Conservancy wants mineral rights affirmed

By Terrie Morgan-Besecker tmorgan@timesleader.comLaw & Order Reporter

SCRANTON -- The Earth Conservancy has filed a federal court action that asks a judge to declare it is the owner of the mineral rights to land it purchased through bankruptcy court proceedings involving the former Blue Coal and Glen Nan coal companies.

The petition, filed Monday by attorney Thomas J. MacNeely, says a dispute has developed between the Earth Conservancy and the coal companies over whether the mineral rights were included as part of the Conservancy’s purchase of coal company lands that was finalized by the bankruptcy court in 1994.

The Earth Conservancy, a non-profit organization, purchased land owned by the Blue Coal and Glen Nan coal companies, which filed for bankruptcy in 1976 and 1978, respectively. The sales agreement specifically stated that the sale included oil, gas and mineral rights, according to the petition filed by MacNeely.

A dispute over ownership of the mineral rights developed in May 2008, when William W. Thomas of the Thomas Company sought to purchase certain oil and gas rights that were purportedly owned by Blue Coal and Glen Nan, according to the petition.

Thomas sought to purchase the rights for an up-front cash payment and a percentage of lease payments over a 24-month period, the petition states. The petition does not identify the purchase price.

Thomas filed a petition with the bankruptcy court. The Earth Conservancy then filed a response, claiming the Conservancy owns the rights, therefore the bankruptcy court does not have jurisdiction.

MacNeely’s petition asks a judge to review the agreement of sale and issue a legal determination declaring it to be the owner of the mineral rights.

Terrie Morgan Besecker, a staff writer for The Times Leader, may be reached at 829-7179.