Shale Energy Law Blog
Articles, News and Regulatory Information on Shale Energy Law from Babst Calland
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Our Shale Energy Law Blog provides timely legal and business information on issues impacting the energy industry and specifically natural gas development, as well as articles published by the attorneys of Babst Calland.
Tagged: Oil and gas, SB 576, Severance tax, West Virginia
Tagged: Air, Air quality, EPA, White House
Tagged: Land and Leasing, Litigation, Ohio
- The percentage of cotenant mineral ownership interests needed to consent to mineral development is increased from two-thirds to three-fourths.
- Non-consenting mineral owners are still entitled to production royalties free of post-production expenses, but they are also entitled to a bonus payment calculated as “equal to the average amount paid to such consenting cotenants calculated on net mineral acre basis.”
- Non-consenting mineral owners may forgo receiving a production royalty payment by electing to obtain a “revenue share” in development, which allows the non-consenting mineral interest holders to essentially obtain a working interest in the production activities on the tract.
- If any property subject to mineral development under this statute has a non-consenting mineral interest owner, the surface of that property may not be disturbed for that development without the consent of the surface owner, unless such disturbance is permitted through a prior surface use agreement or is otherwise permitted by a “valid contractual arrangement.”
- “Joint development” is still permitted for multiple contiguous oil and gas leases, but the “operator” must pay surface owners damages available under W. Va. Code §22-6B-3, all damages permissible under common law, and $30,000 for “each well pad constructed by the operator which results in damage to that surface owner’s property.”
- “In the absence of specific language to the contrary, the royalty for all royalty owners of acreage jointly developed . . . shall not be reduced for post-production expenses incurred by the operator.” This provision, however, is not “intended to impact royalties due for wells drilled prior to the effective date of this chapter.”
- Consenting cotenants (or the operators) are subject to detailed reporting requirements that includes the amount of oil or natural gas produced and sale information, including price, for that oil and natural gas.
- Detailed guidelines for the payment of royalties are added, which include a requirement that royalties must be paid once the royalties due exceed $100, payment must be made within 180 days from the date that the sale of mineral is realized, and regardless of the amount of royalty due, payment must be made at least once a year.
Tagged: Oil and gas, Royalties, West Virginia, joint development, mineral owner
Tagged: NPMS, PHMSA, Pipeline
Tagged: Land and Leasing, Oil and gas, Pennsylvania
Tagged: Appalachian Basin, Energy law, Land and Leasing, Legislation, Marcellus Shale, Natural gas, Oil and gas, Oil and gas drilling, West Virginia
Tagged: Air quality, EPA, Methane, U.S. EPA
Tagged: Air quality, General permit, PADEP, Permitting
Tagged: Legislation, Natural gas, West Virginia