749 S.E.2d 569
W. Va.2013Background
- Thornsbury surface estate in 30 acres in McDowell County; Tug Fork Land Company owns underlying minerals; Cabot Oil & Gas sought to construct road and drill on surface under a 2006 Right-of-Way Grant for $500; 1941 severance deed reserved minerals and contained an exculpatory clause shielding surface injury; circuit court granted summary judgment to Cabot based on the 1941 deed; on appeal, majority holds 2006 contract can supersede the 1941 deed and allows breach claims to go to trial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2006 contract supersedes the 1941 deed exculpatory clause. | Thornsburys: 2006 contract modifies or supersedes the 1941 deed. | Cabot: exculpatory clause remains controlling and precludes surface damages. | Yes, the 2006 contract can supersede the 1941 deed. |
| Whether Cabot breached the 2006 contract by road length, location, and timber stacking. | Thornsburys allege violations of 2006 terms (200 ft road, correct location, timber stacking). | Cabot complied with the contract or its breach is not proven. | Question of material fact on breach exists; summary judgment improper on these issues. |
| Whether surface-owner remedies under WV law can be invoked beyond the 2006 contract. | Non-contractual remedies (common law and Oil & Gas Production Compensation Act) apply. | Remedies depend on contract scope; exculpatory deed and 2006 terms govern. | Remedies issues require factual development; not precluded by contract. |
Key Cases Cited
- Squires v. Lafferty, 95 W.Va. 307 (1924) (surface use rights incident to mineral ownership)
- Coffindaffer v. Hope Natural Gas Co., 74 W.Va. 107 (1914) (right to build road over land for drilling purposes)
- Lewis v. Dils Motor Co., 148 W.Va. 515 (1964) (valid, unambiguous written contract may be modified or superseded by subsequent contract)
- Wilkinson v. Searls, 155 W.Va. 475 (1971) (subsequent contracts may modify written agreements with valuable consideration)
- Sanford v. First City Co., 118 W.Va. 713 (1937) (written contracts may be modified by subsequent conduct)