SRC-JLB, TJG C.S.S.C.R. 22 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.C.R. 22
By: Armbrister
Jurisprudence
4/24/2003
Committee Report (Substituted)

DIGEST

Edmund and Ruben Kappler allege that they are the owners of Pietsch Island
and the surrounding ox-bow lake in Fayette County.  In 1928, the state
issued a patent covering the ox-bow lake, which was believed to be under
the ownership of the state, to John Steffan, reserving the minerals under
Chapter 79, Acts of the 36th Legislature, 2nd Called Session, 1919, with
the landowners acting as its agent for leasing purposes and receiving
one-half the bonus, rentals, and royalties.  The ox-bow lake is now
formally known as the John Steffan Survey, Abstract No. 357, Fayette
County, Texas.  In 1981, a vertical well (the Triangle K No. 1) was
drilled on Pietsch Island that produced oil and gas for several years and
in 2002, an interest in the well and the leases covering Pietsch Island
were assigned to Anadarko E & P Company, L.P. (formerly RME Petroleum
Company).  Anadarko E & P Company, L.P., made a decision to re-enter the
Triangle K Well as a horizontal well on a unit that includes Pietsch
Island, the ox-bow lake, and a part of the active bed of the Colorado
River, and it is now producing significant amounts of oil and gas. Around
the time of this decision, Anadarko E & P Company, L.P., requested a title
opinion of a law firm as to the status of the 1928 patent of the John
Steffan Survey.  In the title examiner's opinion, the patent issued by the
state is invalid due to the state's lack of title in the ox-bow lake at
the time of conveyance, because in instances such as this where there was
a sudden breakthrough of a public stream into a new channel, title to the
bed of the abandoned channel passes from the state to the adjoining
landowners.  Based on this opinion, Anadarko E & P Company, L.P., has
placed in suspense payment of one-half of the royalties from the re-entry
well that are attributable to the John Steffan Survey.  The Kapplers
allege the state patent covering the John Steffan Survey is invalid and
that the Kapplers own the land constituting the John Steffan Survey and
the minerals located thereunder in fee simple and are entitled to
declaratory relief in accordance with Chapter 37, Civil Practice and
Remedies Code, and Anadarko E & P Company, L.P., is entitled to interplead
the royalty payments affected by the title issue into the registry of the
court pursuant to Rule 43, Texas Rules of Civil Procedure. 

PURPOSE

Provides that Edmund and Ruben Kappler are granted permission to sue the
State of Texas and the General Land Office subject to Chapter 107, Civil
Practice and Remedies Code.  Provides that the relief obtained in the suit
authorized by this resolution is limited to the relief authorized under
Chapter 37, Civil Practice and Remedies Code, except awards under Section
37.009. Authorizes Anadarko E & P Company L.P., in the suit authorized by
this resolution, to interplead royalty payments affected by the title
issue that is the subject of the suit in accordance with Rule 43, Texas
Rules of Civil Procedure.  Provides that the commissioner of the General
Land Office be served process as provided by Section 107.002(a)(3), Civil
Practice and Remedies Code.