## Facts

- The owners, Duke and wife, executed an oil-and-gas lease covering 320 acres to R.O. Harvey, reserving the usual one-eighth lessor’s royalty.
- After the lease, Duke conveyed to Peter Hoffman “a one-half interest of oil, gas, and other minerals” in a specified 90-acre portion of the 320-acre tract.
- The deed stated it was “subject to” the Harvey lease but “covers and includes one-half of all the oil royalty and gas rental or royalty due to be paid under the terms of said lease.”
- Hoffman claimed the quoted clause entitled him to one-half of the lessor’s royalty under the Harvey lease on the entire 320 acres.
- Magnolia Petroleum Company and other defendants contended the conveyance was limited to the 90 acres described, so any royalty interest was limited to production attributable to that 90-acre portion.
- The trial court and court of civil appeals held Hoffman’s royalty interest was limited to the 90 acres; Hoffman sought further review.

## Issues

1. Whether a deed conveying a mineral interest in a described 90-acre tract, while reciting it “covers and includes” one-half of royalties “due to be paid” under an existing 320-acre lease, grants a lease-wide royalty interest or only royalties attributable to the described 90 acres.

## Decision

- The Texas Commission of Appeals affirmed the lower courts.
- The deed conveyed Hoffman only one-half of the lessor’s royalty attributable to the 90-acre tract described in the granting clause.
- The royalty clause did not grant Hoffman one-half of the royalties from the entire 320-acre lease.

## Legal Principles

- Deeds are construed as a whole to give effect to all provisions where reasonably possible.
- The granting clause and specific property description define the primary subject and geographic scope of the conveyance.
- General royalty language referencing an existing lease is read in connection with the described tract and, absent clear language to the contrary, does not enlarge the conveyance to include interests in undescribed acreage.
- Where a specific tract description and a more general clause appear in tension, the specific description controls to prevent expansion beyond the land clearly conveyed.

## Conclusion

The court held that a deed conveying a mineral interest in a specified 90-acre tract, though made subject to an existing 320-acre lease and stating it “covers and includes” a fractional share of royalties under that lease, transfers only the corresponding royalties attributable to the described 90 acres unless the deed clearly states an intent to grant lease-wide royalties.


Hoffman v. Magnolia Petroleum Co., 273 S.W. 828 (Tex. Comm’n App. 1925)