Chesapeake Exploration, L.L.C. v. B N W Property Co.
393 S.W.3d 852
Tex. App.2012Background
- Edwards conveyed 1/4 of his mineral estate to Haley and reserved 3/4, retaining the executive rights to the entire mineral estate.
- After Edwards’s death, his interests were partitioned among three parties, including Beckhams who inherited 1/3 of the mineral estate and 4/9 of the executive right.
- The Beckhams’ successors conveyed to Vest a 1/3 mineral interest via two deeds silent about the 4/9 executive right.
- The trial court entered judgment for BNW, holding the remaining 1/9 executive right did not pass under the deeds.
- Chesapeake contends the deeds conveyed the entire 4/9 executive right; BNW contends only 3/9 passed, leaving 1/9 unrevealed by the deeds.
- The appellate court reversed, holding the 4/9th executive right passed under the deeds and rendering take-nothing for BNW.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the deeds pass the entire 4/9 executive right? | Chesapeake argues the deeds conveyed all 4/9 of the executive right. | BNW argues only 3/9 passed; 1/9 was not conveyed by the deeds. | Yes; the 4/9th executive right passed under the deeds. |
Key Cases Cited
- Luckel v. White, 819 S.W.2d 459 (Tex. 1991) (deed construction is a question of law for unambiguous deeds)
- Karm v. City of Castroville, 219 S.W.3d 61 (Tex.App.—San Antonio 2006) (deed construction limits and deference to stipulated facts)
- Day & Co., Inc. v. Texland Petroleum, Inc., 786 S.W.2d 667 (Tex. 1990) (executive rights pass by implication when not expressly reserved or excepted)
- Lesley v. Veteransland Board of State, 352 S.W.3d 479 (Tex. 2011) (executive rights pass under deeds unless explicitly reserved)
- Concord Oil Co. v. Pennzoil Exploration & Prod. Co., 966 S.W.2d 451 (Tex. 1998) (executive right can be conveyed or reserved with other mineral interests)
- Altman v. Blake, 712 S.W.2d 117 (Tex. 1986) (executive right is a distinct mineral estate interest)
