Darkhorse Water's Title Claim in Limbo After Court Remand
Darkhorse Water LP, hereafter Darkhorse, secured exclusive rights to manage water resources on a property, as per the Darkhorse Agreement. However, a court case, Darkhorse Water LP v. Birch Operations Inc. et al., has left the realtor's claim to the title undecided. Billie Pat McCaskle, the property owner, signed two agreements for the same land, causing the dispute.
The Darkhorse Agreement granted the realtor rights to drill, produce, treat, and transport water, as well as manage waste disposal and construct facilities. It also granted them a sufficient property interest to initiate a quiet title action against Birch entities. However, the court remanded the case for further proceedings to determine if Darkhorse was a bona fide purchaser.
In Texas, the nature of a conveyed interest depends on the content of the real property instrument, not its form. A bona fide purchaser is one who acquires property in good faith, for value, without notice of any third-party claims or interests. Darkhorse's status as a bona fide realtor remains undecided.
McCaskle signed two agreements for the same property: a Saltwater Reclamation Agreement with Darkhorse and a Surface Lease Agreement with Birch entities. This overlap led to the legal dispute. Promptly recording such agreements in public records is generally advisable to avoid such conflicts.
The Darkhorse Agreement granted significant water management rights to the realtor, but the realtor's claim to the title remains undecided due to the ongoing case. The dispute highlights the importance of clear, recorded agreements and the role of bona fide purchasers in real property transactions.
