Sundance Minerals, L.P. v. Wanda Jo Moore, Individually and as Trustee of the Ruth Holder Testamentary Trust Maxine Holder, Individually and as Trustee of the Herbert Holder and Maxine Holder Trust Robert E. Holder Ricky Joe Holder Terry S. Holder Philip B. Holder

CourtCourt of Appeals of Texas
DecidedOctober 20, 2011
Docket02-10-00403-CV
StatusPublished

This text of Sundance Minerals, L.P. v. Wanda Jo Moore, Individually and as Trustee of the Ruth Holder Testamentary Trust Maxine Holder, Individually and as Trustee of the Herbert Holder and Maxine Holder Trust Robert E. Holder Ricky Joe Holder Terry S. Holder Philip B. Holder (Sundance Minerals, L.P. v. Wanda Jo Moore, Individually and as Trustee of the Ruth Holder Testamentary Trust Maxine Holder, Individually and as Trustee of the Herbert Holder and Maxine Holder Trust Robert E. Holder Ricky Joe Holder Terry S. Holder Philip B. Holder) 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.

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Sundance Minerals, L.P. v. Wanda Jo Moore, Individually and as Trustee of the Ruth Holder Testamentary Trust Maxine Holder, Individually and as Trustee of the Herbert Holder and Maxine Holder Trust Robert E. Holder Ricky Joe Holder Terry S. Holder Philip B. Holder, (Tex. Ct. App. 2011).

Opinion

COURT OF APPEALS SECOND DISTRICT OF TEXAS FORT WORTH

NO. 02-10-00403-CV

SUNDANCE MINERALS, L.P. APPELLANT

V.

WANDA JO MOORE, APPELLEES INDIVIDUALLY AND AS TRUSTEE OF THE RUTH HOLDER TESTAMENTARY TRUST; MAXINE HOLDER, INDIVIDUALLY AND AS TRUSTEE OF THE HERBERT HOLDER AND MAXINE HOLDER TRUST; ROBERT E. HOLDER; RICKY JOE HOLDER; TERRY S. HOLDER; PHILIP B. HOLDER; JANILEE HOLDER WISDOM; SCOTTY D. PLASTER; REX. L. PLASTER; AND LARRY F. PLASTER

----------

FROM THE 355TH DISTRICT COURT OF HOOD COUNTY

OPINION ---------- This is an appeal from a summary judgment in favor of appellees Wanda

Jo Moore and Maxine Holder, in their individual and other capacities, and Robert

E. Holder, Ricky Joe Holder, Terry S. Holder, Philip B. Holder, Janilee Holder

Wisdom, Scotty D. Plaster, Rex. L. Plaster, and Larry F. Plaster on their

counterclaim in this suit to determine the type of royalty reserved in a deed.

Appellant Sundance Minerals, L.P. contends in two issues that (1) the trial court

erred by granting appellees‘ motion for summary judgment contending that the

deed reserved a fraction of a royalty and denying its motion that the deed instead

reserved a fixed, fractional, nonparticipating royalty and (2) the trial court erred in

awarding attorney‘s fees to appellees. We modify the trial court‘s judgment and

affirm it as modified.

Background

In 1958, J.B. Holder and Ruth Holder conveyed 515 acres of real property

to J.D. Armstrong and Ophelia Armstrong. The Holders, however, reserved in

the deed ―an undivided and non-participating one-half interest in the oil, gas, and

other mineral rights.‖ The deed further stated that the Holders ―shall be entitled

to one half of the usual one eighth royalty received forsuch [sic] oil, gas and other

minerals produced from said land.‖

Sundance is the successor-in-interest to the Armstrongs; appellees are the

successors to the Holders. In 2003, Sundance leased the land to Quicksilver

Resources for a one-fifth royalty. Appellees contend that the 1958 reservation

entitles them to one-half of whatever royalty is payable at any given time under a

2 lease on the property; in this case, one-half of the one-fifth royalty payable under

Sundance‘s lease with Quicksilver (a one-tenth overall royalty). Sundance

asserts that appellees are entitled to only half of a normal one-eighth royalty

(one-sixteenth overall).

Sundance sued appellees seeking a declaratory judgment that the 1958

deed reserved only a fixed, nonparticipating one-sixteenth royalty. Sundance

also sought attorney‘s fees. Appellees counterclaimed based on their

interpretation that they own one-half of the actual royalty collected by Sundance;

they also asked for attorney‘s fees. Both parties moved for summary judgment.

The trial court granted appellees‘ motion and awarded attorney‘s fees to

appellees.

Summary Judgment Standard of Review

We review a summary judgment de novo. Travelers Ins. Co. v. Joachim,

315 S.W.3d 860, 862 (Tex. 2010). We consider the evidence presented in the

light most favorable to the nonmovant, crediting evidence favorable to the

nonmovant if reasonable jurors could, and disregarding evidence contrary to the

nonmovant unless reasonable jurors could not. Mann Frankfort Stein & Lipp

Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex. 2009). We indulge every

reasonable inference and resolve any doubts in the nonmovant‘s favor. 20801,

Inc. v. Parker, 249 S.W.3d 392, 399 (Tex. 2008). A defendant who conclusively

negates at least one essential element of a cause of action is entitled to

summary judgment on that claim. Frost Nat’l Bank v. Fernandez, 315 S.W.3d

3 494, 508 (Tex. 2010), cert. denied, 131 S. Ct. 1017 (2011); see Tex. R. Civ. P.

166a(b), (c).

When both parties move for summary judgment and the trial court grants

one motion and denies the other, the reviewing court should review both parties‘

summary judgment evidence and determine all questions presented. Mann

Frankfort, 289 S.W.3d at 848; see Myrad Props., Inc. v. Lasalle Bank Nat’l Ass’n,

300 S.W.3d 746, 753 (Tex. 2009). The reviewing court should render the

judgment that the trial court should have rendered. Mann Frankfort, 289 S.W.3d

at 848.

Proper Construction of Deed Reservation

In its first issue, Sundance contends that the trial court should have

granted its summary judgment and denied appellees‘ because the royalty

reservation in the deed should be construed to reserve to appellees only a fixed,

fractional nonparticipating royalty interest or 1/16th of any royalty.

When interpreting a deed just as in interpreting a contract, the intent of the

parties is to be determined from the express language found within the four

corners of the document. Luckel v. White, 819 S.W.2d 459, 461–63 (Tex. 1991).

Construction of an unambiguous deed is a question of law to be resolved by the

court. Id. All parts of the deed are to be harmonized, construing the instrument

to give effect to all of its provisions. Id. Here, both parties agree that the deed‘s

reservation language is unambiguous.

4 It is well-settled that a mineral estate is comprised of five separate and

distinct interests: 1) the right to develop, 2) the right to lease, 3) the right to

receive bonus payments, 4) the right to receive delay rentals, and 5) the right to

receive royalty payments. French v. Chevron U.S.A., 896 S.W.2d 795, 797 (Tex.

1995); In re Estate of Slaughter, 305 S.W.3d 804, 808 (Tex. App.––Texarkana

2010, no pet.). When a mineral estate is conveyed, all interests are transferred

unless they are specifically reserved to the grantor. Slaughter, 305 S.W.3d at

808. As the Texas supreme court has recognized,

The words ―royalty,‖ ―bonus,‖ and ―rentals‖ have a well- understood meaning in the oil and gas business. Likewise, ―minerals‖ and ―mineral rights‖ have a well-recognized meaning. Broadly speaking, a reservation of minerals or mineral rights without limitation would include royalties, bonuses, and rentals. A conveyance of land without reservations would include all minerals and mineral rights. However, it is well settled that a grantor may reserve minerals or mineral rights and he may also reserve royalties, bonuses, and rentals, either one, more or all. Here we have a reservation of only ―royalty rights.‖ It is obvious, it seems to us, that this does not include a reservation of bonuses or rentals, but only of an interest in oil, gas, or minerals paid, received, or realized as ―royalty‖ under any lease existing on the land at the time of the reservation, or thereafter executed by the grantee, his heirs or assigns.

Schlittler v. Smith, 101 S.W.2d 543, 544 (Tex. 1937). Further, a royalty interest

is nonparticipating in nature and does not entitle the owner to any share of

ordinary cash or other bonuses, or of delay rentals. Slaughter, 305 S.W.3d at

809.

A ―fractional royalty‖ interest entitles the owner to the specified fractional

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Sundance Minerals, L.P. v. Wanda Jo Moore, Individually and as Trustee of the Ruth Holder Testamentary Trust Maxine Holder, Individually and as Trustee of the Herbert Holder and Maxine Holder Trust Robert E. Holder Ricky Joe Holder Terry S. Holder Philip B. Holder, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sundance-minerals-lp-v-wanda-jo-moore-individually-and-as-trustee-of-texapp-2011.