Cemex USA wins $558 million suit against the state of Texas

Cemex USA has finally won a legal ruling over $558 million in mineral royalties sought by the state of Texas.

The ruling by Judge Carlos Villa, a state court judge, in favor of Cemex declared that the state and the General Land Office cannot require Cemex to pay royalties for the removal of sand, gravel, limestone, granite, caliche and soil from its quarry in McKelligonCanyon.

The ruling not only rejects the State's case against Cemex but also affirms that Cemex has every right to remove and sell sand and gravel at its operations.

"This ruling confirms our view that the suit by the State of Texas and the General Land Office is completely lacking in merit," said Gilberto Perez, President of Cemex USA.

The state had threatened to shut down its operations and sought $558 million in royalties and the full value for the removal and sale of sand and gravel at Cemex's McKelligonCanyon operation in El PasoCounty. Cemex had acquired the quarry in 2006.

"We're going to appeal. This is round one," General Land Office spokesman Jim Suydam said.

Judge Villa also ruled that sand, gravel, limestone, granite, caliche and soil are not minerals reserved to the State.

In June, Texas GLO Commissioner Jerry Patterson accused Cemex of trespassing on its own land and not paying the State for the removal and sale of more than 60 years of sand and gravel at the site by Cemex and its predecessors.

The GLO's suit sought $558 million from Cemex and the full value of the sand and gravel.

This case has implications for other Texas landowners of mineral-classified lands. The ruling protects the rights of these surface owners to the sand, gravel, limestone, granite, caliche and soil on their property.

From China Cement (2009-12-25)