In a decision attorneys said has wide-reaching applicability for oil and gas companies in Pennsylvania, the state Supreme Court has ruled that even oil and gas wells that are operated sporadically and don’t consistently turn a profit can be considered to be producing “in paying quantities” so long as the operator has maintained the well in good faith.
The court ruled 5-1 in the result to uphold the lower courts’ finding that an oil and gas lease executed on land in 1928 did not necessarily terminate in 1959 just because it suffered a loss that year.
