Opinion · Texas Supreme Court

Luckel v. White

819 S.W.2d 459

Type
Opinion
Court
Texas Supreme Court
Jurisdiction
Texas
Date
1992-01-08
Topic
litigation

recognizing that courts may not interpolate or substitute in such a way as to change the clear and unambiguous meaning of a lease clause | holding that courts must attempt to harmonize all parts of the deed, construing the instrument to give effect to all of its provisions | holding that, when interpreting a deed, the intent of the parties is to be determined from the express language found within the four corners of the document | recognizing that a floating royalty interest is calculated by multiplying the fraction of the royalty interest by the lease’s royalty, which can change over time depending on lease terms | recognizing that a floating royalty interest is calculated by multiplying the fraction of the royalty interest by the lease’s royalty, which can change over time depending on lease terms. | holding that an interest in minerals can be created by a conveyance or reservation | holding that the construction of an unambiguous deed is a question of law | holding “[t]he language ‘one-fourth of any and all royalties reserved under’ future leases is clear and unambiguous” to describe a floating royalty | noting that, in construing a deed, we attempt to harmonize provisions that "appear contradictory or inconsistent" so as "to give effect to all of its provisions" | holding “[t]he language ‘one-fourth of any and all royalties reserved under’ future leases is clear and unambiguous” to describe a floating royalty | recognizing that “[a]n undivided royalty interest may be conveyed as a fixed fraction of total production or as a fraction of the total royalty interest, and if conveyed as a fraction of the total royalty interest its amount (as a percentage of production | holding that because assumption that the parties contemplated the usual one-eighth royalty was “equally consistent” with language fixing the royalty interest as it was with language suggesting a floating royalty interest, the court of appeals erred in favoring one construction over the other | noting that, in construing a deed, we attempt to harmonize provisions that “appear contradictory or inconsistent” so as “to give effect to all of its provisions” | noting that, in construing a deed, we attempt to harmonize provisions that “appear contradictory or inconsistent” so as “to give effect to all of its provisions” | explaining that the possibility of reverter is “the grantor’s right to fee ownership in the real property reverting to him if the condition terminating the determinable fee occurs” | noting that the possibility of reverter is “the grantor’s right to fee ownership in the real property reverting to him if the condition terminating the determinable fee occurs” | observing that parties to 1935 deed “probably contemplated nothing other than the usual one-eighth royalty” but courts must determine successors’ rights based on deed language—“not the actual intent of the parties” | holding language at issue was “as effective to grant an interest as the formal ‘do hereby grant, bargain, sell and convey’ language of what we have designated as the ‘granting’ clause” | highlighting Alford approach failed to harmonize deed's provisions pursuant to four corners rule and under four corners rule | highlighting Alford approach failed to harmonize deed’s provisions pursuant to four corners rule and under four corners rule | highlighting Alford approach failed to harmonize deed’s provisions pursuant to four corners rule and under four corners rule | finding intent to create floating royalty interest based on language providing that grantee would receive "one-fourth of any and all royalties reserved under " any future leases | distinguishing the conveyance in Peveto on the basis that the deed did not expressly condition the effectiveness of the grant itself on the expiration of the preceding interest | finding deed that conveyed “an undivided one-sixteenth (1/16) interest in and to all of the oil, gas and other minerals in and under and that may be produced from” the land

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