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Oil & Gas Dual Purpose

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

McGuireWoods LLP

Pennsylvania Court: Sublease of Production Rights Does Not Sever “Dual-Purpose” Oil and Gas Leases

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In a published opinion, the Pennsylvania Superior Court ruled that utilization of the subject land for gas storage held production rights under a “dual-purpose” lease providing for both storage and production. See Loughman v....more

McGuireWoods LLP

Fourth Circuit Joins Courts in Pennsylvania and Ohio in Holding that Dual Purpose Oil and Gas Lease Is Not Severable

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As we have often reported, landowners’ efforts to evade the plain terms of “dual purpose” leases, providing for both production and natural gas storage, have almost universally failed. Most recently, on December 28, 2015, the...more

McGuireWoods LLP

Pennsylvania Court: Using Property for Gas Storage Holds Production Rights Under “Dual Purpose” Leases

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A recent trial victory for Range Resources – Appalachia LLC and Columbia Energy Ventures LLC (CEV) fills gaps left by the prior leading decisions on “dual purpose” storage and production leases, and cements the rights of...more

McGuireWoods LLP

Pennsylvania Superior Court: Storage Activities Hold Production Rights Under "Dual Purpose" Lease

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The explosion of natural gas production in the Appalachian Basin in recent years has led to litigation involving landowners trying to get out of existing oil and gas leases to take advantage of the fierce competition among...more

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