United States Steel Corp. v. Hoge

6 Pa. D. & C.3d 64, 1978 Pa. Dist. & Cnty. Dec. LEXIS 338
CourtPennsylvania Court of Common Pleas, Greene County
DecidedMay 4, 1978
Docketno. 682
StatusPublished

This text of 6 Pa. D. & C.3d 64 (United States Steel Corp. v. Hoge) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Greene County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Steel Corp. v. Hoge, 6 Pa. D. & C.3d 64, 1978 Pa. Dist. & Cnty. Dec. LEXIS 338 (Pa. Super. Ct. 1978).

Opinion

TOOTHMAN, P.J.,

United States Steel Corporation filed suit in equity against the owners of a tract of 258 acres of land situate in Franklin Township, Greene County, Pa., Mary Jo Hoge and Jessie Lee Cowan and Harvey C. Cowan, against the lessee of the oil and gas under the tract, Mary L. Cunningham, and against the drilling contractor, Halliburton Company. Defendant, Halliburton Company, has been discharged by agreement of the parties at a conference of all counsel, its position as a drilling contractor not being deemed relevant to the issue involved. The complaint contains two counts: the first being an action to quiet title to the methane gas located in, around or as part of the Pittsburgh vein of coal which, it is claimed, is owned by plaintiff, and the second being an action for a permanent injunction against defendants to prevent them from exploring, capturing and removing the methane gas located in and about the Pittsburgh coal seam.

Defendants responded with preliminary objections in the form of a demurrer, in which they contend the methane gas is not owned by plaintiff, and is, in fact, still owned as part of their surface title, its transfer not having vested in the owner of the coal seam by reason of the transfer of title of the coal and accompanying mining rights as to the first count, and the failure of plaintiff to exercise its statutory remedy under the Gas Operations Well-Drilling Petroleum and Coal Mining Act of November 30, 1955, P.L. 756, 52 P.S. §2101 et seq., as to the second count.

The preliminary objections were argued on February 21, 1978, at which time, by stipulation, the court temporarily restrained any further exploration for recovery of methane gas by defendants, and [66]*66contemporaneously prohibited plaintiff from engaging in any mining operations in the coal seam under the tract in dispute, both conditions imposed to protect the parties during the course of this litigation.

Accordingly, the consequence of the pleadings and arguments to this point is to place before the court the initial question, acknowledged to be of vital and far-reaching import, which is who owns the methane gas, or at least, preliminarily, whether there is sufficient merit in plaintiffs claim of ownership to continue the temporary injunction and order a full hearing. It is a highly intriguing, especially complex question, one that has never been given judicial introspection before, and one also which carries with it an almost immeasurable economic impact in these days of critical energy considerations. It is quite obvious that as our nation’s fuel needs have expanded and the supply of fuel for energy in any form has become more distant and precious, such a question would eventually force its way to the attention of the court, which, in its traditional role, must delineate and clarify such an ownership for the stabilization of both the landowners’ and the coal owners’ rights. Thus, in this county, with now only a modest oil and gas production capacity in the usual sense still alive, nevertheless, its vast coal deposits in different seams and in different stages of production, made it predictable that an early need for a determination of such claims would surface in this court.

There is a strange irony in the very fact that the question arises through a claim of its ownership by a coal company, since, until the energy crisis has forced new concepts and new initiatives upon the industry, methane gas has long been regarded as [67]*67the lethal enemy of coal, and of all coal mining operations. Far from capturing and controlling it, the industry has historically done everything possible to waste it, and thus rid itself of its scourge in deference to safe mining. Heretofore, the only consideration in the industry has been the utilization of many millions of dollars and countless manhours of effort to clear the active mine of its deadly contamination. But now with its potential for capture, containment and sale, we find that the industry is reexamining its position to see if while ridding the mines of its poison, at the same time, the erstwhile “poison” can be turned to making lights burn, cars move, and homes heated. It could well be that this long-time curse of coal will now become one of the better known, more useable and beneficial byproducts of its recovery.

In any event, with the change of economic conditions, the development of science, and the aid of increased geological data, the elusive enemy of mining is now being embraced with an enthusiasm such as was in ancient times saved only for the return of the prodigal son, and we must therefore advance further the legal rules which must apply to that return in order that it may be settled as to whom the ownership of this “enemy” belongs, and who, in the last analysis, has the right to prepare for its welcome. In the case of Chartiers Block Coal Co. v. Mellon, 152 Pa. 286, 25 Atl. 597 (1893), at p. 294, the Pennsylvania Supreme Court made this interesting observation dealing, at that time, with the right of the owner of the surface to drill through the Pittsburgh coal seam to recover the natural gas in the sands below:

“This is a new question and one that is full of [68]*68difficulty. The discovery of new sources of wealth, and the springing up of new industries which were never dreamed of half a century ago, sometimes present questions to which it is difficult to apply the law as it has heretofore existed. It is the crowning merit of the common law, however, that it is not composed of ironclad rules, but may be modified to a reasonable extent to meet new questions as they arise. This may be called the expansive property of the common law. . . The comparatively recent development of the sciences of geology and mineralogy, and the multiplication of mechanical devices for penetrating the earth’s crust have greatly changed the uses and values of lands ...”

In the judicial probing of this perplexing question we shall start at the place where the present rules of law are well settled, and long accepted. Plaintiff, by reason of a deed to its predecessor in title, acquired title to the fee to the Pittsburgh or River, or Nine Foot vein of coal under the land. The vein is located around 870 feet below the surface. Along with conveyance, there was the conveyance of the mining rights, in very much the standard or usual form found in such deeds, this language applicable to 242 acres of the total tract:

“Together with all the rights and privileges necessary and useful in mining and removing of the said coal, including the right of mining the same without leaving any support. . . , the right of ventilating and drainage and of access to the mines for men and materials. . . , the right of drainage and transporting the coal of other lands through the mines and openings.”

The mining rights with respect to the other 15 acres contained much the same language, and an [69]*69added paragraph reserving to the owner the right “to drill and operate through the said coal for oü and gas without being held liable for damages.” This clause merely conforms to the holding of the court in the Chartiers case cited supra.

The lease for oil and gas from the present surface owners to one of the defendants, Mary L. Cunningham, grants to her: “. .. . all of the oil and gas and all of the constituents of either in and under the land, hereinafter described, together with the exclusive right to drill for, produce and market oil and gas and their constituents and of storing gas of any kind in any formation underlying the land. . . ”

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Related

Highland v. Commonwealth
161 A.2d 390 (Supreme Court of Pennsylvania, 1960)
Brookbank v. Benedum-Trees Oil Co.
131 A.2d 103 (Supreme Court of Pennsylvania, 1957)
Dunham & Shortt v. Kirkpatrick
101 Pa. 36 (Supreme Court of Pennsylvania, 1882)
Westmoreland N. Gas Co. v. DeWitt
18 A. 724 (Supreme Court of Pennsylvania, 1889)
Chartiers Block Coal Co. v. Mellon
25 A. 597 (Supreme Court of Pennsylvania, 1893)
Silver v. Bush
62 A. 832 (Supreme Court of Pennsylvania, 1906)
Preston v. South Penn Oil Co.
86 A. 203 (Supreme Court of Pennsylvania, 1913)

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Bluebook (online)
6 Pa. D. & C.3d 64, 1978 Pa. Dist. & Cnty. Dec. LEXIS 338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-steel-corp-v-hoge-pactcomplgreene-1978.