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Marcellus Shale Fees & Pooling Suggested from Advisory Panel

by Kenneth E. DuBose on July 18, 2011

The Marcellus Shale Advisory Commission is expected to bring forth as many as 100 recommendations for oil & gas activity in Pennsylvania and the Marcellus Shale. The two main issues and recommendations will revolve around a drilling fee or a production fee that will be paid to help fund the regulation of the industry. The panel also recommends tackling the issue of pooling and forced pooling. Pooling laws are often needed to ensure efficient production of oil & gas reservoirs. Oil & gas pooling laws in other states often require a certain percentage of the proposed drilling unit to be leased before an operator can go forward with operations.

The panel was banned from considering or discussing a severance tax.

“Gov. Tom Corbett will receive a report approved Friday by his commission on Pennsylvania’s booming natural gas industry that recommends a range of ways the state can help the industry find new customers, as well as a requirement that the industry help government pay for the cost to regulate it and fix the damage it causes to the environment.”"The 30-member Marcellus Shale Advisory Commission also on Friday approved a recommendation that state law be changed to subject the gas reservoir to “pooling” — a provision on the books in some states that can be used to force holdout landowners to lease their below-ground gas rights under certain conditions.”

Read the full news release at WSJ.com

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