Pennsylvania passes Act 27, overturning court ruling on $1 billion mineral rights

In a hurried legislative session, Pennsylvania passed Act 27, effectively undoing a unanimous state Supreme Court decision that had affirmed the Proctor family trust’s mineral-rights claim on land beneath state game property. The law, signed by Governor Josh Shapiro on July 12, is projected to impact as many as 1 million acres of state parks and forests, potentially altering the roughly $100 million in royalties that support the Game Commission and the Department of Conservation and Natural Resources.

Industry supporters, including drilling company EQT and the Marcellus Shale Coalition, argued the prior ruling created legal uncertainty for oil and gas leaseholders. Critics, led by Sherman Powell of the Proctor trust, denounced the measure as a back-door transfer of private property rights to the government and private interests. State Senator Gene Yaw, a known ally of the gas sector, highlighted that the ruling could affect every parcel in the affected region.

The Proctor trust’s legal team, citing constitutional concerns, plans to challenge the act, while the Commonwealth Court judge noted the legislative process appeared unusually swift. The Game Commission has since dropped a related lawsuit, citing the new law’s effect on its case.