Cavallo Mineral Partners v. EQT Production

CourtSuperior Court of Pennsylvania
DecidedMarch 13, 2025
Docket1515 WDA 2023
StatusUnpublished

This text of Cavallo Mineral Partners v. EQT Production (Cavallo Mineral Partners v. EQT Production) 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, (Pa. Ct. App. 2025).

Opinion

J-A22036-24

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

CAVALLO MINERAL PARTNERS, LLC : IN THE SUPERIOR COURT OF : PENNSYLVANIA Appellant : : : v. : : : EQT PRODUCTION COMPANY, : No. 1515 WDA 2023 KENNETH W. MCCHESNEY AND : KATHY MCCARL, AS CO-TRUSTEES : 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 November 22, 2023 In the Court of Common Pleas of Greene County Civil Division at No(s): CP-30-AD-0000060-2018

CAVALLO MINERAL PARTNERS, LLC : IN THE SUPERIOR COURT OF : PENNSYLVANIA Appellant : : : v. : : : EQT PRODUCTION COMPANY, : No. 1516 WDA 2023 KENNETH W. MCCHESNEY AND : KATHY MCCARL, AS CO-TRUSTEES : 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 : J-A22036-24

Appeal from the Judgment Entered December 18, 2023 In the Court of Common Pleas of Greene County Civil Division at No(s): CP-30-AD-0000060-2018

CAVALLO MINERAL PARTNERS, LLC : IN THE SUPERIOR COURT OF : PENNSYLVANIA Appellant : : : v. : : : EQT PRODUCTION COMPANY, GARY : No. 1517 WDA 2023 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 21, 2022 In the Court of Common Pleas of Greene County Civil Division at No(s): AD-60-2018

BEFORE: MURRAY, J., McLAUGHLIN, J., and KING, J.

MEMORANDUM BY KING, J.: FILED: March 13, 2025

Appellant, Cavallo Mineral Partners, appeals at docket No. 1516 WDA

2023 from the judgment entered on December 18, 2023,1 in the Green County

Court of Common Pleas, in favor of Appellees, EQT Production Company

(“EQT”), the McChesney Family Revocable Living Trust Dated February 12,

2013 (“the McChesney Trust”), Vantage Energy Appalachia, LLC (“VEA”) and

____________________________________________

1 Although Appellant purported to appeal from a judgment entered on December 19, 2023, the docket reflects that judgment was entered on December 18, 2023. We have changed the caption accordingly.

-2- J-A22036-24

Vantage Energy Appalachia II, LLC (“VEA II”), T&F Exploration, LP (“T&F”),

and Three Rivers Royalty, LLC (“Three Rivers”), and against Appellant. We

affirm.2

The relevant facts and procedural history of this case are as follows.

This case concerns the ownership of oil and gas rights on a nearly 200-acre

property in Washington Township, Pennsylvania (“the Property”). On April 16,

1990, Des Moine Field (“Mr. Field”) executed a deed (“1990 Deed”) in favor of

Gary and Judith Anne McChesney (“the McChesneys”). The 1990 Deed

excepted and reserved the coal and mineral rights in favor of the Grantor, Mr.

Field, and included the following exception and reservation of the oil and gas

rights:

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

(Amended Complaint, filed 4/18/18, at Exhibit 2, 1990 Deed, at 4). Mr. Field

died testate on February 22, 1993. His will was admitted to probate, and he

had six beneficiaries (“the Field Heirs”).

On February 28, 2003, the McChesneys leased the oil and gas interest

acquired under the 1990 Deed to T&F and assigned a royalty interest to Three

Rivers. T&F drilled and operated a surface oil and gas well on the Property.

2 Appellant also purports to appeal at docket Nos. 1515 WDA 2023 and 1517

WDA 2023 from earlier orders entered in this case. As discussed in greater detail later in this memorandum, we quash those appeals.

-3- J-A22036-24

T&F later partially assigned interest to other parties including Rice Drilling B

(“Rice”).3 In 2013, the McChesneys executed two oil and gas leases in favor

of EQT. EQT later placed the Property into production units, drilled horizontal

wells beneath the Property, and has produced a substantial volume of oil and

gas.

On February 5, 2018, Appellant filed a complaint against all Appellees.

Appellant filed an amended complaint against all Appellees on April 18, 2018,

averring that Appellant owned the oil and gas interest in the Property.

Appellant asserted claims for quiet title and declaratory judgment against

EQT, Rice, the McChesney Trust, T&F, and Three Rivers, and claims of

trespass, conversion, and ejectment against EQT and Rice. The claims of

trespass and conversion sought punitive as well as compensatory damages.

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

the oil and gas interest underlying the Property. Appellant claimed that after

Mr. Field’s death, the interest passed equally in 1/6 shares to the Field Heirs.

Appellant’s claims to the oil and gas on the Property are based on a series of

non-warranty mineral deeds acquired from the Field Heirs beginning in 2017.

Appellees each filed preliminary objections to Appellant’s amended

complaint. On July 7, 2020, the trial court entered an order overruling in part

and sustaining in part the preliminary objections. Specifically, the court

3 VEA and VEA II merged with and into Rice. For purposes of disposition, we refer to VEA and VEA II collectively as Rice.

-4- J-A22036-24

sustained Appellees’ preliminary objections which had moved to strike

Appellant’s claims for injunctive relief, for punitive damages, and for a jury

trial. The court overruled all remaining preliminary objections.

On October 4, 2021, EQT and Rice filed a joint motion for judgment on

the pleadings and moved to dismiss the amended complaint. In their motion,

EQT and Rice alleged that Appellant’s declaratory judgment action was barred

by the statute of limitations, that Appellant’s quiet title and declaratory

judgment actions were barred because equitable reformation of a deed is

unavailable as a remedy, and Appellant’s actions for trespass, conversion, and

ejectment should be dismissed as derivative of Appellant’s declaratory

judgment and quiet title actions. (Motion for Judgment on the Pleadings, filed

10/4/21, at 7-9). No other defendant joined the motion or filed a separate

motion for judgment on the pleadings.

On January 6, 2022, Appellant filed a motion for leave to file a second

amended complaint to join the Field Heirs, who Appellant asserted held an

interest in the oil and gas underlying the Property, and to include additional

averments related to EQT’s allegedly inconsistent deed interpretation.

On June 22, 2022, the court entered its order on the motion for

judgment on the pleadings, stating:

1. The [c]ourt finds as a matter of law, the pleadings closed [in] September 2020.

2. [EQT and Rice’s] Motion for Judgment on the Pleadings that [Appellant’s] declaratory judgment is barred by the statute of limitations is granted. [Appellant’s] Declaratory

-5- J-A22036-24

Judgment action is dismissed with prejudice.

3. [EQT and Rice’s] Motion for Judgment on the Pleadings that [Appellant’s] Quiet Title Action Be Dismissed is granted. [Appellant’s] quiet title action is dismissed without prejudice.

4.

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