Clifton v. Johnson: The Texas Supreme Court Puts Some Guardrails on Van Dyke
The Texas Supreme Court's Clifton v. Johnson decision delivers the clearest guidance yet on when the Van Dyke floating royalty presumption can be overcome.
Producer’s Edge
TEXAS OIL AND GAS LAW BULLETIN
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Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption
Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot override the deed’s unambiguous language or its historical conduct.
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In this mandamus proceeding, the court ordered venue transfer to Irion County, Texas, ruling the suit involved damages to real property under Texas Civil Practice and Remedies Code §15.011. M3P Directional Services, Ltd. challenged the trial court’s denial, asserting mandatory venue in Irion County.
Unclear Jury Instructions Allow for Various Interpretations
Lario Oil & Gas Co. v. Black Hawk Energy Services, Ltd. highlights the importance of carefully drafting jury instructions and questions.
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