As we reported previously, recent exploration and production in the Marcellus Shale has forced Pennsylvania courts to address interpretation of oil and gas leases which may be over 100 years old, relying on cases that are similarly over 100 years old, and to harmonize or reject those cases as they impact the people and property in the 21^stcentury.  On March 26, the Pennsylvania Supreme Court attempted to do just that in T.W. Phillips Gas and Oil Co. v. Jedlicka, No. 19 WAP 2009 (Mar. 26, 2012).  The case involved a 1926 oil and gas lease which provided, in relevant part, that the lease would continue for “as long . . . as oil or gas is produced in paying quantities” and required interpretation of the term “in paying quantities.”  Read More »

Share | Email| Comments|  Topics: Decisions of Note, Drilling, Exploration, Leases, Marcellus Shale, Oil and Gas, Pennsylvania, Real Estate, Royalties

Yesterday, the United States Supreme Court issued its decision in PPL Montana, LLC v. Montana, No. 10-218 (Feb. 22, 2012), which reads more like a wonderous travelogue than a judicial opinion.  The decision can’t help but inspire one to put on a pair of hiking boots and set out for Montana.  At least, the Montana explored by Lewis and Clark and that joined the United States in 1889.  Read More »

Share | Email| Comments|  Topics: Decisions of Note, Equal-Footing Doctrine, Leases, Montana, Navigability, Public Lands, Real Estate, Riverbed, Supreme Court

We don’t just write, we speak too!  I’m going to be leading a breakfast roundtable discussion on March 6 as part of ICSC’s University of Shopping Centers.  More details are here and please stop by! Read More »

Share | Email| Comments|  Topics: CERCLA, Clean Air Act, Clean Water Act, Cleanup, Leases, RCRA, Real Estate, Speaking Engagements, Superfund, Waste, Wetlands

Much attention has been paid recently to the terms of oil and gas leases in light of the increasing exploration and production activity in the Marcellus Shale region.  But in other parts of the country, particularly Texas and Oklahoma, oil and gas royalties are old hat.  Which may be why, in a December 16, 2011 decision, the Supreme Court of Texas held that a lessor of gas rights was barred by the statute of limitations from recovering underpayments made by Shell Oil Company – which had unabashedly admitted at trial that it had underpaid the plaintiff’s predecessor-in-interest for at least 3 years, and possibly ten years, and that in doing so it had breached its contract. Read More »

Share | Email| Comments|  Topics: Breach of Contract, Leases, Marcellus Shale, Oil and Gas, Statute of Limitations, Tolling

Last month I blogged about Sackett v. Environmental Protection Agency (10-1062), the case involving pre-enforcement judicial review of compliance orders under the Clean Water Act that will be argued before the United States Supreme Court this term. Read More »

Share | Email| Comments|  Topics: Administrative Hearing, Decisions of Note, Due Process, Enforcement Action, Informal Agency Action, ISRA, Leases, New Jersey, Real Estate

On September 7, 2011, the Pennsylvania Superior Court issued its decision in Butler v. Estate of Powers, 2011 Pa Super 198, sending the case back to the trial court to decide, in short, who owns the natural gas in the Marcellus Shale formation — the owner of the mineral rights, or the owner of the oil and gas rights. Read More »

Share | Email| Comments|  Topics: Cases to Watch, Deeds, Leases, Marcellus Shale, Mineral Rights, Oil and Gas, Real Estate

Last fall we wrote about the decision in Butler v. Estate of Powers in which the Pennsylvania Superior Court appeared to overturn more than 100 years of case law to cast doubt on whether the natural gas found in shale is a “mineral” for purposes of deed interpretation.  We called it a “Case to Watch,” and it looks like we were right because earlier this month the Pennsylvania Supreme Court agreed to hear the case. Read More »

Share | Email| Comments|  Topics: Cases to Watch, Drilling, Leases, Marcellus Shale, Mineral Rights, Oil and Gas, Real Estate

On January 4, 2011, the Pennsylvania Superior Court issued its opinion in Hite v. Falcon Partners, No. 197 WDA 2010, 2011 PA Super 2, holding that productive activities at premises leased for oil and gas activity were essential for the lessee to retain control of the property after the primary lease period, even though the oil and gas lease provided for an indefinite extension of the lease upon the payment of small delay rental payments. Relying on long-standing case law, the Court determined that despite the “unusual” wording of the lease at issue, the equitable principles that require such leases to be interpreted to promote development of the land and resources for the benefit of both the lessor and the lessee remained paramount. Importantly, though, both the lower court and the Superior Court left a slight opening for lessees. The trial court opined that an indefinite period for exploration was not completely foreclosed to lessees, but that the lease language must be “clear and unequivocal.” Similarly, the Superior Court noted that a lessee who wished to preserve exploration rights could enter into a lease with a significantly longer primary term. Read More »

Share | Email| Comments|  Topics: Decisions of Note, Drilling, Exploration, Leases, Oil and Gas, Real Estate, Royalties