Gas Lease Can't Force Driller To Drill: Pa. Appeals Court

Law360, Philadelphia (June 24, 2013, 5:56 PM EDT) -- The Pennsylvania Superior Court ruled Friday that Kriebel Resources Co. did not have a duty to drill for gas in the Marcellus Shale formation under the terms of a lease agreement in which a couple signed over the subsurface rights to their property in exchange for royalty payments.

Affirming a ruling by the Clearfield County Court of Common Pleas, a three-judge panel found that there was no precedent in Pennsylvania that would require Kriebel, which had already drilled a series of shallow wells on the 151-acre...
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