GRAMMARIANS IN WEST TEXAS-PLAIN LANGUAGE OF DEED INTERPRETED TO HAVE RESERVED HALF OF GRANTOR'S ROYALTY, NOT HALF OF ALL ROYALTY

摘要

In Stewman Ranch, Inc. v. Double M Ranch, Ltd., 192 S.W.3d 808 (Tex. App.-Eastland 2006, no pet. h.), the court of appeals construed the reservation by Stewman, in its deed to Double M conveying its 8,900-acre ranch, of "an undivided one-half (1/2) of the royalties to be paid on the production of oil, gas and other hydrocarbons from the described lands which are presently owned by Grantors...." Id. at 810. Stewman did not own all of the royalty on production at the time of the deed but instead owned undivided interests of varying amounts under the tracts composing the ranch. Stewman maintained its reservation entitled it to half of the total royalty on production from any particular tract and that Double M acquired only whatever interest remained over and above the reserved half, if any. Double M argued that it had acquired half of whatever royalty Stewman owned at the time of the deed. The court agreed with Double M and affirmed Double M's summary judgment.