West v. Seigler, 15478
| Decision Date | 22 January 1954 |
| Docket Number | No. 15478,15478 |
| Citation | 265 S.W.2d 618 |
| Parties | WEST v. SEIGLER. |
| Court | Texas Court of Appeals |
Rogers & Eggers and Guy Rogers, Wichita Falls, for appellant.
Bullington, Humphrey, Humphrey & Fillmore and Lee Humphrey, Wichita Falls, for appellee.
Appellee Dave H. Seigler filed this suit against appellant Gordon T. West under art. 2524-1, V.A.T.S., for a declaratory judgment establishing his interest in 1/16th of 7/8ths of the minerals in 86.675 acres of land, until he has received $75 per acre from 1/16th of 7/8ths of the minerals produced therefrom. Judgment was for appellee, and appeal was perfected.
On January 1, 1944, the United States of America conveyed to appellee 86.675 acres, reserving from said conveyance 3/4ths of the oil, gas, coal and other minerals upon, in and under said land.
On June 5, 1947, appellee and his wife conveyed to appellant all their interest in and to the oil, gas and other minerals in said tract, which was an undivided 1/4th interest, reserving therefrom 1/4th of the usual 1/8th royalty. In said deed of conveyance there appeared the following provisions:
'The grantors herein further contract and agree that should they subsequently acquire title to the remaining undivided 3/4 interest in and to the oil, gas and other minerals in and under the land above described, or to any fractional part thereof, that in such event and immediately thereupon they will grant, sell, convey and deliver, and by these presents for the same consideration hereinbefore recited, they do hereby grant, sell, convey and deliver unto the said Gordon T. West all of such after acquired interest subject to the following reservation from such after acquired interest:
'The grantors further reserve to themselves, their heirs and assigns, 1/16 of 7/8 of all oil, gas or other minerals which may be produced and saved from the land herein described, free of cost of operation and production and free of gross production and pipeline taxes, until such reserved minerals, at their market value at the time the same are delivered to the pipeline, aggregate the sum of $75.00 per acre for the acreage which shall have vested in the grantees as herein described, no more and no less, whereupon this reservation shall cease and title to such reserved minerals shall then vest in the grantees, their heirs and assigns.'
On July 1, 1948, appellant acquired an oil and gas lease, covering the Government's 3/4ths mineral interest in the tract of land involved in this suit, subject to a royalty reservation of 3/4ths of 1/8th. Oil in paying quantities is being produced from the land.
On February 19, 1952, the United States conveyed to appellee all the mineral interest reserved in its conveyance dated January 1, 1944.
It is appellant's position that he has acquired nothing by virtue of the provision in appellee's deed to him whereby appellee undertook to convey any and all interest in the minerals that appellee might subsequently acquire, because he says that he had already bought from the Government and paid for 7/8ths of the minerals reserved by the Government in its first deed to appellee; and that appellee, after the Government executed the lease to appellant, acquired by the last conveyance only the Government's royalty interest and possibility of reverter. Appellant contends, therefore, that if he is compelled to pay to appellee 1/16th of 7/8ths of the minerals, he would in effect be paying twice for that interest.
Appellee, on the other hand, insists that appellant now owns all the minerals subject to the 1/8th royalty reservation and the reservation of the 1/16th of the 7/8ths, and the lease is now merged with the full fee simple title in appellant, and is therefore terminated.
An oil and gas lease is a conveyance of minerals and the lessee holds a determinable fee. Shell Oil Co., Inc., v. Howth, 138 Tex. 357, 159 S.W.2d 483; Texas Co. v. Davis, 113 Tex. 321, 254 S.W. 304, 255 S.W. 601; Stephens County v. Mid-Kansas Oil & Gas Co., 113 Tex. 160, 254 S.W. 290, 29 A.L.R. 566; 31 Tex.Jur., p. 590, sec. 46; W. T. Waggoner Estate 27. The title reverts to the lessor when 27. The title reverts tof the lessor when the lessee fails to perform his obligations under the lease. By his lease from the Government, appellant acquired title to 7/8ths of the minerals reserved by the United States in its first conveyance to appellee. He owed, however, the duty faithfully to perform the covenants of the lease and the failure to do so would terminate his...
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