Shale-Gas Case Ringing Alarms in State-Level Mineral-Rights Law

The unexpected earthquake that rocked the Eastern Seaboard recently was not the only seismic shock the region has endured in recent months. A different kind of tremor was also felt, most keenly by those involved in the energy industry in that general area. The presence of an enormous volume of potentially recoverable gas in the eastern US has a great economic significance. This will be some of the closest natural gas to the high population areas of New Jersey, New York, and New England. In Kalberer v. Grassham, a Kentucky state court ruled that a conveyance of all minerals of every kind and character, with only natural gas and coal oil being specifically exempted, included the conveyance of sandstone quarry, in the absence of any other qualifications or restrictions in the subject deed. A great deal of law, to be sure, and so long-standing as to in all likelihood be beyond question.