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Chesapeake Exploration, L.L.C. v. B N W Property Co.
393 S.W.3d 852
Tex. App.
2012
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Background

  • 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)
Read the full case

Case Details

Case Name: Chesapeake Exploration, L.L.C. v. B N W Property Co.
Court Name: Court of Appeals of Texas
Date Published: Nov 30, 2012
Citation: 393 S.W.3d 852
Docket Number: 08-11-00239-CV
Court Abbreviation: Tex. App.