Court of Appeals of Texas, Fourth District, San Antonio
the 218th Judicial District Court, Karnes County, Texas Trial
Court No. 16-03-00056-CVK-A Honorable Walden E. Shelton,
Judge Presiding 
Sitting: Sandee Bryan Marion, Chief Justice, Rebeca C.
Martinez, Justice Luz Elena D. Chapa, Justice
Bryan Marion, Chief Justice
Oil, LLC and ELG Utility, LLC appeal a summary judgment
granted in favor of Stranco Services, LLC allowing Stranco to
foreclose on a mineral subcontractor's lien. ELG asserts
the trial court erred in granting the summary judgment
because Stranco failed to conclusively establish it: (1)
furnished or hauled material, machinery or supplies used in
mineral activities under contract with a mineral contractor,
or (2) performed labor used in mineral activities under
contract with a mineral contractor. We reverse the trial
court's judgment and remand the cause to the trial court
for further proceedings.
entered into a contract with Turn-Key Specialists, Inc. to
add natural gas bullet storage tanks to the KDB Central
Treatment Facility (the "Facility"),  and Turn-Key
entered into a subcontractor agreement with
Stranco. On March 3, 2016, Stranco filed the
underlying lawsuit against Turn-Key and ELG alleging various
claims, including a claim to foreclose on a mineral lien
Stranco alleged it had against ELG's property. After
Turn-Key filed bankruptcy, Stranco's claims against ELG
were severed into a separate cause. Stranco then moved for a
partial summary judgment on its claim to foreclose on its
alleged mineral lien.
November 16, 2018, the trial court granted Stranco's
motion. On January 17, 2019, the trial court
signed an agreed order severing Stranco's other pending
claim into a separate cause.On February 12, 2019, the trial
court signed a final judgment incorporating the partial
summary judgment and awarding Stranco attorney's fees.
trial court's decision to grant summary judgment is
subject to de novo review." Schlumberger Tech. Corp.
v. Pasko, 544 S.W.3d 830, 833 (Tex. 2018). "Courts
review the record in the light most favorable to the
nonmovant, indulging every reasonable inference and resolving
any doubts against the motion." Id. (internal
quotation omitted). In order to be entitled to a summary
judgment, the movant must establish "there is no genuine
issue as to any material fact and the moving party is
entitled to judgment as a matter of law." Tex.R.Civ.P.
56.002 of the Texas Property Code provides, "A mineral
contractor or subcontractor has a lien to secure payment for
labor or services related to the mineral activities."
Tex. Prop. Code Ann. § 56.002. A "mineral
subcontractor" is defined, in pertinent part, as a
(A)furnishes or hauls material, machinery, or supplies used
in mineral activities under contract with a mineral
contractor or with a subcontractor; or
(B) performs labor used in mineral activities under contract
with a mineral contractor.
Id. § 56.001(4)(A), (B). A "mineral
contractor" is defined as "a person who performs
labor or furnishes or hauls material, machinery, or supplies
used in mineral activities under an express or implied
contract with a mineral property owner or with a trustee,
agent, or receiver of a mineral property owner."
Id. § 56.001(2). "Mineral activities"
are defined, in pertinent part, as "digging, drilling,
torpedoing, operating, completing, maintaining, or repairing
. . . an oil or gas pipeline." Id. §
56.001(1); see also Adams v. Starside Custom ...