CHAPTER 3 TITLE ISSUES: BEYOND AMOCO v. SOUTHERN UTE

• Jurisdiction: United States

REGULATION AND DEVELOPMENT OF COALBED METHANE
(Nov 2002)
CHAPTER 3
TITLE ISSUES: BEYOND AMOCO v. SOUTHERN UTE
Elizabeth A. McClanahan, Chief Deputy Attorney General
Commonwealth of Virginia
Richmond, Virginia
Jill M. Harrison
Penn, Stuart & Eskridge
Abingdon, Virginia
John K. Byrum, Jr., Esq.
Lisa W. Seaborn
Office of the Attorney General
Richmond, Virginia

I. SEVERANCE EXAMPLES

A Reservations and Conveyances of Minerals

i. "all the coal and mineral right in & to a certain tract of land [1882]."

ii. "all the coal and mineral in and upon a certain tract or parcel of land ... together with all necessary and convenient use of the surface for opening and developing mines right-of-way for passing to and from the same or through and under the said Land to other lands [1887]."

iii. "all the coal in upon and under ... together with the coal as conveyed to ... all rights privileges and franchises timber rights and mining privileges as are conveyed ... in the deeds mentioned above for such privileges special references is hereby made to said deeds [1893]."

iv. "several tracts of land and real estate and minerals and mining rights ... for the coals, minerals and mining rights [1896]."

v. "all the coals mineral and mineral products all the oils and gasses all the salt mineral and salt water fire and potters clay all the iron and iron ores and all the stone in ore and under the hereinafter described tract of land ... together with the right to enter upon said land and use and operate the same and the surface thereof free from further costs or damage in all or any manner that may be deemed necessary or convenient for mining preparing for market and removing therefrom or otherwise utilizing all or any of the said coal or minerals or the products of said coal or minerals ... without liability for injury to the surface of said lands or to any thing thereon or thereunder by the reason of the mining manufacturing or removal of said coal minerals etc. [1902]."

[Page 3-2]

vi. "all coal, minerals and mineral substances and products and salt mines and waters, all fire and potters clay; all iron and iron ores; all stones; all slate; all ores and mines; and all subterranean substances of same, or any or all the same, situated lying and being in, on or under the hereinafter described land, or that my hereafter be found thereon, therein or thereunder ... also the exclusive right to enter upon said land and drill thereon for oil and gas, and to pump for and store the same upon said land and remove pipes and transport the same therefrom, and to use and operate the said land and the surface thereof, and any and all parts thereof, including the right to use, divest, dam and pollute water courses thereon.... [1903]."

vii. "all the coal, oil and gas in, upon and underlying ... and the right to remove the coal, oil and gas, without leaving any support for the overlying strata and without any liability for injury which may result from breaking of said strata, and the right of ingress, egress and regress, over, across, upon through and under the said land and any other lands owned by the said parties of the first part, for the purpose of digging, developing, mining, removing, manufacturing and transporting the coal, oil and gas, in the said tract of land, as well as any and all coal, oil, and gas, now owned or hereafter acquired by the said parties of the second part [1904]."

viii. "all the coal, property, rights and privileges,... as fully and completely as the same were vested in the party of the first part ... the same title to said coal property, rights and privileges that are vested in the party of the first part by said several conveyances [1905]."

ix. "all coal in and underlying the said twenty-eight 28 acres ... together with the right of way for the removal of said coal [1909]."

x. "all the coal, minerals, metals, oils, gases, salt, fire and potters clay and any other substances of value which are or may be in, on or under the tract of land hereinafter mentioned and described ... with the right to enter in, upon and under the surface of said land and to mine, excavate, manufacture and remove all of said coal and other substances above mentioned, without being liable for any injury or damage done thereby, to the overlying surface or strata ... and the right to bore, drill and prospect in, on and under said tract for coal and other substances above enumerated [1919]."

B. Oil and Gas Leases

i. "does hereby let, demise and lease ... for the sole and only purpose of operating for and producing oil, gas, and gasoline [1978]."

ii. "grants, leases and lets ... for purposes of investigating, exploring by geophysical and other methods, prospecting, drilling, and operating for and producing oil,

[Page 3-3]

gases (including without limitation casinghead gas, casinghead gasoline. Gas condensate (distillate), hydrogen sulphide gas, helium and any other gas, whether combustible pr not), liquid hydrocarbons and associated products, whether in gaseous, solid or liquid state, by any method, including, but not limited to, natural flow, acidizing, fracturing, combustion, stream soak, stream flood, water flood, oil flood, and for injection of any substance [1980]."

iii. "grant demise, lease and let... with the exclusive right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom oil, gas, casing-head gas, casing head gasoline, and the exclusive right of injecting water, brine and other fluids into subsurface strata ... and any and all other rights and privileges necessary, incident to, or convenient for this economical operation [1987]."

iv. "does hereby grant, demise, lease and let... the lands hereinafter described with the exclusive rights of conducting geological, geophysical, and other exploratory work (including core drilling), and of exploring, drilling, and operating wells for oil and gas thereon [1995]."

v. "all the oil and gas of every kind, nature, composition and character, located in any strata, sand, rock or coal underlying the land described in this Lease [undated form lease]."

C. Oil, Gas, and Coalbed Methane Leases

i. "grants, leases and lets exclusively ... for the purpose of investigating, exploring, prospecting, marketing drilling (either horizontally, vertically or directionally), and operating wells for producing and marketing oil and gas and all associated hydrocarbons (including methane gas originating or produced from coal formations or seams and all zones in communication therewith, hereinafter referred to as 'gas', 'methane' or 'methane gas'), together with the non-exclusive rights to ... vent methane gas out of a coal mine or take other reasonable safety precautions [1991]."

ii. "grants, demises, leases and lets ... for the sole and only purpose, and with the exclusive right of operating for, producing and marketing oil and gas, coalbed methane gas, and all associated hydrocarbons and all products produced therewith or which may be derived therefrom, storing gas of any land, regardless of the source thereof, ... conducting geological or geophysical surveys and explorations; pooling or unitizing the lease premises or part thereof [1992]."

iii. "grant, demise, lease and let exclusively ... for the purpose of investigating, exploring, prospecting, marketing, drilling (either horizontally, vertically or directionally), and operating wells for producing and marketing oil and gas and all associated hydrocarbons (including coalseam gas originating or produced from coal

[Page 3-4]

formations or seams and related, associated or adjacent rock material, hereinafter referred to as 'gas' or 'coalseam gas')... to produce, save, take of, treat, transport and own said products or to vent coalseam gas out of a coal mine or take other reasonable safety precautions [undated form lease]."

iv. "hereby grant... together with the exclusive right of drilling for or producing, marketing and storing oil or gas, or both, including, but not as a limitation, coalseam gas, gob gas, coalbed methane gas (hereinafter referred to as 'coalseam gas'), casinghead gas, casinghead gasoline, gas condensate (distillate) and any substance, whether similar or dissimilar, produced in a gaseous state; or contained in such oil or gas [undated form lease]."

v. "grants, leases and lets exclusively ... for the purpose of investigating, exploring, prospecting, marketing, drilling (either horizontally, vertically or directionally), and operating wells for producing and marketing oil and gas and all associated hydrocarbons (including methane gas originating or produced from coal formations or seams and any related, associated or adjacent rock material, hereinafter referred to as 'gas', 'methane' or 'methane gas')... with the non-exclusive rights to ... produce, save, take of, treat, transport and own said products or to vent methane gas out of a coal mine or take other reasonable safety precautions [undated form lease]."

D. Coal Leases

i. leases "all coal in, on and underlying" and reserved "the right to drill, pump and market oil and gas [1932]."

ii. grants "all the mineable and merchantable coal of the thickness of 34 inches ... [and further granted] all needful and necessary mining rights, privileges and easements" and reserved all the oil and gas [1948]."

iii. "lease, let and demise ... the sole and exclusive right and privilege of mining and removing the coal from the seams of coal as hereinafter indicated, by any method of mining now in use or hereafter developed ... [1956]."

iv. "lease, let and demise ... the sole and exclusive right and privilege of mining and removing the coal from all the seams of coal underlying the Tiller vein or seam of coal... [1961]."

v. grants "all coal together with the right to mine, remove and utilize same, together with such mining rights, surface, surface right, privileges and easements as Lessor owns in, on...