September - Dallas Association of Petroleum Landmen

News
DAPL
Dallas Association of Petroleum Landmen
P.O. Box 600096, Dallas Texas 75360-0096
September 2014
UPCOMING Event Calendar
DAPL
September 8, 2014
September Formal
Meeting
Dallas Petroleum Club
October 27, 2014
2014 DAPL Golf
Tournament
Brookhaven Country Club
AAPL
September 12, 2014
Oil and Gas Land Review,
CPL/RPL Exam
Houston, TX
September 12, 2014
Ethics 360
Norman, OK
AAPL (con’t)
September 19, 2014
Pooling Seminar
Oklahoma City, OK
September 22, 2014
Texas Land Institute
Houston, TX
October 02, 2014
WI/NRI Workshop
Midland, TX
October 03, 2014
WI/NRI Workshop
Fort Worth, TX
October 10, 2014
Applied Land Practices
Houston, TX
DAPL — Board of Directors
President
Joshua A. Raley, CPL
EXCO Resources, Inc.
Education Director
Nick Peters
Merit Energy Company
1st Vice President – Entertainment
D.J. Cherry
PetroVen, Inc.
Publications Director
Yaroslav Andrus, CPL
Pioneer Natural Resources USA, Inc.
2nd Vice President – Membership
Iris L. Bradley, CPL/ESA
Northern Trust
Advertising Director
Wes Minshall, RPL
Excalibur Resources
3rd Vice President – Website
Adam Griffin, CPL
J-W Energy Company
Membership Co-Director/
NGL Director
Ryan Boschetti, RPL
Hunt Oil Company
Treasurer
Greg Brown, JD, CPL
Laredo Petroleum, Inc.
Secretary
Alicia M. Surratt
J.P. Morgan
Sergeant-at-Arms
Joel Robbins, RPL
Merit Energy Company
Immediate Past President
Blake C. Bowen, RPL
Pioneer Natural Resources USA, Inc.
AAPL Director
Kevin Dickerson, CPL
Eagle Oil & Gas Co.
Letter From the
Publications Director
To my fellow Landmen,
I hope everyone had a great summer, and I look forward to serving as your Publications Director for the 2014-2015 term. I
want to thank Jerry Padilla for his service in years past and for all of his help during the transition of his duties. Jerry set a
high standard for DAPL Publications, and I will strive to provide content that is just as informative and insightful.
The Board would like to thank everyone for making the past year a success. The DAPL has had increased attendance at
scheduled events and our membership continues to grow. We have worked diligently over the summer to organize events
and speakers. We are looking forward to kicking off the 2014-2015 year with the September Formal Meeting at the Dallas
Petroleum Club on September 8th, followed by the Golf Tournament at the end of October.
As Fall brings relief from the heat of the summer, we look forward to resuming business as usual and welcoming everyone
back. It is also with a heavy heart that we acknowledge the loss of two wonderful DAPL members. We would like to offer our
condolences to the Van Eaton and Weaver Families.
Yaroslav Andrus, CPL
Pioneer Natural Resources USA, Inc.
Weaver, Courtney Anne -- Courtney is joined
in death by her loving parents, John and
Debi Weaver, who perished along with her
in a small plane crash in Ranger, Texas on August 16, 2014.. Memorials: In lieu of flowers,
memorial gifts may be made to Ren’s Rides
for Autistic Equine Therapy, 1302 Pecan St.,
Buffalo Gap, Texas 79508 or SPCA of Texas,
The Jan Rees-Jones Animal Center 2400
Lone Star Drive, Dallas, Texas 75215. Courtney Anne Weaver was
born October 29, 1980 to John Carl Weaver and Debi Hicks Weaver in Arlington, Texas. She attended Wichita Falls High School and
graduated from Abilene Cooper High School. She was a graduate
of Texas Tech in 2004 with a marketing degree. Courtney interned
at OSU with Mike Gundy. She grew up dancing tap and was on the
golf team in high school. She was active with the Junior League of
Collin County and Cocker Spaniel Rescue Group. Her passion was
caring for her dog, Darcie, who is deaf and blind. She was a magnet to many people who called her friend. She was an avid member of the Texas Tech Alumni. Her hobby was doing the “guns up”
with notables such as George W. Bush, Boone Pickens, and Avery
Johnson to mention a few. She loved her alma mater. She excelled
in her career in the oil and gas business as a Landman, following
in her dad’s footprint. Her recent job was with Wishbone Energy
Partners LLC in Houston. She was looking forward to a new adventure in Houston, Texas. She was a light in this world that was
extinguished too soon. Survivors: She is survived by her brother,
Stephen Paul Schultz of Granbury; her grandmother, Rojean Hicks
of Abilene; aunts, Renee Hicks of Buffalo Gap and Elayne Ruthart
of Arlington; cousins, Brad Hicks, Wes Hicks, Thomas Hicks and
Lindsey Ruthart. She leaves behind more friends than we can ever
know.
Matthew Charles Van Eaton, 30, went to
heaven early Sunday morning August
10, 2014. Matthew had an intense appreciation and passion for living life to
the fullest. Never one to shy away from
a new challenge or adventure, he was a
true outdoorsman, craftsman and best
friend to many. He was never without his
Australian Shepherd Rowen, and the love of his life Jane Soneson by his side. Matt never met a stranger and his generosity
was endless. He was a graduate of Western State University in
Gunn-ison, CO and an accomplished Landman at Merit Energy
in Dallas, TX. He left behind countless friends and colleagues
whose lives he affected in ways that will never be forgotten. He
was preceded in death by his father Billy Dunlap Van Eaton and
his paternal grandparents Charles Winfield Van Eaton and Elsye
Ve Van Eaton. He is survived by his mother, Mary Van Eaton, and
step-mother, Judy Van Eaton. Survivors include the following
aunts, uncles, and cousins; Ron and Ann Crosby; Justin, Lauren,
Caroline and Charlie Battles; William, Jennifer and Grace Crosby;
David and Amy Martens; Charlie Crosby; Charlie Van Eaton; John
David Van Eaton; Billy Tyler and Caroline Van Eaton; Eddie and
Ellen Gillespie; Joe, Emily, Patrick and Elsie Gillespie; and Taylor
Gillespie. In lieu of flowers the family requests donations to Matthew Van Eaton Memorial Fund at the Community Foundation
of the Gunnison Valley, cfgv.org/Van Eaton. Online condolences
may be left at craddockfunralhome.com
2
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THIS IS AN ADVERTISEMENT
The DAPL Welcomes the
Following New Members
Thomas Ault
Hunt Oil Company
Derek Kemp
EquityMetrix, LLC
Chad Centorbi
Centorbi Land Services
Kirk Kuykendall
Chief Oil & Gas
Chelsea Wolfe Cherry
Hunt Oil Company
Clayton Phillips
Hunt Oil Company
John Reese Childers
Emkey Companies, LLC
Nestor Pimentel
Hunt Oil Company
Bob J. Cippele, Jr.
Independent
Shawn Street
Independent
Marsha Glass
Providence Energy
Daniel Svedeman
Svedeman Enterprises, LLC
Scott Jacoby
Chief Oil & Gas
Matt Troutt
Hunt Energy Enterprises
Derek R. Jones
EnMark Services, Inc.
Cydney J. Unruh
Armada Oil Inc.
4
Meet the
2014–2015
DAPL
Board
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5
President — Joshua Raley,
CPL, EXCO Resources, Inc.
Josh is a graduate of The University of Oklahoma where
he double majored in Energy Management and Finance. While
in college he began his career in the oil and gas industry by working
for DrillingInfo. He also completed an internship at Hunt Petroleum
Corporation in the Summer of 2003. Upon graduation from OU he started
out as an independent landman, eventually working on a southern Oklahoma
prospect for Carla Petroleum. This ultimately led to his first in-house position at
CH4 Energy, LLC in Fort Worth. Josh worked there until CH4 sold. Following the
sale of CH4, he worked in-house for Cimarex and EnCana. Since June 2009, Josh has
been employed at EXCO Resources, Inc., where he is currently the Land Manager for
EXCO’s Eagle Ford Asset. Over his career, Josh has worked Wyoming, Oklahoma, SE New
Mexico, West Texas and North Louisiana. In February 2010, he was designated a Certified
Professional Landman from the AAPL.
In 2010-2011, Josh led the History Committee in the research of the history of the DAPL.
After collecting extensive research through interviews with former members of the
organization and chronicling past presidents, Josh shared his findings, revealing facts
and funny stories in a report that can viewed on this website. Since 2011 Josh has
served on the DAPL Board of Directors as the Education and NGL Director
(2011-2012), Treasurer (2012-2013) and as 1st Vice President (2013-2014).
In his free time Josh enjoys spending it with his wife, Jessica
and their 2 year old Goldendoodle Sammy. Josh’s
hobbies include: traveling, reading, golfing, and
Oklahoma Football.
1st Vice President, Golf Tournament —
D.J. Cherry, PetroVen Inc
David Cherry, JR (DJ Cherry) is the Vice President of Land at PetroVen, Inc in Plano, TX. PetroVen
is a privately held oil and gas exploration and development company, founded in 1981. The company’s
core focus areas are in Oklahoma, Texas, New Mexico and Louisiana. The primary business of Petroven is to
assemble drilling prospects, farm outs and direct participation interests for itself and its investors.
Mr. Cherry began his career in 2008 as a Landman I at Linn Energy, LLC in Oklahoma City and was quickly
promoted to Landman II. Mr. Cherry initially worked for the Oklahoma asset team with the Production Land group
covering Linn’s Mid-Continent properties. He later was moved to Linn’s Texas Panhandle asset team and began
working the company’s Granite Wash assets in January 2010 when Linn began their horizontal drilling program. The
Granite Wash asset started out as a one rig program and eventually grew to a nine rig program over his 2 years of
working the asset and became the company’s core driver of organic growth.
Mr. Cherry graduated from the University of Oklahoma in 2008 with a Bachelors of Business Administration
degree in Energy Management and minors in Finance and Sociology and is an American Association
of Professional Landmen Registered Professional Landman. He is also a member of the, OCAPL,
DAPL and is active in the YPE in both Oklahoma City and Dallas. Mr. Cherry has also been
on the Oklahoma Independent Producers Association Future Leaders Advisory Council
(FLAC) for the past two years. Mr. Cherry is married to Chelsea Wolfe and they
66
currently live in Dallas, Texas with their 9 year old Golden Retriever
Hank. They enjoy spending their free time golfing, hunting,
fishing and going to OU football games.
2nd Vice President, Membership
— Iris L. Bradley, CPL/ESA,
The Northern Trust Bank
This is Iris Bradley’s third term on the Board, having served as
AAPL Director, Sergeant-At-Arms and President in previous terms.
She has also chaired AAPL Awards, Certification, Environmental,
Ethics, Industry Affairs and Publications Committees over the years. Iris
is Chairman of the AAPL Ethics Committee for 2013-2014. She is active in
Highland Park United Methodist Church, has served two (2) terms as President
of the Highland Park Alumni Association, and has been on the PwC SMU Athletic
Forum Board of Directors for many years in addition to several other civic and charitable
organizations.
Iris is currently works at Northern Trust Bank, as a Vice President/Landman/Oil, Gas and
Mineral Property Manager. Prior to Iris joining Northern Trust, she was a Senior Landman
with Merit Energy Company most recently working Wyoming. Iris has also worked in
Permian Basin, Barnett Shale, Louisiana, Arkansas, New Mexico and the Rockies. Prior to
Merit, Iris was with JPMorgan Chase Bank managing the Metroplex Trust Oil and Gas
Group. She began her career with Hunt Oil Company working Oklahoma.
Iris is a graduate of SMU with a degree in Journalism. She can boast about
being one of the few native Dallasites and living no further than five (5)
miles from where she was born. She is the proud mother of Susan
Gleiser, a 2011 graduate of Vanderbilt, currently employed with
Vanderbilt Law School in the Development Department.
Iris is married to Floyd Stanley and they are the
proud pet parents of Jackson and
Watson.
Adam is currently the Land Manger
for J-W Operating Company, managing a
land group that focuses on multi-county leasing,
drilling, and A&D programs within the Ark-La-Tex
region. He is a 2002 graduate from The University of
Oklahoma with a degree in Energy Management and a minor
in Finance. Adam began his career in 2001 with Southwestern
Energy Company as a summer land intern. After graduating
from OU, he joined J-W Energy Company and has worked several
onshore areas including: N. Louisiana, Arkansas, E. Texas, N.
Texas, and Kansas.
Adam has been an AAPL member since 2001, and he
previously served on the DAPL board as Treasurer from
2005-2008. Adam is originally from Oklahoma and
grew up in a small town outside of Tulsa. Adam
currently resides in Dallas in the Lakewood
area with his wife, Leigh Ann, and two
sons, Graham and Grady.
Sergeant-at-Arms —
Adam Griffin, CPL,
J-W Energy Company
7
7
Treasurer — Greg G. Brown, JD,
CPL, Laredo Petroleum
Greg is a Dallas native and is
a Senior Landman with Laredo
Petroleum. He is a 1991 graduate of
the University of North Texas and a 1994
graduate of Oklahoma City University School
of Law. After practicing law for three years,
focusing mainly on title, probate and estate planning,
Greg began his oil and gas career with Conoco, Inc. in Ponca
City, Oklahoma. Throughout his oil and gas career, Greg has
managed properties in several producing states, including
New Mexico, Texas, Louisiana, Colorado, Wyoming and
California.
Secretary —
Alicia M. Suratt,
J.P. Morgan
Alicia is
a Dallas native
and graduated from
Austin College with a
major in Economics and
minor in Business. She is currently with J.P. Morgan
as an oil & gas property manager.
Greg currently resides in Richardson with his wife
Dawn and their two children Bailey and Aidan. In
his free time, he enjoys golf, tennis, coaching
his son’s baseball team and watching
his daughter compete in horse
You didn’t always find her in the oil & gas industry, as she
shows.
originally had a career in investments and financial planning.
Alicia left the corporate world and moved to San Antonio
where she attended St. Mary’s Law School. While in law
school she clerked for an oil & gas firm which paved the way
for her career as a Landman.
Sergeant-At-Arms — Joel Robbins,
CPL, Merit Energy
This is her first year on the Board. In her spare
time, Alicia enjoys hunting, being outdoors
with her labrador, and spending time
with her friends and family.
Joel Robbins is a
graduate of Texas Tech University
where he received a Bachelors in Public
Relations with research in Psychology.
After his stint in Lubbock, Joel worked as
a field landman at Craig S. Charbonnet, Inc.,
where he gained valuable oil and gas training
on the ground. Following his field work, Joel
joined Harding Energy Partners in Dallas working
the Barnett for several years, then BBX Operating in
Austin, where he managed portions of an East Texas drilling
schedule, GIS mapping and land database conversions. Joel
currently works a Hugoton Basin drilling schedule with
Merit Energy Company, with whom he joined in 2013.
Last year, Joel served as the DAPL Education
Director. He enjoys rooting on the Red Raiders,
traveling, live music and anything
outdoors with family and friends.
8
Education Director —
Nicholas G. Peters
Merit Energy Company, LLC
Nick is Corporate Counsel and Land Manager for
Merit Energy Company. Prior to joining Merit, Nick
was in private practice with Gardere, Wynne & Sewell
LLP, where he handled general corporate and mergers
and acquisitions matters. Nick received a B.S. in Business
Administration from Washington & Lee University in 2002
and a J.D. from Southern Methodist University’s Dedman
School of Law in 2006. In addition, Nick received a Petroleum Land
Management Certificate from Texas Christian University in 2012. This is
Nick’s first year to serve on the DAPL Board of Directors.
You may also know Nick from his previous stint as the bassist for the
band Fever Duck or his current gig contributing rhythm guitar
and vocals to the Dallas indie music scene darlings, Goodnight
Farm. In his free time, Nick can be found hanging out with
his wife and three children, riding his road bike or
playing guitar.
Yaroslav is a graduate of University of
Oklahoma with a BBA in Energy Management.
Yaroslav started his career with an internship at KerrMcGee Corporation in Denver. Upon graduation, Yaroslav
accepted a Landman position at Petrogulf Corporation
where he worked the Rockies and California assets. In 2007,
Yaroslav joined Pioneer Natural Resources USA, Inc., where he
is currently a Senior Landman working the horizontal Wolfcamp
project in the Permian Basin. Prior to the Permian project, Yaroslav
has worked Pioneer’s Barnett Shale and Rockies assets. In addition to
his Landman duties, Yaroslav co-manages Pioneer’s Land recruitment
process for summer interns and entry-level Landmen.
Yaroslav currently lives in Highland Village, Texas with his wife,
Leslie and daughters, Lily and Abigail. Yaroslav enjoys spending
time with his family, traveling, and watching Sooner football.
Yaroslav has been an AAPL member since 2002, and
this is his second year to serve on the DAPL Board
of Directors.
Publication Director —
Yaroslav Andrus, CPL
Pioneer Natural Resources
9
Ryan Boschetti started his career as an
intern at Southwestern Energy Company and
joined J-W Operating Company after graduating
from The University of Texas at Austin with a BA
in Psychology in 2008. Ryan managed Barnett and
Haynesville prospects during his 5 years at J-W. He has
recently moved to Hunt Oil Company’s North American
Exploration Team in January 2013. In addition to being on
the DAPL Board, Ryan is on the Advisory Board for YPE. One
of Ryan’s most notable accomplishments is completing his private
pilot’s license in the summer of 2012.
Ryan and his wife, Leslie, are high school sweethearts. Leslie
is an RN at Parkland in the Surgical ICU. They don’t have
any children yet but their two labs keep them plenty
busy for now. They both enjoy all kinds of sports,
the outdoors and spending time with
family and friends.
NGL & Membership Co-Director —
Ryan Boschetti, RPL
Hunt Oil Company
Advertising Director —
Wes Minshall, RPL
j. Cleo Thompson
Wes is a graduate of the University of Colorado, with a BS in
Business. After graduation he started working for an oil and gas
brokerage firm in the Denver Metro area. Eventually, he went on to
become an Independent Landman until relocating to the Dallas area and
accepting a job with Merit Energy Company in 2007. Currently, Wes is
a Senior Landman at J Cleo Thompson working all land functions for the
company, but with a specific focus on their operated properties in Texas. Wes
has been a member of both the AAPL and DAPL since 2007 and received his
RPL certification in 2010.
Wes lives in Plano with his wife Kristin, who is a Speech Language
Pathologist, and two spoiled rotten dogs. He enjoys traveling, collecting
guitars, classic cars and golfing (but only in the spring and fall). He
has also been known as a dominating force in the game of foosball
(or table soccer).
10
AAPL Director
— Kevin R.
Dickerson,
CPL
Eagle Oil &
Gas Co.
Kevin R.
Dickerson, CPL, is a 1999
graduate of The University of Oklahoma with
a BBA specializing in Petroleum Land Management.
Kevin’s career began with an internship with Nichols Land
Services in Oklahoma City in 1998, where he gained valuable title and
field experience throughout many parts of Oklahoma and Kansas. Upon
graduating from OU in 1999, Kevin was hired as a Landman with Coastal Oil
and Gas Company (later to merge with El Paso Corporation) in Houston, where
he managed projects in the Texas Gulf Coast and South Texas Divisions. In 2004,
he accepted a position with Hunt Oil Company in Dallas, where he managed various
regions, including South Louisiana, South and East Texas, Oklahoma and Arkansas. Kevin
then joined International Mining Company in 2006 where he served as Vice President of Land and
Minerals managing all of David H. Murdock’s mineral, royalty and working interests nationwide. In
2010, Kevin moved to Merit Energy Company as Land Manager, where he managed a team of landmen
covering most of the continental US, including Michigan, Wyoming, Colorado, Kansas, Oklahoma,
Louisiana and Texas. Most recently, Kevin joined Eagle Oil & Gas Co. in 2012, where he serves as Vice
President of Land & Business Development.
Kevin has been involved in various degrees with AAPL and DAPL for many years. Kevin has been on
the DAPL Board of Directors since 2006, including President in 2011-2012. Kevin was also recently
awarded DAPL’s Landman of the Year for 2012-2013. Nationally, Kevin has been an AAPL member
since 1998 and has served as Chairman of AAPL’s Next Generation Landman Committee, Awards
Committee as well as stints on AAPL’s Publications Committee and IT/Website Committee. Kevin
is currently serving on the NAPE Operator’s Committee and Building Committee.
Kevin lives in Prosper, TX with his wife Angie, who currently serves in the glamorous role
of home-schooling Mom, and their 4 children: Natalie - age 9 - aspiring musician,
actress, and vocalist; Lainey - age 7 - fashion designer and artist extraordinaire;
Rhett - age 5 - future heartthrob and MMA star; and Josiah - age 5 - the
“tribal chief ” and newest member of the family via international
adoption from Ghana. Kevin is active in his church and
community and his hobbies have been overtaken
by all sorts of “fun daddy stuff ”.
Immediate Past
President —
Blake C. Bowen, CPL
Blake is a native of
the
Dallas/
Ft.Worth area and is currently a Landman with Pioneer Natural
Pioneer Natural
Resources USA, Inc. where he has worked since April of 2010. Blake works
Resources
in the South Texas division for Pioneer which primarily consists of properties in
the Eagle Ford Shale. After receiving his BBA in 2006 from Oklahoma State University,
Blake returned to Texas to begin his career in Oil & Gas by working the Barnett
Shale for Carla Petroleum, Inc. Blake worked numerous counties in the Barnett
before having the opportunity to move in-house with Rosewood Resources, Inc.
in the fall of 2008. While at Rosewood, Blake had the responsibility of managing
operated properties in Colorado, Kansas and Utah, as well as non-op Hunt
Family legacy assets in Texas, Oklahoma, Louisiana and North Dakota.
Blake lives in Dallas with his wife, Allison, son Hatch and daughter Vivian.
They are also parents to a thirteen year old Chocolate Lab, McKenzie.
Blake enjoys going back to Stillwater for football games in the fall
11
to root on the Pokes, traveling with his family, golfing, fly
fishing, and doing projects around the house.
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We have many committees in need of new volunteers
such as Newsletters, Website, Photography, and more !
Visit the website: dapl.org and click on Contact DAPL to
find out more!
Dallas | HOUSTON | Tyler
NGL CONNECTIONS
Please contact [email protected] to express an interest in
participating in NGL Connections and learn more details.
CONNECT~MENTOR~NETWORK
Please use the link below to find our by-laws in PDF
format on our website. Our website is a great place to
start looking for information concerning DAPL. Our
DAPL website is one of the counties best local Landman
association websites, so click below and check it
out! A copy of our By-Laws also reside on our DAPL
website, go to the Join DAPL tab to view them now!
www.dapl.org/by-laws
HIRE A NEXT GENERATION LANDMAN
Summer interns will be in the DFW area soon, do you still have openings?
Students and recent graduates are looking for a job.
If your company has an internship or entry level Land/Legal position in
DFW, please send details to [email protected].
12
of the Roads
OWNERSHIP
in
TEXAS
The Strip and Gore Doctrine v. The Appurtenance Doctrine
by Justin R. Foster, Senior Associate, Vural Law Firm PLLC
Most landmen in Texas are likely familiar with the strip and gore doctrine, and probably have some first-hand experience
analyzing the strip and gore doctrine’s effect on ownership of the minerals under roadways. However, characterizing
the strip and gore doctrine as the general rule relating to ownership of roads and other rights-of-way is somewhat of a
misnomer, and it neglects the application of the appurtenance doctrine. In the following paragraphs, we will examine
some differences between the strip and gore doctrine and the appurtenance doctrine, and apply both doctrines to two
of the more complex roadway issues that arise in Texas.
I.BACKGROUND
Roadways in Texas are often created by a grant of an easement or right-of-way for public use where the grantor of the
easement or right-of-way retains the fee interest in the surface and minerals underlying the roadway.1 When determining
ownership of these roadways, it can be common to describe the relevant rule as the strip and gore doctrine. However,
this doctrine is one part of a larger analysis. As described in the Escondido case, ownership of an adjacent roadway is
typically determined by application of a general rule, and the two doctrines which support this rule are the strip and
gore doctrine and the appurtenance doctrine.2 According to the Supreme Court of Texas, the general rule relating to
fee ownership of a roadway at common law is stated as follows:
…a conveyance of land bounded on a public highway carries with it the fee to the center of the road as part
and parcel of the grant. Such is the legal construction of the grant unless the inference that it was so intended
is rebutted by the express terms of the grant. The owners of the land on each side go to the center of the road,
and they have the exclusive right to the soil, subject to the right of passage in the public.3
Under this rule, the grantor of a tract bordered by a public road presumptively intends to convey his interest in the
adjacent roadway even when the legal description of the tract only extends to the boundary of the roadway, unless the
deed contains express language reserving the interest.4 In the process of applying this common law rule to conveyances
of lands bordered by a public roadway, courts have turned to the strip and gore doctrine and the appurtenance doctrine
as justification for imparting an intention to convey upon the grantor even when the roadway strip is not specifically
described.5
A.
The Strip and Gore Doctrine
The purpose of the strip and gore doctrine is rooted in the need to avoid disputes related to the ownership of narrow
strips of land lying adjacent to larger tracts.6 In Cantley, the Supreme Court of Texas stated that if “a grantor has conveyed
all land owned by him adjoining a narrow strip of land that has ceased to be of any benefit or importance to him,
1
Escondido Services, LLC v. VKM Holdings, LP, 321 S.W.3d 102, 106 (Tex. App. Eastland 2010, no pet.).
2Id.
3
Mitchell v. Bass, 26 Tex. 372, 380 (1862).
4
State v. Williams, 161 Tex. 1, 335 S.W.2d 834, 836 (1960).
5
Escondido, 321 S.W.3d at 106.
6
Cantley v. Gulf Prod. Co., 135 Tex. 339, 143 S.W.2d 912, 915 (1940).
13
the presumption is that the grantor intended to include such strip in such conveyance ….”7 The Court subsequently
indicated in Angelo that the intent of the doctrine is “to apply to relatively narrow strips of land, small in size and value
in comparison to the adjoining tract conveyed by the grantor.”8 Accordingly, the strip and gore doctrine presumes an
intent on the part of a grantor to convey any narrow strips adjoining a larger tract because the narrow strip no longer
benefits the grantor upon selling the larger tract.9
B.
The Appurtenance Doctrine
Conversely to the strip and gore doctrine, the appurtenance doctrine presumes that a grantor intends to convey the
easements and appurtenant interests that benefit the larger adjacent tract because these easements and appurtenances
add to the grantee’s use and enjoyment of the property.10 Among other benefits described in Rio Bravo Oil Co. v. Weed,
public roadways provide access to the adjacent property.11 As the court in the Rio Bravo case pointed out, the benefits
received from the easements and appurtenances bordering a tract can be a “compelling force in inducing the sale of
the property.”12
II.
CASE STUDIES
While the strip and gore doctrine presumes an intent to convey narrow strips that cease to hold importance
to the seller of a larger, adjacent tract, and the appurtenance doctrine presumes an intent to convey
appurtenant easements because of the benefits derived by the purchaser of the land, these mirror
presumptions often apply in the same transaction. However, courts have occasionally distinguished between
the two doctrines and sought to apply one over the other, including cases when roadways were created
by deeds with mineral reservations, or when the narrow strip was actually larger than the adjacent tract.
A.
Roads Created by Deeds Containing Mineral Reservations
In some instances a road may be formed by a deed conveying a fee interest, rather than an easement or right-of-way.13
When these deeds contain mineral reservations, it becomes necessary to determine the ownership of the severed
minerals lying beneath the roadway acreage. In Reagan v. Marathon Oil Co., Reagan conveyed a 14.116 acre tract and a
3.018 acre tract to the State of Texas pursuant to two deeds for the purpose of constructing and expanding a highway,
wherein he reserved all of the oil, gas and sulphur beneath the highway strips to himself.14 Subsequently, Reagan
conveyed his remaining larger tracts of land bordering the highway along the north and south without completely
reserving the minerals under the tracts.15 In determining ownership, the court affirmed that the strip and gore doctrine
operated to pass title to the oil, gas and sulphur lying under the highway to the subsequent purchasers of the adjacent
tracts.16
Similarly, in the Escondido case, a portion of a highway was created by a deed to the State of Texas reserving oil, gas and
sulphur, and it was determined that the strip and gore doctrine caused title to these minerals to pass to the subsequent
purchasers of the adjacent tracts.17 In doing so, the court specifically distinguished between the appurtenance doctrine
and the strip and gore doctrine.18 The appellant asserted that the strip and gore doctrine should not apply because
the road was created by a deed rather than an easement, and the severed mineral interest did not benefit the use of
the adjacent tract.19 However, the court pointed out that the manner of creation and the existence of a benefit to the
7Id.
8
Angelo v. Biscamp, 441 S.W.2d 524, 526-27 (Tex. 1969).
9
Cantley, 135 Tex. at 344, 143 S.W.2d at 915.
10
Rio Bravo Oil Co. v. Weed, 121 Tex. 427, 438, 50 S.W.2d 1080, 1084 (1932).
11
Id. at 439, 50 S.W.2d at 1084-85.
12
Id. at 438, 50 S.W.2d at 1084.
13
Escondido, 321 S.W.3d at 104.
14
Reagan v. Marathon Oil Co., 50 S.W.3d 70, 72-73 (Tex. App. Waco 2001, no pet.).
15
Id. at 72, 74.
16
Id. at 77, 81.
17
Escondido, 321 S.W.3d at 104, 109.
18
Id. at 106.
19
Id. at 106-07.
14
adjoining tract were not controlling in the application of the strip and gore doctrine, rather than the appurtenance
doctrine.20 Instead, it was only necessary that the severed mineral interest in the highway strip cease to be of
importance to the seller of the adjoining tract.21 Furthermore, the Escondido case provides factors for the application
of the strip and gore doctrine, wherein it is necessary for the narrow strip:
(1)
(2)
(3)
(4)
to be small in comparison to the land conveyed,
to be adjacent to or surrounded by the land conveyed,
to belong to the grantor at the time of the conveyance, and
…the “strip has ceased to be of benefit of importance to the grantor of the larger tract.”22
B.
Roads that are Wider and Larger than the Adjoining Tract
Perhaps the most complicated scenario related to ownership of a roadway arises when the road, or at least to
the center thereof, is wider and contains more acreage than the adjacent, non-roadway tract. Determining the
appropriateness of the application of the appurtenance doctrine or the strip and gore doctrine in these situations
requires an examination of the facts and holdings in the Angelo case, which involved an abandoned railroad.23 In
this case, Angelo acquired five lots in a residential addition, and each lot measured twenty-five feet in width.24 The
southernmost lot bordered a railroad easement being fifty feet wide from the northern boundary to the centerline.25
While Angelo was in possession of the lots, the railroad easement was abandoned.26 Subsequently, Angelo conveyed
the five lots to Biscamp without reservation.27 The Supreme Court of Texas noted that the abandonment of the
railroad easement vested Angelo with fee ownership to the centerline of the strip, and that “a presumption of an
intent to convey the abutting easement is not applicable.”28 Therefore, passage of title to the abandoned easement
from Angelo to Biscamp rested on the application of the strip and gore doctrine.29 However, the court determined
that the doctrine did not apply to pass title to the abandoned easement lying adjacent to the smaller residential
lot, because “to presume the intent to convey this disputed tract would be to presume that by the conveyance of a
smaller city lot, the grantor intended to convey a larger and perhaps more valuable adjoining tract.”30
1.
Passage of Title Pursuant to the Appurtenance Doctrine
Based upon the above case, it does not seem that the strip and gore doctrine is applicable in instances when the
adjacent strip is larger than the property being conveyed.31 However, Angelo owned the same residential lots that
were later conveyed to Biscamp, and the court confirmed that Angelo did own the larger railroad strip.32 If the strip and
gore doctrine did not operate to pass title to the strip to Biscamp in the subsequent conveyance, then Angelo must
have acquired title to the strip by some other means when he purchased the residential lots. That other means was the
appurtenance doctrine.33 When Angelo acquired the lots, the railroad strip was affected by an easement that had not
yet been abandoned.34 Therefore, Angelo acquired title to the appurtenant easement even though the railroad tract
was larger than the adjoining lot.35 Accordingly, a conveyance of a small tract bordering a road that has been created
by an easement and has not been abandoned will carry title to the adjoining roadway pursuant to the appurtenance
doctrine, even when the acreage attributable to the road is larger than the property that is actually being conveyed.36
20
Id. at 107.
21Id.
22
Id. at 109 (quoting Angelo, 441 S.W.2d at 527).
23
Angelo, 441 S.W.2d at 526.
24
Id. at 525.
25
Id. at 525-26.
26
Id. at 526.
27Id.
28Id.
29
Id. at 526-27.
30
Id. at 527.
31Id.
32
Id. at 526.
33Id.
34
Id. at 525-26.
35
Id. at 526.
36Id.
15
2.
Complications with Roads Created by Deeds with Mineral Reservations.
As noted above, the strip and gore doctrine appears inapplicable when a small tract is bordered by a larger road, but the
application of the appurtenance doctrine is not precluded.37 However, the issues compound when the road is created
by a deed conveying fee title and reserving the underlying minerals because it is not clear that the appurtenance
doctrine would apply to the severed mineral tract. In Angelo, the court noted that the appurtenance doctrine “is a wellestablished rule in Texas, and is based upon the presumption that a conveyance reflects an intention to carry with it the
appurtenant easements and incidents….”38 However, the abandonment of the easement rendered “the presumption of
an intent to convey the abutting easement … not applicable.”39 This raises the possibility that severed mineral interests
beneath roads which are reserved in a deed may not be subject to the appurtenance doctrine. Certainly the purchasers
of a tract of land may receive a great benefit from obtaining the severed minerals under an even larger highway tract
adjacent to their lands. However, such a benefit is not entirely analogous to easements that establish “appurtenant
rights incident to the beneficial use and enjoyment” of the land conveyed.40 While an easement for a road creates access
and other rights that benefit the adjacent property, a severed mineral interest beneath a road may be more akin to a
distinct tract of land that is capable of being enjoyed separately from the adjoining tract.41 This idea appears to have
some support from the Escondido case, wherein the court, when analyzing ownership of severed minerals beneath a
highway created by a deed to the State, stated that “the fact that the mineral interest underneath the highway strip may
not benefit the larger adjoining tracts conveyed … does not preclude the application of the strip and gore doctrine.”42
Accordingly, where the highway strip is larger than the adjoining property, thereby precluding the application of the
strip and gore doctrine, it is possible that the appurtenance doctrine would not apply either.43
The possibility that these severed mineral interests under roadways might become stuck in time when the adjoining
property is smaller than the road itself certainly seems to run contrary to the public policy of the strip and gore doctrine,
being to clear title to narrow strips of land that would otherwise be left in the grantor, unless the grantor expressly
reserves the interest.44 However, it seems the strip and gore doctrine would need to be expanded from the holding in
Angelo in order to apply in this situation.45 It is also possible that the appurtenance doctrine could be interpreted to
apply to any interest under an existing roadway, including severed minerals, as the court in Escondido stated “the fact
that the conveyance to the State occurred as a result of a deed rather than an easement is of no practical consequence.”46
Nonetheless, it appears that this issue remains unresolved for the time being.
III.CONCLUSION
Determining ownership of the oil and gas under roadways can sometimes be a complex task in Texas. However, the
correct application of the strip and gore doctrine and the appurtenance doctrine can often resolve important issues for
oil and gas operators seeking to operate beneath a road. Even though certain matters may require further clarification
from the courts, the overwhelming majority of instances support the passage of title unless a qualifying reservation
exists.
ABOUT THE AUTHOR
37Id.
38Id.
39Id.
40
Rio Bravo, 121 Tex. at 441, 50 S.W.2d at 1086.
41
Escondido, 321 S.W.3d at 107.
42Id.
43Id.
44
Rio Bravo, 121 Tex. at 438, 50 S.W.2d at 1084.
45
Angelo, 441 S.W.2d at 526-27.
46
Escondido, 321 S.W.3d at 107.
Justin Foster earned a B.B.A., summa cum laude, from Lamar
University and a J.D. from Texas Wesleyan University. He began
his career in oil & gas as a land man and title research clerk, and
has worked as an oil & gas title attorney since graduating from
law school in 2009. He is licensed in both Texas and North Dakota,
and is a member of the Permian Basin Landman’s Association and
Texas Oil & Gas Professionals and Executives. His practice focuses
exclusively in the oil & gas field with an emphasis on drilling and
division order title opinions. Recently he spoke on a panel at the
Texas A&M University School of Law Energy Symposium and
addressed ownership of minerals under roads in Texas.
Justin R. Foster — Senior Associate, Vural Law Firm PLLC, Fort Worth, TX
[email protected] | Phone: (817) 529-3230
16
AAPL
Education Calendar 2014
Oil and Gas Land Review, CPL/RPL Exam —
Houston, TX
Tuesday, September 09, 2014–
Friday, September 12, 2014
Ethics 360 — Norman, OK
Friday, September 12, 2014 (1:00 PM–5:00 PM)
Santa Fe Land Institute — Santa Fe, NM
Monday, September 15, 2014
(8:00 AM–5:00 PM)
Field Landman Seminar — Woodville, MS
Wednesday, September 17, 2014
(5:00 PM–9:00 PM)
RPL & CPL EXAM ONLY — Greeley, CO
Friday, September 19, 2014 (7:15 AM–2:00 PM)
Pooling Seminar — Oklahoma City, OK
Friday, September 19, 2014 (8:30 AM–3:00 PM)
Texas Land Institute — Houston, TX
Monday, September 22, 2014
(8:00 AM–5:15 PM)
Field Landman Seminar — Casper, WY
Thursday, September 25, 2014
(5:00 PM–9:00 PM)
2014 Appalachian Land Institute —
Washington, PA
Thursday, October 02, 2014–
Friday, October 03, 2014
WI/NRI Workshop — Midland, TX
Thursday, October 02, 2014 (8:00 AM–3:30 PM)
WI/NRI Workshop — Fort Worth, TX
Friday, October 03, 2014 (8:00 AM–3:30 PM)
Fundamentals of Land Practices & OPTIONAL
RPL Exam — Denver, CO
Monday, October 06, 2014–
Tuesday, October 07, 2014
Field Landman Seminar — Dickinson, ND
Wednesday, October 08, 2014
(5:00 PM–9:00 PM)
Applied Land Practices — Houston, TX
Friday, October 10, 2014 (8:00 AM–5:00 PM)
RPL & CPL EXAM ONLY — Canfield, OH
Saturday, October 11, 2014 (7:15 AM–2:00 PM)
Oil and Gas Land Review, CPL/RPL Exam —
Shreveport, LA
Tuesday, October 14, 2014–
Friday, October 17, 2014
WI/NRI Workshop — Lafayette, LA
Thursday, October 16, 2014 (8:00 AM–3:30 PM)
Field Landman Seminar — Traverse City, MI
Thursday, October 16, 2014 (5:00 PM–9:00 PM)
Due Diligence Seminar — Odessa, TX
Monday, October 20, 2014 (8:30 AM–3:00 PM)
Gulf Coast Land Institute — Baton Rouge, LA
Thursday, October 23, 2014–
Friday, October 24, 2014
Field Landman Seminar — Oklahoma City, OK
Thursday, October 23, 2014 (5:00 PM–9:00 PM)
One Day JOA Workshop — Oklahoma City, OK
Tuesday, October 28, 2014 (8:00 AM–4:30 PM)
Field Landman Seminar — Greeley, CO
Thursday, October 30, 2014 (5:00 PM–9:00 PM)
WI/NRI Workshop — Farmington, NM
Friday, October 31, 2014 (8:00 AM–3:30 PM)
Basics of Geographic Information System —
Pittsburgh, PA
Tuesday, November 04, 2014
(9:00 AM–3:00 PM)
WI/NRI Workshop — Bakersfield, CA
Thursday, November 13, 2014
(8:00 AM–3:30 PM)
WI/NRI Workshop — Los Angeles, CA
Friday, November 14, 2014 (8:00 AM–4:30 PM)
RPL & CPL EXAM ONLY — Roswell, NM
Saturday, November 15, 2014
(7:15 AM–2:00 PM)
Pooling Seminar — San Antonio, TX
Tuesday, November 18, 2014
(8:30 AM–3:00 PM)
Fundamentals of Land Practices & OPTIONAL
RPL Exam — Oklahoma City, OK
Thursday, November 20, 2014–
Friday, November 21, 2014
Applied Land Practices — Midland, TX
Monday, November 24, 2014
(8:00 AM–5:00 PM)
Basics of Geographic Information System —
Tulsa, OK
Monday, December 01, 2014
(9:00 AM–3:00 PM)
Due Diligence Seminar — Fort Worth, TX
Wednesday, December 03, 2014
(8:30 AM–3:00 PM)
Field Landman Seminar — Bryan, TX
Wednesday, December 03, 2014
(5:00 PM–9:00 PM)
Negotiations Seminar — San Antonio, TX
Wednesday, November 05, 2014
(9:00 AM–3:00 PM)
Field Landman Seminar — Austin, TX
Thursday, December 04, 2014
(5:00 PM–9:00 PM)
Field Landman Seminar — Heber City, UT
Thursday, November 06, 2014
(5:00 PM–9:00 PM)
WI/NRI Workshop — Salt Lake City, UT
Friday, December 05, 2014
(8:00 AM–3:30 PM)
WI/NRI Workshop — Evansville, IN
Friday, November 07, 2014 (8:00 AM–3:30 PM)
RPL & CPL EXAM ONLY — Amarillo, TX
Saturday, December 06, 2014
(7:15 AM–2:00 PM)
Oil and Gas Land Review, CPL/RPL Exam —
Fort Worth, TX
Monday, November 10, 2014–
Thursday, November 13, 2014
Note: Dates are subject to change, please check the AAPL website at landman.org for confirmation on events
JOA Workshop — Fort Worth, TX
Monday, December 08, 2014–
Tuesday, December 09, 2014
9
17
Expo presents lots of talk about
Permian land, but not much of it
August 21, 2014 — Rhiannon Meyers in Crude oil, Deals, General
The Permian Basin was the hottest
topic at the North American Prospect
Expo this year but companies looking
to buy prospects in the oil-rich play
were hard-pressed to find anyone
willing to sell.
West Texas has seen a resurgence
in oil and gas production, thanks to
advances in horizontal drilling and
hydraulic fracturing that unlocked
hydrocarbons in once inaccessible
dense shale formations. Now the
nation’s biggest oil producer, the
Permian is projected to pump out
1.6 million barrels per day in August,
an increase of more than two-thirds
since 2007, according to the U.S.
Energy Information Administration.
Those production figures are
attracting more than a few glances
from operators not already established
in West Texas, but companies with
exclusive and lucrative Permian
acreage are holding on tight.
“It’s a hard area to get in and it’s
very expensive,” said Bo Howard, the
founder of Carrollton Mineral Partners,
an energy company that specializes in
acquiring leases, royalties and mineral
interests in emerging plays.
Permian sellers were few and far
between at the annual exposition
Thursday that bills itself as the
marketplace to buy, sell and trade
oil and gas prospects and producing
properties. Among the 400 exhibitors
at the annual summer conference
where companies haggle over North
American land deals, only a handful
advertised prospects in West Texas.
company on 10,000 undeveloped
acres in the Midland Basin.
The wheeler-dealers at NAPE like to
say that anything is available for the
right price, but in the Permian, that
price is steep.
“It’s hard to come by and if you come
by it, it’s usually expensive, especially
in the Permian, because the spotlight’s
on the Permian and everyone wants
to be there,” said Kevin R. Dickerson,
vice president of land and business
development for Eagle Oil and Gas Co.
So when Permian land does come
available, deals move fast. The Dallasbased independent oil and gas
company planned to hawk a West
Texas prospect at NAPE, but took
it off the table when the company
landed a verbal commitment from an
operating partner the day before the
company set up its booth on NAPE’s
show floor.
When asked if Eagle Oil would be
interested in acquiring new Permian
land, Dickerson didn’t hesitate.
The ink was barely dry on its
renegotiated lease for the land – the
Houston-based exploration company
got the signed paperwork at 8 p.m.
Wednesday night — but the prospect
had already attracted the attention of
some sizable independent oil and gas
companies, including Concho, which
pumped 33.6 million barrels of oil
equivalent from the Permian last year.
Exploration is a risky business. Even in
areas with proven reserves, operators
have no guarantee they’ll be able to
turn a profit pulling oil and gas from
the ground. But the Permian’s geology
makes it more attractive because
it comprises different formations
stacked atop each other, offering
the potential for operators to unlock
hydrocarbons at different levels, said
Eli R. Huffman, a landman for Lone
Star.
“What makes the Permian so exciting
is that, like a layer of pancakes, you
don’t just get a two-stack, you get a tall
stack,” Huffman said. “So everybody
wants the tall stack. There are so many
opportunities.”
“If A and B don’t work out then Plan C
may work out,” Huffman said.
“Always,” he said.
By lunch, a stack of business cards had
accumulated on Lone Star Production
Company’s table as employees fielded
question after question from operators
interested in partnering with the
18
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