Unitex WI LLC v. CT Land and Cattle Company LLC rejected the surface owner’s effort to force the mineral lessee to bury a pipeline below plow depth. Surface owner CT’s claim was based on a mineral lease signed by former owner Fuller in 1948. CT had acquired the surface from Senns, who acquired it
subject-to clause
Supreme Court of Texas Sorts Out Complicated Assignment of Oil and Gas Leases
In Occidental Permian, Ltd. et al v. Citation 2002 Investment LLC the Supreme Court construed a 1987 assignment from Shell Western E& P Inc. to Citation of a large number of properties. The instrument contained these numerous provisions:
- 1st granting clause: … all right, title and interest in the … leasehold estates described in
Texas Mineral Deed Signed Away Right to Sue
Co-author Brittany Blakey
The question in litigation is usually “WHAT”: what happened, what contract was breached, what did someone do or fail to do, and so on. In Hughes v. CJM Resources, LP, the question was, “WHO” had the right to file the suit in the first place? The Eastland Court of Appeals affirmed…
Lessons from an Override Assignment
Co-author Rusty Tucker
Contract construction cases are fact-specific, but one can take lessons of general application from all of them. Here are the takeaways from Jones Energy, Inc. v. Pima Oil & Gas, L.L.C.,
- In assigning an ORRI, it matters whether the parties intend to exclude production from a particular interval of a formation or from a particular wellbore.
- It also matters, when two documents relate to the same subject, which one will control.
- Courts rely on the grammatical meaning of words and phrases. If in doubt when writing or reviewing a document, brush up on your eighth grade grammar.
Caveat: If this analysis doesn’t make total sense (or, God forbid, makes no sense at all), it’s because the agreements are complicated and we don’t have the space to dive into them in detail. Focus on the takeaways.
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Does Texas Have a New “Rule” in Conveyancing?
Co-author Chance Decker
“The only sensible way to live in this world is without rules”. The Joker to Batman, The Dark Knight
Subject-to, reservations-from, and exceptions-to problems have been lurking in the shadows of Texas jurisprudence for a while now, and the courts have been all over the map in recent holdings (Title nerd and proud of it? Compare this example with this one.)
In Wenske v. Ealy, the Supreme Court channeled our superhero’s painted friend, essentially jettisoning the old rules and confirming the new rule in deed construction cases: There are no “rules”.
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