The Duhig Rule Explained (Mineral Reservations are Tricky)
Because natural gas exploration has increased in Arkansas in recent years, my clients are often negotiating land transactions where they convey the surface, but retain all or a portion of their mineral interests. One would think that it would be simple to reserve a fractional interest in minerals from the grant, but in truth, it can be tricky. Ask any person who has drafted a title opinion --if the deed drafter is not careful, he can be tripped up by the Duhig rule. The Duhig rule is a rule of objective deed construction that has been adopted in several mineral producing states. The rule was borne from the Texas case Duhig v. Peavey-Moore , 135 Tex. 503, 144 S.W.2d 878 (Tex. 1940). Several other mineral producing jurisdictions have adopted the Duhig rule, either in whole, or with modifications, including Arkansas, Texas, Oklahoma, North Dakota, and Wyoming. In several jurisdictions, including Arkansas, Duhig is employed by a judge to constru...