Tom and Betty Smart have lived on the same 100 acre farm in rural Pennsylvania f
ID: 349847 • Letter: T
Question
Tom and Betty Smart have lived on the same 100 acre farm in rural Pennsylvania for 60 years. In fact, the farm has been in the family for over 125 years. An oil and gas company recently surveyed over 1000 acres in this rural area of Pennsylvania and determined that the area was ideal for “fracking”. Fracking is a process where a company drills into the ground at high pressure in an effort to obtain some type of oil from the shale rocks buried below the surface. Pennsylvania as a state was in economic downturn so its legislature passed a state law providing oil and gas companies the legal right to force landowners to sell their land so that the oil and gas company could “frack”. The Smarts do not want to sell their property to anyone for any price.
1) Discuss the Smart’s legal position should they want to fight the state from "forcing them" to sell their land. Include in your discussion what legal cause of action ( if any) the Smarts have against Pennsylvania. What legal right does Pennsylvania have to force the Smarts to sell their land.
2) Include the relevant law that is applicable.
3) Discuss the legal relief (if any) the Smarts will be able to request.
Explanation / Answer
Once it is finalized by a state law which provides oil and gas companies the legal right to force landowners to sell their land so that the oil and gas company could “frack” there is very little the holdout owners can do, besides sign a lease or accept whatever price the court decides the minerals are worth. Here the partition lawsuit is followed where it is best for smarts not fighting with the company and losing out on the money that can be made from gas royalties. For any of the owners, the decision between selling out and leasing can be difficult, but for people who object to drilling for conscientious reasons, like environmental or human-health concerns, there could be no choice.
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