Com. of PA, PA Game Comm. v. Int'l. Dev. Corp. & Atlantic Hydrocarbon (Bd. of Property)

CourtCommonwealth Court of Pennsylvania
DecidedMarch 4, 2022
Docket497 C.D. 2021
StatusUnpublished

This text of Com. of PA, PA Game Comm. v. Int'l. Dev. Corp. & Atlantic Hydrocarbon (Bd. of Property) (Com. of PA, PA Game Comm. v. Int'l. Dev. Corp. & Atlantic Hydrocarbon (Bd. of Property)) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Com. of PA, PA Game Comm. v. Int'l. Dev. Corp. & Atlantic Hydrocarbon (Bd. of Property), (Pa. Ct. App. 2022).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Commonwealth of Pennsylvania, : Pennsylvania Game Commission, : Petitioner : : v. : No. 497 C.D. 2021 : Submitted: February 7, 2022 International Development : Corporation and Atlantic : Hydrocarbon (Board of : Property), : Respondents :

BEFORE: HONORABLE ANNE E. COVEY, Judge HONORABLE ELLEN CEISLER, Judge HONORABLE STACY WALLACE, Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE CEISLER FILED: March 4, 2022

Petitioner Commonwealth of Pennsylvania (Commonwealth), Pennsylvania Game Commission (Commission) petitions for review of the Board of Property’s (Board) final adjudication and order (Final Adjudication), dated April 15, 2021. Through this Final Adjudication, the Board determined that Respondent International Development Corporation (IDC), rather than the Commonwealth, owns a Bradford County property’s “mineral rights,” due to language in a century- old deed for that property between a previous owner and the Commonwealth. After thorough consideration, we affirm.

I. Background The particulars of the acts that ultimately gave rise to the matter currently before us are neither recent, nor disputed by the parties to this matter. The affected property consists of 2,094 acres of wild, or “unseated,” land in Bradford County, which were purchased by Thomas E. Proctor and Jonathan A. Hill from the Schrader Mining & Manufacturing Company in 1893 (Property).1 Final Adjudication, F.F.

1 Both the Commission and IDC agree with the Board that the Property was “unseated” land at all times relevant to this matter’s disposition. See Final Adjudication, Findings of Fact (F.F.) ¶9; Commission’s Br. at 16; IDC’s Br. at 5, 15. As explained by our Supreme Court in Herder Spring Hunting Club v. Keller: Prior to 1947, Pennsylvania’s land was categorized as either seated or unseated land.[] Seated land was property that had been developed with residential structures, had personal property upon it that could be “levied upon for the tax due,” or was producing regular profit through cultivation, lumbering, or mining. Robert Grey Bushong, Pennsylvania Land Law, Vol. 1, § 469(II) at 500-501 (1938). Unseated land is best understood as “wild” land but included any land that did not meet the requirements of being seated. Id. § 469(IV) at 501. The determination of whether land was seated or unseated land was entirely based upon the “eye of the assessor,” who would traverse the county determining whether land was being developed and then “return” the land to the county commissioners to assess the property for taxation. Stoetzel v. Jackson [], 105 Pa. 562, 567 (Pa. 1884). Between the Revolution and the early 1800s, large tracts of wilderness in the interior of Pennsylvania were owned by speculators who lived on the coast in hopes that the land would increase in value as the population increased. Bushong, § 470 at 502. Many of these landowners neither developed nor paid the taxes on the land. Id. Notably, the owners of unseated lands were not always known by the county authorities such that personal notice could not be given. Long v. Phillips, . . . 88 A. 437, 438 ([Pa.] 1913) (observing that for unseated land “it frequently occurs that the owner’s deed is not recorded, his name is not registered, he is not known, no one is in actual possession, and there is no apparent owner or reputed owner in the neighborhood of the property[]”). The Commonwealth developed different sets of land tax laws to address the difficulties [regarding] collecting tax on unseated land. Bushong, § 472 at 503. If the assessor determined that the land was seated, the land was taxed to the land owner, who was personally responsible for the payment of the taxes which could be collected against his or her personal property. Id. [§] 469(II) at 501. The owner of unseated land, (Footnote continued on next page…)

2 ¶¶1, 3; Reproduced Record (R.R.) at 326a-29a.2 The following year, 1894, Proctor and Hill sold the Property to the Union Tanning Company (Union); the deed that memorialized this sale contained a clause, which stated that Proctor and Hill expressly reserve and save to themselves, their heirs and assigns, all the minerals, coal, oil, gas or petroleum found now or hereafter on or under the surface of any or all of the lands described in each of the above mentioned parts or division and conveyed by this indenture, together with the right and privilege of ingress, egress and regress upon said lands for this purpose of prospecting for, or developing, working or removing the same.

however, was not personally responsible for the payment of taxes, which were instead imposed on the land itself, in the name of the person to whom the original warrant had been issued. See Proctor v. Sagamore Big Game Club, 166 F. Supp. 465, 475 (W.D. Pa. 1958), aff’d, 265 F.2d 196 (3d Cir. 1959). The current owner’s name would be used “only for the purpose of description.” F.H. Rockwell & Co. v. Warren County, . . . 77 A. 665, 665-666 ([Pa.] 1910). As explained by this Court in 1841, [T]he land itself, and not the owner of it, is debtor for the public charge; and it is therefore immaterial, at the moment of sale, what may be the state of the ownership, or how many derivative interests may have been carved out of it. With these the public has no concern. They are sold with the land, just as a remainder would be sold with the particular estate. Strauch v. Shoemaker, 1 Watts & Serg. 166, 175 (Pa. 1841) (quotation marks omitted); see also Bannard v. New York State Natural Gas Corp., . . . 293 A.2d 41, 49 ([Pa.] 1972) (holding that “it is immaterial that the name of the owner as given in the assessment is inaccurate, since no personal liability is involved; the land, not the owner, is looked to for payment of delinquent taxes”). As was true for seated land, . . . unseated land could be severed into surface and subsurface estates, which could be separately assessed, taxed, and, if necessary, sold at tax sale. Rockwell, 77 A. at 666. 143 A.3d 358, 363-64 (Pa. 2016) (footnote omitted).

2 The Commission has inexplicably seen fit to submit a reproduced record containing a number of pages that are illegible and/or upside down.

3 Final Adjudication, F.F. ¶5; R.R. at 42a; see R.R. at 30a-44a (1894 deed from Proctor and Hill to Union).3 This reservation was never reported to the County Commissioners of Bradford County and, as a result, the Property “was [still] assessed and taxed as a whole” after the sale. Final Adjudication, F.F. ¶10. Nearly a decade passed, before Union deeded the Property’s surface interests to the Central Pennsylvania Lumber Company (CPLC) in 1903. Id., F.F. ¶6; R.R. at 345a-51a. Subsequently, property taxes assessed against warrants4 encompassing both the

3 Pennsylvania law recognizes three discrete estates in land: the surface estate, the mineral estate, and the right to subjacent (surface) support. . . . Because these estates are severable, different owners may hold title to separate and distinct estates in the same land. The Pennsylvania rule permitting severance of the mineral estate for coal and other solid minerals applies with equal force to oil and gas. As with any estate in land, the owner of the mineral estate may convey his entire bundle of rights in fee or may grant a mere portion thereof via leasehold. Pa. Game Comm’n v. Seneca Res. Corp., 84 A.3d 1098, 1105 (Pa. Cmwlth. 2014) (citations and some punctuation omitted).

4 A land warrant is “[a] document entitling a person to receive from the government a certain amount of land by following prescribed legal steps.” BLACK’S LAW DICTIONARY 252, 956, 1234 (9th ed. 2009).

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Com. of PA, PA Game Comm. v. Int'l. Dev. Corp. & Atlantic Hydrocarbon (Bd. of Property), Counsel Stack Legal Research, https://law.counselstack.com/opinion/com-of-pa-pa-game-comm-v-intl-dev-corp-atlantic-hydrocarbon-bd-pacommwct-2022.