Plainsman Trading Company, Petitioners v. Thomas W. Crews, Sr. and Dorothy Crews, Respondents

Summary

The Texas Supreme Court affirmed the Court of Appeals, holding that the surface destruction test applies to a non‑participating royalty interest created before June 8, 1983, and that the trial court’s jury instructions were proper. The Court reasoned that a non‑participating royalty is carved from the mineral estate and therefore subject to the test, and it found no reversible error in the jury instructions concerning reasonableness and surface impact. The Court also rejected Plainsman’s claims of error regarding the proximity stipulation and environmental instruction. Justice GAMMAGE dissented, arguing the test should not apply to such royalties.