On November 3, 2010, the West Virginia Supreme Court of Appeals released its opinion in Cabot Oil & Gas Corporation, et al. v. Randy Huffman, et al., Nos. 35508, 35509, 35510 and 35511 (November 3, 2010) (per curiam), affirming the ruling of the Circuit Court of Logan County, which overruled the DEP’s denial of well work permit applications filed by Cabot for drilling within the confines of Chief Logan State Park.
The Court held that a 1960 deed from the mineral owner, the Lawson Heirs, Inc., was clear and unambiguous in reserving to the Lawson Heirs the right to produce oil and gas in the future. The Court further held that a 1961 statute enacted by the West Virginia Legislature which prohibited the Director of the DNR from allowing the “exploitation of minerals” within state parks had no preclusive effect upon the requested permits and thus the DNR and the DEP did not have the authority to prevent the Lawson Heirs, and their lessee, Cabot, from locating wells within the State park. The Court also rejected arguments by several environmental groups that Cabot would be prohibited from drilling in the park because federal funds had been allocated by the Department of Interior for the park, and federal law prohibited the use of the lands for anything other than public outdoor recreation uses. The Court upheld the sanctity of deeds and written contracts reserving surface uses to the mineral owner.
The opinion is an important one for mineral owners and lessees who hold reserved mineral estates under public lands. A full copy of the opinion can be obtained from the West Virginia Supreme Court’s website (http://www.state.wv.us/wvsca/Fall2010.htm). Cabot was represented by Timothy M. Miller of Robinson & McElwee. For more information, contact Timothy M. Miller at 304-347-8336, or tmm@ramlaw.com.
No comments:
Post a Comment