Base Lease v. Top Lease. Which Controls?
Business Law Articles
By Paul R. Yagelski, Esquire
Rothman Gordon
Pittsburgh, Pennsylvania
In EQT Production Company v. Antero Resources Corp., 851 S.E. 2d 94 (W.Va. 2020), the Supreme Court of Appeals of West Virginia dealt with the issue as to whether a top lease had priority over a base lease and a subsequently recorded amendment.
Larry W. Lemasters and Linda J. Lemasters (the “Lemasters”) own 100% of the oil and gas within and underlying a certain tract of land containing 15.25 acres in Ellsworth District, Tyler County, West Virginia (the “Property”). On December 13, 2011, the Lemasters executed and entered into an oil and gas lease with PetroEdge Energy, LLC, which covered the Property. EQT was assigned the Base Lease through mesne, or intermediate conveyances (hereinafter the “EQT Base Lease” or “Base Lease”).