Legal Question in Real Estate Law in Pennsylvania

Re: Gas Royalties vs Real Property

Tricky issue. The leases are real property but the royalties are personal property. The leases should have been dealt with specifically in the testamentary device.

The leases themselves are part and parcel of the property rights. They in fact are one of the many property rights that are encompassed by the "fee". In this case fee means the entirety of the property rights, which can be divided in numerous ways including easements, mineral rights surface rights, air rights, and so on.

The royalties that flow from those easements are personal property. Even though they are based on the leases the result is cash which is the most liquid of personal property.

You need to discuss this further with local counsel who is familiar with gas and oil law. S/he will need to examine the testamentary device to determine what your father's wishes were. This matter can easily grow into litigation if the leases were not dealt with specifically.

Regards,

Roger Traversa

email: [email protected]