The Pennsylvania Supreme Court has decided not to hear arguments in the case of Southwest Energy v Forest Trust. The decision lets stand a Superior Court opinion upholding the minimum 12.5% royalty payment due to landowners under Pennsylvania law. In the Southwest case, the gas company tried to receive an “assignment back” of 50% of the original royalties thereby reducing the actual royalties to 6.25%. Judge Mundy, writing for the Superior Court, rejected this language noting that the right hand cannot take away what the left hand has given merely by adding some legal language. 12.5% remains the minimum royalty in Pennsylvania.
Remember—INJURY?? CALL DLP!!