65 Years After A Sale, Oil and Gas Rights Returned To A Seller

65 Years After A Property Sale – Pennsylvania Court Determines Sellers Kept Their Oil And Gas Rights


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If there is a dispute about who own oil and gas rights, Pennsylvania courts may likely look to a deed to determine what the parties to the transaction intended. In Wright v. Misty Mountain Farm, LLC, 2015 Pa. Super 218 (Oct. 9, 2015), the Pennsylvania Superior Court reviewed the issue of whether a married couple had retained Oil and Gas rights when they sold a property.

In 1950, the Buck family sold property to the Wright family. The deed included language stating that the Buck family “excepted and reserved” all rights in oil, gas and minerals “under Lease dated June 16, 1949”. After that lease expired, the Wright family (the buyers) treated the Oil and Gas as their own. They entered several Oil and Gas leases over the following years.

In 2010, a group of landowners (who owned the Buck family’s interest) filed a lawsuit to determine who owns the rights to the Oil and Gas. The appellate court determined that the Buck family effectively kept the Oil and Gas rights with the language that they used in the deed when they sold the property to the Wrights. According to the court, the fact that the Wrights treated the Oil and Gas as their own was “of no moment.” This case demonstrates that each deed should be analyzed separately.

 

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Trent A. Echard

Trent A. Echard

Trent A. Echard is an attorney at Strassburger McKenna Gutnick & Gefsky in Pittsburgh, PA. He is a shareholder and the co-chair of the firm’s Oil and Gas Practice Group. Trent handles all types of Oil and Gas matters for landowners and businesses.

If you would like to contact Trent, he can be reached at techard@smgglaw.com or at (412) 281-5423.

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