PA LAW FAVORS GAS & OIL COMPANIES “IN PAYING QUANTITIES”

AMY COLEMAN

The Pennsylvania Supreme Court announced a recent decision to definitely enforce the rights of lessees in an oil and natural gas lease.  While the court had been hedging towards this decision for many years, the decision solidified a subjective standard as to the meaning of “in paying quantities” as a term of art used in a habendum clause in a lease.  This decision reflects a changed attitude towards the relationship between landowners and oil and natural gas companies, favoring the latter’s protection over the former. Continue Reading…

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