{"id":1334,"date":"2014-05-04T14:55:15","date_gmt":"2014-05-04T19:55:15","guid":{"rendered":"http:\/\/agrilife.org\/texasaglaw\/?p=1334"},"modified":"2026-04-17T15:32:40","modified_gmt":"2026-04-17T20:32:40","slug":"cases-illustrate-care-needed-in-reserving-mineral-rights","status":"publish","type":"post","link":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/04\/cases-illustrate-care-needed-in-reserving-mineral-rights\/","title":{"rendered":"Cases Illustrate Care Needed in Reserving Mineral Rights"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"color: #993300;\">*This article is not a substitute for the advice of an attorney.*<\/span><\/p>\n<p>Two recent Texas appellate court decisions illustrate the level of care required when reserving mineral rights during a property sale.<\/p>\n<p><a href=\"http:\/\/agrilife.org\/texasaglaw\/files\/2013\/07\/58962_795309920552_1665447_n.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-123 aligncenter\" src=\"http:\/\/agrilife.org\/texasaglaw\/files\/2013\/07\/58962_795309920552_1665447_n-300x225.jpg\" alt=\"58962_795309920552_1665447_n\" width=\"300\" height=\"225\" srcset=\"https:\/\/agrilife.org\/texasaglaw\/files\/2013\/07\/58962_795309920552_1665447_n-300x225.jpg 300w, https:\/\/agrilife.org\/texasaglaw\/files\/2013\/07\/58962_795309920552_1665447_n.jpg 720w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"text-decoration: underline;\"><em><strong>Cade v. Cosgrove<\/strong><\/em><\/span><\/p>\n<p>In September 2006, the Cades and Cosgroves entered into a contract by which the Cades agreed to sell property in Arlington, Texas, to the Cosgroves.\u00a0 At the time of the sale, the\u00a0mineral rights had been leased to an oil production company.\u00a0 The parties&#8217; sales\u00a0contract stated clearly that the Cades were to reserve all mineral rights.\u00a0 The warranty deed, signed at closing in October 2006, contained no such reservation.\u00a0 It was not until 2010 that Mr. Cades learned there was a problem with the deed and that Chespeake had sent certain royalty forms to Mr. Cosgrove.\u00a0 At that time, the Cades requested that the Cosgroves sign a correction deed to state that the mineral rights had\u00a0 not been transferred, but the Cosgroves refused to do so.<\/p>\n<p>In February 2011, the Cades filed suit seeking, among other claims,\u00a0a declaratory judgment that they owned the minerals.\u00a0 Mr. Cosgrove argued that the doctrine of merger&#8211;which provides that generally the parties&#8217; agreements in a sales contract are merged into the final deed and it is the terms of the deed that shall control&#8211;governed this, meaning that the minerals were transferred to the Cosgroves.\u00a0 The Cades pointed to an exception to this doctrine&#8211;mutual mistake&#8211;which would allow the court to reform the parties&#8217; agreement.\u00a0 Mr. Cosgrove also argued that the statute of limitations had run on the claim.\u00a0 The Fort Worth Court of Appeal found that there were questions of fact as to both of these issues and remanded the case to be decided by a jury.\u00a0 [Read opinion <a href=\"https:\/\/www.search.txcourts.gov\/SearchMedia.aspx?MediaVersionID=961a150d-aca1-4ebf-8fb5-0bddc2e1c885&amp;MediaID=3415ffc7-b921-408d-90e2-fe3111be0324&amp;coa=&quot; + this.CurrentWebState.CurrentCourt + @&quot;&amp;DT=Opinion\">here<\/a>.]<\/p>\n<p style=\"text-align: center;\"><span style=\"text-decoration: underline;\"><strong><em>Trahan v. Mettlen<\/em><\/strong><\/span><\/p>\n<p>The Trahans bought 22.61 acres of land from the Mettlens.\u00a0 After the transaction was complete, the Mettlens claimed that they retained ownership of the mineral interests, while the Trahans claimed that the interests were conveyed as part of the sale of the property.\u00a0 The parties signed a contract for the property transaction, which did not mention any reservation of mineral rights by the Mettlens.\u00a0 The subsequent warranty deed, however, includes a clear reservation of mineral rights by the Mettlens, and Mrs. Mettlen admits calling the title company and requesting this reservation.\u00a0 Mr. Trahan admits that he was at closing on April 6, 2006,\u00a0when the deed was signed, but that he did not review the deed and did not learn of the reservation of mineral until September 2010.<\/p>\n<p>In December 2010, more than four years after closing occurred, the Trahans filed suit seeking a judgment that they were the rightful mineral owners.\u00a0 The Texarkana Court of Appeals found that this suit was barred by the four-year statute of limitations on such claims and because the reservation of rights was clear and unambiguous on the face of the deed, the statute of limitations was not tolled.\u00a0 The court did, however, note that were the suit not time barred, reformation of the contract in favor of the Trahans may have been a proper remedy. \u00a0[Read opinion <a href=\"https:\/\/www.search.txcourts.gov\/SearchMedia.aspx?MediaVersionID=46d2f2be-caa7-4465-8283-554d07170524&amp;MediaID=6216fc36-e963-4c21-be87-e73128f77fe9&amp;coa=&quot; + this.CurrentWebState.CurrentCourt + @&quot;&amp;DT=Opinion\">here<\/a>.]<\/p>\n<p style=\"text-align: center;\"><span style=\"text-decoration: underline;\"><strong>Why Does This Matter?<\/strong><\/span><\/p>\n<p>Real estate transactions involving mineral rights are extremely complex.\u00a0 Remember that under Texas law,\u00a0where a property is transferred without reference to the mineral rights, the conveyance includes all real property that the grantor had, including all mineral rights held by the grantor.<\/p>\n<p>These cases illustrate the importance of detail when executing contracts and deeds for the sale of real estate involving mineral rights.\u00a0 It is critical that any mineral reservation be set forth in <em>both<\/em> the contract and deed in a clear and unambiguous language.\u00a0 Additionally, it is\u00a0imperative that both parties review the contract and the deed to ensure that their agreement has been accurately reflected in the document.\u00a0 Because the deed is only signed by the seller, it is easy for a purchaser to fail to adequately review the document.\u00a0 Don&#8217;t make this mistake!<\/p>\n<p>If such care is not taken and an issue arises later, the best-case scenario is that the parties may be able to reach a mutual agreement and simply execute a correction deed.\u00a0 But,\u00a0if this type of mutual agreement cannot be reached, the parties may end up in years of expensive, time consuming\u00a0litigation in order to solve a problem that could have easily been prevented.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>*This article is not a substitute for the advice of an attorney.* Two recent Texas appellate court decisions illustrate the level of care required when reserving mineral rights during a property sale. &nbsp; Cade v. Cosgrove In September 2006, the Cades and Cosgroves entered into a contract by which the Cades agreed to sell property in Arlington, Texas, to the Cosgroves.\u00a0 At the time of the sale, the\u00a0mineral rights had been leased to an oil production company.\u00a0 The parties&#8217; sales\u00a0contract stated clearly that the Cades were to reserve&#8230; <span class=\"read-more\"><a href=\"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/04\/cases-illustrate-care-needed-in-reserving-mineral-rights\/\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2444,"featured_media":123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-and-gas-law"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cases Illustrate Care Needed in Reserving Mineral Rights - Texas Agriculture Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/04\/cases-illustrate-care-needed-in-reserving-mineral-rights\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cases Illustrate Care Needed in Reserving Mineral Rights - Texas Agriculture Law\" \/>\n<meta property=\"og:description\" content=\"*This article is not a substitute for the advice of an attorney.* Two recent Texas appellate court decisions illustrate the level of care required when reserving mineral rights during a property sale. &nbsp; Cade v. 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