Land & Energy Quarterly Premier Issue
-
Upload
pa-virtual-services-llc -
Category
Documents
-
view
216 -
download
0
description
Transcript of Land & Energy Quarterly Premier Issue
Energy – The Professional staff provides abstracting services and oil, gas, mineral, and coal Certified Title Opinions detailing own-ership/leasehold of surface and subsurface interests for multi-national corporations, regional and local gas exploration/production companies, real estate professionals, developers, investors, buyers, sellers, and lessors of land.
• Cost effective “curative” legal services removing defects in the chain of title.• Oil and gas valuations, family limited partnerships, corporations, limited liability companies, severance deeds, lease assign-
ments, and estate planning documents to reduce income taxes and minimize or eliminate inheritance taxes on subsurface interests.
• Negotiation services for Rights of Way and Easements for production distribution.• Representation for multi-million dollar sale of several hundred acre site and related assets for multiple well pad and
compression station.• Lease agreements between exploratory production companies and not for profit organizations [501 (C) (3) (6) (7)] forming
for profit entities as the depository of severed subsurface interests and related documentation to enable not-for-profits to receive unrelated business income (UBI) while maintaining non-profit and/or charitable tax status.
• Counsel to national midstream company for over the limit weight claims successfully reducing fines.
Real Estate – Legal services to local, regional, and national real estate companies, banks, investors, exploration and production companies, homeowners associations, third party employee relocation companies, buyers, and sellers.
• Representation of clients in over 10,000 residential, commercial, and relocation real estate transactions.• Counsel to developers for the acquisition, sale, and improvement of residential housing lots and condominium
developments.• Counsel for regional and national real estate brokerages involving oil, gas, mineral, and coal interests including quarterly
accredited continuing education for realtors and appraisers.
Litigation – Legal services in the areas of personal injury, insurance company bad faith, real property, landlord tenant, oil and gas contracts, and curatives.
• Twenty-five (25) years and over 50 jury trials of experience throughout state and federal courts in Pennsylvania and West Virginia.
• Received $1.6 million dollar verdict against a major insurance company for breach of contract and bad faith.• Negotiation for six figure settlements.• Successfully litigated products liability case to the Pennsylvania Superior and Supreme Courts.
Estate Planning – Administration, counsel clients on the importance of properly prepared estate plans to minimize inheritance taxes and direct assets after death.
• Preparation of hundreds of Estate Plans including Last Will and Testaments, Durable General and Health Care Powers of Attorney, living wills, revocable and irrevocable trusts.
• Representation in Orphan’s Court for probatable assets of testate and intestate decedents.• Preparation and filing of state and federal inheritance tax packages.• Counseling for wealth preservation.
Business, Tax, Accounting – Counsel and represent clients on selection of business entitles, income, and inheritance tax liabilities.
• Advise clients as to business entity selection for protection of personal and corporate assets.• Form limited liability partnerships, companies, and corporations.• Quick books reconciliation.• Preparation of personal tax returns and business tax returns.• Accounting and controller services.• Representation at IRS audits and before the United States Tax Court.
About the Firm…
Lawrence D. Brudy & Associates, Inc. is a regionally positioned Appalachian Basin Law Firm
comprised of Attorneys, Certified Public Accountants, Paralegals, Legal Assistants, Title
Examiners, Title Analysts, Licensed Title Insurance Agents, Real Estate Brokers, Marketing, and
Public Relations Personnel.
Practice Groups
TABLE OF CONTENTSWe are y
ou
r attorn
eys in
today's ever-changing w
orld
Summer 2013, Lawrence D. Brudy & Associates, Inc.,
was a proud sponsor of the Butler BlueSox.
“The way a team plays as a whole determines its success. You may have the greatest bunch
of individual stars in the world, but if they don't play together, the club won't be worth a
dime.” - Babe Ruth
Enhanced Title Insurance Policies…………………………………………………….
Oil, Gas and Mineral Rights Disclosure and Addendum…………………………….
What is “Title Washing”?……………………………………………………………..
2013 Pennsylvania Housing Market…………………………………………………..
Enhanced Title Opinions: The Use of Comprehensive Well Data Tools……………
The Oil and Gas Lease: Inside the Controversy……………………………………..
Oil & Gas Interests & Lease Negotiations…………………………………………….
How Oil and Gas Production Affects “Clean and Green” Properties……………….
Before you Sign… Tips for Pennsylvania Farmers…………………………………..
Pennsylvania Supreme Court Rules in Butler v. Charles Powers Estate
to Affirm Dunham Rule………………..……………………………………..………..
What is a Deed?……………………………………..………………………………….
The Use of Mapping Data Programs………………………………………………….
Page
Page
Page
Page
Page
Page
Page
Page
Page
Page
Page
Page
CLOSINGS • TITLE INSURANCE • LITIGATION
855.935.1400
www.ldbassoc.com
REAL ESTATE:
RESIDENTIAL • COMMERCIAL • RELOCATION
• TITLE INSURANCE • RIGHT OF WAY AGREEMENTS •
SURFACE/SUBSURFACE DEED PREPARATION
• ‘SIXTY YEAR’ TITLE SEARCHES • ASSIGNMENTS •
LAND AGREEMENTS • SALE / PURCHASE AGREEMENTS
DEED PLOT SURVEY PRINTS
Lawrence D. Brudy, a licensed Pennsylvania attorney, real estate bro-
ker, title insurance agent and notary public, has provided accredited
continuing education for the Education Development School of Real
Estate, Career Growth Real Estate Academy, Butler County Associa-
tion of Realtors, Appraisal Institute Pittsburgh Metropolitan Chapter
and the Institute for Paralegal Education. The focus of the continuing
education has been on oil, gas, coal and minerals and the affects on
buying, selling and financing all or a portion of subsurface interests in
tandem with the surface estate.
Very few buyers realize that, like other insurance
products, the title insurance industry has
insurance products that offer different coverage. An en-
hanced policy, which offers additional coverage from
the standard coverage, is available to the homeowner.
Although the enhanced policy premium is 10% higher
than the standard policy premium, the reality is a
minimal cost to the homeowner for the ability to
substantially reduce their risk and exposure on one of
the largest investments they will make in a lifetime.
Both the enhanced policy and the standard policy
include protection against any defect in title existing at
the time of purchase. Also included in a standard policy
is protection against prior instruments of record that
would be in a first lien position, title if vested in
someone other than the seller, the unmarketability of
title, and the right of pedestrian access to the property.
The enhanced policy, however, covers a number of other
issues that may arise, including building permit
violations, subdivision problems, and instances of for-
gery even after the policy is issued. Furthermore, the
enhanced policy includes automatic increases in
coverage for five years, to account for the increase of
value in your home.
Because of the added coverage and the low cost offered
by the enhanced policy, it is important that purchasers
are aware it exists. Buyers who decide to add this
coverage will be required to have a survey completed,
which should always be recommended as a precaution.
A buyer should be aware of what they are buying, since
again this is likely one of the biggest purchases they will
make in their lifetime.
The importance of the Pennsylvania Association of
Realtors Oil, Gas, and Mineral Rights Disclosure and
Addendum.
This addendum is recommended by the firm’s attorneys for
every Real Estate purchase and sale transaction. The
addendum and disclosure should be completed by all sellers
to identify what subsurface interests are excepted, reserved,
or to be conveyed.
Paragraph No. 1 is to be completed by the seller or often
referred to as the Grantor. This paragraph discloses whether
the seller is aware or not aware that the oil, gas, and/or
mineral interests have been previously conveyed. This
section does not pertain to any interests that are leased. This
paragraph specifically provides that the warranty in the
agreement of sale (special, general) does not apply to the
oil, gas, and/or mineral interests.
Paragraph No. 2 is also to be completed by the seller to
identify that the seller is or is not reserving all or a portion
of the oil, gas, and/or mineral rights. For example, if agreed
upon between buyer and seller, seller could reserve all of
the oil, gas or coal interests. Another option is to reserve an
undivided percentage of all of the subsurface interests while
conveying the balance. In Pennsylvania, if one severs the
subsurface coal from the surface estate, the party owning
the coal will receive a separate tax assessment.
Paragraph No. 3 details what percentage of free, reserve,
domestic, or mansion house gas is to be conveyed. Most
Pennsylvania oil and gas leases provide for a certain
amount of free gas (150,000-200,000 cubic feet) requiring
the landowner to provide their own connection, to use the
same at their own risk, and to be responsible to pay for any
excess gas used. Most often, deep well gas cannot be used
directly from the wellhead and therefore landowners may
elect a “payment in lieu of the allotted free gas.” Free gas is
available to the landowner who has the producing well on
his/her property. In certain circumstances where a property
has been sub-divided, the leased property may be supplying
gas to a home now identified as a different lot. If a seller
has excepted or is reserving oil and gas interests there is an
option to reserve the free gas or convey (assign) the same to
“run with the land.” Generally, this covenant can be
embodied in the deed of conveyance or by a separate
recorded document.
Paragraph No. 4 provides for the conveyance of all
surface damages from seller to buyer. If a seller is
excepting and reserving the oil, gas, and mineral
interests, the subsurface is considered the dominant
estate and the surface servient, thus resulting in the oil,
gas, and mineral owner receiving an easement encom-
passing as much of the surface as is “reasonably
necessary” for subsurface development. Buyers of
property where un-leased subsurface interests are being
severed can restrict surface development by adding a
covenant to the deed.
Paragraph No. 5 is documentation generally, and in
more modern times, a lease package, will include
(a) Oil and Gas lease, Paid Up or Delay Rentals
(b) Addendum thereto (c) Memorandum of Lease
(d) Order for Payment. The memorandum of lease is
the document that will be recorded of public record.
This document provides a scintilla* of the oil and gas
lease, primarily names of lessor, lessee, property/parcel
identifier, and lease term. The most important docu-
ments to be reviewed are the oil and gas lease and the
addendum. The lease will outline the exploration and
production company’s terms and conditions for leas-
ing. The addendum modifies the boiler plate terms of
the lease pursuant to the negotiations between the
landowner and the exploration and production com-
pany.
Paragraph Nos. 6 & 7 provide the opportunity for the
buyer to conduct a title examination to determine the
status of the oil, gas, minerals, and coal. This exami-
nation should include an attorney’s certification
(interpretation of the public record search and
“curatives” to enable subsurface development of the
property). This process will take 30-45 days and costs
$5,000.00 or more. If a seller is conveying the subsur-
face interests, a Certified Title Opinion should be pre-
pared to verify the ownership and leasehold of all sub-
surface interests. Because a property is under lease,
this is not conclusive evidence that the lessor owns or
is entitled to royalties or subsurface interests.
Paragraph No. 8 is the area where by the seller is to
provide the “reservation” language (see paragraph No.
2) if the seller is reserving the non-excepted subsur-
face interests. The seller is to provide the buyer with
the reservation language to be incorporated into the
deed of conveyance.
Paragraph No. 9 provides for the review of the
seller’s reservation language. As with other para-
graphs of the PAR Agreement of Sale, both para-
graphs 8 and 9 default to a fifteen (15) day response.
In Western Pennsylvania it is customary practice for
the law firm or title insurance agency working for the
buyer or mortgage lender to prepare the deed on be-
half of the seller, at a charge to the seller. Our firm, as
part of the representation whether representing a buyer
or a seller, prefers to prepare the deed of conveyance
at a cost to our client to ensure our clients contractual
obligations are accurately memorialized in the
document(s).
The Firm’s Attorneys and Certified Public Accountants
involved in providing tax planning and the preparation of
estate plans for clients are often asked what items and/or
documents should be stored in a Safe Deposit Box.
Last Will and Testaments, Powers of Attorney and Liv-
ing Wills are not filed or recorded in Pennsylvania,
[generally] with the exception of a real property convey-
ance or death [probate]. Our Attorneys prepare estate
planning documents, in triplicate originals (Last Will and
Testaments, Powers of Attorney and Living Wills). We
suggest a set remains with the client, a set with the Ex-
ecutor/Executrix and the last kept in the file or place
where all of the “important papers” are kept. In the event
changes need to be made to the documents, we recom-
mend those changes be through our office as the docu-
ments are retained on our computer systems.
These are items or documents we do not recommend you
keep in a Safe Deposit Box: Last Will and Testament;
Durable General and Health Care Powers of
Attorney; Intervivos and Testamentary Trusts; Living
Wills; Funeral / Burial Arrangements; Financial docu-
ments including computer logins, pass-
words and usernames; and, Cash.
These are items or documents we do recommend you
keep in a Safe Deposit Box: Sentimental or heirloom
items; Impossible to replace photographs; Rare coins
and stamps; Military medals; and Inventory of all home
items (lists, video, DVD) including the combination of
home safe.
Most important is to provide your person of trust with
the information, direction and location of where the
“important papers” can be found.
Many consider the drilling of
Edwin Drake’s oil well in
1859 the beginning of what
we know today as the oil and
gas industry in this country. In the years thereafter,
subsurface interests began to be severed from sur-
face ownership. What also followed were attempts
to recover those interests by subsequent owners in
title. One such method in the early 20th Century was
the practice of “title washing.” A reading of the
pertinent sections of Pennsylvania Oil and Gas
Law and Practice (First Edition, George T. Bisel
Co., Inc. 2012) provides the following as to the
practice’s concept:
To understand the manner in which a parcel of land
is to be taxed, it must first be determined how the
property in question is assessed. Local assessors
have traditionally divided real property into two
distinct classes of property, Seated Land and Un-
seated Land (See 72 P.S. §5511.21). Seated Land
applied to those parcels of real estate that were im-
proved through building, cultivation or otherwise,
while Unseated Land was that which was unim-
proved or wild, typically consisting of unimproved
forest land. The difference in distinctions created a
good deal of litigation, as could be expected, with
the state legislature ultimately validating all tax
sales regardless of classification.
The importance of the distinction between seated
and unseated lies in the underlying premise that
taxes on unseated land constitute a tax against the
land itself, i.e., in rem, and conversely taxes on
seated land constitute a tax against the owner, i.e.,
in personam. As such there is no personal liability
for taxes on unseated land. Historically then, no-
tice requirements varied between the two classifi-
cations, with personal notice not being required for
unseated land.
In Mullane v. Central Hanover Bank and Trust,
339 U.S. 306 (1950), the Supreme Court held that
the distinction between “in personam” and “in rem”
jurisdiction is not the basis for difference in notice
procedures (“Notice by publication cannot simply
bear the normative weight expected of it. Chance
alone brings to the attention of even a local resident
an advertisement in small type inserted in the back
pages of a newspaper, and if he makes his home out-
side the area of the newspaper’s normal circulation
the odds that the information will never reach him are
large indeed”).
Early case law has held that a tax sale of unseated
land, as it is a tax against the land itself and not any
particular identified owner, carries with it all estates
within the unseated parcel that have not been sepa-
rately assessed. Hutchison v. Kline 199 Pa. 564
(1901); F.H. Rockwell & Co. v. Warren County, 228
Pa. 430 (1910). Thus, an unseated parcel of land that
was subject to a prior severance of the surface and
subsurface interests could be sold at a tax sale and the
buyer would take title to the parcel in fee, in spite of
the prior different ownership of the surface and sub-
surface. This transformation of prior split estate
ownership into a single fee ownership has been
termed by commentators as the unique Pennsylvania
“Title Wash.”
The practice of title washing was popularly employed
by large lumber companies in north-central Pennsyl-
vania beginning at the turn of the 20thcentury. Com-
panies such as the Central Pennsylvania Lumber
Company (CPL) held vast holdings of primarily un-
seated land in Elk, Potter, Sullivan and Lycoming
Counties, among others. It’s been estimated that
these companies controlled hundreds of thousands of
acres in Pennsylvania’s timber lands.
A review of tax sale records in any of the counties in
which CPL operated reveals that most of their hold-
ings were exposed to tax sales as a result of the non-
payment of taxes due thereon. Often, a related indi-
vidual (officer, attorney, etc.) would purchase the
lands at tax sale, hold the divestible title for the two-
year redemption period, and then convey whatever
interest was obtained as a result of the sale back to CPL
(or any other timber company employing the same tactic)
upon the expiration of the two-year redemption pe-
riod. As much of the lands owned by CPL and similar
companies were surface parcels subject to prior reserva-
tions of subsurface rights, the tax sales against the un-
seated parcels would arguably extinguish the rights of
those holding under prior reservations.
As the 20th Century progressed, owners (or their heirs) of
lost subsurface interests argued principally that the al-
leged tax sale was made under such attendant circum-
stances to render inequitable or actually fraudulent any
claim of divestiture of the subsurface interests. As case
history progressed, courts began to view subsurface inter-
ests as being something apart from the surface interests
and their attendant tax sales. In Day v. Johnson, 31 Pa.
D. & C.3d. 556 (1983), the Judge reasoned that an assess-
ment of unproduced oil and gas would be an act of
“clairvoyance” and held that the tax sale of unseated land
had no effect on the severed subsurface oil and gas inter-
est irrespective of its classification as unseated land.
Today, title washing is not possible due to changes in tax
sale statutes that prohibit owners from purchasing their
own property and the current advances in the due process
notice requirements needed for the divestiture of liens
and other interest holders brought into the tax-sale statu-
tory schemes as a result of recent United States Supreme
Court rulings. Presently, 72 P.S. §5860.609 pertaining to
UpsetTax Sales provides:
72 P.S. §5860.609. Nondivestiture of liens.
Every such sale shall convey title to the property under
and subject to the lien of every recorded obligation,
claim, lien, estate, mortgage…with which said property
may have or shall become charged or for which it may
become liable. [emphasis added]
A properly noticed Judicial Sale under 72 P.S.
§5860.610 could divest a severed mineral interest owner
if the owner received actual notice of the pending judicial
sale.
Should I have a survey done prior to
buying my new home?Attorneys always recommend having a “staked survey”
done prior to the closing of the purchase. It is not uncom-
mon that neighboring driveways, tree lines or gardens
encroach on the subject property, or outbuildings, wood
piles, doghouses have been located on the new buyers
property. In many situations relocating the misplaced
structure or a recorded easement can solve the issue prior
to closing.
My husband, who recently passed away,
and I owned our home as “tenants by the
entireties.” Do I need to have a new deed
prepared and recorded?
No. Property held as “tenants by the entireties” is a form
of ownership by husband and wife, whereby each owns
the entire property. In the event of death of one of the
tenants, the survivor owns the property by operation of
law without the necessity of probate.
I own oil and gas interests that have been
severed from the surface estate of land.
Can I leave those assets to my children
and grandchildren in my Will?
Yes. Those interests can be left in percentage assign-
ments as “in kind” distributions as a specific devise or in
the residuary clause of the Will. These oil and gas assets
are taxable for Inheritance tax purposes. Additionally, if
the interests are producing royalties, you will need to
contact the Lessee for an assignment, ratification and di-
vision agreement to receive the royalties.
According to the February residential real estate report from the West Penn Multi-List, Inc., the Southwestern Pennsylvania market strengthened for those selling their homes.
“It’s a spring for selling in our region. Compared to last year at this time, we now are seeing fewer homes listed for sale, coupled with a significant increase in the number of homes being sold, which is depleting our housing inventory faster than it’s being replen-ished,” said George Hackett , current president of the West Penn Multi-List, Inc. and president of Coldwell Banker Real Estate Services, Pittsburgh. “This is help-ing homes sell more quickly and for a higher average price than they did last year at this time.”
A comparison of February 2012 to February 2013 data for the 13-county region the West Penn Multi-List serves shows new listings decreased 6.96 percent (2,746 homes versus 2,555), and residential homes placed under agreement increased 18.23 percent (2,633 homes versus 3,113). For the same time period, average home sale price increased 6.08 percent ($140,861 to$149,424), and average days on market decreased 10.62 percent (113 versus 101 days).
“People are taking advantage of the continued low interest rates and entering the housing market,” Hack-ett said. “We hope to see more sellers following suit in the coming months. Working with a professional real estate sales associate can really help people price their homes to sell quickly in today’s market.”
These numbers represent the 13-county area serviced by the West Penn Multi-List, Inc., the definitive source for real estate information for its service area –Allegheny, Armstrong, Beaver, Butler, Washington, Westmoreland, Fayette, Greene, Clarion, Lawrence, Mercer, Somerset and Indiana Counties.
According to RealtyPIN (¨Philadelphia Real Estate Outlook for Spring 2013,¨ Feb. 8, 2013), Philadelphia
real estate professionals eagerly awaited spring of 2013. Here are the reasons why:
Sales prices are on the riseAccording to recently-released data, the median sales price for a home in the Philadelphia area during the fourth quarter of 2012 was $137,450. That’s a 16.1 percent increase from the same time period in 2011. Like other metropolitan areas, Philadelphia is starting to see consumer confidence in the housing market return, meaning more prospective buyers are now actively searching to purchase a home. The result? Steadily increasing home prices. The higher demand means sellers can charge more for their homes, essentially creating bidding wars between buyers, and that’s always good news for homeowners and their realtors!
Listing Prices are holding steadyOftentimes, a homeowner’s listing price and the actual sale price of the home can be very different. This is especially true in a market that is flooded with distressed properties due to foreclosure and short sales. Basically what happens is that the distressed properties end up selling for prices well below what the homes are actually worth, and in an effort to compete, “normal” sellers have to drop their prices, too. In the end, the value of every home on the market is affected because no one wants their home viewed as “overpriced” by prospective buyers. In Philadelphia, the average listing price last week was $213,135. That number has stayed relatively the same throughout the Winter, which is when home sales tend to drop off. The fact that we are seeing listing prices hold steady during the real estate market’s slow period means sellers are confident that they can get the price they are asking for when sales pick back up in the Spring – which is, typically, the busiest time of year for homebuyers.
Homes in all price ranges are sellingNo matter how much your home is worth, if it’s located in Philadelphia, someone may be interested in purchasing it! If you take a look at the five most popular
2013 Pennsylvania Housing Market
By housingpredictor.com
neighborhoods for home sales in the area, both Rittenhouse Square and Manayunk make the list. That’s significant when you compare the average listing price of homes in those two communities. Real estate statistics show that the average listing price in Rittenhouse Square was $1,068,422 last week, which is almost four times higher than the average listing price in Manayunk ($273,982). Because both of these neighborhoods are among the most popular with buyers, it proves that a well-maintained home in good condition will sell, regardless of its size and/or price.
More listingsMany homeowners are leery of listing their homes during the winter months because they know there are fewer buyers actively searching the market for a home during that time of year. When spring rolls around, many of those same homeowners decide to list their home, and experts expect even more inventory this year since sellers know that buyer confidence is on the rise.
Here are brief summaries of real estate market conditions in March, 2013, in several Pennsylvania cities, courtesy of Movoto:
- Lancaster’s home resale inventories increased, with a 50 percent increase since March 2013. Distressed properties such as foreclosures and short sales increased as a percentage of the total market in April. The median listing price in Lancaster went down from March to April. There were a total of 0 price increases and 4 price decreases.
- Philadelphia’s home resale inventories stayed the same, with a 0 percent change since March 2013. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in April. The median listing price in Philadelphia went up from March to April. There were a total of 111 price increases and 1056 price decreases.
- West Chester’s home resale inventories increased, with a 8 percent increase since March 2013. Distressed properties such as foreclosures and short sales increased as a percentage of the total market in April. The median listing price in West Chester went down from March to April. There were a total of 16 price increases and 76 price decreases.
With the increasing awareness of
Marcellus Shale and natural gas
activity - often described as no less than
a “boom” - has come an increasing need
for information, and nowhere is this
more apparent than in the real estate
field.
Accordingly, Lawrence D. Brudy, Esq.,
President of Lawrence D. Brudy &
Associates, Inc., has been called on to
explain the complexities of buying,
selling and leasing real estate in what is
becoming the Natural Gas Age.
Mr. Brudy, who is also a licensed
Pennsylvania Real Estate Broker, has
lectured on Marcellus Shale drilling at
Realtor Continuing Education classes for
the Educational Development School of
Real Estate. He explained the use of the
disclosure and addendum used in con-
junction with the Pennsylvania Associa-
tion of Realtors Agreement of Sale, em-
phasizing the importance of using it on
every real estate transaction identifying
the estates in land to be “sold,”
“excepted,” and “reserved.”
Recognizing the need for understanding
in this relatively new field, the firm’s
attorneys and certified public
accountants are available to speak at
organizations, company or realtor
meetings on the development of oil, gas
and mineral interests, the determination
of subsurface ownership, the valuation
of oil and gas interests, buying and sell-
ing land, estate and tax planning
involving oil, gas and coal interests.
TITLE • DUE DILIGENCE • VALUATIONS • LITIGATION
855.935.1400
ENERGY PRACTICE
OIL & GAS / MINERAL VALUATIONS
• CERTIFIED TITLE OPINIONS •SUBSURFACE SALES / PURCHASES
• SEVERENCE DEEDS • LEASE AGREEMENTS •ADDENDUMS • RATIFICATIONS • ASSIGNMENTS
• LEASE AGREEMENTS • ADDENDUMS •TITLE ABSTRACTING AND CURATIVES
• RATIFICATIONS • ASSIGNMENTS •BUSINESS ENTITY PARTNERSHIPS
• LITIGATION • RIGHT OF WAYS •
www.ldbassoc.com
Often in title opinions the Firm’s attorneys find older oil
and gas leases that have expired by primary term, but
have no surrender or release of record. This is particu-
larly evident in the leases from the late 1800’s and early
1900’s. There are several reasons why a release or Sur-
render may never have been recorded with the Recorder
of Deeds in the county where the land is located; per-
haps the Lessee is deceased, or the operating company
went out of business. Whatever the reason, an unre-
leased oil and gas lease represents the looming possibil-
ity of an unknown well holding an older oil and gas
lease by production.
One of the ways to confront this potential problem is the
use of a resource providing a comprehensive and inte-
grated database of land, well mapping and production
information. With the use of a comprehensive well map-
ping tool, such as drillinginfo, our attorneys are able to
locate the site of any recorded well location in relation
to any parcel of land. We are then able to view the infor-
mation on record for a well that may affect a particular
parcel of land, including the Lessor name, well operator,
well American Petroleum Institute number and name,
permits, unitization declarations, depth of the well, and
production figures for oil and gas.
Cross referencing the information available from the
Department of Environmental Protection with the chain
of title, we have been able to enhance the quality of our
title opinions. With this resource, and the depth of in-
formation it provides, we are able to better determine
the current leasehold status of a parcel of land and also
provide a more definitive determination as to the unre-
leased oil and gas leases in a title opinion.
The Oil and Gas Lease Act: Inside the Controversy
On September 7th, Act 66 will officially become
effective; yet questions, controversy, and even out-
rage will remain. Exactly what is Act 66, how does
it affect my oil and gas lease, and why all the con-
troversy, are just a few of the questions being asked
by thousands of landowners.
Act 66, or “The Oil and Gas Lease Act” was in-
tended to create more transparency for landowners
regarding the royalties from oil and gas leases, and
the deductions that were being taken from the royal-
ties. Companies must now affix a check stub, or
financial record, to the royalty checks. The check
stubs will include financial information such as the
total barrels of crude oil or number of one-thousand
cubic feet (Mcf) of gas or volume of natural gas
liquids sold, the price the company received per
barrel, Mcf, or gallon, the net value of total sales
from the property less taxes and deductions, the
royalty owner’s interest, the owner’s share of the
total value of sales, etc.
The source of the controversy, however, comes
from Section 2.1 entitled “Apportionment,” which
reads: “Where an operator has the right to develop
multiple contiguous leases separately, the operator
may develop those leases jointly by horizontal drill-
ing unless expressly prohibited by a lease. In deter-
mining the royalty where multiple contiguous leases
are developed, in the absence of an agreement by
all affected royalty owners, the production shall be
allocated to each lease in such proportion as the
operator reasonably determines to be attributable
to each lease.”
Opponents to the Act raise as arguments that this lan-
guage creates a “forced pooling” statute, that it takes
away a landowner’s ability to renegotiate older leases,
and that the provision was not properly vetted. It is
important to distinguish the difference between
“pooling” and “forced pooling.” Besides the obvious
that forced pooling is done without one’s authoriza-
tion, forced pooling is including an owner’s property
without a lease into a well unit, and extracting oil and
gas that may lie underneath their property, for which
landowners would still receive a royalty. Forced pool-
ing must be approved by the state, and some states re-
quire an overwhelming majority of landowners in fa-
vor of drilling before such forced pooling can be au-
thorized. The reasoning behind forced pooling is that
the will of the vast majority to develop the oil and gas
they own should not be hindered by a small minority
of holdouts. Currently, Pennsylvania allows forced
pooling only for shallow wells, or a depth of about
3,800 feet below the surface. In 2009, an unsuccessful
attempt was made to allow forced pooling pertaining to
wells that penetrate the Marcellus Shale horizon. Gov-
ernor Tom Corbett has said publicly that he would not
sign any legislation that allowed forced pooling.
Pooling is condensing multiple leases into one well
unit. Most current oil and gas leases contain a unitiza-
tion clause, which expressly allows the Lessee to com-
bine the leased lands into much larger units. One of the
largest advantages to pooling is that companies are
able to drill fewer wells, which greatly reduces the en-
vironmental impact of the surface. Prior to the hydrau-
lic fracturing method of drilling, well units were much
smaller because wells were vertical, not horizontal. A
leased, and that the Lessee already has the right to drill
each land independently, “Where an operator has the
right to develop multiple contiguous leases sepa-
rately…” The owners have already entered into an oil
and gas lease, and the Lessee has the right to drill.
Pennsylvania State Senator Gene Yaw, who introduced
the bill said, “There is nothing that forces any land-
owner who doesn’t have a current lease to do so.”
Pooling also has environmental advantages. “All leases
must be held by the same company, and that company
could drill a separate well on each property under its
existing leases,” Yaw said. “The provision is pro-
environment in an attempt to have less wells, but the
same opportunities for those who have elected to
lease.” The controversy occurs because landowners
who missed out on the enormous bonus payments and
higher royalty interests by signing leases before the
Marcellus and Utica gas boom want to renegotiate the
lease.
Act 66 does not pertain to a lease that expressly pro-
hibits unitization or pooling, or establishes a maximum
unit size. Leases that contain such limitations would
need to be renegotiated before that property could be
pooled into a unit. The Act also does not apply to
leases that contain depth restrictions, where only rights
to drill shallow wells were leased. The lack of depth
restrictions is also a source of contention, because it
was not known that future drilling technology would
allow for drilling to such depths. As the leases simply
state “all the oil and gas underlying the parcel…” it is
presumed that what is leased is all quantities of oil/gas
from the surface of the earth to the center of the earth.
Opponents of the Act feel that a lack of a unitization or
pooling clause should allow the landowner to renegoti-
ate the terms of the lease, demanding a higher royalty
amount or bonus payment. Even though Act 66 may
thwart any attempts in renegotiation, the landowners
still stand to see a significant increases in royalty pay-
ments as a much larger volume of gas will be ex-
tracted.
typical well unit was 40 or 80 acres. Today, a well
unit can be well over 640 acres.
That is where the controversy begins. When older
leases were signed, both the landowners and the oil
and gas companies could not anticipate current
drilling technology and capability. Thus, as well
units were smaller, many leases were silent as to
pooling and unitization. Older leases are still rele-
vant today. This is because, generally, oil and gas
leases contain two terms of duration in which the
lease will remain in effect: The “primary term” and
the “secondary term.” The primary term is the
term that most people understand the lease to be:
one year, three years, five-years, etc. The secon-
dary term contains something to the effect of “and
so much longer as oil, gas, or either of them is pro-
duced in paying quantities.” Leases that have ex-
pired primary terms, but continue to produce are
leases that are “held by production.” This means
that an oil and gas lease signed in 1875, with a one
-year primary term, can still be in effect, given that
the well has been producing oil and/or gas. Fur-
thermore, the amount of production may be of little
consequence. A Washington County case recently
decided that even free gas supplied to the land-
owner was enough to satisfy the secondary term.
Another term that can be found in secondary terms
is the Storage Clause. The Storage Clause allows
the Lessee to store oil and gas on the property; as
long as oil and / or gas is stored on the premises,
the lease will remain in effect.
It is primarily the older leases that remain held by
production that are affected by Apportionment
Clause of Act 66. As noted earlier, most modern
leases contain unitization or pooling clauses in the
lease that allows the Lessee to merge lands into
larger well units. One of the most highlighted
points made by proponents of Act 66 is that the
Act only applies to lands that have already been
Oil and Gas Lease Negotiations generally begin with the
landowner being contacted by a “landman” – an agent
representing a gas exploration/development company, and
presenting a lease. There are multiple paragraphs and
clauses embodied within the lease. This article’s focus will
be limited to the forms and types of payments to the
landowner. The Landowner is referred to as the “Lessor”
and is the party who owns the oil, gas and mineral inter-
ests. The exploration/development company is referred to
as the “Lessee,” the party that is leasing the interests and
responsible for the development of the land. Development
includes but is not limited to exploring, drilling, extracting,
conducting seismic tests and installing production equip-
ment such as compressing, gathering, treating, dehydrating
and separating stations.
The standard boiler plate lease agreements typically
contain provisions for Lessor payments all of which are
negotiable.
Paid-Up Lease Bonuses – Negotiated by the landman and
landowner or their Attorney, bonus payments vary from
county to county and depend upon the shale thickness of
the area, well production, and competition for the oil, gas
and mineral interests. Lease bonus payments are a dollar
amount per acre multiplied by the number of years for the
lease. For example, a five-year “paid up” lease at
$100.00 / acre / year for 100 acres would calculate as fol-
lows: $100.00 / acre x five-year term x 100 acres =
$50,000.00 paid-up bonus payment.
Delay Rental Payments – Payments made on an annual
basis calculated on dollar amount / acre x the number of
acres. For example, leasing of 100 acres at $100.00 / acre
for a five-year term. $100.00 x 100 acres x 1 year =
$10,000.00 annual payment. Unlike the Paid-Up Lease
Bonus, if a well is drilled or the lands are unitized and the
property owner begins receiving royalty payments before
the expiration of the lease primary term (i.e. five-years)
no other delay rental payments are required as the royalty
compensation will maintain the lease most often referred
to as being “held by production” (HBP).
Royalty Percentage Payments – These are the monthly
or quarterly payments to the landowner based upon well
production and unitization. Variables such as price /
thousand cubic feet of gas, unit size, well production and
royalty percentage with / without costs impact the pay-
ment. For example, using the following sample numbers
annual royalty payments would be as follows: Royalty
interest 15% without costs, $4.00 / thousand cubic feet of
gas, 100 acres of landowner property, 640-acre unit size,
2.5 million cubic feet of gas produced / day = annual
royalty payment of $85,546.88. Depending upon how the
royalty percentage has been negotiated is determinative
along with the other aforementioned variables of the an-
nual payments.
Paid-Up Lease Bonus, Delay Rental Payments and
Royalties may be treated differently for federal income
tax purposes, and questions should be referred to a tax
professional for answers.
Oil & Gas Interests & Lease Negotiations
The Pennsylvanian Department of Agriculture
reports that currently, over 9.3 million acres statewide are
enrolled in the Clean and Green Program [Pennsylvania
Farmland and Forest Land Assessment Act of 1974: Act
319]. The Clean and Green Program is a land conservation
program that gives preferential assessment values to
landowners who qualify for the program. In short, the
program is a tool that serves as an incentive to landowners
to preserve agricultural and forest land. In order to qualify,
generally a landowner must own 10 acres of land that are
used for either Agricultural Use, Agricultural Reserve, or
Forest Reserve. If a landowner uses their land for
agricultural use, but owns less than ten acres, he/she may
still qualify for the program if the landowner can show that
the land can produce at lease $2,000 annually in farm in-
come.
In 2010, The Clean and Green Act was amended to
allow for Clean and Green landowners to engage in oil and
gas exploration while maintaining their lands eligible for the
program and being subjected to limited roll-back tax
penalties. Typically, when a portion of Clean and Green
properties cease to be utilized for purposes other than the
program qualifying requirements, a split-off occurs and
the portion of the split-off ceases to receive the preferen-
tial assessment value and is assessed by its fair market
value, and that portion is subject to a roll-back tax. The roll
-back tax is the difference between the taxes paid based on
the Clean and Green assessment and the taxes that would
have been paid or payable had that land not been valued,
assessed and taxed under the program.
The Amended version of the Clean and Green Act
of 1974 provides that Clean and Green land may be used for
the exploration and removal of gas and oil, including the
extraction of coal bed methane. The portion of the lands
that are subject to roll-back taxes are those developed for
the exploration and removal of gas and oil, including the
development of appurtenant facilities, such as new roads,
bridges, pipelines, and other buildings or structures, and of
course, the well site itself. The restored well site and land
that are no longer capable of being immediately used for
the Clean and Green qualifying purposes will be subject to
the roll-back tax. The measurement of the restored well
site and land is taken from the well site restoration report
approved by the PA Department of Environmental
Protection.
The landowner is responsible for the roll-back tax
due upon the filing of the approved well site restoration
report with the county assessor. However, the landowner
is not responsible for the payment of the roll-back tax if the
oil and gas activities are conducted by other parties who
hold the oil and gas rights, as long as the transfer of the
rights occurred before the land was enrolled in the Clean
and Green program and before the Amendment took effect
in December, 2010. It is important to mention that oil and
gas exploration and drilling companies that lease Clean and
Green properties have no obligation in paying the roll-back
taxes unless specifically designated in the oil and gas lease.
Jonathan D. Hall, Esq. is a licensed attorney in Penn-
sylvania, where he was admitted in 2011 to the Pennsyl-
vania Bar Association. He earned his Bachelor’s degree
from Edinboro University of Pennsylvania with a double
concentration in Comprehensive Business Management
and Financial Services. He earned his Juris Doctor from
Duquesne University School of Law in Pittsburgh, where
he was awarded the CALI Award for Academic Excel-
lence in PA Civil Procedure. He is a member of the En-
ergy Practice Group, where his focus is on oil and gas,
coal, and subsurface evaluation. He is an active member
of the American Association of Professional Landmen
(AAPL).
References: PENNSYLVANIA FARMLAND AND FOREST LAND ASSESSMENT ACT OF 1974: ACT 319; PENNSYLVANIA FARMLAND AND FOREST LAND ASSESSMENT ACT - RESPONSIBILITIES OF COUNTY ASSESSORS, SPLIT-OFF, SEPARATION OR TRANSFER AND ROLL-BACK TAXES AND SPECIAL CIRCUMSTANCES; Act of Oct. 27, 2010, P.L. 866, No. 88 Session of 2010 No. 2010-88; PENNSYLVANIA DEPARTMENT OF ENERGY
about the AUTHOR
How Oil and Gas Production Affects
“Clean and Green” Properties
According to the Department of Agriculture,
Pennsylvania is made up of more than 7.8 million acres
of farmland. For many farmers who
experience financial setbacks or
devastating natural disasters, there are
appealing alternatives to commercial
credit lenders – Farm Loan Programs.
In 2010, the Farm Service Agency
(“FSA”) administered over $131.9 mil-
lion in loans for Pennsylvania farmers.
Farm Ownership Loans, designed to assist farm
purchasers, and sometimes Farm Operations Loans, are
secured by an interest in the land itself. For most
landowners this consideration has never registered as an
impediment to financing. Enter the Natural Gas Age.
Pennsylvania farmers and ranchers are warming up to the
idea of natural gas extraction, which has been, for many,
a real boost for putting money back into the farm for long
overdue improvements.
Farmers, with existing FSA loans, should take a
close look at their security instrument before signing any
oil and gas lease. The FSA security instruments contain
language that requires borrowers to obtain prior consent
from the Agency before entering into any transactions
that may affect the real estate security. (7 CFR 765.351).
In fact, the FSA regulates that for the “sale” of oil, gas,
coal or other minerals, the borrower must receive written
consent prior to engaging in such transactions (7. CFR
765.351(b)). Arguably, this includes the leasing of oil
and gas interests to a third party. What’s more, an even
closer inspection of the loan document (executed on or
after December 23, 1985) could reveal that the FSA
actually has a security interest in the oil, gas, coal or
other minerals if their valuation was included in the
appraisal. For loans executed before December 23, 1985
the FSA has a per se security interest in the oil and gas
underlying the farm.
With this in mind, a potential impediment exists for
the farmer who is in negotiations with a gas company.
There are some alternatives available, He can negotiate
with the gas company for a payoff of the loan so that both
parties can proceed free and clear of the looming
“acceleration” clause in the loan document. The
borrower/farmer can submit to the
local FSA office a FSA-2060
application requesting a partial release
of the security interest (i.e. oil and
gas) and/or consent to enter into the
lease. The former alternative requires
a degree of finesse at the bargaining
table so as to ensure a fair but
profitable lease. The latter alternative
has some long standing implications. First, the
application requires you to calculate and disclose the
“anticipated proceeds” of the transaction. Next, it
requires applicant to identify what the proceeds will be
used for.
The first foreseeable problem is that calculating
projected earnings from royalty streams is a complex
task. Guesswork is not recommended nor will it serve
the applicant in the long run. Another problem an
applicant may have is trying to honestly disclose what the
proceeds will be used for. Obviously, perpetuating the
success of farm operations is number one on the list.
However, does the applicant have to disclose the
arguably superfluous purchases – grandson’s new truck,
the trip to Florida, or the new kitchen counter? What
level of detail is required? These are all important
questions for the applicant/borrow/potential Lessor.
What’s even more compelling is the notation on the very
bottom of the application which discretely discloses that
the information you put in the application “may be fur-
nished” to almost every federal, state or local agency you
can think of, including the Internal Revenue Service and
private individuals/entities. It does include the proviso
that information requested is “voluntary.” However,
failure to disclose could result in a rejection or delay.
The complexities of leasing encumbered farmland do
not outweigh the benefits. The most important step you
can take in protecting your assets and ensuring you are in
compliance with your pre-existing contractual
arrangements is to consult with professionals and get
educated.
Pennsylvania Supreme Court Rules in Butler v. Charles Powers Estate to Affirm Dunham Rule
On April 24, 2013, the Pennsylvania Supreme
Court issued an Opinion wherein it reversed
the Superior Court in the case of Butler v.
Powers Estate.
At issue was a deed dated back to 1881 which
conveyed 244 acres situated in Susquehanna
County. The deed reserved one-half of the oil
and mineral rights underlying the property to
the heirs of Charles Powers. The 244 acres are
currently owned by John and Josephine Butler,
who in 2010, filed an action to quiet title
claiming that they owned the oil and gas under
the property. The trial court, relying on the
“Dunham Rule,” agreed with the Butlers. The
Dunham Rule came into being in 1882 when
the Pennsylvania Supreme Court held that a
reservation of “minerals” without the explicit
mention of oil and gas created a rebuttable
presumption that the grantor did not intend to
convey oil and gas.
The heirs of the Powers Estate appealed to the
Supreme Court arguing that the Dunham Rule
was not applicable because Marcellus Shale
gas is an unconventional gas unlike other natu-
ral gas which is a conventional gas. The
appellants also argued that a previous case held
that if gas was present in coal, it belonged to
the owner of the coal. By the same logic, gas
found in Marcellus Shale should belong to the
owner of the shale, accordingly to appellants.
The Supreme Court agreed and reversed the
trial court.
However, the Supreme Court found that
neither the appellees nor the Superior Court
provided any justification for limiting or
overruling the Dunham Rule, and in the con-
text of a private deed conveyance the term
“minerals” does not include oil and gas. The
Supreme Court further held that the term
“natural gas” was not contained anywhere in the
plain language of the deed reservation.
Therefore, the burden was on appellees under
the Dunham Rule to present clear and
convincing evidence that it was the intent of the
parties when executing the deed in 1881 to also
include the natural gas. The Supreme Court
reiterated that the rule in Pennsylvania is that
natural gas and oil simply are not minerals
because they are not of metallic nature, as the
common person would understand minerals.
The Supreme Court also distinguished the Butler
case from the case which stated that natural gas
found in coal belongs to the owner of the coal,
U.S. Steel Corp. v. Hoge, 468 A.2d 1380 (Pa.
1983), stating, “We therefore find no merit in
any contention that because Marcellus Shale
natural gas is contained within shale rock,
regardless of whether shale rock is or is not a
mineral, such consequentially renders the natural
gas therein a mineral.
Accordingly, the Pennsylvania Supreme Court
reaffirmed the rule that natural gas is not
included in a deed reservation or grant without
either: (1) natural gas being explicitly contem-
plated within the reservation or grant; or (2)
clear and convincing parol evidence that the
parties intended for natural gas to be included
within the deed reservation or grant, despite only
a general reservation or grant of minerals.
Because neither existed, the court held that the
trial court correctly concluded that Marcellus
shale gas was not included in the deed
reservation.
A Deed is a written instrument which conveys
(transfers) ownership in all or a portion of an interest in
real property. The conveyed property can be described
by metes and bounds, landmarks, lot or parcel numbers,
or residual acreage less outsales. The person or entity
transferring the property is the “grantor” and the person
or entity receiving the property is the “grantee”. Deeds
are executed, witnessed, and notarized and recorded in
the deed records of the county where the property is
located. Pennsylvania is a “race-notice” jurisdiction
meaning if there are multiple purchasers who are not
aware of the others’ purchase, the first to record their
interest will have a valid purchase. In Pennsylvania, the
grantee does not need to sign a deed for the instrument
to be recorded. The most common types of deeds used
in real estate transactions are identified as General, Spe-
cial, Quit Claim, and Fiduciary.
• General Warranty Deeds convey the grantor’s
interest and warrants (guarantees) the interest
conveyed against any acts, omissions, or defects by
the grantor or any predecessor in the chain of title as
to the quality of title. A general warranty deed
provides a grantee with the most protection against
title defects and/or claims. Grantors can provide a
“general warranty” regardless of the warranty
previously conveyed.
• Special Warranty Deeds convey the grantor’s
interest and “warrants” (guarantees) the interest
conveyed against any acts, omissions, or defects by
the grantor for the period of time grantor has owned
the property but NOT for predecessors in the chain
of title. A special warranty can be conveyed
regardless of the warranty previously conveyed.
• Quit Claim Deeds carry or provide no warranty as
to the quality of the chain of title. Quit claim deeds
are often used to convey or relinquish whatever
interest the grantor possessed in the property. A quit
claim deed can be used to add or remove a spouse's
name to title as a result of a marriage or divorce.
• Fiduciary Deeds provide when an estate or trust is
conveying property. When a person dies, whether
testate (with a will) or intestate (without a will), and
an estate is opened to provide the appointment of an
executor or executrix, that person takes the
fiduciary oath to gather and protect the Estate’s as-
sets. This fiduciary can also be the trustee of a
“living,” “Inter vivos,” “revocable” or irrevocable
trust. Living, inter vivos, or revocable trusts become
irrevocable upon the death of the settler. A fiduciary
deed provides to the grantee that the property has
not been encumbered by the Estate. A grantee of a
Fiduciary Deed can convey any type of future
warranty deed.
The task of a Title Examiner is to verify the
chain of ownership of a subject tract. To do
this, we use a variety of documents - tax cards
and tax maps, deeds, estates, historical maps,
history websites and mapping. All have a
grantor and grantee, the date, and usually
some type of description of the property. The
description can be as little as being “Parcel A
of Subdivision B” with no acreage, or a full
metes and bounds description giving north
and south direction in degrees, minutes and
seconds, and measurements in feet, perches or
chains. When the metes and bounds are given,
a plot of the deed description can be created.
With this primary “map” of the land being
conveyed, we can follow the land convey-
ances as the acreage changes by way of acre-
age being added or acreage sold off. In this
manner we can verify the current acreage is
correct, that it concurs with the tax map and
location, and compare the acreage to subterra-
nean interest like coal, oil and gas.
As an example of what can be determined
from plotting the deed description, take a look
at the following:
Exhibit #1: First, the legal description of the
subject property is entered by using the direc-
tions, degrees, and distances. If there is more
than one parcel all must be plotted individu-
ally. Where there are multiple parcels being
conveyed on one deed, several deed plots are
needed to find the correct parcel. In other in-
stances, the subject parcel is a combination of
parcels made up of different deeds conveyed
in different years. In this demonstration, our
subject parcel starts with three (3) tracts from
the same deed. Subsequently, there is a sale
of 18 acres, show in green.
Exhibit #2: Once the individual tracts are
plotted, they are combined to form the total
parcel. This is accomplished by reading the
legal description. Usually the second and
third tracts begin or end at a point on the first
tract or a common landmark is mentioned
which enables us to position the next tract. The
metes and bounds are also used to position the
tracts into the subject tract. Just as the individ-
ual tracts are combined to form the entire par-
cel, the sold tract can be deducted from the par-
cel to reduce the parcel size.
Exhibit #3: This title abstract also included a
search to determine coal ownership. The coal
vein was “excepted and reserved” through two
(2) coal deeds. Both of the coal deeds were
then plotted, again, by using the legal descrip-
tion provided on the deed. In this instance, the
first coal deed was twenty-one calls and the
second coal deed was twenty-seven calls.
When the deed plotter is entering that many
calls, that person has no idea how the map will
look or if it will “close.” Consider the difficulty
a surveyor had attempting to survey a tract of
this size (over one hundred acres) in the late
1800’s or early 1900’s. Notice that on Coal
Deed One the boundary lines do not “close.”
Also, since one direction was not readable on
Coal Deed Two, the deed plotter allowed the
system to estimate the direction and distance in
order to close the boundaries. The legal de-
scriptions are not always exact, but are surpris-
ingly accurate for the times.
Exhibit #4: As with the subject parcel plot, the
coal deeds are then combined and the subject
property plot is overlaid;
Exhibit #5: This deed plot confirms that all of
the coal underlying the subject property has
been sold, i.e. that a part of the subject property
is not outside of the coal deed area. It also con-
firms the size and shape of the remainder of the
original parcel. This information is then com-
pared to the current tax map, tax card and cur-
rent deed description to verify that the convey-
ance through the chain of title is correct.
By: Linda Eaves
Exhibit #1
Exhibit #2
Exhibit #3
Exhibit #4
Exhibit #5
LAWRENCE D. BRUDY & ASSOCIATES, INC. was a Bronze Sponsor of the NAPE East Expo Charity
Luncheon which Benefits the Wounded Warriors Project
Note: Former Pittsburgh Steelers running back and four-time
Super Bowl Champion, Rocky Bleier, was the keynote speaker at
the inaugural NAPE East Charities Industry Luncheon. Since 2007,
NAPE Charities has donated more than $2.5 million dollars to
benefit veterans.
1. According to trulia.com, Florida is known to have the most bathrooms per
bedroom, averaging 1.28.
2. Throughout history a red door has symbolized many things - in the early days
of America, it meant the home was a safe place for travelers to stop for the
night and in feng shui a red door invites positive energy into a home.
3. Pittsburg, Pittsburgh or Pittsbourgh? The town was named in 1758 by
Scotsman John Forbes, who was honoring William Pitt the Elder. Forbes sent
a letter to Pitt the same year to let him know that the city had been named for
him, and in the letter he spelled it "Pittsbourgh." Most experts agree that as a
Scotsman, Forbes probably pronounced it the same way we pronounce Edin-
burgh. It wasn't until 1769 that the "Pittsburgh" spelling first turned up on a
surveying document, but the real controversy came with the 1891 United
States Board on Geographic Names ruling that all towns with the spelling
"burgh" needed to drop the "h." Many people were outraged at the decision
and refused to follow the rules, even the Pittsburgh Gazette, the University of
Pittsburgh and the Pittsburgh Stock Exchange. In 1911, the Geographic Board
gave in and officially restored the "h" that was never really missing for most
people anyway.
LAWRENCE D. BRUDY & ASSOCIATES, INC.ATTORNEYS AT LAW
ENERGY • REAL ESTATE • TITLE • LITIGATION
(855) 935-1400
Your ENERGY Firm in the Natural Gas Age
What can these six words mean for you?
CONFIDENCE • EXPERIENCE • RELIABILITY
ACCURACY • KNOWLEDGE • INTEGRITY
For the answer, and more, visit us at:
www.ldbassoc.com/6words