Help with Pennsylvania Closing - Title commitment Coal Rights

[Ray Slack]

I'm buying my first property in PA  (40 acre campground) and the title commitment contains the language below

in the exclusions. Does this mean someone with prior coal rights can just come in and mine the coal under my 40 acres and destroy my campground in the process? Is this standard in PA title exceptions?  

Any help from my PA bigger pockets family much appreciated.

Ray

(Cut from Title Commitment Schedule B-II exceptions)

11. Coal and coal bed methane gas and mining rights and all rights incident to the extraction or development of coal or coal bed

methane gas heretofore conveyed, excepted and reserved by instruments of record; the right of surface, lateral or subjacent support;

or any surface subsidence.

12. NOTICE: THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE THE TITLE TO THE COAL AND

RIGHT OF SUPPORT UNDERNEATH THE SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR

OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL RIGHT TO REMOVE ALL OF SUCH COAL AND, IN THAT

CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDING OR OTHER

STRUCTURE ON OR IN SUCH LAND. THE INCLUSION OF THIS NOTICE DOES NOT ENLARGE, RESTRICT OR MODIFY ANY

LEGAL RIGHTS OR ESTATES OTHERWISE CREATED, TRANSFERRED, EXCEPTED OR RESERVED BY THIS INSTRUMENT.

Note: This Notice is set forth in 52 P.S. 1551, as amended, and is not intended as notice of unrecorded instruments, if any.

[Chris K.]

@Ray Slack

That's a very common, boilerplate exception. Note that this is a title policy exception. It doesn't really say anything about whether someone else owns the mineral rights to your campground. You will need to review the chain of title to make that determination. 

If someone else owns the mineral rights, then it is possibility that they can later come and try to develop the underlying mineral. Assuming the holder can get all the required permits, you cannot prevent them from getting reasonable access for development and production. At that point, you should hire a lawyer to review your rights. 

In most situations, the chances of an oil and gas company actually trying to drill on your property is fairly minimal. This is especially true nowadays where drilling activities are minimal. But with a campground, drilling is a real possibility later down the line. So if you are not sure, I would ask your counsel to review it just to make sure. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.