The Oil and Gas Addendum

An Oil and Gas Blog for Landowners. The law of oil and gas here in Pennsylvania and throughout the Marcellus Shale region is complex and continues to evolve and change. If you own oil and gas rights, keeping up to date on these changes and trends is critical. The Oil and Gas Addendum is your resource for timely and informational articles on the latest developments in oil and gas law. Our oil and gas practice here at Houston Harbaugh is dedicated to protecting the interests of landowners and royalty owners. From new lease negotiations, to title disputes, to royalty litigation, we can help. We know oil and gas.

Articles posted in Lease Expiration and Lease Development

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

By Robert J. Burnett on February 29, 2024

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...

Could a Proposed New York Carbon Dioxide Injection Program Work In Pennsylvania?

By Brendan A. O'Donnell on January 25, 2024

A company in New York is attempting to secure leases to allow it to produce oil and gas and to use the leased land for a carbon dioxide...

The Colorado Supreme Court Declines to Adopt Commercial Discovery Rule

By Robert J. Burnett on December 14, 2023

Let’s assume you own 136 acres in Tioga County. In 2011, you signed a new oil and gas lease with ABC Production (the “2011 Lease”). The 2011 Lease...

Texas Court Confirms “Automatic Termination” Rule for Oil and Gas Lease

By Brendan A. O'Donnell on December 7, 2023

In Cromwell v. Anadarko E&P Onshore, LLC, 676 S.W. 3d 860 (Tex. App. 2023), the Texas Court of Appeals confirmed the automatic termination of an oil and gas...

Pennsylvania Federal Court Dismisses Gas Driller’s Declaratory Judgment Lawsuit Involving Oil & Gas Lease

By Brendan A. O'Donnell on November 1, 2023

In an October 10, 2023, the United States District Court for the Middle District of Pennsylvania dismissed a gas driller’s declaratory judgment lawsuit involving an oil and gas...

North Dakota Supreme Rules That Driller Did Not Commence Reworking Operations In Timely Manner

By Robert J. Burnett on October 11, 2023

The modern producing gas well is a sophisticated and complex piece of equipment. The basic well head itself consists of several meters, valves and other components, each of...

Repurposing Oil and Gas Wells for Renewable Energy in Pennsylvania Raises Multiple Legal Issues

By Brendan A. O'Donnell on October 4, 2023

The potential for repurposing old oil and gas wells for renewable energy raises a number of complex legal issues in Pennsylvania. In recent years, the federal government has...

Can Cryptocurrency Mining Maintain an Oil and Gas Lease Beyond Primary Term?

By Brendan A. O'Donnell on September 27, 2023

The recently filed Hobe Minerals Limited Liability Company v. Bonanza Creek Energy Operating Company, LLC, et al lawsuit in a Colorado trial court challenges whether intermittent cryptocurrency mining...

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

By Robert J. Burnett on August 31, 2023

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...

Landowners Should Be Careful Before Making Representations About Prior Oil and Gas Development on their Property

By Brendan A. O'Donnell on August 18, 2023

Before signing oil and gas leases, landowners should pay close attention to lease provisions asking for warranties and representations about prior oil and gas development on the land....

Recent Federal District Court Decision Suggests New Approach for Oil and Gas Lease Termination

By Brendan A. O'Donnell on June 26, 2023

The United States District Court for the Western District of Pennsylvania’s recent decision in Bootes v. PPP Future Development, Inc., C.A. No. 22-154 (W.D.Pa. March 21, 2023) denying...

Texas Supreme Court Rules That Scheduling Mistake Does Not Qualify as Force Majeure Event

By Robert J. Burnett on June 14, 2023

Let’s assume you signed a new oil and gas lease with XYZ Drilling in August 2018 (the “2018 Lease”). Your lease contains a “continuous drilling” clause which requires...

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

By Brendan A. O'Donnell on June 5, 2023

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...

Can Retroactive Pooling and Unitization Revive An Expired Lease?

By Robert J. Burnett, Brendan A. O'Donnell on February 7, 2023

As we have written about before, a troubling issue facing landowners in the Marcellus Shale region is the practice of retroactive pooling and unitization. Retroactive pooling and unitization...

What the Hedge? - The Impact of Price Hedging on Landowner Production Royalties

By Robert J. Burnett, Brendan A. O'Donnell on November 4, 2022

There is no way to avoid it. It seems like everything costs more now than it did last week, last month and last year. Energy is one area...

Is Deducting Fuel Costs Authorized by Your Lease?

By Robert J. Burnett on October 19, 2022

Not only are landowners denied a royalty on the fuel gas volume, but they are also having that same “cost” deducted from their production royalty.

Pore Space Ownership: The North Dakota Supreme Court Issues Landmark Decision

By Robert J. Burnett on September 7, 2022

Let’s assume you own a 93-acre farm in Tioga County. In 1986 your grandfather sold the oil and gas rights to his neighbor, John Mize. In the early...

Pore Space: The Next Leasing Frontier for Pennsylvania Landowners?

By Robert J. Burnett on June 2, 2022

Let’s assume you own a 135 acre farm in Washington County. In 1976, your grandfather signed an oil and gas lease with ABC Oil. Several years later, ABC...

Kentucky Federal Court Fumbles Lease Expiration Claim

By Robert J. Burnett on March 30, 2022

Let’s assume you own a 110 acre farm in Washington County. The farm is subject to an oil and gas lease which was signed by your grandfather in...

Claim Based On Implied Covenant To Market Gas To Move Forward In Federal Royalty Litigations

By Robert J. Burnett

For many landowners in Pennsylvania, the receipt of the monthly royalty statement is an ongoing source of frustration and anger. In addition to excessive and unreasonable deductions for...

Is the Implied Covenant of Reasonable Development Irrelevant?

By Robert J. Burnett

The Pennsylvania Superior Court has continued the unfortunate recent trend of eroding the implied covenant of reasonable development in Pennsylvania. Generally, upon discovery of hydrocarbons, the implied covenant...

To Drill or Not to Drill – Does Pennsylvania Recognize an Implied Covenant of Further Exploration?

By Robert J. Burnett

Over the last 18 months natural gas operators from all over the world have converged on Western Pennsylvania. Their goal has been to secure new leases from landowners...

Federal Court in Kentucky Allows Novel Royalty Claim to Move Forward

By Robert J. Burnett on March 20, 2022

Federal Court in Kentucky Allows Novel Royalty Claim to Move Forward

Pennsylvania Superior Court Rules that Oil and Gas Rights Did Not Transfer to Buyer

By Robert J. Burnett

The question of whether a sale of real estate includes the underlying gas rights remains a troubling issue for some Pennsylvania landowners. For example, let’s assume your family...

Pennsylvania Superior Court Fumbles Lease Expiration Claim

By Robert J. Burnett

Pennsylvania Superior Court Fumbles Lease Expiration Claim Every oil and gas lease has essentially the same objective: the drilling of a well and the eventual payment of production...

Ohio Supreme Court Observes That Driller Cannot Maintain Lease Indefinitely by Paying Delay Rentals

By Robert J. Burnett

In the early days of the Marcellus leasing boom, your grandfather executes an oil and gas lease covering the 100 acre family farm in Mercer County. The landman...

Ohio Supreme Court Declines To Recognize Implied Covenant Of Further Exploration

There are thousands of shallow oil and gas wells across Pennsylvania. Many of these shallow wells were drilled pursuant to leases that were originally executed in the early...

Federal Court in Scranton Rules That Litigation Filed by Landowner Did Not “Repudiate” the Lease

By Robert J. Burnett

Continuing a trend that puts Pennsylvania at odds with most oil/gas jurisdictions, the federal court in Scranton recently ruled that an unsuccessful suit filed by a landowner challenging...

Federal Court Rules that Assignment of Oil/Gas Lease May Not Extinguish Liability of Original Lessee

By Robert J. Burnett

Landowners are often alarmed and angered when they receive word that the oil/gas lease they executed several years ago, after months of intense and personal negotiations, has been...

Federal Court in Pittsburgh Allows Lease Cancellation Suit to Move Forward

By Robert J. Burnett

Throughout Pennsylvania it is not uncommon to encounter gas wells that were drilled over 100 years ago. These ancient wells were drilled pursuant to oil/gas leases that often...

Temporary Cessation of Production: How much time does a producer have under Pennsylvania law?

By Robert J. Burnett

The modern producing gas well is a sophisticated and complex piece of equipment. The basic well head itself consists of several meters, valves and other components, each of...

Non-Producing Oil and Gas Lease Deemed Abandoned by the Pennsylvania Superior Court

By Robert J. Burnett

There are thousands of older vertical wells scattered across Pennsylvania. Many of these wells have not produced oil or gas in years and have fallen into disrepair. Despite...

Pennsylvania Superior Court Rules Driller had no Implied Obligation to Develop Deeper Formations

By Robert J. Burnett

In a recent non-precedential decision, the Pennsylvania Superior Court ruled that a driller did not breach the implied covenant of reasonable development by failing to drill a Marcellus...

Pennsylvania Landowners May Not Own Oil and Gas Rights Under Rivers and Streams

By Robert J. Burnett

Since the 1890s, your family has owned a 150 acre farm in Washington County, Pennsylvania. In 2014, you and your siblings sign an oil and gas lease with...

My Driller Filed for Bankruptcy; What Happens to My Lease in Pennsylvania?

By Robert J. Burnett, Brendan A. O'Donnell on March 15, 2022

The oil and gas business has been defined by cyclical “booms” and “busts”. Increased investment, drilling and production during growth years can lead to oversupply in the marketplace,...

Kentucky Court Rules That Lease Expired Due To Driller’s Failure To Market And Produce Gas

By Robert J. Burnett

There are thousands of older vertical wells scattered across Pennsylvania. Many of these wells have not produced oil or gas in years and have fallen into disrepair. Despite...

Not Your Father’s Oil and Gas Lease

By Robert J. Burnett on March 15, 2022

Horizontal Drilling Presents Unique Leasing Issues The modern oil and gas lease is a sophisticated and complex legal instrument that has evolved over the last several decades. This...

What Is A Shut In Well? Can the Payment of a Shut-In Royalty Maintain an Oil/Gas Lease Indefinitely?

By Robert J. Burnett on March 15, 2022

This is a familiar but troubling issue for a growing number of landowners throughout the Marcellus Shale fairway. Imagine you own 145 acres in Tioga County, Pennsylvania. You...

Non-Production During Secondary Term Results in Termination of Lease

By Robert J. Burnett

In a recent decision, the Washington County Court of Common Pleas granted a landowner’s request to terminate a ninety-one year old oil/gas lease due to non-production. In Wilson...

Federal District Court in Pittsburgh Rules That 1897 Deed Did Not Grant a Non-Participating Royalty Interest

By Robert J. Burnett on November 18, 2021

When a landowner executes an oil and gas lease, the developmental rights are transferred to the lessee. The lessor’s interest in the transferred developmental rights is known as a “possibility of reverter”. If the oil and gas lease expires, the developmental rights automatically revert back to the lessor-landowner.

The New Royalty Bill is Good for Pennsylvania Landowners

By Robert J. Burnett, Brendan A. O'Donnell

On August 5, 2021, Rep. Eric Davanzo (R-Westmorland County) introduced HB 1763. The bill seeks to clarify Pennsylvania oil and gas law by defining the term “royalty”. It...

Is Your Driller Really Enhancing the Value of Your Gas?

By Robert J. Burnett, Brendan A. O'Donnell on August 16, 2021

The driller cannot deduct the cost of dehydrating the raw gas and then moving the gas 165 miles away to a distant buyer unless the final net sales price at that location is better than the price the driller would have received selling the gas locally.

Federal District Court Injects Confusion into Definition of Gross Royalty Under Pennsylvania Law

By Robert J. Burnett on June 18, 2021

Drillers are becoming more creative and aggressive in their effort to avoid lease language that was intended to prohibit or restrict the deduction of post-production costs.

Pennsylvania Superior Court Rules That Payment Of Delay Rentals Alone Cannot Maintain A Lease Beyond Primary Term

By Robert J. Burnett on April 18, 2020

Your family owns a 87 acre farm in Tioga County. Back in 1979, your grandfather signed a lease with ABC Oil Co with a customary primary term of...

Landowners Beware: Warranty Clause in Oil and Gas Lease Can Obligate Landowner to Repay Signing Bonus

By Robert J. Burnett on March 15, 2020

The fine print in an oil and gas lease can have some serious repercussions for an unwary landowner. One of the fine print clauses that often gets overlooked...

Driller Bankruptcy Could Raise Environmental Concerns for Landowners

By Robert J. Burnett, Brendan A. O'Donnell on March 1, 2020

In mid-2019, Fram Operating, LLC and its parent, Fram Americas, LLC filed for Chapter 7 bankruptcy protection in Colorado. Fram was an oil and gas producer with wells...

Murphy Exploration v. Adams: Texas Supreme Court Suggests That Horizontal Well Bore Will Not Drain Hydrocarbons From Adjacent Tract

By Robert J. Burnett on February 27, 2019

As more and more horizontal well bores are being drilled across Pennsylvania, landowners are now keeping a closer eye on the location of nearby wells. For example, imagine...

New Legislation May Allow Drillers To Revive Expired Oil And Gas Leases

By Robert J. Burnett on March 15, 2017

If you have an abandoned oil and gas well on your property, it may no longer be just an ugly eye-sore. As a result of controversial legislation recently...

Pennsylvania Superior Court Interprets Forfeiture Clause in Oil and Gas Lease

In McCausland v. Wagner, the Pennsylvania Superior Court was confronted with the question of whether the lessor under an oil and gas lease was entitled to terminate the...

Free Natural Gas On Property: Who’s Entitled To Free Gas?

By Robert J. Burnett on February 17, 2012

Suppose you purchase a 100-acre farm in Armstrong County. You are told that the property is subject to an old gas lease but that the farmhouse receives “free...

About Us

Oil and gas development can present unique and complex issues that can be intimidating and challenging. At Houston Harbaugh, P.C., our oil and gas practice is dedicated to protecting the interests of landowners and royalty owners. From new lease negotiations to title disputes to royalty litigation, we can help. Whether you have two acres in Washington County or 5,000 acres in Lycoming County, our dedication and commitment remains the same.

We Represent Landowners in All Aspects of Oil and Gas Law

The oil and gas attorneys at Houston Harbaugh have broad experience in a wide array of oil and gas matters, and they have made it their mission to protect and preserve the landowner’s interests in matters that include:

New lease negotiations
Pipeline right-of-way negotiations
Surface access agreements
Royalty audits
Tax and estate planning
Lease expiration claims
Curative title litigation
Water contamination claims

Robert Burnett - Practice Chair

Robert’s practice is exclusively devoted to the representation of landowners and royalty owners in oil and gas matters. Robert is the Chair of the Houston Harbaugh’s Oil & Gas Practice Group and represents landowners and royalty owners in a wide array of oil and gas matters throughout the Commonwealth of Pennsylvania. Robert assists landowners and royalty owners in the negotiation of new oil and gas leases as well as modifications to existing leases. Robert also negotiates surface use agreements and pipeline right-of-way agreements on behalf of landowners. Robert also advises and counsels clients on complex lease development and expiration issues, including the impact and effect of delay rental and shut-in clauses, as well as the implied covenants to develop and market oil and gas. Robert also represents landowners and royalty owners in disputes arising out of the calculation of production royalties and the deduction of post-production costs. Robert also assists landowners with oil and gas title issues and develops strategies to resolve and cure such title deficiencies. Robert also advises clients on the interplay between oil and gas leases and solar leases and assists clients throughout Pennsylvania in negotiating solar leases.

Head shot photo of Pittsburgh, Pennsylvania Oil and Gas Lawyer Brendan O'Donnell at Houston Harbaugh

Brendan A. O'Donnell

Brendan O’Donnell is a highly qualified and experienced attorney in the Oil and Gas Law practice. He also practices in our Environmental and Energy Practice. Brendan represents landowners and royalty owners in a wide variety of matters, including litigation and trial work, and in the preparation and negotiation of:

Leases
Pipeline right of way agreements
Surface use agreements
Oil, gas and mineral conveyances