The Texas Co. v. State

267 S.W.2d 456, 3 Oil & Gas Rep. 1543, 1954 Tex. App. LEXIS 2487
CourtCourt of Appeals of Texas
DecidedMarch 10, 1954
Docket12585
StatusPublished
Cited by3 cases

This text of 267 S.W.2d 456 (The Texas Co. v. State) 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
The Texas Co. v. State, 267 S.W.2d 456, 3 Oil & Gas Rep. 1543, 1954 Tex. App. LEXIS 2487 (Tex. Ct. App. 1954).

Opinions

POPE, Justice.

This case concerns the validity of an instrument executed by a surface owner, as tested against the owner’s agency powers under the Relinquishment Act. Acts 36th Leg. 2d C.S., Ch. 81, pp. 249-254, Vernon’s Ann.Civ.St. art. 5367 et seq.

The State of Texas instituted this suit against The Texas Company and the Duval Ranch Company, and asked for title to and possession of the minerals in four thousand acres of land, for the cancellation of a mineral deed given by Duval Ranch Company [458]*458(hereinafter called Duval) to The Texas Company, and for the recovery of the value of all oil that has been produced from those lands. There has been production on the land since 1937, and Wie of the production has gone to The Texas Company, Vie to the State of Texas, and Vie to Duval, the surface owner. The central issue is whether Duval, as surface owner of the lands, gave an oil and gas lease as authorized by the Relinquishment Act, or whether it gave a deed absolute to the minerals, in violation of the Relinquishment Act. The trial court, without the intervention of a jury, upheld the State’s claim that the instrument was a mineral deed and void, but the court awarded Duval a Vie past and future interest in the production on the lands as damages to the surface. The State recovered judgment against The Texas Company in the sum of $666,687.75. We affirm that part of the judgment, but hold further that the State should have been awarded interest before judgment in the sum of $278,-073.48, for the detention of the State’s money. We also hold that the State owns the full 1¾6 of the oil and gas estate. The Texas Company was given judgment against Duval on its warranty in the sum of $9,940, which we affirm.

In 1922, Duval executed an instrument to R. E. Breeding, which sought to convey all of the oil, gas, and other minerals under 16,000 acres of land, 12,000 acres of which were privately owned in fee by Duval and 4,000 acres of which were minerally classified lands belonging to the Public Free School Fund. Within two days Breeding by a like instrument, conveyed the property to The Texas Company. This case concerns only the 4,000 acres of minerally classified land.

We shall set forth the first instrument in full, omitting the land descriptions:

The State of Texas,
County of Harris,

Know All Men By These Presents:

That the Duval County Ranch Company, a private corporation duly incorporated under the laws of the State of Texas, with its principal office in Houston, Harris County, Texas, acting herein for itself and as agent and representative of the State of Texas, as provided in Article 5904o-16 et seq., of the Complete Texas Statutes of 1920, acting herein by and through its Vice President, Robert E. Goree, hereinafter called Grantor, for and in consideration of the sum of Twenty-eight Thousand and No/100 ($28,000) Dollars cash in hand paid by R. E. Breeding, receipt of which is hereby acknowledged, hereby Grants, Bargains, Sells and Conveys, and by these presents does Grant, Sell, Bargain and Convey unto the said R. E. Breeding, hereinafter called Grantee, all the oil, gas and other mineral (whether similar or dissimilar) in and under the following described tracts of land, situated in the Counties of Webb and Du-val in the State of Texas, described as follows, to-wit:

The following tracts are included in this instrument: (Here follows description of the one hundred tracts of land.)

And the Grantee shall have the exclusive right to prospect, drill and mine on said land and remove said products therefrom; to erect and maintain thereon and remove therefrom all necessary or proper structures and equipment, including the right to pull the casing from wells; and to install and maintain thereon and remove therefrom all tanks and other means of storage and all pipes and other means of transportation; also the right of ingress and egress at all times for any of said purposes.

In the event the Grantee shall produce oil or gas or any other minerals from said tracts of land in paying quantities, then there shall be paid to Grantor, its successors and assigns, a royalty of one-eighth (⅛) of all the oil, gas and other minerals so produced and saved, except as to sulphur the royalty shall be fifty cents (50⅜⅛) per ton for each ton mined and marketed. Any royalties due the State hereunder shall be deducted from grantor’s royalties.

The Grantee shall have the free use of oil, gas and water from said tracts of land only out of wells or tanks made by him for all purposes of operation on said tracts of [459]*459land, and the royalty on oil, gas- and other minerals, except sulphur, shall be in the net quantity saved after deducting any so used.

It shall be optional with the Grantee to drill or mine or carry on other operations on said tracts of land, or to refrain from doing so wholly or partially at any or all times, both before and after production; it being expressly agreed by the Grantor that the down cash payment recited in this instrument, receipt of which is hereby acknowledged, to Grantor is adequate to compensate and does compensate the Grantor for this right and privilege of Grantee.

It is further distinctly understood and agreed that no use of the surface of the above described tracts of land by anyone shall be construed as adverse to the rights of Grantee, his heirs and assigns, in and to the oil, gas and other minerals herein conveyed, as well as the right to mine and to produce the same.

' No well shall be drilled nearer than 200 feet to any house or barn now on said land, unless by consent'of the Grantor, and nothing herein contained shall deprive the Grantor of the full use and enjoyment of said land, subject to the privileges and estate hereby granted, and when requested by the Grantor the Grantee shall bury his pipe lines so that they will not interfere with cultivation.

Should the interest owned by the Grantor in said land prove to be less than the entire fee the royalties herein provided for shall be paid to the Grantor in the proportion only that the interest of the Grantor bears to the entire fee.

If the estate of either party hereto be assigned the covenants hereof shall extend to the assigns and successive assigns ; but no change or division in the ownership of the Grantor, by purchase or otherwise, shall be binding on the Grantee for any purpose, until the Grantee shall have been furnished with proper evidence thereof.

To Have and To Hold the above described oil, gas and other minerals, and the rights herein granted; all and singular, unto said grantee, his heirs and assigns forever; and the Grantor hereby binds itself its successors and assigns, to warrant and forever defend the same unto said Grantee, his heirs and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof.

It is expressly understood and agreed that this instrument is to be construed as a conveyance in fee of all the oil, gas and other minerals in' and under the above described tracts of land.

In Witness Whereof, the Grantor aforé--said has caused these presents to be signed-by Robt. E. Goree, its Vice President,thereto duly authorized, and its common1 seal hereunto affixed; and in witness-whereof, these presents are also signed by the Grantee herein this 23 day of May A.D.-1922.

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Related

Texas Co. v. State & Duval County Ranch Co.
281 S.W.2d 83 (Texas Supreme Court, 1955)
The Texas Co. v. State
267 S.W.2d 456 (Court of Appeals of Texas, 1954)

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Bluebook (online)
267 S.W.2d 456, 3 Oil & Gas Rep. 1543, 1954 Tex. App. LEXIS 2487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-texas-co-v-state-texapp-1954.