Mathisen v. Thunder Basin Coal Co., LLC

Summary

The Wyoming Supreme Court held that a deed's surface-royalty provision obligated Consolidation Coal Company to pay only for coal mined, removed, and sold by Consolidation, which never occurred. The court also held that the provision was personal to the original parties and did not run with the land, so the successors in interest were not obligated to pay royalties when coal was later mined.

Holdings

1. The deed unambiguously limited Consol's royalty obligation to coal mined, removed, and sold by Consol. Because Consol never mined any coal from the property, it owed no surface royalty to the Mathisens.
2. The surface royalty provision was personal to the original parties and did not run with the land; therefore, Consol's successors, including Jacobs Ranch and Thunder Basin Coal Company, were not obligated to pay the royalty when coal was mined.
3. Although surrounding circumstances may be considered in appropriate cases, the Mathisens presented no competent evidence supporting their proposed interpretation. Their conjecture about the mining industry and property value was insufficient to avoid summary judgment.

Questions Presented

1. Whether the deed's provision requiring payment for coal "mined, removed and sold by Consol" obligated Consol to pay a surface royalty even though it never mined or sold coal.
2. Whether the surface royalty provision was intended to run with the land and thereby bind Consol's successors in interest.
3. Whether the deed was ambiguous or whether extrinsic evidence created a genuine issue of material fact concerning its meaning.
4. Whether the district court properly entered judgment as a matter of law or summary judgment for the appellees.

Disposition

affirmed