Cavallo Mineral Partners v. EQT Production Company

2023 Pa. Super. 115, 298 A.3d 413
CourtSuperior Court of Pennsylvania
DecidedJune 26, 2023
Docket834 WDA 2022
StatusPublished
Cited by5 cases

This text of 2023 Pa. Super. 115 (Cavallo Mineral Partners v. EQT Production Company) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cavallo Mineral Partners v. EQT Production Company, 2023 Pa. Super. 115, 298 A.3d 413 (Pa. Ct. App. 2023).

Opinion

J-A15012-23

2023 PA Super 115

CAVALLO MINERAL PARTNERS, LLC : IN THE SUPERIOR COURT OF : PENNSYLVANIA Appellant : : : v. : : : EQT PRODUCTION COMPANY, GARY : No. 834 WDA 2022 W. MCCHESNEY, AS TRUSTEE OF : THE MCCHESNEY FAMILY : REVOCABLE LIVING TRUST DATED : FEBRUARY 12, 2013, VANTAGE : ENERGY APPALACHIA, LLC, : VANTAGE ENERGY APPALACHIA II, : LLC, T & F EXPLORATION, LP AND : THREE RIVERS ROYALTY, LLC. :

Appeal from the Order Entered June 22, 2022 In the Court of Common Pleas of Greene County Civil Division at A.D. No. 60, 2018

BEFORE: MURRAY, J., McLAUGHLIN, J., and COLINS, J.*

OPINION BY MURRAY, J.: FILED: JUNE 26, 2023

Cavallo Mineral Partners, LLC (Appellant), appeals and petitions for

permission to appeal, the trial court’s order granting judgment on the

pleadings (JOP) in favor EQT Production Company (EQT) and Rice Drilling B

(Rice Drilling).1 The trial court entered JOP against Appellant, with prejudice,

____________________________________________

* Retired Senior Judge assigned to the Superior Court.

1 As stated infra, Vantage Energy Appalachia, LLC (VEA), and Vantage Energy

Appalachia II, LLC (VEAII) merged with and into Rice Drilling. The remaining defendants did not join the JOP motion filed by EQT and Rice Drilling. J-A15012-23

as to Appellant’s declaratory judgment action against EQT and Rice Drilling.

The trial court entered JOP against Appellant, without prejudice, as to

Appellant’s actions against EQT and Rice Drilling for ejectment and mense

profits, conversion, trespass and to quiet title. The trial court further denied,

without prejudice, Appellant’s motion for leave to file an amended complaint.

We quash the appeal as interlocutory and deny Appellant permission to

appeal.

On February 5, 2018, Appellant filed a complaint against EQT, Gary W.

McChesney (McChesney), as Trustee of the McChesney Family Revocable

Living Trust dated February 12, 2013 (the Trust), VEA, VEAII, T & F

Exploration, LP (T&F), and Three Rivers Royalty, LLC (Three Rivers)

(collectively, Defendants). Appellant filed an amended complaint on April 18,

2018. The trial court explained:

The allegations in the complaint arise from a deed conveyance which took place on April 16, 1990 between Des Moine Field [(Field)], widower, Grantor2 and [] McChesney and Judith Anne McChesney [(Ms. McChesney)], his wife, Grantees [(collectively, the McChesneys)]. This conveyance was [related] to approximately 200 acres in Washington Township, Greene County [(the Subject Property)]….

Trial Court Order, 6/22/22, at 2-3 (footnote added).

2 Field, as Grantor, executed the 1990 deed conveying certain interests to the

McChesneys, as Grantees.

-2- J-A15012-23

In its Amended Complaint,3 Appellant detailed the chain-of-title

supporting its claim to oil and gas interests underlying the Subject Property.

Appellant averred an April 15, 1977, deed (the 1977 Deed) conveyed the

Subject Property to Field and his wife, Catherine V. Field (Ms. Field)

(collectively, the Fields). Amended Complaint, 4/18/18, ¶ 12. The 1977 Deed

conveyed oil and gas interests underlying the Subject Property to the Fields.

Id. Ms. Field died on May 26, 1981, after which her interest in the Subject

Property vested in Field. Id. ¶ 14.

On April 16, 1990, Field conveyed by deed (the 1990 Deed) certain

interests in the Subject Property to the McChesneys. Id. ¶ 15. The 1990

Deed included the following clauses:

EXCEPTING and reserving, all the Pittsburgh or River Vein of Coal, together with the necessary mining rights, in and underlying the aforesaid tract of land, as heretofore conveyed by Thomas J. Huffman. It is further understood and agreed that the above tract … is sold subject to the terms of the oil and gas leases now on the same, and is subject to all the conditions in said leases.

AND the Grantor, for himself, his heirs and assigns, EXCEPTS AND RESERVES all coal and other minerals within and underlying the above-described tract of land … not heretofore excepted and reserved, or otherwise transferred by instruments of record, together with the exclusive right to DEEP MINE and otherwise to develop and work and process for market the same, and other ____________________________________________

3 When a trial court sustains judgment on the pleadings, our standard of review is to determine whether, based on the facts the Appellant pled, “the law makes recovery impossible.” Rice v. Diocese of Altoona- Johnstown, 255 A.3d 237, 244 (Pa. 2021) (citation omitted). We regard as true all well-pleaded allegations in Appellant’s amended complaint, as the non- moving party, and consider only the factual allegations in the pleadings of EQT and Rice Drilling which Appellant has admitted. See id.

-3- J-A15012-23

coal now owned or leased or hereinafter acquired by Grantor, his heirs or assigns….

The rights, easements, licenses, waivers and privileges herein excepted and reserved are in enlargement of and not in restriction of the rights incidental to the ownership of coal and other minerals and the same shall not terminate by reason of the completion of mining in and on the within described coal and mineral property.

Grantor shall give written notice to Grantees before conducting mining operations upon the Property, which notice shall be delivered to Grantees, at least six (6) months prior to commencement of such mining operations.

ALSO EXCEPTING AND RESERVING, for the benefit of Grantees, his heirs and assigns, all oil and gas not previously accepted, reserved or conveyed, together with the right to mine and operate for the same.

Amended Complaint, Exhibit 2 (1990 Deed), at 2-4 (emphasis added).

Field died testate on February 22, 1993. Id. ¶ 18. His will was admitted

to probate in Allegheny County. Probate Volume 994, page 124. Field’s six

beneficiaries (the Field Heirs) were Oliver Field; Roy Field; Virginia Johnson;

Netty Lumly; Nola Craig; and Donald and Diane Cecchett, or their respective

survivors. See id.

Appellant averred that at the time of Field’s death, Field owned all the

oil and gas underlying the Subject Property. Amended Complaint, ¶ 23.

Therefore, Appellant claims all oil and gas interests in the Subject Property

passed equally in 1/6 shares to the Field Heirs. Id. Appellant averred it

acquired its oil and gas interests in the Subject Property through the Field

Heirs. Id. ¶ 24.

-4- J-A15012-23

The Amended Complaint describes oil and gas activities on the Subject

Property, all of which were recorded in Greene County. For example:

On February 28, 2003, the McChesneys executed an oil and gas lease with T&F (the 2003 Lease). The 2003 Lease was recorded in Greene County.

On August 29, 2007, the McChesneys executed an “Extension of Lease with T&F. T&F drilled and operated a shallow oil and gas well (McChesney No. 1 Well) on the Subject Property’s surface. The extension was recorded in Greene County.

On February 20, 2009, T&F partially assigned its interests in the 2003 Lease … , which was recorded in Greene County.

Also on February 20, 2009, the assignee to T&F’s interests assigned all of its interest in the 2003 Lease (and other leases) to Range Resources Appalachia, which also was recorded in Greene County.

On September 28, 2012, Range Resources-Appalachia assigned its interest in the 2013 Lease (and other leases) to Vantage for five years and as long as operations are conducted on the properties.

On October 26, 2012, T&F assigned ownership of the McChesney No. 1 Well to the McChesneys, as it no longer was producing.

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Bluebook (online)
2023 Pa. Super. 115, 298 A.3d 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cavallo-mineral-partners-v-eqt-production-company-pasuperct-2023.