Protection of Rights and Adverse Possession

Question 1

Ordinary Trespass

Answer 1

When the lease expires but the lessee stays on the tract, lessee is a trespasser

Remedy = injunction and damages

Question 2

Slant Well Drilling

Answer 2

Bottoming a well underneath someone else’s tract

Remedy = injunction and damages

Question 3

Drilling Dry Well

Answer 3

Damage to the speculative lease value. If a wrongful lessee enters and drills a dry hole, the lessor loses the lease value that he could have received before the world found out the land was dry

Remedy = lost bonus

Question 4

Geophysical or Seismic Trespass

Answer 4

When someone on adjacent land explores lessor’s land using seismic vibrations, and gains info about lessor’s mineral potential

Remedy = sue in assumpsit (market value of a K for the right to do seismic exploration)

Question 5

Are secondary recovery operations a trespass?

Answer 5

No - public policy favors recovering more O/G

Question 6

Good Faith Trespasser

Answer 6

If the trespasser had an honest and reasonable belief in the superiority of his title, he will get a credit for the costs incurred in production if the costs benefited the rightful owner

Dry hole does not benefit rightful owner

Question 7

Bad Faith Trespasser

Answer 7

A bad faith trespasser will be liable for the gross value of production from the well

Question 8

Slander of Title

Answer 8

Tort action. Plaintiff must prove:

(1) Publication of false claim of title to the property,
(2) With malice, AND
(3) Loss of specific sale or leasing opportunity by the rightful owner b/c no buyer wanted to purchase property w/ disputed title

Damages = measured by the difference b/w market value of the lease at the time of the slander and its value at trial w/ the cloud removed

Question 9

Adverse Possession

Answer 9

Tx rules of adverse possession apply to O/G interests. Key issue = whether and when the ME was severed from the SE

1. Possession begins PRIOR to severance = adverse possessor gets title to BOTH SE and ME
2. Possession begins AFTER severance = adverse possessor gets title to SE only; to get title to ME, the adverse possessor must establish a separate action of possession (invade ME by drilling)