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T.W. PHILLIPS GAS AND OIL CO. v. JEDLICKA

No. 19 WAP 2009

42 A.3d 261 (2012)

T.W. PHILLIPS GAS AND OIL CO. and PC Exploration, Inc., Appellees v. Ann JEDLICKA, Appellant.

Supreme Court of Pennsylvania.

Decided March 26, 2012.

Attorney(s) appearing for the Case

William Shaw Stickman, IV , Del Sole Cavanaugh Stroyd, L.L.C., Pittsburgh, for Ann Jedlicka.

Walter A. Bunt, Jr. , Pittsburgh, Michael James Ross , K&L Gates, LLP, for PC Exploration Inc.

Michael S. Delaney , Michael S. Delaney Law Office, Indiana, for T.W. Phillips Gas and Oil Company.

David Glenn Oberdick , Stacey Marie Noble , Meyer, Unkovic & Scott, L.L.P., Pittsburgh, for Appellee Amicus Curiae, Pennsylvania Oil and Gas Association & the Independent Oil and Gas Association of Pennsylvania,

BEFORE: CASTILLE, C.J., SAYLOR, EAKIN, BAER, TODD, McCAFFERY, JJ.

OPINION

Justice TODD.

This Court granted allowance of appeal in the instant case to determine the proper test for evaluating whether an oil or gas lease has produced "in paying quantities," as first discussed by this Court in Young v. Forest Oil Co., 194 Pa. 243, 45 A. 121 (1899). After careful consideration, we hold that, where, as here, production on a well has been marginal or sporadic, such that for some period profits did not exceed operating...

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