NCL Appalachian Partners obtains order granting clear title to certain leasehold interests in connection with $400 million sale of oil and gas properties in Marcellus Shale
Clients NCL Appalachian Partners, L.P.
Jones Day successfully represented NCL Appalachian Partners, L.P. in connection with multiple contract claims in its $400 million sale of oil and gas properties in the Marcellus Shale play. Ultra Resources, Inc., the buyer, refused to close on certain leasehold interests alleging that NCL did not have clear title. Ultra claimed that over $70 million in leasehold interests were burdened by the owner of an assignment of overriding royalty interests (ORRIs). In addition, Ultra claimed that NCL did not have clear title to an over $19 million leasehold interest spanning three counties. The parties resolved the leasehold interests burdened by the ORRIs at an additional closing, but were unable to resolve the individual leasehold interest. Jones Day filed a quiet title action naming the parties whose interest Ultra claimed clouded the title. Upon filing a motion for judgment on the pleadings, Jones Day obtained an order that NCL had clear title to the leasehold interest.
NCL Appalachian Partners, L.P. v. Anadarko E&P Company, LLP, Mitsui E&P USA LLC, Union Bank, N.A. and Ultra Resources, Inc., No. 2010-1482 CD (Clearfield County (Pa.) Common Pleas Court)