Nolt v. TS Calkins & Associates, LP

Summary

The Pennsylvania Superior Court affirmed summary judgment for Anadarko and Chesapeake in a quiet title action involving an oil and gas lease. The court held that the oil and gas lease conveyed a property interest governed by the general statute of frauds, which required only the grantor’s signature, and that the lessee had satisfied its due diligence obligation. The court also held that the appellants’ argument concerning expiration of the lease was waived because it had not been properly raised in the trial court.

Holdings

1. An oil and gas lease is not an ordinary landlord-tenant lease; it conveys an interest in real property and is governed by the general statute of frauds. Because Joseph Cullen, the grantor, signed the instrument, the absence of Calkins' signature did not invalidate the conveyance.
2. Calkins satisfied its due diligence obligation as a matter of law by examining the Bradford County property records, consulting the record owner, and asking the possessor, Joseph Cullen, about ownership. Calkins was not required to search neighboring Sullivan County records because the property was located wholly in Bradford County.
3. The Nolts waived the expiration issue by failing to raise and develop it in the trial court.

Questions Presented

1. Whether an oil and gas lease is invalid or limited to a year-to-year term because the lessee did not sign it under the statute of frauds in the Landlord and Tenant Act.
2. Whether Calkins failed to exercise the required due diligence by not searching Sullivan County records or making further inquiry of Joseph Cullen concerning his ownership.
3. Whether the oil and gas lease expired because gas production did not commence during the primary term.
4. Whether summary judgment was properly granted to Anadarko and Chesapeake.

Disposition

affirmed