Mountaineer Natural Gas v. Miner, K.

Superior Court of Pennsylvania·Decided June 22, 2018·No. 777 WDA 2017·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

MOUNTAINEER NATURAL GAS : IN THE SUPERIOR COURT OF COMPANY : PENNSYLVANIA :

v. :

:

KENNETH R. MINER AND CHERYL D. : MINER, HUSBAND AND WIFE, AND : JOYCE MURPHEY :

:

APPEAL OF: JOYCE MURPHEY : No. 777 WDA 2017

Appeal from the Order Entered April 28, 2017 In the Court of Common Pleas of Greene County Civil Division at No(s):

AD-788-2016

BEFORE: BOWES, J., DUBOW, J., and MURRAY, J. MEMORANDUM BY BOWES, J.: FILED JUNE 22, 2018 Joyce Murphey appeals from the order that granted judgment on the pleadings and quieted title in favor of Mountaineer Natural Gas Company (“Mountaineer”) in this case involving the oil, gas, and mineral rights to a fifty- acre parcel of land situated in Richhill Township, Greene County (“the Property”). We affirm.

The history of the case as gleaned from the record is as follows. In August 2012, Ms. Murphey entered into an agreement to sell the Property to Kenneth Miner, and conveyed all of her interests in the Property to him by deed dated and recorded in September 2013. On June 3, 2014, Mountaineer acquired the Property from Kenneth and Cheryl Miner (“the Miners,”

collectively)1 by general warranty deed which was recorded on June 20, 2014. Complaint, 10/7/16, at ¶ 10-11. However, after the Miner-Mountaineer deed was executed, but before it was recorded, Ms. Murphey and Mr. Miner executed a document bearing the title “Amending Agreement.” Id. at ¶ 13. The agreement, dated June 5, 2014, and recorded June 12, 2014, indicates that Ms. Murphey sold the Property to the Miners by contract of August 4, 2012, and that the parties wished to amend that contract as follows:

THE ABOVE DEED AND CONTRACT SHOULD NOT SHOW THE MINERAL AND/OR GAS RIGHTS BEING TRANSFERRED WITH THIS AGREEMENT. JOYCE MURPHY [sic] INTENDED TO KEEP SAID RIGHTS TO THE MINERALS AND/OR GAS UNDER THIS PROPERTY AND KENNETH MINER AGREES TO THAT PROVISION. NOTHING IN THIS AGREEMENT, THAN [sic] AND NOW, SHOULD CHANGE THIS INTENT. JOYCE MURPHY [sic] KEEPS ALL MINERAL AND/OR GAS RIGHTS.

Id. at ¶ 14, Exhibit 2.

After the Miner-Mountaineer deed was recorded, Ms. Murphey and Mr.

Miner executed another “Amending Agreement,” dated October 8, 2014, and recorded October 16, 2014, purporting to make the following amendment to the August 4, 2012 contract for the sale of the Property.

THE ABOVE DEED AND CONTRACT SHOULD NOT SHOW THE GAS, OIL, AND/OR ANY MINERAL RIGHTS AT ALL BEING TRANSFERRED WITH THIS AGREEMENT. JOYCE MURPHEY INTENDED TO KEEP SAID RIGHTS TO THE GAS, OIL, AND/OR ANY MINERAL RIGHTS UNDER THIS PROPERTY AND KENNETH MINER AGREES TO THAT PROVISION. NOTHING IN THIS AGREEMENT, THEN AND NOW SHOULD CHANGE THIS INTENT. JOYCE MURPHEY KEEPS ALL THE GAS, OIL, AND ALL OTHER MINERAL RIGHTS.

1 The Miners have not participated in this appeal.

Id. at ¶¶ 16-18, Exhibit 3.

With the Agreements clouding the title, Mountaineer was unable to enter oil and gas leases for the Property. Id. at ¶ 19. Mountaineer contacted the Miners regarding the issue, but the Miners “declined to cure the title defects.” Id. at ¶ 19-20. Instead, the Miners filed a complaint against Mountaineer in Mercer County alleging, inter alia, that Mountaineer breached the contract for the purchase of the Property by failing to pay the balance owed. Id. at ¶ 22, Exhibit 4. As a result, on October 7, 2016, Mountaineer filed a complaint against the Miners and Ms. Murphey stating counts of quiet title, breach of contract/warranty, and declaratory judgment.

In their answers to the complaint, Ms. Murphey and the Miners offer a different version of events. They indicate that Ms. Murphey never sold the oil and gas rights to the Property to the Miners. Answer (Miners), 1/9/17, at ¶ 14; Answer (Murphey), 12/1/16, at ¶ 5. They further claim that Mountaineer was fully aware that it was not receiving the oil and gas rights as part of its acquisition of Property. Answer (Miners), 1/9/17, at ¶ 9. The Miners deny having executed a deed on June 3, 2014, as alleged by Mountaineer. Id. at ¶ 10. Rather, they contend, Mountaineer presented a deed to them on that date which included oil and gas, but they refused to execute it, reminding Mountaineer that they did not own the gas and mineral rights, and returned the hand money. Id. Later, Mountaineer presented the Miners with an

amended deed that omitted the language regarding oil and gas rights, which the Miners then executed. Id.

Thus, the Miners asserted, the Amending Agreements were executed to clarify that Ms. Murphey had retained the oil and gas rights when she sold them the Property. They averred that Ms. Murphey’s reservation of the oil and gas rights “had been inadvertently omitted from the deed of conveyance.” Id. at ¶ 14. Ms. Murphey contended that the Amendments were executed out of concern that the previously-recorded documents “insufficiently gave notice” of her reservation of the oil and gas rights. Answer (Murphey), 12/1/16, at ¶ 5.

The Miners professed that Mountaineer never communicated with them regarding any cloud on the title to Property or asked them to cure any title defects, because there are no defects. Answer (Miners), 1/9/17, at ¶ 20-21. They asserted that Mountaineer knew that the oil and gas rights were not part of the deal for the Property, and that Mountaineer acknowledged prior to purchasing it that it was not acquiring oil and gas rights. Id. at ¶ 20.

After the close of pleadings, Mountaineer filed a motion for judgment on the pleadings as to all three counts. Mountaineer therein claimed that the pleadings establish that (1) Mountaineer has title to the oil and gas under the Property; (2) the Miners failed to cure title defects and defend title as required by the covenants of the general warranty deed, entitling Mountaineer to damages and attorneys’ fees; and (3) Mountaineer is entitled to a declaration

that the two Amendments executed after the Property was deeded to it are void ab initio. Motion for Judgment on the Pleadings, 2/8/17, at 6-7.

Following briefing by the parties, the trial court entered an order granting Mountaineer’s motion. The order established that the deed transferring the Property from the Miners to Mountaineer “was executed, notarized, and delivery was intended on June 3, 2014. Ownership was effectively transferred on June 3, 2014.” Order, 4/28/17, at unnumbered 2. The order further declared that Mountaineer was a bona fide purchaser, there was no mutual mistake, the Amending Agreements were void ab initio, and that, “[a]s to [the Miners and Ms. Murphey], title to [the Property] is fully seized in [Mountaineer], specifically including the oil, natural gas, and hydrocarbons.” Id. Therefore, title was quieted in Mountaineer. Id.

Ms. Murphey filed a timely notice of appeal from the order, and both she and the trial court complied with Pa.R.A.P. 1925. Before we consider the substance of the issues Ms. Murphey raises on appeal, we must determine whether we have jurisdiction to do so, as Mountaineer contends that we do not. Mountaineer’s brief at 8-11.

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