If this already has been posted I apologize. This news is strictly for Pennsylvania. If you live outside the Commonwealth you are not impacted:
Dunham's Rule is being challenged in court.
Your jeopardy lies with the possibility you might not own your mineral rights. Challengers are asserting Marcellus gas is (in effect) a mineral.
It is possible in PA for landowners to own their O&G rights but not own their mineral rights. Under Dunham's Rule, which has been precedent in PA for a long, long time, natural gas is not a mineral. If the courts belatedly support the concept of Marcellus natural gas being (in effect) a mineral, then landowner had better own his mineral rights in order to lease land and collect bonus and royalty.
In the past, under Dunham's Rule, if you owned your O&G rights in PA you were in the tall alfalfa. Mineral rights did not matter vis a vis Marcellus drilling, only O&G rights mattered.
If the challenge to Dunham's Rule stands [massive litigation is anticipated] you will still be OK provided you also own your mineral rights. Otherwise . . well . . you could have trouble on your hands.
Good luck to all.
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Permalink Reply by jb379 on September 23, 2011 at 3:49am Jim,
I am afraid "frothing" may be putting it lightly. Talk about the cluster this could create.
Disclaimer: I am not an attorney either ;)
JB
Permalink Reply by Harry L. Breski, PLS on September 27, 2011 at 12:07am
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