OPINION BY STRASSBURGER, J.:
Marilyn Y. Sullivan, Russell W. Rees, and Paul F. Rees (Appellants) appeal from the order entered on May 21, 2014, which granted summary judgment in favor of Evelyn H. Bastian (Bastian) and against them.
This case involves oil, gas, and mineral rights (OGMs) for the subsurface estates of several parcels of property located in Potter County, Pennsylvania. The following facts are uncontested.
In 1921, Henry Wolz acquired three parcels of real estate in Potter County. In 1951, after the death of his wife, Henry Wolz conveyed these three parcels to Birdella R. Haskins. On July 20, 1951, Haskins conveyed these three parcels to Henry Wolz, Carlton H. Wolz, and Eva Wolz Hunt as joint tenants with the right of survivorship (JTWROS). After the death of Henry Wolz, 39.5 acres of this land were conveyed by Carlton H. Wolz and Eva Wolz Hunt, and each of their spouses, to Joseph W. Sykora. That deed contained the following language with respect to subsurface estate: "EXCEPTING AND RESERVING, nevertheless, all of the oil, gas and minerals in, on or under said property together with the necessary and convenient rights of entry and re-entry for the purposes of recovering the same." Deed from Carlton Wolz and Eva Wolz Hunt to Sykora, 7/29/1954.
On May 14, 1955, Eva Wolz Hunt and her husband conveyed three parcels of land, approximately 12 acres, to Carlton Wolz and his wife. That deed contained the following language with respect to the subsurface estate:
Deed, 5/14/1955.
On March 26, 1955, Carlton Wolz and Eva Wolz Hunt, along with their spouses, conveyed 25.3 acres of the original Henry Wolz property to Theodore Menken and Clara Menken. That deed contained the following language with respect to the subsurface estate:
Deed, 3/26/1955.
Carlton Wolz died on March 10, 1959; Eva Wolz Hunt died on January 6, 1985; and, Carlton's wife, Marguerite Wolz, died on June 7, 1985. Bastian is the heir of Eva Wolz Hunt and claims title to the subsurface estate for the entire original Henry Wolz property. Appellants are the heirs of Marguerite Wolz and claim title to the subsurface estate for fifty percent of that property.
On August 7, 2006, Appellants entered into an oil and gas lease for that half interest with Anadarko E & P Company, LP (Anadarko). That lease provided, inter alia, that the lessor had "full title to the premises and to all the oil and gas therein at the time of granting this Lease." Lease, 8/7/2006, at 4. On August 30, 2011, Bastian leased 100 percent of the oil and gas in the subsurface estate to Victory Energy Corporation (Victory).
On May 10, 2013, Bastian filed a complaint against Appellants with counts for declaratory judgment, quiet title, and special injunctive relief. On June 26, 2013, Appellants filed an answer, new matter, and counterclaim, asserting counts for quiet title and declaratory judgment. After the close of pleadings, on December 19, 2013, Bastian filed a motion for summary judgment. Appellants filed a cross-motion for summary judgment on January 10, 2014. The trial court heard argument on these motions, and on May 21, 2014, the trial court granted Bastian's motion for summary judgment and declared Bastian the exclusive owner of the subsurface estate on the property. The trial court denied Appellants' motion for summary judgment.
Appellants timely filed a notice of appeal, and both Appellants and the trial court complied with Pa.R.A.P. 1925. Appellants set forth the following questions for our review.
Appellants' Brief at 2.
We first consider Appellants' indispensable party issue as it implicates this Court's jurisdiction. The trial court concluded that this issue was waived, "as it was not previously raised before" the trial court. Trial Court Opinion, 7/17/2014, at 2.
Because the question of whether a court has subject matter jurisdiction is a
Our Supreme Court has previously determined:
Sprague v. Casey, 520 Pa. 38, 550 A.2d 184, 189 (1988) (internal citations omitted).
The determination of an indispensable party question involves the following considerations:
Mechanicsburg Area School District v. Kline, 494 Pa. 476, 431 A.2d 953, 956 (1981).
Appellants argue that both Victory and Anadarko are indispensable parties to this action because their leases would be affected by the outcome of this case. "It was certain that any judgment entered on the [motions for summary judgment] would either declare Anadarko's lease void or reduce Victory's lease by half." Appellants' Brief at 10. Bastian responds that the crux of the aforementioned test is "whether or not the rights of the other party are `essential' to the merits of the case." Bastian's Brief at 4. Bastian contends that the "lessee gas companies have no direct essential interest with regard to title so as to prevent justice from being effectuated among the litigants." Id. at 6.
With respect to the aforementioned test, there is no question that both Victory and Anadarko have a "right or interest related to the claim." Mechanicsburg, 431 A.2d at 956. We agree with Bastian, though, that the key issue to resolve is whether that right is "essential to the merits" of the case. Id. If Appellants did not own half of the subsurface estate, then they could not lease it to Anadarko. Similarly, if Bastian did not own the whole subsurface estate, but only owned half, she could only lease half to Victory. Neither
We now turn to the merits of this case. Appellants set forth a series of arguments as to how the trial court erred in interpreting the deeds at issue. We consider Appellants' issues mindful of our well-settled review of orders granting summary judgment.
Ralston v. Ralston, 55 A.3d 736, 739 (Pa.Super.2012) (internal quotations and citations omitted).
We first point out that "Pennsylvania recognizes three discrete estates in land: the surface estate, the mineral [or subsurface] estate, and the right to subjacent (surface) support. Because these estates are severable, different owners may hold title to separate and distinct estates in the same land." Pennsylvania Servs. Corp. v. Texas E. Transmission, LP, 98 A.3d 624, 629 (Pa.Super.2014) (citations omitted). The trial court defined the issue in this case as "whether the subsequent conveyances of the surface estates extinguished subsurface survivorship rights held by Carlton Wolz and Eva Wolz Hunt following the death of Henry Wolz." Trial Court Opinion, 5/21/2014, at 7. The trial court went onto analyze these conveyances.
Id. at 7-8 (footnote omitted).
Appellants contend that the "JTWROS was severed by the joint act of
In re Estate of Quick, 588 Pa. 485, 905 A.2d 471, 474-75 (2006) (citations and quotations omitted).
The issue here is whether the inclusion of the spouses as grantors on a deed transferring a portion of the
Appellants next contend that the clauses which excepted and reserved rights to the OGMs in the subsurface estate in and of themselves severed the JTWROS, because they contain "no provision
Ralston, 55 A.3d at 741-42 (citations omitted).
In other words, the issue of survivorship turns on whether the clause involves an exception or a reservation. Coal, oil, timber, gas, and minerals are all corporeal things already in existence; thus, they squarely meet the requirements to be an exception, rather than a reservation. See Ralston, 55 A.3d at 742 ("[P]aragraph 1 speaks to coal, oil, timber, gas and minerals. These are things that are corporeal, and in existence prior to the deed. Paragraph 1 did not create a new right. Therefore, paragraph 1 created an exception."). Thus, we agree with the trial court that "the excepting and reservation language as to the [OGMs] constituted an exception as to the subsurface estate and as such, retained the nature of the estate as it was granted, namely a [JTWROS]." Trial Court Opinion, 5/21/2014, at 8. Accordingly, Appellants are not entitled to relief.
Having concluded that the proper parties were present in this case to litigate a dispute in title; that transfers of the surface estate did not impact the subsurface estate; and, the clause in the deed created an exception, rather than a reservation, we affirm the order of the trial court.
Order affirmed.
42 P.S. § 7250(a). Appellants' Brief at 10. However, looking to the substance of both the complaint and counterclaim, the count for declaratory judgment does not state any specific averments not contained already in the quiet title count. Accordingly, we analyze this issue as a quiet title action only.