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Blurbs from the Bossman

Pennsylvania Supreme Court Reaffirms Dunham Rule
by Scott Perry | 2013/05/06 |

In a much anticipated ruling, The Supreme Court of Pennsylvania has upheld a long-standing principle of real property law in the Commonwealth, putting to rest an issue of great concern to landowners and energy companies all across the Keystone State.

Blurbs from the Bossman ::

The so-called “Dunham Rule”, which has been well-settled law in this Commonwealth for more than 130 years, was recently reaffirmed by the high court in Butler v. Powers Estate, ___ A.3d ___, 2013 WestLaw 1749828, No. 27 MAP 2012 (Pa., April 24, 2013).  (See my previous blog entry, When Is A Gas Not A Gas?) The state Superior Court in September of 2011 had reversed and remanded, paving the way for a potentially huge economic impact on the ownership rights of thousands of property owners and Marcellus gas leaseholders across the state.

In a recently published opinion, the Court ruled that the Superior Court erred in relying on a 1983 ruling as its rationale for reversal. In US Steel Corp. v. Hoge
, 468 A.2d 1380 (1983), the state Supreme Court held that ownership of coalbed gas is conferred upon the owner of the coal.  The high court did not deem the Hoge decision relevant, since that case did not discuss the applicability of Dunham.
In a unanimous ruling, the Supreme Court reversed that decision, stating that:

“We reaffirm that the rule continues to be the law of Pennsylvania,” the Court said in its 24-page opinion. “In our view, neither the Superior Court nor Appellees have provided any justification for overruling or limiting the Dunham Rule and its longstanding progeny that have formed the bedrock for innumerable private, real property transactions for nearly two centuries.”

This means that a unique aspect of Pennsylvania property law will remain in place at least for the foreseeable future. The law of most other states holds that a conveyance or reservation of "minerals" does indeed include oil & gas.
In its unanimous decision, the Supreme Court reversed, stating that:


“We reaffirm that the rule continues to be the law of Pennsylvania,” the Court said in its 24-page opinion. “In our view, neither the Superior Court nor Appellees have provided any justification for overruling or limiting the Dunham Rule and its longstanding progeny that have formed the bedrock for innumerable private, real property transactions for nearly two centuries.”

This means that a unique aspect of Pennsylvania property law will continue in place for at least the foreseeable future. Since the law of most other states holds that a conveyance or reservation of "minerals" does indeed include oil & gasIn a unanimous ruling, the Supreme Court reversed that decision, stating that:

“We reaffirm that the rule continues to be the law of Pennsylvania,” the Court said in its 24-page opinion. “In our view, neither the Superior Court nor Appellees have provided any justification for overruling or limiting the Dunham Rule and its longstanding progeny that have formed the bedrock for innumerable private, real property transactions for nearly two centuries.”

This means that a unique aspect of Pennsylvania property law will remain in place at least for the foreseeable future. The law of most other states holds that a conveyance or reservation of "minerals" does indeed include oil & gas.In a unanimous ruling, the Supreme Court reversed that decision, stating that:

“We reaffirm that the rule continues to be the law of Pennsylvania,” the Court said in its 24-page opinion. “In our view, neither the Superior Court nor Appellees have provided any justification for overruling or limiting the Dunham Rule and its longstanding progeny that have formed the bedrock for innumerable private, real property transactions for nearly two centuries.”

This means that a unique aspect of Pennsylvania property law will remain in place at least for the foreseeable future. The law of most other states holds that a conveyance or reservation of "minerals" does indeed include oil & gas.In a unanimous ruling, the Supreme Court reversed that decision, stating that:

“We reaffirm that the rule continues to be the law of Pennsylvania,” the Court said in its 24-page opinion. “In our view, neither the Superior Court nor Appellees have provided any justification for overruling or limiting the Dunham Rule and its longstanding progeny that have formed the bedrock for innumerable private, real property transactions for nearly two centuries.”

This means that a unique aspect of Pennsylvania property law will remain in place at least for the foreseeable future. The law of most other states holds that a conveyance or reservation of "minerals" does indeed include oil & gas.In a unanimous ruling, the Supreme Court reversed that decision, stating that:

“We reaffirm that the rule continues to be the law of Pennsylvania,” the Court said in its 24-page opinion. “In our view, neither the Superior Court nor Appellees have provided any justification for overruling or limiting the Dunham Rule and its longstanding progeny that have formed the bedrock for innumerable private, real property transactions for nearly two centuries.”

This means that a unique aspect of Pennsylvania property law will remain in place at least for the foreseeable future. The law of most other states holds that a conveyance or reservation of "minerals" does indeed include oil & gas.In a unanimous ruling, the Supreme Court reversed that decision, stating that:

“We reaffirm that the rule continues to be the law of Pennsylvania,” the Court said in its 24-page opinion. “In our view, neither the Superior Court nor Appellees have provided any justification for overruling or limiting the Dunham Rule and its longstanding progeny that have formed the bedrock for innumerable private, real property transactions for nearly two centuries.”

This means that a unique aspect of Pennsylvania property law will remain in place at least for the foreseeable future. The law of most other states holds that a conveyance or reservation of "minerals" does indeed include oil & gas.
, Pennsylvania will remain an outlier in that regard.  The full text of the opinion can be read here.




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Blurbs from the Bossman

 

Thoughts, Observations
and Ruminations of an Independent Title Examiner Living & Working in the "Steel Buckle of the Rust Belt."

 

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