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By: Armbrister S.C.R. No. 22
(In the Senate - Filed March 12, 2003; March 19, 2003, read
first time and referred to Committee on Jurisprudence;
April 28, 2003, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 6, Nays 0; April 28, 2003,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.C.R. No. 22 By: West
SENATE CONCURRENT RESOLUTION
WHEREAS, Edmund and Ruben Kappler allege that:
(1) they are the owners of Pietsch Island and the
surrounding ox-bow lake in Fayette County;
(2) 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;
(3) the ox-bow lake is now formally known as the John
Steffan Survey, Abstract No. 357, Fayette County, Texas;
(4) in 1981, a vertical well (the Triangle K No. 1) was
drilled on Pietsch Island that produced oil and gas for several
years;
(5) 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);
(6) 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;
(7) 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;
(8) 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;
(9) 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;
(10) 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
(11) the Kapplers 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; now,
therefore, be it
RESOLVED by the Legislature of the State of Texas, 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; and, be it further
RESOLVED, 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; and, be it further
RESOLVED, That, in the suit authorized by this resolution,
Anadarko E & P Company, L.P., may 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; and, be it
further
RESOLVED, That the commissioner of the General Land Office be
served process as provided by Section 107.002(a)(3), Civil Practice
and Remedies Code.
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