Pa. Minimum Gas Royalties Not Divisible, Appeals Court Rules

Law360, Philadelphia (December 2, 2013, 4:29 PM EST) -- The Pennsylvania Superior Court ruled Wednesday that lessors of oil and gas rights to drillers cannot be forced to divide their statutorily defined royalty payments under the state's Guaranty Minimum Royalty Act to pay some of the money back to the lessee.

The three-judge panel ruled in favor of two trusts holding land in north-central Pennsylvania when it concluded that a 2002 lease and modifying documents from 2005 inked with Southwestern Energy Production Co. violated the statute. The law guarantees lessors in the state at least...
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