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U.S. SHALE ENERGY v. LABORDE PROPERTIES

No. 17-0111.

551 S.W.3d 148 (2018)

U.S. SHALE ENERGY II, LLC, Raymond B. Roush, Ruthie Roush Dodge, and David E. Roush, Petitioners, v. LABORDE PROPERTIES, L.P., and Laborde Management, LLC, Respondents.

Supreme Court of Texas.

OPINION DELIVERED: June 29, 2018.

Attorney(s) appearing for the Case

Jeffrey D. Small , Katy Ilen Pier Moore , Nicole Sears , Benjamin G. Robertson , Corey F. Wehmeyer , Raymond B. Roush , for petitioners Ruthie Roush Dodge, Raymond B. Roush and David E. Roush.

Forrest M. Seger, III , Andrew L. Kerr , Michael G. Maloney , for respondents Laborde Management, LLC, and Laborde Properties, L.P.

Jeffrey D. Small , Katy Ilen Pier Moore , Nicole Sears , Benjamin G. Robertson , Corey F. Wehmeyer , Laura H. Burney , for petitioner U.S. Shale Energy II, LLC.

Joshua S. Smith , for amicus curiae Wolf Bone Ranch Partners, LLC.

Justice Lehrmann delivered the opinion of the Court, in which Chief Justice Hecht, Justice Green, Justice Guzman, Justice Devine, and Justice Brown joined.

We are asked whether the royalty interest reserved to the grantor in a 1951 deed is fixed (set at a specific percentage of production) or floating (dependent on the royalty amount in the applicable oil and gas lease). The trial court concluded it was floating, but the court of appeals disagreed and held it was fixed....

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