Robert H. Henry Margaret Green Henry, Individually and as Trustee of Margaret Green Henry Trust U/W/O William H. Green, Jr., and as Trustee of Margaret Green Henry Trust U/W/O Elizabeth Moore Green Clayton Moore Henry And Helen Henry Wright v. George Ray Smith, Susan A. Tull and Shannon L. Riley, in the Capacities as Co-Executors of the Estate of C.B. Christie, Jr.

CourtCourt of Appeals of Texas
DecidedNovember 24, 2021
Docket02-20-00169-CV
StatusPublished

This text of Robert H. Henry Margaret Green Henry, Individually and as Trustee of Margaret Green Henry Trust U/W/O William H. Green, Jr., and as Trustee of Margaret Green Henry Trust U/W/O Elizabeth Moore Green Clayton Moore Henry And Helen Henry Wright v. George Ray Smith, Susan A. Tull and Shannon L. Riley, in the Capacities as Co-Executors of the Estate of C.B. Christie, Jr. (Robert H. Henry Margaret Green Henry, Individually and as Trustee of Margaret Green Henry Trust U/W/O William H. Green, Jr., and as Trustee of Margaret Green Henry Trust U/W/O Elizabeth Moore Green Clayton Moore Henry And Helen Henry Wright v. George Ray Smith, Susan A. Tull and Shannon L. Riley, in the Capacities as Co-Executors of the Estate of C.B. Christie, Jr.) 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
Robert H. Henry Margaret Green Henry, Individually and as Trustee of Margaret Green Henry Trust U/W/O William H. Green, Jr., and as Trustee of Margaret Green Henry Trust U/W/O Elizabeth Moore Green Clayton Moore Henry And Helen Henry Wright v. George Ray Smith, Susan A. Tull and Shannon L. Riley, in the Capacities as Co-Executors of the Estate of C.B. Christie, Jr., (Tex. Ct. App. 2021).

Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth ___________________________

No. 02-20-00169-CV ___________________________

ROBERT H. HENRY; MARGARET GREEN HENRY, INDIVIDUALLY AND AS TRUSTEE OF MARGARET GREEN HENRY TRUST U/W/O WILLIAM H. GREEN, JR., AND AS TRUSTEE OF MARGARET GREEN HENRY TRUST U/W/O ELIZABETH MORE GREEN; CLAYTON MOORE HENRY; AND HELEN HENRY WRIGHT, Appellants

V.

GEORGE RAY SMITH, SUSAN A. TULL, AND SHANNON L. RILEY, IN THE CAPACITIES AS CO-EXECUTORS OF THE ESTATE OF C.B. CHRISTIE, JR., DECEASED, Appellees

On Appeal from the 97th District Court Archer County, Texas Trial Court No. 2017-0100A-CV

Before Birdwell, Wallach, and Walker, JJ. Opinion by Justice Wallach OPINION

Appellants (Surface Owners), the surface estate owners of the Camp Creek

Ranch in Archer County, sued Appellees (Lessees), lessees of three oil and gas leases

on the ranch, seeking damages to the surface estate. Surface Owners asserted causes

of action for breach of contract, negligence, trespass, and nuisance. They also sought

declaratory relief and permanent injunctive relief to prevent surface damage in the

future. The trial court granted Lessees’ motion for partial summary judgment against

Surface Owners on their contract claim seeking to enforce surface covenants in the

mineral leases, which effectively dismissed Surface Owners’ breach of contract claim.

The remainder of Surface Owners’ claims were tried to a jury, which found in Surface

Owners’ favor on their negligence, nuisance, and trespass claims. The trial court

entered judgment on the jury’s verdict, awarded Surface Owners nominal damages for

trespass and minimal actual damages for negligence, incorporated the prior summary

judgment ruling on the contract claim, and denied permanent injunctive relief

regarding trespass and alleged violations of the Natural Resources Code stemming

from National Electric Code (NEC) violations. Surface Owners bring this appeal

complaining of (1) the trial court’s summary judgment on their breach of contract

claim and (2) the trial court’s refusal to grant permanent injunctive relief arising from

statutory violations and trespass. We sustain Surface Owners’ first issue and part of

their second issue.

2 First, we hold that the trial court erred in granting Lessees’ summary judgment

on the breach of contract claim. Therefore, we reverse the trial court’s judgment on

Surface Owners’ contract claim and remand the case to the trial court for further

proceedings on that claim. Second, we hold that the trial court did not abuse its

discretion in denying permanent injunctive relief to Surface Owners regarding

violations of the Natural Resources Code arising from violations of the NEC. We

therefore affirm that portion of the trial court’s judgment denying permanent

injunctive relief on that claim. Finally, we hold that the trial court abused its discretion

by denying Surface Owners’ request for injunctive relief arising from Lessees’ trespass

on Surface Owners’ surface estate. We therefore reverse that portion of the trial

court’s judgment denying permanent injunctive relief to Surface Owners for trespass

and remand the case to the trial court with instructions to enter judgment against

Lessees enjoining them from trespassing on Surface Owners’ property in the future.

I. Summary Judgment

A. Factual Background

Surface Owners (Robert H. Henry; Margaret Green Henry, Individually and as

Trustee of Margaret Green Henry Trust u/w/o William H. Green, Jr. and as Trustee

of Margaret Green Henry Trust u/w/o Elizabeth Moore Green; Clayton Moore

Henry; and Helen Henry Wright) own the surface estate of the Camp Creek Ranch, a

15,000-acre tract of agricultural land in Archer County. Lessees (George Ray Smith,

Susan A. Tull, and Shannon L. Riley, in the capacities as Co-Executors of the Estate

3 of C.B. Christie, Jr., Deceased) are the lessees of three oil and gas leases on the ranch,

the two “Mangold” leases and the “Ferguson” lease (collectively, the leases). The late

C.B. Christie, Jr., whose estate is being administered by Lessees Smith, Tull, and Riley,

obtained the Mangold leases and the Ferguson lease in 1961, 1962, and 1974,

respectively, from Surface Owners’ predecessors in title. Each lease contains special

surface covenants, including one that requires the lessee to bury oil and gas pipelines

to a certain depth at the request of the lessor. 1

When the leases were originally executed, the respective landowners—Claude

Miller (Mangold lands) and W.B. Ferguson (Ferguson lands)—owned both the surface

and mineral estates. Many years later, Miller and Ferguson conveyed the surface

estates to Surface Owners’ predecessors in interest, while reserving the mineral estates

1 The Mangold leases’ covenants state: “When requested by Lessor, Lessee shall bury pipelines below plow depth.” The Ferguson lease’s covenant provides: “Lessee shall bury all pipe lines below ordinary plow depth, and when requested by Lessor, shall bury same sufficiently deeper to permit mesquite root removal with a root plow, provided, no such pipe line need be buried deeper than sixty (60) inches in any event.” The leases also contain other covenants which reserve rights to the lessors. Paragraph 8 of the Mangold Leases reserves to the lessor the right to require the lessee to (a) not drill a well closer than 200 feet to houses or barns; (b) pay “all damages . . . caused by Lessee”; and (c) indemnify the lessor from all loss or damage of every kind or character which lessor may suffer because of lessee’s acts or omissions. Similarly, the Ferguson Lease reserves to the lessor the right, interest, and benefit to require the lessee to: (a) drill only with “standard cable tools”; (b) fill all pits, plug all holes not in use, and restore the surface; (c) maintain fences around wells to turn livestock, and conduct all operations with a “high degree of care”; and (d) shut down the lease upon notice from lessor that salt water and other waste materials are not being disposed of properly. Collectively, these shall be referenced as the “covenants.”

4 (which were leased to Lessees). Specifically, in 1984, Miller conveyed the surface of

the Mangold lands by deed to Surface Owners’ predecessor “together with all and

singular the rights and appurtenances thereto . . . .” In 1994, Ferguson conveyed the

surface of the Ferguson lands by deed (the “Ferguson deed”) to Surface Owners’

predecessor “together with all improvements, structures and fixtures located thereon

and all rights and appurtenances pertaining thereto . . . .”

Whether the covenants were conveyed with the surface estates or reserved to

the mineral estates is at issue; the reservation language in the deeds is therefore key.

Miller’s reservation language provided:

Grantors [i.e. Miller] retain and reserve to themselves, as their respective interests now exist, all ownership, right, title and interest, in and to . . . [a]ny and all valid, recorded oil, gas and mineral lease or leases now existent and in full force and effect, which reservation and retention by the Grantors includes all royalties, and all delay rentals and royalties, and any and all payments due, or that may become due in the future, or which may become payable under the terms of any existent or future lease or leases to the Grantors, their heirs, successors or assigns.

Ferguson’s reservation language provided:

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Robert H. Henry Margaret Green Henry, Individually and as Trustee of Margaret Green Henry Trust U/W/O William H. Green, Jr., and as Trustee of Margaret Green Henry Trust U/W/O Elizabeth Moore Green Clayton Moore Henry And Helen Henry Wright v. George Ray Smith, Susan A. Tull and Shannon L. Riley, in the Capacities as Co-Executors of the Estate of C.B. Christie, Jr., Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-h-henry-margaret-green-henry-individually-and-as-trustee-of-texapp-2021.