Pa. Landowners Challenge 'Unitization' Clauses in Drilling Leases

HARRISBURG, Pa. - Some Pennsylvania landowners are challenging clauses in their oil and gas leases that allow drilling companies to "unitize" or combine their lease with others for shared royalties, saying it is being used to extend leases that would otherwise expire for lack of drilling activity. Roman v. Chesapeake Appalachia LLC, No. 3:11-cv-01614-JMM; Vosburg v. Chesapeake Appalachia LLC, No. 3:11-cv-01615-RPC (M.D. Pa.).

Plaintiffs in two lawsuits filed on Aug. 29 in the U.S. District Court for the Middle District of Pennsylvania are asking that court to declare that their leases have expired, despite Chesapeake Appalachia's bid to combine pool …