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.