Cases & Deals

NCL Appalachian Partners obtains dismissal of landowners' claim for breach of implied duty to develop

Client(s) NCL Appalachian Partners, L.P.

Jones Day represented NCL Appalachian Partners, L.P. ("NCL"), an oil and gas developer, in a quiet title action brought by landowners alleging a breach of an implied duty to further develop the leasehold premises. The landowners contended that they mineral lease should be terminated because NCL has not drilled on the leasehold premises. NCL had drilled and operated, however, on adjacent pooled and unitized property pursuant to the terms of the lease. Jones Day filed preliminary objections to dismiss the landowners' quiet title action based on the express terms of the lease that provides for the term of the lease to be extended when there is production on pooled or unitized property. The landowners subsequently discontinued the action.

Cole v. Amoco Production Company (now BP Amoco) and NCL Appalachian Partners, LP, No. 33-2013-CD, (Ct. C.P. Jefferson Cty., Pa.)