Mineral vs. oil & gas rights - Marcellus Shale area

I have been told by Range Resources that oil & gas rights were separated in Pennsylvania from mineral rights. My family from the 1700’s owned alot of land in Western PA, over time the land was sold off but the mineral rights were retained . My question is, does mineral rights include gas rights ?

Dennis:

While I am not familiar with Pennsylvania oil and gas laws, the answer to your question is "YES", mineral rights should include gas rights. Mineral rights represent the legal rights to explore for and produce the resources below the surface. Both oil and gas are resources and thus would be included in mineral rights.

Thank you Charles. That really makes me wonder why Range Resources would tell me the opposite was true.

charles s mallory said:

Dennis:

While I am not familiar with Pennsylvania oil and gas laws, the answer to your question is "YES", mineral rights should include gas rights. Mineral rights represent the legal rights to explore for and produce the resources below the surface. Both oil and gas are resources and thus would be included in mineral rights.

Dear Mr. Fife,

The Range people said that because it is the case.

Pennsylvania courts have applied strict rules of construction to the interpretation of deeds concerning mineral reservations. The rule of law from the above case is that unless a mineral is specifically mentioned in the reservation, it is sold along with the land. “Other minerals” therefore, would not include natural gas or oil. For example, if the reservation said, "reserves all of the rock oil, coal and other minerals," natural gas would not be reserved and would pass in the conveyance.

Moreover, a Wyoming Court of Appeals case (Amoco vs. Guild Trust, 1980) states in paragraph four that “The Pennsylvania rule is that the term “mineral” does not include oil and gas unless the language in the instrument indicates an intent to include those specific resources." Thus, the presumption in Pennsylvania is that the term "minerals" does not include oil and gas, but such presumption may be rebutted. Bundy v. Myers, 372 Pa. 583, 94 A.2d 724 (1953).

The Pennsylvania Supreme Court was first presented with the issue of whether “oil and gas” were minerals in the 1882 case of Dunham and Shortt v. Kirkpatrick. The court decided in that case that reserving “all the minerals” did not include oil and gas, since at that time oil and gas, while minerals, were not regarded as such by most and so the intent of the parties in reserving “all minerals” would not include the intention to reserve oil and gas. The Pennsylvania courts have tended to uphold this finding since then, though they are definitely in the minority.

Bottom line is that the Range professional knew what he was talking about, depending on the timing of the reservation and the court held intention of the parties. The same minority view applies in early Arkansas reservations.

Mr. Mallory was stating a majority view, not the oil and gas law and rules of construction in Pennsylvania.

Dennis fife said:

Thank you Charles. That really makes me wonder why Range Resources would tell me the opposite was true.

charles s mallory said:

Dennis:

While I am not familiar with Pennsylvania oil and gas laws, the answer to your question is "YES", mineral rights should include gas rights. Mineral rights represent the legal rights to explore for and produce the resources below the surface. Both oil and gas are resources and thus would be included in mineral rights.

Mr. Cotten:

Thank you for the information you provided regarding Pennsylvania laws. I did not realize that some states requires that "minerals" must be specified as oil, gas, etc. I will make a note of this and consider this a learning experience.

Buddy Cotten said:

Dear Mr. Fife,

The Range people said that because it is the case.

Refer to http://bulk.resource.org/courts.gov/c/F2/278/278.F2d.577.12939.html

Pennsylvania courts have applied strict rules of construction to the interpretation of deeds concerning mineral reservations. The rule of law from the above case is that unless a mineral is specifically mentioned in the reservation, it is sold along with the land. “Other minerals” therefore, would not include natural gas or oil. For example, if the reservation said, "reserves all of the rock oil, coal and other minerals," natural gas would not be reserved and would pass in the conveyance.

Moreover, a Wyoming Court of Appeals case (Amoco vs. Guild Trust, 1980) states in paragraph four that “The Pennsylvania rule is that the term “mineral” does not include oil and gas unless the language in the instrument indicates an intent to include those specific resources." Thus, the presumption in Pennsylvania is that the term "minerals" does not include oil and gas, but such presumption may be rebutted. Bundy v. Myers, 372 Pa. 583, 94 A.2d 724 (1953).

http://ftp.resource.org/courts.gov/c/F2/636/636.F2d.261.79-1236.html

The Pennsylvania Supreme Court was first presented with the issue of whether “oil and gas” were minerals in the 1882 case of Dunham and Shortt v. Kirkpatrick. The court decided in that case that reserving “all the minerals” did not include oil and gas, since at that time oil and gas, while minerals, were not regarded as such by most and so the intent of the parties in reserving “all minerals” would not include the intention to reserve oil and gas. The Pennsylvania courts have tended to uphold this finding since then, though they are definitely in the minority.

Bottom line is that the Range professional knew what he was talking about, depending on the timing of the reservation and the court held intention of the parties. The same minority view applies in early Arkansas reservations.

Mr. Mallory was stating a majority view, not the oil and gas law and rules of construction in Pennsylvania.

Best,

Buddy Cotten

www.cottenoilproperties.com



Dennis fife said:
Thank you Charles. That really makes me wonder why Range Resources would tell me the opposite was true.

charles s mallory said:

Dennis:

While I am not familiar with Pennsylvania oil and gas laws, the answer to your question is "YES", mineral rights should include gas rights. Mineral rights represent the legal rights to explore for and produce the resources below the surface. Both oil and gas are resources and thus would be included in mineral rights.