Resolving Co-Tenant Disputes Over Oil and Gas Rights

Informal Mediation: A neutral third party helps co-tenants reach an agreement.
Court-Ordered Partition: This legal process may divide the property or force its sale if an agreement cannot be reached.

Are you a co-owner of an oil and gas property? Co-ownership, also known as co-tenancy, can lead to challenging situations when co-tenants disagree about leasing the oil and gas beneath their property. Resolving these disputes requires careful consideration, as each case involves more than just straightforward legal advice.

Understanding Co-Ownership

Co-ownership of oil and gas property often arises through inheritance or joint property purchases. Across Pennsylvania, it’s common for multiple individuals to own oil and gas properties. A frequent question we hear is:

“What happens if I want to lease the oil and gas under my property, but my co-tenant does not?”

What Pennsylvania Law Says

In Pennsylvania, each co-tenant has the legal right to sign an oil and gas lease independently, even if the other co-tenant does not agree to it. However, when one or more co-tenants sign a lease, they owe a “duty of accounting” to the unleased co-tenants, meaning the unleased co-tenants are entitled to their share of the profits generated from the property.

It’s important to note that Pennsylvania’s laws governing co-tenant property development were established before oil and gas drilling became widespread. As shale gas development continues across the state, it’s likely that additional litigation will shape the interpretation and application of these laws.