Missed Royalty Payments Can't Void Gas Leases: Pa. Court

Law360, Philadelphia (September 20, 2013, 6:15 PM EDT) -- The Pennsylvania Superior Court on Friday in a published decision upheld a trial court finding that a landowner who entered an oil and gas lease with a lessee who then withheld royalty payments could not declare the lease to be void and seek payment of the royalties at the same time.

The three-judge panel rejected Ronald McCausland's argument that a forfeiture clause in the lease agreement applied to the provision addressing royalty payments, concluding that these clauses exist to guarantee that lessees would develop the property....
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