Minimum 12.5% Gas Royalty the Law In Pennsylvania

Date: August 12, 2014

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.

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Joe Price
Attorney Joe Price is a seasoned Trial Lawyer serving Northeast, Central and Southeast Pennsylvania for the past forty (40) years. He has handled serious personal injury cases in courts throughout the Federal system including New Jersey and New York. Attorney Price is A.V. Rated by Martindale Hubble. He is Board Certified in Civil Practice by the National Board of Trial Advocacy since 1996.