Veritas Energy, Llc v. Brayton Operating Corp.

CourtCourt of Appeals of Texas
DecidedFebruary 14, 2008
Docket13-06-00061-CV
StatusPublished

This text of Veritas Energy, Llc v. Brayton Operating Corp. (Veritas Energy, Llc v. Brayton Operating Corp.) 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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Veritas Energy, Llc v. Brayton Operating Corp., (Tex. Ct. App. 2008).

Opinion



NUMBER 13-06-061-CV



COURT OF APPEALS



THIRTEENTH DISTRICT OF TEXAS



CORPUS CHRISTI
- EDINBURG



VERITAS ENERGY, LLC, Appellant,



v.



BRAYTON OPERATING CORP., ET AL., Appellees.

On appeal from the 135th District Court

of Jackson County, Texas.



MEMORANDUM OPINION



Before Justices Rodriguez, Garza, and Benavides

Memorandum Opinion by Justice Rodriguez



This is a lease termination dispute over a 275 acre mineral lease in Jackson County, Texas. By seven issues, appellant, Veritas Energy, LLC (Veritas), contends the trial court erred in granting summary judgment in favor of appellees, Sundown Energy, Inc. (Sundown), and Brayton Operating Corporation and the Selected Non-Operating Interest Owners (Brayton). (1) We reverse and remand in part and affirm in part.

I. Factual Background

This case involves an oil, gas, and mineral lease (the Miner Lease) dated June 6, 2000, between Ira and Margaret Sklar, as lessors, and R. C. Miner, Jr., as lessee. Veritas took assignment of the lease from Miner on February 14, 2003. The dispute in this case arises over whether back dragging of grass with a back hoe constituted operations within the meaning of the lease.

The Miner Lease had a three-year primary term that expired on June 6, 2003. The lease provided that if operations were not conducted on or before the first anniversary date--in this case on or before June 6, 2003--the lease would terminate as to both parties. The lease defined "operations" as

for and any of the following: drilling, testing, completing, reworking, recompleting, deepening, plugging back or repairing of a well in search for or in an endeavor to obtain production of oil, gas, sulphur or other minerals, excavating a mine, production of oil, gas, sulphur or other mineral, whether or not in paying quantities.

At approximately 9:30 a.m. on June 5, 2003, Beck Bros., Inc., a company hired by Veritas, took a backhoe to the curve of an existing road on the Sklar's property and "back dragged" the grass from the curve to the highway. (2) Unable to complete its work due, in part, to a light rain that had been falling since noon that day, Beck Bros. stopped its work between 3:30 p.m. and 4:00 p.m. On June 7, 2003, the Sklars executed an oil and gas lease with Brayton (the Brayton Lease). Brayton entered into a joint operating agreement with Sundown and the other appellees on August 13, 2003, and, thereafter, drilled and completed the Sklar No. 1 Well.

II. Procedural Background

On January 8, 2004, Veritas filed its original petition against Brayton and the Sklars for trespass, conversion of oil, gas, and constituent hydrocarbons after it was produced from the Sklar lands, tortious interference with a contract between appellant and the Sklars, and, alternatively, for declaratory judgment and suit to quiet title with respect to the Miner Lease. On June 18, 2004, Veritas filed its first amended petition non-suiting the Sklars without prejudice, adding Sundown and the selected non-operating interest owners, and adding a claim for accounting of the sale of gas and condensate from the Sklar No. 1 Well. On May 13, 2005, Sundown moved for summary judgment on the grounds that Sundown was a non-operating interest owner acting in good faith and that it received no net profit from the well in question. On July 5, 2005, Sundown, Brayton, and selected non-operating interest owners filed their respective motions for summary judgment, each based on Veritas's failure to conduct sufficient activities on the Miner Lease and to take necessary actions to extend the 2000 lease. Non-operating interest owners Tauber Exploration & Production Co. (Tauber) and Carnes Natural Gas, Ltd. (Carnes) were not named as summary judgment movants. On July 18, 2005, Veritas filed its second amended petition and included claims for unjust enrichment and monies had and received from the Sklar Well.

On November 14, 2005, the trial court signed a judgment granting all summary judgment motions. The judgment provided as follows:

Having considered the defendants' summary judgment motions, the summary judgment record, the plaintiff's response and the arguments of counsel, the Court GRANTS the following summary judgment motions:



(1) Sundown Energy's Original Motion for Summary Judgment, filed on May 13, 2005;



(2) Sundown Energy's Motion for Summary Judgment Based on the

Plaintiff's Failure to Extend the Lease, filed on July 1, 2005; and



(3) Brayton's and Selected Non-Operating Interest Owners' Motion for Summary Judgment, filed on July 1, 2005.



The trial court ordered that Veritas take nothing against the defendants. All relief, requested but not expressly granted, was denied. The order also stated that the "judgment finally disposes of all parties and claims and is appealable." This appeal ensued.

III. Standard of Review

An appellate court reviews the grant or denial of a traditional motion for summary judgment de novo. See Natividad v. Alexsis, Inc., 875 S.W.2d 695, 699 (Tex. 1994); Tex. Commerce Bank Rio Grande Valley v. Correa, 28 S.W.3d 723, 726 (Tex. App.-Corpus Christi 2000, pet. denied). To prevail, the movant has the burden of showing that there is no genuine issue of material fact, and thus the movant is entitled to judgment as a matter of law. Tex. R. Civ. P. 166a(c); Lear Siegler, Inc. v. Perez, 819 S.W.2d 470, 471 (Tex. 1991). Summary judgment is proper if the defendant disproves at least one element of each of the plaintiff's claims or, alternately, conclusively establishes each element of an affirmative defense to each claim. Velsicol Chem. Corp. v. Winograd, 956 S.W.2d 529, 540 (Tex. 1997) (per curiam); Sci. Spectrum, Inc. v. Martinez, 941 S.W.2d 910, 911 (Tex. 1997). In deciding whether there is a genuine issue of material fact, evidence favorable to the non-movant will be taken as true, and all reasonable inferences and doubts shall be resolved in the non-movant's favor. Shah v. Moss, 67 S.W.3d 836, 842 (Tex. 2001).

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