Pa. Appellate Court Agrees with Landowners that Unused Leases Lapsed

HARRISBURG, Pa. - A Pennsylvania appellate panel has affirmed judgment for landowners who sought offers from other oil and gas production companies after the original leaseholder failed to begin production. Hite, et al. v. Falcon Partners, et al., No. 197 WDA 2010 (Pa. Super. Ct.).

The Superior Court said in its Jan. 6 opinion that atypical leases signed by plaintiffs in 2002 and 2003 limited the delay rental option to the primary, one-year term.

Plaintiffs Earl J. and Bonita Hite and other family members entered into leases with Buffalo Valley Ltd. in 2002 and 2003, giving Buffalo the right to …