and convenient means for working, preparing and removing said [171]*171minerals from under and away from said land and premises.

All of the interest conveyed by this deed to James F. Baker is now owned by Bette Reed, Trustee. The controversy is between Wylie and Reed as to whether Wylie retained the ownership of a one-fourth interest in coal and lignite in this land by virtue of the reservation in the 1950 deed as set forth above. Reed initiated this suit seeking a declaratory judgment and other relief.

By summary judgment the trial court declared that Reed is the owner of “all of the coal and lignite that may be mined and removed” from the land “by open pit or strip mining methods.” Reed, the surface owner, was apparently satisfied with that trial court judgment. Wylie, the owner of the mineral interest reserved by the quoted provision, appealed to the Court of Civil Appeals. The Justices of that Court delivered three opinions. The principal opinion addresses only the inadequacy of the summary judgment proof. A concurring opinion states that the surface owner Reed is not entitled to all lignite “that may be mined by open pit methods” but by the rule of Acker v. Guinn is entitled to “only the lignite that must be removed by such methods.” 538 S.W.2d 189. A dissenting opinion states that the trial court’s judgment should be affirmed but reformed to declare that surface owner Reed “is the owner of all of the coal and lignite that must be mined and removed by open pit or strip mining” 538 S.W.2d 190.

Both parties sought writ of error in this Court. Reed contends that the trial court’s summary judgment was correct and should be affirmed. Wylie argues that Acker v. Guinn does not apply to the particular reservation here or to the substance of lignite. Wylie also is critical of the rule announced in Acker v. Guinn and argues that at the proper time, or here if necessary, it should be reexamined.

Wylie is joined by amici curiae briefs in the criticism of Acker v. Guinn. We are told that the mineral owner should expect to get all of the mineral substances beneath the surface of the land and that the law would afford more certainty in these affairs of titles and business if the ownership of the minerals were vested in that owner subject to the usual limitation that he may not make an unreasonable use of the surface in the production or extraction of the minerals. We are inclined to believe that in most of these cases of unnamed minerals which later become very valuable, the subsequent controversy decides which party will be enriched by a substance which took no part in the intention or bargaining of the parties to the instrument of conveyance. Furthermore, we are not convinced that a rule of law which leaves questions of reasonable use of the surface, in each instance where mineral substances at or near the surface are to be produced, will lead to more certainty and less litigation. But whatever the merits or demerits of the holding in Acker v. Guinn, it was established by this Court six years ago, and those persons who have dealt in mineral and land interests during these years have assumed that what we said in that opinion would continue to be the Texas law. They assumed correctly. We reaffirm the holding and the writing in Acker v. Guinn.

The Rule of Acker v. Guinn

(464 S.W.2d 348, Tex.1971)

The question in Acker v. Guinn was whether an interest in iron ore passed to the grantee in a 1941 deed which conveyed “an undivided V2 interest in and to all of the oil, gas and other minerals in and under, and that may be produced from” a tract of land in Cherokee County. The ore deposits in the area varied in thickness from a few inches to three or four feet and ranged in depths from outcropping on the surface to as much as fifty feet below the surface. There was no question but that the ore must be mined by the open pit or strip method. The Supreme Court affirmed a summary judgment in favor of the surface owner.

The Court wrote that a general intent rather than the specific thinking or intent of the parties should be the inquiry [172]*172where the instrument itself expresses no specific intent and it can only be supposed. The general intent of a grant or reservation of minerals by a fee owner was taken to be to create an estate in the mineral owner in the valuable substances usually removed from the ground by means of wells or mine-shafts but not by a method which would destroy or deplete the surface. The Court then declared that the following rule was “to be applied in determining whether an interest in the iron ore was conveyed by the deed” in that case:

Unless the contrary intention is affirmatively and fairly expressed, therefore, a grant or reservation of “minerals” or “mineral rights” should not be construed to include a substance that must be removed by methods that will, in effect, consume or deplete the surface estate.

The Court clearly based the disposition of Acker v. Guinn upon this rule and concluded that the conveyance of “all oil, gas and other minerals . . . that may be produced” included no interest in iron ore.

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Bluebook (online)
554 S.W.2d 169, 57 Oil & Gas Rep. 607, 20 Tex. Sup. Ct. J. 445, 1977 Tex. LEXIS 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-wylie-tex-1977.