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Pa. Superior Court Says 'On' Isn't 'Under' In Gas Leases

Law360 (June 12, 2019, 8:05 PM EDT) -- A clause in a Pennsylvania landowner's natural gas lease with an Exxon Mobil Corp. subsidiary only entitled him to extra payments if a well were drilled from the surface of his property, not drilled horizontally from a wellhead on a neighbor's land, a state appeals court ruled Wednesday.

In its precedential opinion, the Superior Court of Pennsylvania rejected Raymond Mitch's argument that horizontal drilling for gas in the rock formation beneath his land was "on" his land, triggering an addendum to his lease with XTO Energy Inc. that entitled him to either run a gas line to the wellhead for his...

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