Mineral Deeds: 'All Coal'; Surrounding Circumstances

摘要

In 1924 and 1926 landowners convey "all coal. . . together with the right to mine and remove same" to Central Natural Resources, Inc. In 2004 two oil and gas developers obtain oil and gas leases from the landowners, drill into the coal seams beneath their land, and begin producing methane gas from the coal. When Central discovers that its coal has been entered without its authorization, it brings suit for trespass, conversion, and to quiet title to its coal and the methane gas within its coal. The trial court holds that Central did not own the methane within the coal and the parties were permitted to pursue an interlocutory appeal focusing solely on the methane ownership issue. Held: Affirmed. The Kansas Supreme Court holds that the conveyance of "coal" does not encompass methane within the coal. Noting that methane was viewed as a hazardous waste material at the time of the conveyances, the Court finds it would be unreasonable to think the coal owner intended to obtain rights to the methane within the coal. This position is also supported by the observation that "coal" and "gas" are two distinct substances that can be conveyed separately.