This issue affects whether natural gas production and exploration companies now holding leases have the right to remove all of the gas that they intend to remove or are now producing, where the title was based upon such a general conveyance or reservation. Accordingly, the decision introduces significant uncertainty into some titles to natural gas.

‘Butler v. Charles Powers Estate‘

According to the court’s opinion, in 1881, Charles Powers sold off 244 acres of land in Susquehanna County, reserving to himself and his heirs and assigned “one half the minerals and petroleum oils.” In 2009, hoping to lease or sell their stake in the natural gas under their property, the current surface owners filed a complaint to quiet title. Responding to that complaint, Powers’ heirs sought a declaratory judgment, asserting that they owned one-half of the gas because Powers’ 1881 deed reservation included the Marcellus Shale formation and its gas, because it included “minerals and petroleum oils.”