Supreme Court of Texas
717 S.W.2d 891 (Tex. 1986)
Grande, Inc. (defendant) owned a tract of land subject to an undivided one-half mineral interest owned by Texas Osage Cooperative Realty (TOCR). Grande owned the other undivided one-half mineral interest. Grande conveyed all of its interests in the land to the Fogelmans but reserved for itself a one-fourth royalty interest. The deed described the entire tract, stated that the conveyance was subject to TOCR’s mineral interest, and then stated Grande’s reservation: “There is hereby excepted from this conveyance and reserved to Grantor, its successors and assigns, an undivided 1/4th of the royalty covering all of the oil, gas and other minerals . . . in, to and under or that may be produced from the land described above.” The Fogelmans later conveyed the property to James Averyt (plaintiff). Averyt brought suit to determine the parties’ interests in the minerals. Grande argued that it reserved a one-fourth interest in the entire mineral estate. Averyt argued that Grande reserved only a one-fourth interest in the undivided one-half mineral interest that Grande owned and conveyed. The trial court ruled in favor of Grande. The court of appeals affirmed. Averyt appealed.
Rule of Law
Holding and Reasoning (Spears, J.)
Dissent (Kilgarlin, J.)
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