Kennedy v. Consol Energy Inc.
116 A.3d 626
Pa. Super. Ct.2015Background
- Kennedys own oil and gas in place; Consol owns Pittsburgh coal seam.
- 1961 deeds convey coal to Consol with reservation of oil and gas rights to Kennedys; origin from 1932 deed reserving coal and oil/gas in place.
- Pittsburgh coal seam contains coalbed methane gas requiring ventilation; degasification begun in 2005 with multiple horizontal wells.
- Consol drilled wells to degasify Pittsburgh seam; some laterals extended into adjacent strata under Kennedys’ property.
- Kennedys sued for quiet title, trespass, conversion, unjust enrichment, and replevin; court granted judgment on the pleadings or summary judgment favoring Consol on several claims; appeal challenges those rulings on multiple quiet title and tort claims.
- Kennedys discontinued one surface quiet title claim and proceeded on others; the issue remains whether the Pittsburgh Rider seam is included in the conveyance and whether Consol trespassed or converted gas.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hoge governs ownership of coalbed methane when deeds are silent. | Kennedys: Hoge not universal; deeds show intent to reserve oil and gas incl. methane. | Consol: Hoge controls; coal owner also owns coalbed methane. | Hoge applied as general rule; no express reservation of coalbed methane; gas conveyed with coal. |
| Whether summary judgment on trespass and conversion was proper given alleged fact disputes. | Kennedys: facts show drilling into Kennedys’ strata; issues for jury. | Consol: deed grants privilege to ventilate and operate; no trespass/convert. | Entrу into adjacent strata privileged by right-of-way; no conversion with ascertainable loss. |
| Whether the Rider seam was conveyed or reserved in the coal deeds. | Kennedys: Rider seam distinct; should quiet title to Rider. | Consol: Rider not located on subject property; not conveyed. | Rider seam not proven to exist on property; deed did not convey Rider. |
Key Cases Cited
- United States Steel Corp. v. Hoge, 468 A.2d 1380 (Pa. 1983) (gas ownership follows coal when not reserved; saltus doctrine not universal rule)
- Butler v. Charles Powers Estate ex rel. Warren, 65 A.3d 885 (Pa. 2013) (Dunham/express reservation; Marcellus gas not included unless stated or clearly intended)
- Gedekoh v. Peoples Natural Gas Co., 133 A.2d 283 (Pa. Super. Ct. 1957) (trespass privilege where entry is granted for mining/ventilating rights)
- Stone v. Marshall Oil Co., 57 A. 183 (Pa. 1904) (confusion of goods doctrine for damages where gas profits are indistinguishable)
- Creazzo v. Medtronic, Inc., 903 A.2d 24 (Pa. Super. 2006) (summary judgment requires adequate damages record to support action)