Thomas v. Thomas

767 S.W.2d 507, 104 Oil & Gas Rep. 641, 1989 Tex. App. LEXIS 656, 1989 WL 26074
CourtCourt of Appeals of Texas
DecidedMarch 22, 1989
Docket07-87-0278-CV
StatusPublished
Cited by4 cases

This text of 767 S.W.2d 507 (Thomas v. Thomas) 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
Thomas v. Thomas, 767 S.W.2d 507, 104 Oil & Gas Rep. 641, 1989 Tex. App. LEXIS 656, 1989 WL 26074 (Tex. Ct. App. 1989).

Opinion

DODSON, Justice.

Stephen S. Thomas and his wife, Barbara Ann Thomas, appeal from the trial court’s judgment rendered in favor of Gregory B. Thomas, Robert T. Thomas, Joan Thomas Phelps, and Jeanne Thomas Cole, appellees. By that judgment, the trial court determined that appellees owned the free gas interest created in that certain oil and gas lease dated 2 May 1938, by and between J.N. Duncan and his wife, Gatsy Duncan, as lessors, and Phillips Petroleum Company, as lessee, covering the north one-half of section 155, in block B-2, H & GN R.R. Co. Survey, Gray County, Texas. In the trial court, Phillips was a party defendant; on appeal, they join appellees. We conclude that the free gas clause in question is a covenant running with the surface estate owned by appellees. We affirm.

Appellants challenge the trial court’s judgment by five points of error. By their first and second points of error, appellants claim the trial court erred: (1) by concluding as a matter of law that the principal dwelling entitled to free gas under the lease was appellees’ farm house because the evidence conclusively established the contrary that appellants’ house is the only one continuously occupied and continuously receiving gas after 1980); and (2) by failing to construe “principal dwelling” as meaning a house currently being used as a dwelling.

By their third point of error, they claim, in the alternative, that if their construction of the free gas provision is not the only reasonable construction, then the provision is ambiguous and the trial court erred by failing to find that the intent of the parties to the lease was that free gas be provided to whichever house is currently being used as a dwelling. By their fourth and fifth points of error, appellants maintain that the trial court erred in rendering judgment for appellees because as a matter of law appellees’ claim to the free gas is barred by applicable statutes of limitations; and, by failing to find that appellants made a good faith change of position to their detriment in reliance on the appellees’ delay in asserting their rights to the use of the free gas. Appellants’ points of error do not present reversible error.

The record shows that on 2 May 1938, the Duncans, as lessors, executed an oil, gas and mineral lease in favor of Phillips, as lessee, covering the north one-half of section 155, block B-2, H & GN R.R. Co. Survey, Gray County, Texas. In addition to the usual one-eighth royalty reserved to lessor, the lease also provided, in paragraph 3, that:

Lessor shall have the privilege at his risk and expense of using gas from any gas well on said land for stoves and inside lights in the principal dwelling thereon out of any surplus gas not needed for operations hereunder, [emphasis added]

All of section 155 has been pooled for the production of gas. The Duncan lease has been perpetuated by production from a unit known as the Gatsy # 1 well located in the approximate southeast comer of the northwest quarter of section 155.

When the oil, gas and mineral lease was executed in 1938, the Duncans were then the owners of the surface and mineral estate in all of the north one-half of section 155. After 2 May 1938, the Duncans conveyed the surface and one-half of the oil, gas and minerals in the north one-half of section 155 to Yvonne Duncan Thomas Stroup and Jerry Thomas.

Later, Stroup and her husband conveyed their interest in the north one-half of section 155 to Jerry Thomas, reserving one-fourth interest in the minerals. Jerry Thomas and his wife, Patricia Thomas, were the parents of appellees, Gregory B. Thomas, Robert T. Thomas, Joan Thomas *509 Phelps, and Jeanne Thomas Cole, and appellant, Stephen Thomas. Upon the death of Jerry Thomas, his interest in the property passed to his wife, Patricia Thomas. Upon her death, the property passed to appellees and appellant Stephen Thomas.

In 1985, the Thomas heirs partitioned the surface estate of the north one-half of section 155. By that partition, appellant Stephen Thomas received sixty four acres out of the northeast comer of the northeast one-fourth of section 155, and appellees received the remaining acres in the north one-half of the section. Stephen’s sixty-four acres included a one-acre tract of land which he previously had purchased from his mother on 20 November 1975.

When the oil and gas lease was executed on 2 May 1938 by the Duncans, there was no dwelling on the north one-half of section 155. The first dwelling was placed on the property in 1950 by Jerry and Patricia Thomas. That dwelling and the gas well are located on the portion of the north one-half of section 155 which is owned by appellees.

Jerry and Patricia Thomas began taking the free gas provided for in the oil and gas lease shortly after they placed their dwelling on the property in 1950. They continued to reside in the dwelling until their deaths (Jerry before 1975 and Patricia in 1980). Since Patricia’s death the dwelling has been vacant except for approximately eighteen months in 1982-83 when the dwelling was rented to a tenant.

Appellants placed the second dwelling on the property after they purchased the one-acre tract from Patricia Thomas in 1975. That house burned and was replaced with a large dwelling (approximately 6,000 square feet). Appellants began taking gas for their dwelling in 1975. They took gas by connecting onto the pipeline system installed by Jerry and Patricia Thomas. After a dispute between Gregory and Stephen Thomas over the gas, Gregory disconnected Stephen’s pipe connection from the original Thomas pipeline system. Later, Stephen made his own connection to the gas well; however, he never informed Phillips of his additional use of the gas.

A dispute arose among the Thomas heirs concerning the right to use the free gas. In 1986, after being informed of Stephen’s use of the free gas, Phillips notified the Thomas heirs that the matter should be resolved by the parties. Phillips further informed the parties that under the clause, free gas would be limited to one dwelling and that the free gas could be used only for the purposes stated in the lease.

In an effort to resolve the dispute, appel-lees brought this action for a declaratory judgment and damages. Appellants cross-claimed for damages. Each party claimed the ownership of the right under the free gas clause. Appellees claim ownership by virtue of being successors in interest to the surface estate where Jerry and Patricia Thomas placed the first dwelling on the property in 1950. Appellants claim ownership of the free gas right by virtue of their ownership of the largest and only house presently occupied on the north one-half of section 155.

In essence, appellants claim that under the proper construction of the free gas clause the principal dwelling must be occupied to receive the free gas. Thus, they maintain the right to free gas at the original principal dwelling owned by Jerry and Patricia Thomas terminated at the death of Patricia and that the right to receive free gas attached to their house since it was the only occupied dwelling on the north one-half of section 155. We disagree.

The parties stated in their respective briefs and our research reveals that this appeal presents matters of first impression in this jurisdiction.

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Bluebook (online)
767 S.W.2d 507, 104 Oil & Gas Rep. 641, 1989 Tex. App. LEXIS 656, 1989 WL 26074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-thomas-texapp-1989.