Thomas v. Southwestern Settlement & Development Co.

123 S.W.2d 290, 132 Tex. 413, 1939 Tex. LEXIS 228
CourtTexas Supreme Court
DecidedJanuary 11, 1939
DocketNo. 7190.
StatusPublished
Cited by65 cases

This text of 123 S.W.2d 290 (Thomas v. Southwestern Settlement & Development Co.) 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
Thomas v. Southwestern Settlement & Development Co., 123 S.W.2d 290, 132 Tex. 413, 1939 Tex. LEXIS 228 (Tex. 1939).

Opinion

Mr. Presiding Judge Smedley

of the Commission of Appeals delivered the opinion for the court.

The Court of Civil Appeals at Beaumont has certified to the Supreme Court two questions of law. The material facts set out in the certificate are in substance as follows:

The subject matter of the controversy is 4328 acres of land *416 in Hardin County, being all of the Eduardo Ariola League except 100 acres of land in the form of a square in the northwest corner of the league. In the year 1889 G. W. M. Duck was the owner through recorded deeds of an undivided one-fifth interest in the Ariola League. By deed dated December 16, 1907, duly recorded, J. U. Vincent, purporting to act for himself and as attorney in fact for others, the heirs of G. W. M. Duck, undertook to convey to the receiver of Houston Oil Company of Texas all of the Duck one-fifth interest in the league of land. As to three of the seven heirs the deed was ineffective because there appear to be no powers of attorney from them to Vincent, the result being that the receiver of the Houston Oil Company of Texas did not acquire by the deed three-sevenths of the one-fifth interest, or three-thirty-fifths of the entire interest, in the land involved herein. Appellants, the plaintiffs in the trial court, are the record owners of the said three-thirty-fifths interest. Houston Oil Company of Texas, through Vincent’s deed and through various other deeds and judgments, acquired title to the land in controversy herein except the said three-thirty-fifths undivided interest.

On August 4, 1916, appellee Houston Oil Company of Texas conveyed to appellee Southwestern Settlement & Development Company, together with many other tracts of land, the 4328 acres of land in the Ariola League, being the land in controversy herein. This deed purported to convey not merely an undivided interest but the entire interest in the land. It expressly excepted and reserved all oil and gas on, in or under the land, with rights of ingress and egress and other use of the surface necessary or convenient in taking, using or removing oil and gas.

On November 15, 1916, Houston Oil Company of Texas, joined by Southwestern Settlement & Development Company, sold and conveyed to appellee Republic Production Company an undivided one-half interest in the oil and gas and other minerals in the land, with rights of ingress and egress and other use of the surface. The deed recited that Houston Oil Company of Texas was the owner of the 4328 acres of land in the Ariola League and" other land and that it had conveyed the same to Southwestern Settlement & Development Company with the exception and reservation of the oil and gas above set out. It further recited that the grantors, not collectively but severally, being the sole owners of the oil, gas and other minerals in the lands, in order to advance the development of the same conveyed to the grantees a full undivided *417 one-half interest in and to all the oil, gas and other minerals, thereby making or seeking to make more valuable the other one-half of the minerals. It was further stipulated in the deed that until and unless there should be a separate valuation and taxation of the mineral rights, Houston Oil Company of Texas and Southwestern Settlement & Development Company should render and pay all taxes, ignoring the mineral rights, and that after separate valuation, if such should arise, each party would pay its taxes upon the mineral rights.

On May 27, 1921, Houston Oil Company of Texas and Southwestern Settlement & Development Company executed a deed conveying to appellee Kirby Lumber Company all the pine timber eight inches or more in diameter and all hardwood six inches or more in diameter on the land in controversy.

No other conveyances were thereafter made by any of appellees. 1 In the year 1932 Republic Production Company entered upon the land and pursued drilling operations which resulted in the production of oil in August, 1932, its operations being carried on under the contract between it and Houston Oil Company of Texas and Southwestern Settlement & Development Company whereby it acquired its interest in the oil and gas, which contract provided that the cost of development should be shared equally by the two oil companies and the profits divided equally between them. The said two companies have expended about $489,000.00 in the development of the land for oil and in the production of oil therefrom. Up to the present time about sixty acres of the land involved herein has been proven to be oil producing and it had an estimated value at the time of the trial of $300,000.00. The remainder of the land had an estimated value at the time of the trial of $100.00 per acre. The possibilities of discovering additional oil on the land involved herein have not been entirely exhausted. The field is of the salt dome type, in which kind of fields oil is not migratory unless disturbed by drilling, and as far as can be told by scientific methods there is the same amount of oil there now as in the years 1916 and 1920, less what has been removed by Republic Production Company and Houston Oil Company of Texas.

In 1916, when the deeds to Southwestern Settlement & Development Company and Republic Production Company were executed by Houston Oil Company of Texas, the oil and gas in the land had nothing more than a nominal value, and in any event the one-half interest in the oil and gas reserved by Houston Oil Company of Texas was at that time of less mar *418 ket value than appellant’s three-thirty-fifths interest in the fee estate. At that time the land was valuable principally for the merchantable timber thereon which would cut twenty-five hundred feet per acre and was of the market value of $5.00 per thousand feet. The land as cut-over land had at that time a market value of about $3.00 per acre.

From the time when J. U. Vincent executed in 1907 the deed purporting to convey to the receiver of Houston Oil Company of all of the G. W. M. Duck one-fifth interest in the land until a short time before the filing of this suit there was no active assertion of ownership of the land by appellants or by anyone under whom they claim. The deeds under which appellees claim title were executed by heirs of the original grantees or those claiming under them and purport to convey to appellees- and those through whom they claim the entire fee title to the land herein involved. Appellees and those under whom they deraign title have paid taxes on the entire land from 1890 down to the date of the trial. Since the execution of the two deeds in 1916, one from Houston Oil Company of Texas to Southwestern Settlement & Development Company, and the other from said two companies to Republic Production Company, the entire 4328 acres have been assessed for taxes each year against said three companies and Kirby Lumber Company and tax receipts have been issued each year to said companies jointly, there being no separation, in the rendition or in the tax receipts, of the surface, mineral and timber estates.

The facts with respect to possession of the land are thus stated in the certificate:

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Bluebook (online)
123 S.W.2d 290, 132 Tex. 413, 1939 Tex. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-southwestern-settlement-development-co-tex-1939.