News & Analysis as of

Pennsylvania Oil & Gas Royalties

Houston Harbaugh, P.C.

The Neale Rule – Who Really Owns the Oil and Gas Under Railroads?

Houston Harbaugh, P.C. on

Since the early 1900’s, your family has owned a 105 acre farm in Greene County, Pennsylvania. In 2024, you and your siblings sign an oil and gas lease with XYZ Drilling Company. The language in the lease states that it...more

Houston Harbaugh, P.C.

The Centerline Presumption – Who Really Owns the Oil and Gas Under Roads and Highways? (Part II)

A troubling and confusing issue here in Pennsylvania concerns the ownership of oil and gas rights under roads and highways. For example, let’s assume Farmer Joe owned 115 acres in Greene County. In 1981, Farmer Joe sells...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Clarifies Nature of Oil and Gas Lease Under Pennsylvania Law

Let’s assume you own a 160-acre farm in Washington County. Your father purchased the farm in 1992 from a local farmer named Jones. (the “1992 Deed”). At the time your father purchased the farm, there was an oil and gas lease...more

Houston Harbaugh, P.C.

The Strip and Gore Doctrine - Who Really Owns The Oil and Gas Under Roads and Highways?

Houston Harbaugh, P.C. on

Let’s assume your grandfather owned 99 acres in Washington County. In 1955, he sells a small portion of the farm to the Commonwealth of Pennsylvania in order to facilitate the construction of new State Route 39. This acreage...more

Houston Harbaugh, P.C.

Can Owners of Severed Oil and Gas Estates in Pennsylvania Lease Gas Storage Rights?

A dual purpose oil and gas lease transitions into its secondary term, and remains in its secondary term, if oil and gas is produced from the leasehold or if the leasehold is used for oil and gas storage. See, Smith v....more

Steptoe & Johnson PLLC

Pennsylvania Adds New Royalty Payment Reporting Requirements and Deadlines for Unconventional Oil and Gas

Steptoe & Johnson PLLC on

On November 3, 2022, Pennsylvania Governor Tom Wolf signed Act 153 of 2022, which revises the Oil and Gas Lease Act’s provisions on required disclosures accompanying payments made to royalty owners from unconventional oil and...more

Houston Harbaugh, P.C.

Market Enhancement Clauses in Pennsylvania After Dressler Family, LP v. PennEnergy Resources, LLC

Houston Harbaugh, P.C. on

Many Pennsylvania landowners have leases with “market enhancement” royalty clauses. These clauses typically prohibit the deduction of any post-production costs that are incurred transforming the gas into marketable form. Once...more

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