Herbert KILMER, Elsie Kilmer, Jacqueline Frantz, Jeffrey Kilmer, Diane Kilmer, Kenneth Kilmer, and Thomas Kilmer, Appellants
v.
ELEXCO LAND SERVICES, INC. and Southwestern Energy Production Company, Appellees.
Supreme Court of Pennsylvania.https://leagle.com/images/logo.png
Argued September 16, 2009.
Decided March 24, 2010.
Attorney(s) appearing for the Case
Michael James Gathany, Hallstead, Laurence M. Kelly, Kelly & Kelly, Montrose, for H. Kilmer, E. Kilmer, J. Frantz, J. Kilmer, D. Kilmer, K. Kilmer, & T. Kilmer.
Michael Anthony Dinges, Elion, Wayne, Grieco, Carlucci, Shipman & Irwin, P.C., Williamsport, for Amicus Curiae Andrew Hooker.
Kenneth Scott Kornacki, Steven Michael Petrikis, Brian Thornton Must, Metz Lewis, L.L.C., Pittsburgh, for Amici Curiae Curtis R. Lauchie, Terri, Lauchie, Gary K. Beach & Carolyn J. Beach.
Thomas Waffenschmidt, Rieders, Travis, Humphrey, Harris, Waters & Waffenschmidt, Williamsport, for Amici Curiae Samuel Belcher, Cheryl Belcher, Douglas Blessing, et al.
George A. Bibikos, Amy L. Groff, David R. Fine, Patricia Carol Shea, K & L Gates, L.L.P., Harrisburg, for Elexco Land Services, Inc. and Southwestern Energy Production Company.
Alfred Hettinger, Hettinger Law Office, Allentown, for Amici Curiae Charles S. Snyder, Jr. and Township of Middletown.
Joseph Thomas Wright, Jr., Danielle Marie Mulcahey, Dixon Wright & Associates, Scranton, for Amicus Curiae Huntley & Huntley, Inc.
Bruce M. Kramer, for Amicus Curiae Bruce M. Kramer.
Nicolle Renee Snyder Bagnell, Kevin Charles Abbott, Reed Smith, L.L.P., Pittsburgh, for Amici Curiae PA Oil & Gas Association & Independent Oil & Gas Association & Chesapeake Appalachia.
The case at bar concerns the proper construction of the term "royalty" as it is used in the Guaranteed Minimum Royalty Act ("GMRA"), 58 P.S. § 33, which governs, inter alia, leases between Pennsylvania landowners and gas companies seeking to drill natural gas wells into Pennsylvania's Marcellus Shale deposits. As developed below, the GMRA requires that leases guarantee the landowner-lessor "at least one-eighth royalty...
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