Farm Credit Bank of Texas v. Colley

OPINION

GRANT, Justice.

The Farm Credit Bank of Texas appeals from a summary judgment granted in favor of O.L. and Neva Colley in a declaratory judgment action filed to determine who has the right to royalties from the sale of strip-mined lignite from certain property.

Farm Credit Bank contends that the trial court erred in rendering summary judgment against it because the court erroneously applied a rule of construction which presumes that a royalty interest does not include surface lignite.

Texas Utilities Electric Company produces lignite from parcels of land known as Tracts 61 (42 acres) and…