Case Information
*1 . . .-.
OFFICE OF THE AlTORNEY GENERAL OF TEXAS AUSTIN
0-C.yucW --
oiz 18 of all there any man- , YoDwgald omlh on this land qui8bmsnt, rot a8 d the lollowlng Saab8 ia eonneatlon anufmy 2, 1QfB, Morgan Janes filed hlu applloation to urchaes Beer 16, Blook 09, Publia School. Land % Ilallum Oounty, nhlgoh&w part OS fhs Ca it01 Syndloate Laads. traat ma awar& ii) to hl.na on March 12, 1925. The purahere *a8 under Chapter 106, Faga of the General Ima of thr 38th Leglsltiturr, 1923. l’bl@ AOt one-eighth o? all Oil *2 - Xoa~ Baroom Olloo, Cemm.losioner - page 8
aand gas to the State. This traot af land was
later roPfs1ted, w Jtulo 14, 1933, and was re-
purohaoed on applloatlon by Jones filed in
this arilaa Iiarah 9, 1938, an6 was awarded
to him on Zlaroh 14, 1938. Thlo rspurohase was
under thr Aot of the 45th L&mlature OS 1937,
bob cha.pter 332, II. B. 875 of said .&oto,
Later, Joner sold this traot of land to A.
HoDougald who obtained a patont oworlng the
land, on ianuary le. 1940, BOOausO oOr-
toin ambiguities in the law, mbloh rfll be out later, the mineral rewmatloa in brou&t the patent aomrlag this land was set out in .
tha following mnnrr:
wUinerala In the aborr deaaribed land arm rersmd to the State as prsaorlbed by law.'
VuDougald still later sold the land to United Ytates Oorernment for oonservatlon uP~0000, Their intentfon was to retire thlo nd from aultlratim to lfainats ex~ooolve
pa
blowing. fn the doed from HoDougalcj
United States Government, the following resar-
ration wao lnaertedr
*"There lo hereby exoeptsd Sran foregoing 6ontayanoe, uato grantor, his ~UOQ~~~O~IB, hslro and assigns, wh4tsfbr Interest, ii the grantor may now hers ia all Y o 1, gas and other almrals, under and upon *ho abort doorrlbed land period flity (50) ~aro, beginning Oetobor 24, 1938, an6 l ndlq~ Ootsbar 85 1988, provided said grantor now has t&e powor rwmrve said interest aooordlng to if ho doer not hate ruoh power, law, aad then this resemtloa shall bo null and void, said reoervatlcm, IS any, to ba ubjeot the following rules and rsgulstlona, to-wit:* (A oopy of the whole instrument 1s attached hereto) Hon. Bao8om Oiler, Ca4mlooioa4r - page 3
The next derelomant in ohronologleal is that YoDou(rald am has an opportunity order to lease the land for 011 and gas developtmnt. Attorneys his proopeotirr lessee hare queo- status mineralo uader tloaed land aad IfaDougald~o power leaoe under the reoenatloa I&, MoDougald, puot@d above. through his agents, has requested that this oifioe urdeavor to olarif~ oltuatlon.W Chapter 106 page X8t of the General Laws of the -eighth Legialakire, 1985, xl&oh the land in was originally purshared fromth. stat. provided, an follow81
‘900. 3, Thr sale of raid Ian& shall upon the express oondltlon that one-rlghth or all the 011 and gas, whether known or unkaown,
an4 th. value of amno and all of all other ainerals of whatsoever kind, whether kilown or
unkaowa, that may hereafter be louad on or uader mid land sad the ralue of same shall b. reeensb the State and *a/d po&a of oil and gas and the value of same, together
with all other mlneralo, and th. value or same,
are hereby donated to the sald Bohool Pond.
Yaid 011 and gas and other mineral8 shall br
oubjeot be dem1op.A meaner is nw, or that may be hereafter, provided by law."
When the land wuo repurshased under Chapter 338, page 555 or the irot of the Torty-fifth Legi~~a;~e, - hpr Seamion, 1937, which provides, in part,
* l * *, sad that notion oi the reap- pralsmmnt shall given to the lornker owner own.ro who shall hare preiorence
ninety (96) days after &ate o? notl.. to
repurrsheoe tho omne upon the terms eoa-
bltlo58 provided in Chrptu 94, Fag. Zb(r, Aoto 1925, a8 amended by the Aeto of 1936
Thirty-ninth L8((lolature,. tlrrt Called $ooolo5,
Chapter Page 43. * * * *
Th9 repurohaaer oroure6 the oar. interest title ia the alnerals that was OOOUP~~ orl&al
Eon. B65oom Oiler, Coomio~iano~ - pogo 4 pUrOh68er un&er the 1928 Aat and the state reoer-ved the mme iAtersnt and title in the mineral8 whioh in the original sale under tho 1923 Aot. This quoobion
wa8 deoldrd by tho Suprome Court in thr oar8 oi NAONOLIA FZTROLECN COWANY vs. W&KZX 83 S.W. the of not8 the oonatruotlon of Chapter OI, Fwa 267, [929] (2d) whfah in
Regular Seooton of the Thirty-ninth Le@olature, 19:5, and the amendment thereto by Chapter 25,
of the lirst Gilled Soorion of the Thirt th Legiolaturr, hotiaa Sharp l poa were involved. uoed the rouowiw languagrr
“OA oontrary, it io 01-z iru the hot, taken a8 a whole, that the tsgirlaturo
had no intention of granting or ooafrrring
u 011 the repurohsoer w reater lntoreot ar
r ght P in the oil and gas II the land than ho f of forfelturr of the arig~nal
haa6at time I . The Aot of 1937, above referred to, lnoofa~ as the question8 inrolred In your re$usst cue oonoerns4, added nothing to the Aets or 1925 and 1926, ubcne mrerred to, other than to make those Aots applioabls ths land in quest ion.
The real question then left to IM dsoided la aa to what lo the statue of the mineral0 in land purohased tron the state Act of 1983, above reterred to, / It is opinion @i thio De artmsnt that the urohaoer of the land ln qwotion reoe red fee P rim le title i o the ourfaae and seven-rightho (7/6tho) of the o I e I t gao and that the stats rossned for the SOkOo~ Lund one- (1/8t&) all of the 011 and gao in the nature e&h oi a free royalty and all ot all other mineralsI that
the purohaser may oell or leaso all or an
fnteraot in the oil and gao or he may as1 and resbrv‘c) all or any part or his intereat in and gao but the ommr or owners of the ravan-rl$htho (7/8thsl of the oil and $a8 in thr went of prOduOtfoA
from lard quadion, muat turn over tate iOr the use of the FWIEM~A~ free ohool fund onr-ri&hth (l/bth) of all Of the oil &Ad gas prodused the Talu- of Sam0 tree clear of any cost or &e~slopmsnt and &WduOti.on. of the
In oese OS a lease the land owner his ass1 mineralll, it shall be subjeot to the One-eighth 1/8th) ‘t”’ free royalty in favor of the otate iOr the ua* and beAMi of thr I
Eon. B4ooomQllos, Commlsoloner - page 5 Fe-ant ire. oohool fund, but the state will not be OA- in ossh bonus or rentelo which to partioipet6 titled night be proridad in 0416 loaoe.
IO 10 true that IA 4~ ordinary traluebtion whore 0 ono-alghth (1/8th) of the 011 gas othar ulohod trar l d.Aoralo is raaonod iA Q ~10 am dioti the one-eighth ( 2 /Bth) lntor6at, la400 the 0~6 rarerring
tioao otharwioo provided, all1 be 4 Aaoaoo~y pprty to l XbOUtiOA Of loeso of the ll&A.F410 4nd will be *A- titled raoalra him share of tha bonus aad rontel, and if i4Ad 1.0 leebbd ream the ordinary one-•lghth royalty ouoh 11 only aotwll rooelva (l/Sth) the reluo OS 01 10 l lrty-fourth Of all Of the OI I aad gas .~ lnoa oaran-elghtho (7/8the) will tUFAed over lasoaa for dbVOiOQEWAt and produotion purposes. in at 120 Inotanob ham tha Lagiolatura, where a rsaarntOion of the oil 4Ad gas ham baen made, rboervad laoo than OAO-OiXtObAth roduotloa to the state. The Aot of (l/Mth) Of the total 19X5, WXder which thb P MU iA QUOStiOA was Ol'igiAdly mold, 4rtar providing for a rasarv4tIoA 0s oAe4i&th (l/eth) or all of thb oil and gas used the phrasa *end the veluo or 4A iAtOAtiOA, We think, that the pbFiB4AOAt OOIUO” ilIdiO4tiw fro. oehool fund ohould raoaira one-eighth (1/8th) of the gross talus 0s all oil snd gas produsbd rroa.tha lend in question. It IO true that the resermtlon is not a8 olaar 40 that sat out in Sales Act 0s 1931 being Sootion 4 of Artiolo W410, Vernon’s ,umotatad Civil Statutes, where ~~l$aoarv4tloA rsao referred to *am A rrao royalty to the
". fr '*a OOAOOde that is AOt elaar that tha Aat of lQe3 Intsndod to rawrva to the state one-oI(ghth (l/Bth) 0s the oil and gas to bo~dslivsrad to the state tree and OhSr df all aXQOASb8 and iA the MtWr Or 4 fFO0 FO 4lty, than 6exb muot be aOAStFU66 have that abeming (10 f the laost fevoreble onb to the #t&O. ;a;uT'IRB O&3 Ir FUEL CO. vs. is
STATP 3.W. (2d) Suprbmo Court 31 Taxer, ia 4A OplAiOA by f&a Sharp, the court meld!
*Thm ru1.r lo wall settled that l4gislatIva gents of pro arty rlgbta and privlla~oa muot
ooartruad tr P ot3.y favor 0s the otata on
grounds oi public ~0110~ ana whatever is not
unoqulrooally .wantad i0 $l!i olaar 4Ad oxplIoit otwourlty
term wlthhald. AA~ ambiguity la the term0 0s the Statutes mot operate In faror
of the Ot6ta."
Wa are of the OpiAiOA that the rtetuo tha pur- ohaser’o rights the Aats of 1923, sbova FOfOFFd to, era *6 HOA, Baseon Qllao, CgmaIooIonar - pegs 6 a purchaoer the Aot of 1931
tha ema 60 the rights whlah 10 AQI saotlon 4 oi .irtlola SUS, VatDoA~o UiAotatad 3tatut88 with raopaat to the 011 end gas axae t that in the first Inotanoe tho state raoarvaa a one-sight K 1/8th) under the 1931. .iot it reoervwo a one-rixtaanth f/Mth), I Tha ease of WR4Ti%U&i8 vs. XCDCNALD, lee 8.w. (24)
167 by 3uprama Court of Texso dOtOrmiAO6 thr status of the nrinerala under thr 1931 AOt a8 batweaA thb otatr ma the pur- ahesu OAd LA doiag 80 used the r0u0lriag language; WI think int0Aa0d thb Le~al5tura that the purohaoer of land oubjaot te ma10 uadu
that this Aot shall aoqulrr ouoh land end the PinorAls there shall be raouva6 the
tharaln, but otatr one-sixteenth (l/Uth) of all mlnoralo am freb royelty to the 8trt.q bxoept am to oulphur 4Ad other 23lners1, rubotaAOsr holo whioh aulphur
may be. darlred or produced and to these a oris-
eighth (1/8th) thereof shall xas6rv66 a8 a treb
royalty to the stats.
“The royalties the state under raoarrsd tha provieiona or, this law oonatltute a rba~i~ $ha mIAara18 In plaoa end ~111 Sollaw the land
the term tfraa royalty8 lntroduobd fnto thlo dat
must mesn that the interest reserved to the stats in the ninerals produaad 011 oohool lend sold under terms Of the A06 mUO6 Aot boar any part Of the expense of the produotlon, sale delivery thereof.
The 4yllex of the land aoto 60 the agent of the state astir43 the nlnual laasao. This oallo for mxaralsa of a duty by the land ounar to the atata.
The land owner owas to the atata good faith in the parformonea of duty whnhioh ha ham aooum6d and hb
rhould discharge that duty with prudaA00 6fId good
faith and with ordinary aara mad dSllganoa.~
The lest portion of the aboTa quoted portion of the that owner sf the land oould opinion would seem t o lndioate not meter the tiaralo frcna l tUf4ea bOt4t0, but whan m aonslaar ;\ot along with all of the 0pInIorl of the oourt, It asems lnaeoapab~a that oino~ purOhasar aOquirao foe title to the surface and 6 portion or the minarals that tbara AO reotriotion OA hlo right to aueAat0 either the siid600 or the minerals or e art thermal and oraatb a r)evaraAOe of t& &a~rals granted P ram the sudaoa so long so tha owar
. . .- Hon. Rasoora ~iloa,Comnlaalona~ - pago I
tha lntaroat in tho 011 and baa granted in good ralth proteota tha right ot the atate in it8 interoat in the royalty and mlnoral3 whloh It rbaorvea. In the opinion whore the ownor or the land la referred to it aastmoa that the purchaser atill holds all of the interest which ho seourod ircm the atato under the purohaao, We do not think suoh lsngwgo Oould aonstrued aa holdlng that tho pureb~aer could not sever hi8 irom the surr600 estate. our opinion la not in minerals oomi.r~ wit& aomo of tho laquago uood in the oaao af Stalloup
v. RobL%vk SO0 3.W. f3b but tho ooart oonoludoa it8 opinion with the iallow- stat-ant!
*We dboido but one thing, and that ia al5oo the .aot 1925 suprd, boomm erf00tiw,
the oapitol syndlaato'loada are to ba aold with
a roaommatlonvof 011 8nd gsa to the state,
and thut the ospf syndloato lands will fare
lust a8 all other publlo aohaol lands hrr. Shoe
this la true, lta 011 and gaa are to br dowalopod
under the general permit statute (ROY. St. 1925, art. 5338 et sop.). This partit was lsauod in 1926,
artor the sot or 1923 beoamo 8rfe0tivb, and tho iollwed by
general parralt law was ooneedodly
relator.
Vhorororb we roooamend that the mmdamus issue (18 prayed by relator.*
The land inquired about in your roquoat was sold prior the OfisOtire date of the dot of 1923 and we bo- 1lor0 as to it, the Supreme C.mirt would not foila the dlotua in the Stal.Lou,p ease sines its opinion in the WINTRRUR VI. but would apply the reasoning in the latter
MCD0N;rI.D ease, 0880,
we trust that thla auirioiontly aaawora rour request.
Your8 vepy truly A-“EDAUG la’ lg4’ AT%%Ifkll G=EtAL OI TXA3
D, D. Ifohm A8818tant