Clinton T. Montgomery, Managing Trustee of the Tri-Mont Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong and Michele Mitchell Grimsley v. ES3 Minerals, LLC and Echo Minerals, LP ( 2024 )


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  •                                     COURT OF APPEALS
    EIGHTH DISTRICT OF TEXAS
    EL PASO, TEXAS
    CLINTON T. MONTGOMERY,                            §                No. 08-23-00153-CV
    MANAGING TRUSTEE OF THE
    TRI-MONT IRREVOCABLE TRUSTS,                      §                  Appeal from the
    KIMBERLY SHIPMAN DYESS,
    MELODY SHIPMAN DELONG,                            §            143rd Judicial District Court
    and MICHELE MITCHELL GRIMSLEY,
    §              of Reeves County, Texas
    Appellants,
    §           Cause No. 21-06-24013-CVR
    v.
    ES3 MINERALS, LLC and
    ECHO MINERALS, LP,
    Appellees.
    OPINION
    In this appeal, we are asked to interpret the conveyance of a nonparticipating royalty
    interest in a 1955 deed. The parties contest whether the deed conveyed a floating 1/4 royalty
    interest or a fixed 1/32 royalty interest. Because we determine the presumption of a floating royalty
    interest is not rebutted by the language in the remainder of the deed, we reverse the trial court’s
    rulings on the parties’ cross motions for summary judgment, render judgment that the interest
    conveyed was a 1/4 floating royalty interest, and remand the case for further proceedings.
    FACTUAL AND PROCEDURAL BACKGROUND
    In 1955, J.D. Arthur and his wife, Elva J. Arthur, as grantors, conveyed to W. Travis
    Lattner, Jr., grantee, a nonparticipating royalty interest through a warranty deed conveying certain
    real property in Reeves County, Texas, using this operative language: “[T]he Grantors do hereby
    expressly include in this conveyance, a non-participating royalty of one-fourth (l/4th) of the
    landowner’s usual one-eighth (1/8th) royalty on oil and gas produced and saved from said
    land[.]”Appellants, who include Clinton T. Montgomery, Managing Trustee of the Tri-Mont
    Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong, and Michele Mitchell
    Grimsley, are the successors-in-interest to Lattner, the grantee; while Appellees, ES3 Minerals,
    LLC and Echo Minerals, LP, are successors-in-interest to the Arthurs, the grantors. Ownership of
    the royalty interest is not in dispute; rather, the parties disagree on the nature and quantum of the
    conveyed interest.
    Appellants brought a declaratory judgment action seeking a declaration that the 1955 deed
    conveyed a floating 1/4 nonparticipating royalty interest, individually owned as follows: Tri-Mont
    Irrevocable Trusts (1/8), Kimberly Shipman Dyess (1/24), Melody Shipman Dyess (1/24) and
    Michel Mitchell Grimsley (1/24). To recover royalty payments made to Appellees, the suit
    additionally sought a money judgment for money had and received and unjust enrichment. Last,
    Appellants sought recovery of attorney’s fees. ES3 Minerals answered with a general denial. Echo
    Minerals also answered with a general denial, included certain affirmative defenses, and
    counterclaimed for declaratory judgment, in which it also sought declarations regarding the
    meaning of the nonparticipating royalty interest conveyed in the subject deed. Specifically, Echo
    Minerals alleged the deed language conveyed a fixed 1/32 nonparticipating royalty interest, not a
    floating 1/4 nonparticipating royalty interest. Also, Echo Minerals sought recovery of attorney’s
    2
    fees. Appellants and Echo Minerals each moved for partial summary judgment on their dueling
    interpretations of the deed’s language. In doing so, both sides claimed the language at issue was
    not ambiguous.
    After a hearing, the trial court granted Echo Minerals’ motion for partial summary
    judgment and denied Appellants’ motion, finding that the deed in question conveyed a fixed 1/32
    nonparticipating royalty interest. The trial court granted permission for an interlocutory appeal on
    the issue of the interpretation of the conveyance. Appellants petitioned this court for permissive
    appeal, which we granted, and this appeal followed. 1
    ISSUES ON APPEAL
    In two issues, Appellants urge that the trial court improperly construed the conveyance of
    the royalty interest and thus improperly granted Echo Minerals’ motion for partial summary
    judgment and denied their own. Appellants argue the deed language—particularly the inclusion of
    double fractions that include a 1/8 fraction—triggers a presumption that the use of such double
    fraction was purposeful and that 1/8 reflects the entire royalty interest that would be received under
    any present or future oil and gas leases, not just a fixed fraction of a 1/8 royalty. See Van Dyke v.
    Navigator, 
    668 S.W.3d 353
     (Tex. 2023); Hysaw v. Dawkins, 
    483 S.W.3d 1
    , 13 (Tex. 2016). That
    is, the use of the fraction of 1/8 was used as a proxy for the grantors’ entire royalty interest, so that
    the grantors’ conveyance of 1/4 of the landowner’s usual 1/8 royalty indicates the intent to convey
    a 1/4 floating royalty interest. Conversely, Appellees claim six distinct provisions of the deed rebut
    the Van Dyke presumption indicating the double fraction used in the conveyance was “nothing
    1
    ES3 Minerals filed a joinder brief supporting Echo Minerals’ position on appeal. See Tex. R. App. P. 9.7.
    3
    more than a double fraction” that transferred a fixed 1/32 royalty interest in the oil and gas
    produced and saved from the land.
    DISCUSSION
    A. Standard of review
    We review de novo a declaratory judgment granted on a traditional motion for summary
    judgment. Angel v. Tauch, 
    642 S.W.3d 481
    , 488 (Tex. 2022). Traditional summary judgment is
    appropriate where there is no genuine issue of material fact, and a party is entitled to judgment as
    a matter of law. Id.; see Tex. R. Civ. P. 166a(c). When both parties move for summary judgment
    on the same issue and the trial court grants one motion but denies the other, the reviewing court
    should review the evidence presented by both sides, determine all questions presented, and render
    the judgment the trial court should have rendered. Angel, 642 S.W.3d at 488.
    B. Deed interpretation principles
    The interpretation of an unambiguous deed is a question of law for the court. Wenske v.
    Ealy, 
    521 S.W.3d 791
    , 794 (Tex. 2017). If a deed is worded in such a way that it can be given a
    certain or definite meaning, then the deed is not ambiguous. Endeavor Energy Res., L.P. v.
    Discovery Operating, Inc., 
    554 S.W.3d 586
    , 601 (Tex. 2018). Ambiguity does not arise merely
    because parties assert differing interpretations. See 
    id.
     Rather, “ambiguity exists only if both
    parties’ interpretations are reasonable.” Piranha Partners v. Neuhoff, 
    596 S.W.3d 740
    , 744
    (Tex. 2020). As is the case here, “[e]ven when the parties agree that an agreement is unambiguous
    . . . a reviewing court should independently confirm that determination.” Occidental Permian, Ltd.
    v. Citation 2002 Investment LLC, No. 23-0037, 
    2024 WL 2226281
    , at *3 (Tex. May 17, 2024)
    (citing Piranha Partners, 596 S.W.3d at 743–44).
    4
    When interpreting a deed, our objective is to “‘ascertain the true intentions of the parties
    as expressed in the writing itself,’ beginning with the instrument’s express language.” Nettye
    Engler Energy, LP v. BlueStone Nat. Res. II, LLC, 
    639 S.W.3d 689
     (Tex. 2022) (quoting Italian
    Cowboy Partners, Ltd. v. Prudential Ins. Co. of Am., 
    341 S.W.3d 323
    , 333 (Tex. 2011). Our initial
    analysis is “confined to the four corners of the document[.]” Van Dyke, 668 S.W.3d at 361.
    “To discern intent, words and phrases must be construed together and in context, not in
    isolation.” Hysaw, 483 S.W.3d at 13. “Words and phrases generally bear their ordinary meaning
    unless the context supports a technical meaning or a different understanding. Id. (quoting In re
    Office of Att’y Gen. of Tex., 
    456 S.W.3d 153
    , 155–56 (Tex. 2015 (“Given the enormous power of
    context to transform the meaning of language, . . . [t]he import of language, plain or not, must be
    drawn from the surrounding context, particularly when construing everyday words and phrases
    that are inordinately context-sensitive.”). In doing so, the Supreme Court of Texas has repeatedly
    affirmed its commitment to “a holistic approach aimed at ascertaining intent from all words and
    all parts of the conveying instrument.” 
    Id.
     To the extent possible, apparent inconsistencies or
    contradictions must be harmonized by construing the document as a whole. 
    Id.
     In determining
    intent, a fundamental premise of ascertaining the ordinary meaning of a term is that “a text retains
    the same meaning today that it had when it was drafted.” Van Dyke, 668 S.W.3d at 359. As a result,
    we may consider facts and surrounding circumstances at the time of the instrument’s execution but
    only to the extent they inform the meaning of the instrument’s text. URI, Inc. v. Kleberg County,
    
    543 S.W.3d 755
    , 767 (Tex. 2018).
    In using an interpretation of a term that is utterly, mathematically counterintuitive but
    historically significant, the Supreme Court has instructed that when we encounter a double fraction
    involving 1/8 in a mineral reservation or conveyance (e.g., 1/4 of 1/8), we do not give the fraction
    5
    1/8 its typical meaning of one share out of eight shares. See Van Dyke, 668 S.W.3d. at 364. Rather,
    when we interpret a mineral conveyance or reservation executed in the early to mid-twentieth
    century, Van Dyke directs us to begin with the presumption that “1/8 reflects the entire mineral
    estate, not just 1/8 of it[,]” or, in the context of royalty interests, that 1/8 was used “as a placeholder
    for future royalties generally[.]” 
    Id.
     at 364–63 (emphasis in original); see also Hysaw, 483 S.W.3d
    at 4 (construing a 1947 will’s devise of a royalty interest). This presumption, according to Van
    Dyke, is a rebuttable one that “reflects historical usage and common sense.” Van Dyke, 668 S.W.3d
    at 364.
    The reasoning behind this presumption is twofold. See Van Dyke, 668 S.W.3d at 363. First,
    there is the estate misconception theory. The estate misconception theory refers to prevalent,
    mistaken belief that a lessor receiving a 1/8 royalty only retained “a 1/8 interest in the minerals,
    rather than the entire mineral estate in fee simple determinable with the possibility of reverter of
    the entire estate.” Id. (emphasis in original). Because of this mistaken belief, for many years
    mineral lessors would refer to what they believed was their entire interest in the mineral estate by
    using only “1/8.” Id. The ill-founded usage of 1/8 to refer to a landowner’s entire mineral estate
    “ran rampant in instruments of this time,” has been recognized by Texas courts, and has even been
    called “patent evidence that the parties were functioning under the estate misconception.” Id.
    (citing Laura H. Burney, The Regrettable Rebirth of the Two-Grant Doctrine in Texas Deed
    Construction, 
    34 S. Tex. L. Rev. 73
    , 90 (1993)).
    Second, confusion also abounded around the prevalent belief that a landowner’s royalty
    would always be 1/8. 
    Id.
     Landowners would thus use 1/8 “as a placeholder for future royalties
    generally—without anyone understanding that reference to set an arithmetical value.” 
    Id.
     And
    again, this belief was so pervasive that the Supreme Court of Texas took judicial notice of the
    6
    misunderstanding, specifically in the context of double-fraction royalties. 
    Id.
     (citing Garrett v. Dils
    Co., 
    299 S.W.2d 904
    , 907 (Tex. 1957); see Thomson v. Hoffman, 
    674 S.W.3d 927
    , 928–29
    (Tex. 2023) (per curiam) (stating Van Dyke analysis must be applied to royalty reservations); see
    also Luckel v. White, 
    819 S.W.2d 459
    , 462 (Tex. 1991) (“One-eighth was the ‘usual’ royalty so
    standard in the 1920s and 1930s that all Texas courts took judicial notice of it.”); U.S. Shale Energy
    II, LLC V. Laborde Properties, Lp., 
    551 S.W.3d 148
    , 153 (Tex. 2018) (providing that “this rate
    was typically 1/8 in 1951”); Garrett, 299 S.W.2d at 907 (taking judicial notice in 1957 “that the
    usual royalty provided in mineral leases is one-eighth”).
    The Van Dyke presumption is “readily and genuinely rebuttable,” and we must examine
    the entire instrument to determine whether the text of the instrument rebuts the presumption. Van
    Dyke, 668 S.W.3d at 364. After applying the Van Dyke presumption, ordinary rules of contract
    interpretation apply. See id. at 365; Nettye Engler, 639 S.W.3d at 689 (stating standard rules of
    contract construction apply to the interpretation of an oil and gas deed). And generally, a royalty
    deed is subject to the same rules of construction as a mineral deed. Luckel, 819 S.W.2d at 464.
    Only if a text is incapable of clear meaning, that is, unavoidably ambiguous, will we
    consider evidence outside the four corners of the document to determine its meaning. Id. at 361,
    365. When a text is inescapably ambiguous, a fact-finder may be needed to resolve its meaning.
    Id. at 365.
    C. Nonparticipating royalty interests
    “An instrument conveying land in fee simple transfers both the surface estate and all
    minerals and mineral rights, unless the instrument contains a reservation or expresses a contrary
    intention.” Hysaw, 483 S.W.3d at 8. A mineral estate encompasses five rights and attributes, one
    7
    of which is the right to receive royalties. 2 French v. Chevron U.S.A. Inc., 
    896 S.W.2d 795
    , 797
    (Tex. 1995).
    A royalty interest has long been defined as “a nonpossessory interest in minerals that may
    be separately alienated.” Luckel, 819 S.W.2d at 463. “The same instrument may convey an
    undivided portion of the mineral estate and a separate royalty interest, and the royalty interest
    conveyed may be larger or smaller than the interest conveyed in the minerals in place.” Id. A
    royalty interest that does not include the right to lease the mineral estate, to receive delay rentals,
    or to receive bonus payments is called a nonparticipating royalty interest. See Hysaw, 483 S.W.3d
    at 9.
    A royalty interest may be conveyed or reserved in one of two ways: as a fixed fraction of
    total production (called a “fractional royalty interest”) or as a fraction of the total royalty interest
    (called a “fraction of royalty interest”). Hysaw, 483 S.W.3d at 9 (quoting Luckel, 819 S.W.2d at
    464) (cleaned up). “A fractional royalty interest is referred to as a fixed royalty because it ‘remains
    constant’ and is untethered to the royalty amount in a particular oil and gas lease[,]” that is, it
    “convey[s] a fixed fraction of gross production.” Laborde, 551 S.W.3d at 152. “A fraction of
    royalty interest is referred to as a floating royalty because it varies depending on the royalty in the
    oil and gas lease in effect.” Id. It is calculated by multiplying the fraction in the royalty conveyance
    by the royalty in the lease. Id. The Van Dyke presumption, treating 1/8 as serving as a placeholder
    for future royalties generally, is a presumption of a floating royalty interest. See Van Dyke, 668
    S.W.3d at 365–66; Hysaw, 483 S.W.3d at 12–13, 16.
    2
    The five rights encompassed in a mineral estate include the right to develop, the right to lease, the right to receive
    bonus payments, the right to receive delay rentals, and the right to receive royalty payments. Hysaw v. Dawkins, 
    483 S.W.3d 1
    , 9 (Tex. 2016) (quoting French v. Chevron U.S.A. Inc., 
    896 S.W.2d 795
    , 797 (Tex. 1995).
    8
    D. Analysis
    In their first issue, Appellants argue the language of the 1955 deed establishes that the
    intent of the parties was to convey a 1/4 nonparticipating royalty interest, not a fixed 1/32 interest
    of that type of mineral interest. Related to that interpretation, Appellants’ second issue asserts the
    trial court erred in denying their motion for partial summary judgment and granting Echo Minerals’
    motion. For our purposes here, because the resolution of the second issue relies on the deed
    interpretation addressed in the first issue, we consider both issues together to avoid unnecessary
    duplication and overlapping analysis. See Tex. R. App. P. 47.1
    The parties’ disagreement is centered on whether the 1955 deed conveyed a fixed royalty
    on oil and gas, that is, a fixed fraction of total production; or a floating royalty, a fraction of the
    total royalty interest that varies depending on the royalty percentage in the mineral lease, in line
    with the Van Dyke presumption. 3 Returning to the text, the royalty conveyance portion of the deed
    in question provides as follows:
    [T]he Grantors do hereby expressly include in this conveyance, a non-participating
    royalty of one-fourth (l/4th) of the landowner’s usual one-eighth (1/8th) royalty on
    oil and gas produced and saved from said land, together with one-half (1/2) of the
    Grantors’ present interest in any royalty on sulphur or substances from which
    sulphur is derived, but neither the Grantee nor his heirs or assigns shall participate
    in any bonus or delay rentals on leases on said land, nor shall they be entitled to
    join in the execution of any future lease or leases on any portion of said land[.]
    3
    Notably, the parties’ arguments regarding interpretation of the conveyance changed somewhat between the time of
    filing their competing motions for partial summary judgment and filing their briefs on appeal, likely due to the
    Supreme Court of Texas’s issuance of Van Dyke in the interim. Nonetheless, the parties’ briefs indicate their
    recognition that Van Dyke directs us to begin with the rebuttable presumption that the use of 1/8 here was as a term of
    art, commonly used to reference mineral interests during this era. We believe this to be so even though the deed here
    involves a royalty conveyance rather than a mineral estate reservation, as was the case in Van Dyke. See Thomson v.
    Hoffman, 
    674 S.W.3d 927
    , 929 (Tex. 2023) (per curiam) (remanding case involving interpretation of royalty
    reservation for consideration under Van Dyke framework); Permico Royalties, LLC v. Barron Props. Ltd., 
    2023 WL 4442007
     (Tex. App.—El Paso July 10, 2023, pet. filed) (mem. op.) (applying Van Dyke presumption to interpretation
    of royalty reservation).
    9
    The conveyance language here, using a double fraction involving 1/8, requires that we
    begin with a rebuttable presumption that the 1/8 in this context was used as a placeholder for the
    standard royalty, and not to set an arithmetical value. See Van Dyke, 668 S.W.3d at 363–64; Hysaw,
    483 S.W.3d at 13; see also Bridges v. Uhl, 
    663 S.W.3d 252
    , 264 (Tex. App.—El Paso 2022, no
    pet.). Employing this presumption, we read the deed as conveying to the grantees a floating 1/4
    nonparticipating royalty interest in existing and future leases. Accounting for the parties’ contested
    interpretations and following Van Dyke’s directives, we must next examine whether the remainder
    of the text of the instrument rebuts this presumption of a placeholder for the royalty, not as a fixed
    value. 
    Id.
    Turning to the language of the deed before us, the granting clause references “the
    landowner’s usual one-eighth 1/8th royalty.” Appellants assert this language triggers the
    application of the estate misconception theory.
    Our sister court has determined in this context that “[t]he use of the word ‘the’ denotes that
    ‘the one-eighth royalty’ is a distinct or particular royalty.” Graham v. Prochaska, 
    429 S.W.3d 650
    ,
    659 (Tex. App.—San Antonio 2013, pet. denied). In addition, this Court has also recognized that
    “the usual 1/8 royalty” can stand as a proxy for the landowner’s royalty. Bridges, 
    663 S.W.3d 265
    .
    Further, we have previously determined that, even if, as here, that language is used only one time
    in the deed, that a “specific reference to the landowner’s royalty and the use of ‘the usual 1/8
    royalty’” supports the presumption of an intended floating interest. Royalty Asset Holdings II, LP
    v. Bayswater Fund III-A LLC, 
    2023 WL 2533169
    , at *4 (Tex. App.—El Paso Mar. 15, 2023, pet.
    denied).
    We find it significant here that the Arthurs used “Grantors” in all other areas of the deed,
    but in this conveyance, the language deployed is “a non-participating royalty of one-fourth (l/4th)
    10
    of the landowner’s usual one-eighth (1/8th)” (emphasis added). As we did in Royalty Asset
    Holdings II, we determine that this language supports and does not rebut the Van Dyke presumption
    that the deed conveyed a floating 1/4 nonparticipating royalty interest. See 
    id.
    In attempting to rebut the Van Dyke presumption, Appellees make various arguments citing
    six clauses in the deed, arguing they easily rebut the floating-interest presumption because they
    establish that the grantors were under no misconception about the extent of their ownership of the
    mineral estate, and right to royalties. Appellees claim that the text itself establishes that a double
    fraction was in fact used as nothing more than a double fraction. Illustrating, Appellees reference
    these six clauses:
    Introductory Clause                  “All of Section Two (2), Block C-18, Public School Land
    Survey, Reeves County, Texas, Save and Except . . . six (6)
    tracts of land [that had been conveyed in a prior transaction].”
    Mineral/Sulfur Reservation 4         “[I]t is expressly understood and agreed that this conveyance
    is made subject to a reservation in favor of the State of Texas
    of l/16th of all minerals in said land except sulphur and 1/8th
    of all sulphur and other mineral substances from which
    sulphur may be derived or produced as a free royalty to the
    State as set forth in the Patent on said land . . . and to two
    certain oil and gas leases on said land . . . .”
    Arthur Reservation                   “[T]he Grantors [i.e., the Arthurs] herein do hereby reserve
    unto themselves, their heirs and assigns, all of the oil, gas and
    other minerals, royalties, and mineral rights not hereinafter
    expressly conveyed to the Grantee [i.e., Mr. Lattner].”
    First Conveyance Recital             “[A]ll of [the Grantors’] right, title and interest in and to all
    of the oil, gas and other minerals in and under a tract of 39.1
    acres of land out of the above described 380 acres of land . .
    . .”
    4
    We recognize “sulfur” as the correct spelling of element number 16 according to the International Union of Pure
    and Applied Chemistry since at least 1990 and the usual spelling in today’s American English. See So long Sulphur,
    Nature Chemistry 1, 333 (2009), https://doi.org/10.1038/nchem.301. We use the older spelling, “sulphur,” only when
    quoting the deed.
    11
    Second Conveyance Recital              “On the remaining portion of said land, being the 380 acres,
    more or less, save the 39.1 acres next above mentioned, the
    Grantors do hereby expressly include in this conveyance, a
    non-participating royalty of one-fourth (l/4th) of the
    landowner’s usual one-eighth (l/8th) royalty on oil and gas
    produced and saved from said land, together with one-half
    (1/2) of the Grantors’ present interest in any royalty on
    sulphur or substances from which sulphur is derived . . . .”
    Exception Clause                       “all oil, gas and mineral rights not expressly herein conveyed
    are hereby EXCEPTED from this conveyance.”
    First, Appellees argue the use of “all” in the Introductory Clause, the Arthur Reservation,
    the two conveyance recitals, and the Exception Clause indicates the Arthurs knew they owned all
    the conveyed property interests, save for narratively articulated exceptions. Appellees argue the
    Arthurs used “all” when they intended to refer to the entirety of the mineral estate, but when they
    intended to refer to only a fraction of the mineral estate, including royalty interests, they used
    fractions. We do not believe this is the case. In fact, in the First Conveyance Recital, although the
    Arthurs used “all,” they modified it with the phrase immediately following: “of [the Grantors’]
    right, title and interest.” In this instance, the Arthurs limited “all” to only that part of “all” to which
    they had “right, title and interest.”
    Second, Appellees claim the use of 1/8 to refer to the landowner’s usual interest was not
    “anomalous or unique” because 1/8 royalty in sulfur had also been reserved to the State. We do
    not find a reservation in a separate document, which is merely referenced in the deed at hand, to
    be relevant to the construction of this conveyance. See Van Dyke, 668 S.W.3d at 361 (providing
    that the initial analysis remains confined to the four corners of the document as usual); see also
    Garrett, 299 S.W.2d at 906.
    12
    Third, Appellees urge us to consider a second double fraction—though it does not actually
    appear in the deed here—contemplated when determining the quantum of sulfur royalties
    conveyed to Lattner by the Second Conveyance Recital. That is, Appellees argue the 1/2 of the
    Arthurs’ present interest must be multiplied by the Arthurs’ 7/8 sulfur royalty referenced in the
    Mineral/Sulfur Reservation to determine the quantum of the conveyance to Lattner. Based on this
    contemplated arithmetic, Appellees further argue the deed “never used ‘single fractions’ . . . to
    memorialize royalty conveyances.” However, we remain unpersuaded. We will not insert a double
    fraction where none appears, and we will not group an unwritten double fraction with actually
    appearing.
    Last, Appellees claim the “Arthur Reservation” would be nonsensical if the Second
    Conveyance Recital conveyed everything to Lattner, meaning there was nothing for the Arthurs to
    reserve. Considering that Appellants do not argue that the Second Conveyance Recital conveyed
    everything to Lattner, but only a 1/4 royalty, this argument also fails.
    In summary, none of Appellees’ arguments sufficiently rebut the Van Dyke presumption
    of conveyance of a 1/4 floating nonparticipating royalty interest. We determine, then, that the text
    of the entire deed, read holistically, is capable of clear meaning, and, thus, it is unambiguous. The
    intent of the language is consistent with the presumption that the royalty interest is 1/4, and the
    wording confirms the grantors’ intent to convey a 1/4 floating nonparticipating royalty interest.
    See Van Dyke, 668 S.W.3d at 364–65; Hysaw, 483 S.W.3d at 13. The lack of any text within the
    four corners of the deed that rebuts the presumption leads us to conclude that the grantors of the
    1955 deed did not use 1/8 in its arithmetical sense in conveying this royalty interest but instead
    intended to convey a 1/4 interest in nonparticipating royalties in general. See id. at 366.
    Accordingly, we hold the 1955 deed conveyed a floating 1/4 nonparticipating royalty interest.
    13
    Based on that determination, we further conclude the trial court erred in granting Echo Minerals’
    motion for partial summary judgment, and instead, it should have granted Appellants’ motion.
    We sustain Appellants’ first and second issues.
    CONCLUSION
    We reverse the trial court’s denial of Appellants’ motion for partial summary judgment and
    render a partial summary judgment in Appellants’ favor declaring that the 1955 deed conveyed a
    floating 1/4 nonparticipating royalty interest. We further reverse the trial court’s granting of Echo
    Minerals’ motion for partial summary judgment and remand the cause for further proceedings
    consistent with this opinion.
    GINA M. PALAFOX, Justice
    May 30, 2024
    Before Palafox, J., Soto, J., and Barajas, C.J. (Ret.)
    Barajas, C.J. (Ret.) (Sitting by Assignment)
    14
    

Document Info

Docket Number: 08-23-00153-CV

Filed Date: 5/30/2024

Precedential Status: Precedential

Modified Date: 6/6/2024