The state Superior Court has denied what it called a “creative” attempt by a landowner in Bradford County, Pa., to get out of an oil and gas lease in what appears to be the first published state court opinion in a case involving a challenge to the state Supreme Court’s 2010 decision in Kilmer v. Elexco Land Services Inc.
A three-judge panel unanimously upheld a ruling by Bradford County Common Pleas Court Judge Maureen T. Beirne that granted judgment on the pleadings to two drillers, saying the terms of their lease with plaintiff Arthur Katzen are in compliance with the Guaranteed Minimum Royalty Act, which requires leases to guarantee landowners at least a one-eighth royalty of all oil or gas extracted from the property.
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