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French v. Chevron

Supreme Court of Texas
896 S.W.2d 795 (Tex. 1995)


Facts

Marcia French, the predecessor in interest to Fuller Trust (plaintiff), granted a 1/656.17th interest to the predecessor in interest of Chevron (defendant). Paragraph one of the deed stated that the conveyance was “an undivided 1/656.17th interest in and to all of the oil, gas and other minerals, in, under and that may be produced from” the land. However, paragraph two of the deed stated: “It is understood and agreed that this conveyance is a royalty interest only.” Paragraph two then went on to reserve for the grantor the right to develop, the right to lease, the right to receive bonus payments, and the right to receive delay rentals. Fuller Trust brought suit seeking a declaration that the interest granted was a royalty interest. Chevron claimed that its interest was a mineral interest. The trial court found that the deed conveyed a mineral interest, while reserving certain rights delineated in the deed. Upon this finding the trial court granted Chevron summary judgment. Fuller Trust appealed.

Rule of Law

Issue

Holding and Reasoning (Enoch, J.)

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