Written by:
Chloe Marie – Research Specialist
Jackie Schweichler – Staff Attorney
Chloe Marie – Research Specialist
Jackie Schweichler – Staff Attorney
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
Production and Operation:
Pennsylvania Legislature Passes Bill Allowing Horizontal Cross-Tract Drilling
On October 30, 2019, the
Pennsylvania legislature passed Senate Bill No. 694, which would amend the Oil and Gas Lease Act
and authorize operators to drill horizontal wellbores across multiple leased
tracts. This law would apply only where the operator has a lease with the
landowner of each tract, and the operator is required to allocate production
among the various landowners. SB 694 has been presented to Governor Tom
Wolf but has not yet been signed. If signed, SB 694 would become
effective sixty days from enactment.
Pipelines: Landowners
Request FERC to Enjoin Construction of Spire Pipeline
On October 21, 2019, a
group of landowners known as the Impacted Spire Landowners filed a complaint
before the Federal Energy Regulatory Commission against Spire STL Pipeline,
LLC, challenging the construction of the Spire Pipeline. The Spire
Pipeline is a 65-mile steel underground pipeline project that would connect
with the existing Rockies Express Pipeline located in Scott County,
Illinois. The pipeline is designed to
transport natural gas through the counties of Scott, Greene and Jersey in
Illinois and the counties of St. Charles and St. Louis in Missouri. In
this case, plaintiffs allege that the company violated FERC’s certificate to
construct and operate the Spire Pipeline and that these violations have led to
“irreversible mixing of topsoil with subsoils, contamination of water supply,
and flooding and erosion outside the limits of the pipeline easement, resulting
in millions of dollars of damage to landowners.” Plaintiffs asked FERC to
halt construction of the project until environmental remediations have been
completed and the matter has been resolved.
Royalties: Mineral
Owners File a Class Action Lawsuit Against Oil & Gas Company for Royalty
Payments Disagreement
On October 18, 2019, mineral
rights owners in Columbiana and Carroll Counties, Ohio, filed a class action
lawsuit in the U.S. District Court for the Northern District of Ohio against
EAP Ohio, LLC, (EAP) seeking damages for alleged breach of royalty clauses in
their oil and gas leases (Zehentbauer Family Land LP et al. v. EAP Ohio, LLC
et al., No. 4:19-cv-02434). Plaintiffs argued that EAP has
consistently deducted post-production costs when calculating royalties, despite
being barred in writing from doing so in their individual leases.
Plaintiffs claim that it is plainly stated in the lease that only imposed
taxes/fees from the government can be withheld from the royalties.
Production and Operation:
Study Reports that Increase in U.S. Natural Gas Production Led to $1.1 Trillion
in Natural Gas Savings from 2008 to 2018
On October 21, 2019, the
Ohio Oil & Gas Energy Education Program published a study entitled Natural Gas Savings to End-Users: 2008-2018, A
Technical Briefing Paper. Researchers found that U.S. natural gas consumers saved
about $1.1 trillion over the last decade in natural gas expenses, averaging
about $4,000 per household. According to the study, these savings are
largely due to an increase in natural gas production, and especially due to
horizontal drilling, which mostly took place in the states of Pennsylvania,
Ohio and West Virginia. The study suggests that natural gas production
from these states accounts for 85% of the natural gas production growth in the
United States from 2008 to 2018.
From the National Oil & Gas Law Experts:
National Legislation
Environmental Protection Agency
Pennsylvania Legislation
Senate Bill 694: bill would allow well bores to cross multiple
units (Presented to Governor; Oct. 30, 2019)
Pennsylvania Actions and Notices
Department of Environmental Protection
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Frackers Scrap Idled Equipment Amid Shale Drilling Downturn,” Rigzone
“Oil: Keystone pipeline leaks in N.D.,” Energy Wire
“U.S. natgas glut dims outlook for big producers as prices head to 25-year low,” Reuters
“BLM: ‘Negligible’ impacts from central Calif. fracking,” Greenwire
“Natural-Gas Prices Jump as Producers Promise Restraint,” The Wall Street Journal
“Lawsuit claims Encino underpaid landowners at least $5M for royalties,” Shale Gas Reporter
“Increased natural gas production saves users nearly $93B in Ohio, Pa. and W. Va,” Shale Gas Reporter
“Natural Gas: Appeals court hears dispute over pipeline compressor station,” Energy Wire
Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.
“Frackers Scrap Idled Equipment Amid Shale Drilling Downturn,” Rigzone
“Oil: Keystone pipeline leaks in N.D.,” Energy Wire
“U.S. natgas glut dims outlook for big producers as prices head to 25-year low,” Reuters
“BLM: ‘Negligible’ impacts from central Calif. fracking,” Greenwire
“Natural-Gas Prices Jump as Producers Promise Restraint,” The Wall Street Journal
“Lawsuit claims Encino underpaid landowners at least $5M for royalties,” Shale Gas Reporter
“Increased natural gas production saves users nearly $93B in Ohio, Pa. and W. Va,” Shale Gas Reporter
“Natural Gas: Appeals court hears dispute over pipeline compressor station,” Energy Wire
Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.
Want to get updates, but prefer to listen? Check out the Shale Law Podcast! We can always be found on our Libsyn page,
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Check out the October Agricultural
Law Brief! Each month we compile the most significant legal developments in
agriculture. If you’d like to receive this update via email, check
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