OPINION BY PANELLA, J.:
Arthur Katzin appeals from the order entered December 10, 2010, by the Honorable Maureen T. Beirne, Bradford County Court of Common Pleas, that granted judgment on the pleadings to Central Appalachia Petroleum and Chesapeake Appalachia, LLC, on Katzin's action for declaratory judgment. After careful review, we affirm.
The facts underlying this dispute are largely uncontested. Katzin is the owner of land subject to an oil and gas lease that was granted in favor of Central Appalachia Petroleum, which subsequently assigned the lease to Chesapeake Appalachia, LLC. According to the terms of the lease, Katzin is entitled to receive royalties in the following manner:
Lease, 2/13/2002. Katzin seeks to invalidate the lease under the Pennsylvania Guaranteed Minimum Royalty Act ("PGMRA"), which states that an oil or gas lease "shall not be valid if such lease does not guarantee the lessor at least one-eighth royalty of all" oil or natural gas. 58 PA.STAT. § 33.
Pursuant to his desire to invalidate the lease, Katzin filed a complaint for declaratory judgment on the Court of Common Pleas of Bradford County.
On appeal, Katzin raises as his single issue the question of whether the trial court erred in holding that the instant lease complies with the mandates of the PGMRA. In reviewing a trial court's grant of a motion for judgment on the pleadings, our scope of review is plenary. See Vetter v. Fun Footwear Co., 447 Pa.Super. 84, 668 A.2d 529, 531 (1995) (en banc).
Pennsylvania Financial Responsibility Assigned Claims Plan v. English, 541 Pa. 424, 428-429, 664 A.2d 84, 86 (1995).
Katzin concedes that Kilmer allows for the deduction of certain post-production costs from the royalty paid to lessors under the PGMRA. In an attempt to distinguish Kilmer from the instant appeal, Katzin argues that the lease at issue is vague regarding what costs may be deducted from the royalty paid by Central Appalachia and is therefore not compliant with the PGMRA. While this argument is certainly creative, we hold that it is not meritorious.
In essence, Katzin contends that Central Appalachia might pay less than the royalty guaranteed under the PGMRA as the lease is vague regarding allowable deductions. However, Pennsylvania courts have long held that
Daniel B. Van Campen Corp. v. Building and Const. Trades Council of Philadelphia and Vicinity, 202 Pa.Super. 118, 195 A.2d 134, 136-137 (1963). The lease between Katzin and Central Appalachia Petroleum clearly indicates that the parties intended to comply with the mandates of the PGMRA, since it provides for a one-eighth royalty to Katzin. In construing the lease, we must therefore imply a promise by Central Appalachia, and therefore its assignees such as Chesapeake Appalachia, LLC, to comply with the mandates of the PGMRA.
It may very well be that Chesapeake Appalachia, LLC's payments under the lease do not satisfy the requirements of the PGMRA. But that is a matter for a breach of contract action based upon a breach of this implied promise. We therefore affirm the order granting judgment on the pleadings to Central Appalachia Petroleum and Chesapeake Appalachia, LLC.
Order affirmed. Jurisdiction relinquished.