PA Court Says Leaseholder Can Sublease Production Rights
We’re not sure how many landowners this may potentially affect, but we found a recent court decision by Pennsylvania Superior Court to be interesting. Landowners who had inherited property (and a lease) in Greene County, PA asked the court to “sever” the lease into two parts. The lease is with EQT and its affiliates and is 50 years old–long before Marcellus drilling. The landowner makes the case that because EQT had assigned the production rights to a third party and had never themselves drilled, the lease is terminated. There are two parts to the lease: one which said EQT had up to 10 years to extract oil and gas, the other that EQT can store natgas underground. The landowners were looking to end that portion of the lease that allows drilling because EQT never drilled on or under the property–and by assigning those rights to someone else, they have abrogated their rights under the lease. The court disagreed and said you can’t “sever” production rights from storage rights. If one OR the other happened, under the original lease, that is enough to make all parts of the lease ongoing and enforceable. Our description is likely not very good. Here’s what the legal beagles at Vorys say about the case, along with a copy of the decision…
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The Democrat commissioners of Fayette County, WV are scrambling to try and keep their jobs after enacting what is turning out to be a disastrous ordinance to ban all fracking, injection wells, drilling, etc. In January, three liberal Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see 
Here’s what just happened. A family in Dimock, PA admits, under oath on the witness stand, that their water had too much methane in it BEFORE Cabot Oil & Gas began to drill nearby. The same family, the Elys, later built a 22-room, $1 million mansion on the same property AFTER they admit there was trouble with the water. And a jury decides to find Cabot at fault–and award that family $2.75 million. The other family got $1.49 million. That’s called brain-dead. A total miscarriage of justice–stupidity on the same level as the OJ Simpson jury. The AP has written a story trumpeting the verdict, and every liberal backwater newspaper across the continent is now carrying it. It makes no difference that Cabot has asked the judge to set aside the verdict–a very real possibility. It makes no difference that Cabot will appeal the verdict if the judge doesn’t set it aside (there was no evidence in the case!)–and will likely win such an appeal. The damage is now done in the court of public opinion. No-nothings will read the headline and say, “Yep, Josh Fox had it right in Gasland. That nasty gas driller polluted those poor people’s wells in Dimock. Jury said so.” Case closed. This is a dark day in our fight against fossil fuel haters and climate change radicals. They will regurgitate this verdict from now until long after we’re all dead…
Two weeks ago MDN warned you of a court case that has the potential to upend the midstream (pipelines & processing plants) market–here in the Marcellus/Utica and across the country (see