Pennesi, R. v. DL Resources, Inc.

Superior Court of Pennsylvania·Decided July 1, 2026·No. 452 WDA 2025·Published·Olson

Opinion

2026 PA Super 139

RICHARD E. PENNESI AND MICHELE : IN THE SUPERIOR COURT OF A. PENNESI, HUSBAND AND WIFE; : PENNSYLVANIA AND EDWARD J. MAZZONI AND ANN : ZOPPETTI, UNMARRIED :

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Appellants : No. 452 WDA 2025 :

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v. :

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DL RESOURCES, INC., DWAYNE : OVERLY AND ROSEMARY OVERLY, : HUSBAND AND WIFE, GARY C. : MOORE, CARMELITA MYERS, : RONALD D. MALINE, TERRY KING, : JOSEPH S. MUCHNOCK AND LISA A. : MUCHNOCK, HUSBAND AND WIFE, : MICHAEL J. LITTLE AND JILL M. : LITTLE, HUSBAND AND WIFE, : ROBERT G. SISAK AND LISA A. : SISAK, HUSBAND AND WIFE, JOHN : B. ZOMISKY, AND BRYAN K. ROBB : AND DIANE L. ROBB, HUSBAND AND : WIFE. :

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Appeal from the Order Entered March 11, 2025 In the Court of Common Pleas of Westmoreland County Civil Division at No(s): 2444 of 2023

BEFORE: OLSON, J., STABILE, J., and KING, J. OPINION BY OLSON, J.: FILED: JULY 1, 2026 Appellants, Richard E. Pennesi and Michele A. Pennesi, husband and wife, (collectively, “Pennesi”) and Edward J. Mazzoni and Ann Zoppetti, an unmarried couple, (collectively, “Mazzoni”) appeal from the March 11, 2025

order entered in the Court of Common Pleas of Westmoreland County that granted summary judgment in favor of, inter alia, DL Resources, Inc. (“DL Resources”) in the declaratory judgment action brought by Appellants. 1 The March 11, 2025 order also denied Appellants’ cross-motion seeking summary judgment in the declaratory judgment action. After careful consideration, we vacate the March 11, 2025 order and remand the case for further proceedings in accordance with our decision.

On June 22, 2023, Appellants filed a complaint for declaratory judgment against the party-defendants seeking, inter alia, to enjoin DL Resources from conducting further oil and gas drilling and production operations on the surface of the real property owned by Pennesi. By way of background, Appellants collectively “own a total of 17.58 acres of land in Unity Township, Westmoreland County, Pennsylvania.” Appellants’ Response to Motion for Summary Judgment and Cross-Motion for Summary Judgment, 1/29/25, at

¶5.2 Appellants’ land “is part of a larger 54[-]acre tract of land (the “Leased

1 The motion for summary judgment filed by DL Resources was joined by the

remaining defendants named in the declaratory judgment action, those being Dwayne Overly and Rosemary Overly (husband and wife), Gary C. Moore, Carmelita Myers, Ronald D. Maline, Terry King, Joseph S. Muchnock and Lisa A. Muchnock (husband and wife), Michael J. Little and Jill M. Little (husband and wife), Robert G. Sisak and Lisa A. Sisak (husband and wife), John B. Zomisky (“Zomisky”), and Bryan K. Robb and Diane L. Robb (husband and wife). We refer to DL Resources and the other named-defendants collectively as “the party-defendants.”

2 The trial court adopted, and relied upon, the undisputed facts set forth in Appellants’ response to DL Resources’ motion for summary judgment and

Premises”) which Benjamin John Wells, Jr., William W. Wells, and Carol C. Wells [(collectively, “Wells”)] leased to lessee W.H. Haupt Company by [an] oil and gas lease dated August 13, 1959[.]” Id. at ¶6. On August 27, 1976, Wells “sold 41.02 [acres] of the Leased Premises[,] including the appurtenant oil and gas rights[,] to Zomisky[.]” Id. at ¶8. On March 13, 1982, “Zomisky sold 2 acres of [his] land[,] including the appurtenant oil and gas rights[,] to [Pennesi].” Id. at ¶9. On March 13, 1982, “Zomisky [also] sold 2 acres of [his] land[, including the appurtenant oil and gas rights,] to David C. Maffit.” Id. at ¶¶10, 17. Thereafter, Mazzoni acquired 2 acres of land, including the appurtenant oil and gas rights, from Maffit in 1993. Id. at ¶17.

On January 25, 1997, “Zomisky sold 13.58 acres of [his] land to [Michele A. Pennesi (the “Pennesi Deed”).]” Id. at ¶11. “The Pennesi Deed ‘excepted and reserved’ to Zomisky the ‘oil and gas’ rights associated with the [13.58 acres of land sold to Michele A. Pennesi] (the ‘Reserved Gas’). However, the Pennesi Deed did not ‘except and reserve’ unto Zomisky any express right to use the surface of the [13.58-acre tract of land] to produce the Reserved

Gas.”3 Id. at ¶12. As a result of the prior deed transfers of real property, on

cross-motion for summary judgment filed on January 29, 2025. Trial Court Opinion, 3/11/25, at 2.

3 Minerals and other sub-surface “materials,” such as gas and oil, are corporeal

things already in existence and, as such, remain in the possession of the grantor when “excepted” in a conveyance versus incorporeal things, which do not exist at the time of conveyance, remain in the grantor’s possession when they are “reserved” within the context of a property transfer. Ralston v.

January 25, 1997, “Zomisky continued to own about 20.28 acres of the Leased Premises including the related oil and gas rights.” Id. at ¶13. At this same time, Zomisky also owned a 13.58-acre oil and gas sub-surface estate located beneath the 13.58-acre surface estate owned by Michele A. Pennesi.

On February 22, 2012, “Michele A. Pennesi conveyed the [13.58-acre surface estate] to [both her and her husband, such that the deed to the surface estate was now titled in both names.]” Id. at ¶14. On December 16, 2014, Pennesi sold 6.175 acres [of the 13.58-acre surface estate] to [Mazzoni].” Id. at ¶15. This resulted in Pennesi owning “9.405 acres of the Leased Premises consisting of the 2 acres with [the appurtenant] oil and gas rights[,] which Zomisky conveyed in 1982[,] and 7.405 acres of the [13.58-acre surface estate Zomisky sold Michele A. Pennesi in 1997, to which Zomisky excepted to himself the oil and gas rights appurtenant to the land (collectively, the “Pennesi Land”).]” Id. at ¶16. As a result of the December 16, 2014 transaction, Mazzoni owned “8.175 acres of the Leased Premises consisting of the 2 acre tract [of land] with [the appurtenant] oil and gas rights which Zomisky [first] sold [] in 1982[,] and 6.175 acres of the [13.58-acres surface estate acquired from Pennesi to which Zomisky excepted to himself the oil and gas rights appurtenant to the land (collectively, the “Mazzoni Land”).] Id. at ¶17.

Ralston, 55 A.3d 736, 741 (Pa. Super. 2012) (explaining that the terms “exception” and “reservation” are often used interchangeably in deeds).

“By way of various assignments, [DL Resources] succeeded to the interest of [W.H. Haupt Company under the August 13, 1959 oil and gas rights lease.]” Id. at ¶19. In 2006, DL Resources “drilled three conventional gas wells[,] known as the William Wells 1, 2, and 3[,] on the surface of the Leased Premises[,] which are covered by [well permits issued by the Pennsylvania Department of Environmental Protection. As of January 29, 2025, DL Resources] continued to operate all three wells to produce gas from the Leased Premises.” Id. at ¶20. DL Resources “drilled and is currently operating one of those wells, the William Wells 2[,] on the surface of the Pennesi Land.” Id. at ¶21. Specifically, the well is located on the 7.405-acre portion of the 13.58-acre surface estate in which Zomisky excepted for himself the oil and gas rights. “In connection with its operation of [William Wells 2, DL Resources] maintains a wellhead and related production equipment including roadways, gathering pipelines, and brine tanks on the surface of the Pennesi Land.”4 Id. at ¶22.

As part of Appellants’ declaratory judgment action, DL Resources “admitted that it [] surrendered the [August 13, 1959 oil and gas rights lease and that the lease] no longer has any force effect.” Id. at ¶24. “Instead, the only oil and gas lease which currently affects the Leased Premises is an oil and

4 The focus of the parties’ dispute is the access to DL Resources’ William Wells

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Pennesi, R. v. DL Resources, Inc., (Pa. Ct. App. 2026).

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