R.A.P. Battle: The Kansas Supreme Court Clips the Rule Against Perpetuities

In Jason Oil Co., LLC v. Littler, 2019 Kan. LEXIS 204 (Kan. 2019) Kansas joined a growing number of jurisdictions declining to apply the rule against perpetuities to defeasible term oil and gas interests. On December 30, 1967, Grantor executed two deeds in favor of separate Grantees conveying tracts of land in Rush County, Kansas (the “1967 Deeds”).  Each 1967 Deed excepted the mineral estate “for a period of 20 years or as long thereafter as oil and/or gas and/or other minerals may be produced.”  Upon the expiration of 20 years, no drilling operations had been conducted on the lands…
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Duhig Revisited – Perryman v. Spartan Tex. Six Capital Partners, Ltd.

Title examination is typically characterized by a series of deeds and conveyances, which—unsurprisingly—do not convey property and/or interests in a neat, uniform fashion.  To eliminate some of this confusion in the context of over-conveyances, the Texas Supreme Court established the Duhig doctrine.  Duhig v. Peavy-Moore Lumber Co., 144 S.W.2d 878 (Tex. 1940).  The Duhig doctrine holds that where full effect cannot be given to the granted interest and the reserved interest, the grantor will be stopped, and the courts will give priority to the granted interest until the granted interest has been fully satisfied.  If the granted interest cannot be…
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Texas Court Clarifies Who is a “Payor” under the Texas Division Order Statute

In a case of first impression, The Eastland Court of Appeals recently held that Tex. Nat. Res. Code § 91.402 (the “Texas Division Order Statute”) does not require an operator to pay royalties directly to mineral interest owners who have leased their interest to a different working interest owner.  Devon Energy Prod. Co., L.P. v. Apache Corp., 550 S.W.3d 259 (Tex. App.–Eastland 2018, pet. denied). The dispute arose relating to the payment of royalties in Glasscock County, Texas.  A mineral owner had leased her one-third interest in the subject land to Apache Corporation (“Apache”) and the remaining mineral owners leased…
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