Pennsylvania Superior Court Issues “Title Wash” Opinion
On May 9, 2014, in the case of Herder Spring Hunting Club v. Keller, the Superior Court of Pennsylvania issued an opinion addressing the termination of outstanding oil and gas interests through a tax sale in Pennsylvania. The property at issue was subject to a severance of oil and gas rights in 1899, and then later sold in a 1935 tax sale to the Centre County Commissioners. The appellants argued that the 1935 unseated tax sale extinguished all prior oil and gas interests and was a “title wash” which divested all prior owners of their respective interests. The Superior Court agreed with the appellants, reversing the trial court and granting summary judgment in their favor. The Superior Court held that the appellees’ predecessors failed to follow certain procedures in place at the time of the 1935 tax sale that could have preserved their interest in the oil and gas. This case is the first appellate decision addressing the “title wash” of subsurface property rights since the development of the Marcellus Shale formation in Pennsylvania began.