Enervest Operating, LLC v. Sebastian Mining, LLC
United States Court of Appeals for the Eighth Circuit
676 F.3d 1144 (2012)
A landowner conveyed surface and coal rights to Sebastian Mining (defendant) while reserving broadly defined mineral rights, and separately conveyed oil, gas, and all other minerals except coal to gas owners including Anadarko Petroleum through two later deeds using similarly broad mineral language and narrow coal exceptions. EnerVest Operating (plaintiff), holding leases from both parties, filed an interpleader action to determine who was entitled to royalties from coal bed methane gas (CBM), a natural gas found within coal beds, and the trial court ruled the gas owners were entitled to those royalties.
Whether, in construing a deed conveying mineral rights, a court must determine the objective intention of the grantor by examining the language used in the deed according to its ordinary meaning.