Dispute Arising From Oil and Gas Leases Must Be Arbitrated, 3rd Cir. Affirms

PHILADELPHIA — An arbitration provision in oil and gas leases requires arbitration of a dispute arising from subsequent letter agreements that relate back to the original leases because the agreements are all part of one transaction, a federal appeals court has affirmed.

In an Aug. 10 opinion, the 3rd Circuit U.S. Court of Appeals noted the leases provide that any new leases would be “upon the same terms and conditions as set forth in the Underlying Lease,” and one such term is that any dispute arising under the leases would be subject to arbitration.

Schoonover Real Estate Trust sued Northeast …