BY: Ian McNeill from OilandGasLawDigest.com
This decision from the San Antonio Court of Appeals arises from the 218th Judicial District Court of Karnes County, Texas.
In 1991, the Harrells executed a warranty deed (“1991 Deed”) that conveyed approximately 10 acres of land to the Dragons. The 1991 Deed was subject to prior reservations and it contained the following new reservation by the Harrells:
SAVE and except however, and there is hereby reserved unto the GRANTORS, their heirs and assigns, a free non-participating interest in and to the royalty on oil, gas and other minerals in and under the herein above described property consisting of one half (1/2) of the interest now owned by Grantors together with one half (1/2) of the reversionary rights in and to the presently outstanding royalty in, on and under said property, perpetually from the date hereof. It being understood and hereby provided, however, that Grantors, their heirs or assigns, shall not be entitled to participate in the bonus money or annual delay rentals paid, or to be paid, under any present or future oil, gas and mineral lease on said premises, and that it shall not be necessary for Grantors, their heirs or assigns, to join in the execution of any future oil, gas or mineral lease or leases on said premises.