Altman v. Blake
Supreme Court of Texas
712 S.W.2d 117 (1986)
Blake Jr.'s 1938 deed conveyed a one-sixteenth mineral interest to Blake Sr. while stating Blake Sr. "does not participate in any rentals or leases," retaining the executive leasing right and delay rentals for Blake Jr.; when the land was later leased with a one-eighth royalty, the Clark heirs (plaintiffs, successors to Blake Jr.'s later grantee) and the Blake heirs (defendants) disputed whether Blake Sr.'s interest was a one-sixteenth ownership share of the mineral estate (entitling the Blake heirs to one-sixteenth of the one-eighth royalty) or a one-sixteenth royalty interest outright (entitling them to double that share).
Whether a deed conveying a mineral interest, but retaining the executive right and the right to receive delay rentals for the grantor, grants a mineral estate rather than a royalty interest, unless the deed explicitly states that a royalty interest is granted.