The formation of an Ohio commission responsible for developing rules for leasing park and forest mineral rights has been delayed for more than a year. A state law designated a November 2011 deadline for Governor Kasich to appoint the five-member Oil and Gas Leasing Commission to facilitate the leasing of state-owned mineral rights to the highest bidders. The commission was to draft rules for leasing by June of 2012. The governor’s office says the delay was necessary to find good commissioners and that an announcement would be made soon. A recent analysis indicates that state-held mineral rights could fetch up to $183 million in lease-signing bonuses.
WJAC-TV in Johnstown is reporting that the Jefferson County Pennsylvania Commissioners recently drafted and then approved a resolution opposing underground disposal injection wells. Although there are currently no plans for an injection well in Jefferson County, the resolution came about after two oil and gas companies applied for permits for injection wells in nearby Clearfield and Elk counties. Commissioner Jeffrey Pisarcik told WJAC-TV that the commissioners decided to pursue a resolution rather than an ordinance because the latter could potentially lead to a lawsuit if it precluded a company from applying for a permit. The resolution does not prohibit companies from seeking a permit.
At its December 20, 2012, public meeting, the Pennsylvania Public Utility Commission (PUC) clarified sections of its implementation of Chapter 23 (“Unconventional Gas Well Fee”) of Act 13 of 2012 (Act 13) in response to a Petition for Amendment and Clarification of the PUC’s Implementation Order pertaining to Act 13. By a vote of 5-0, the PUC ordered that setting a conductor pipe constitutes “spudding” for purposes of triggering the well impact fee, that the impact fee for a plugged well ceases for the calendar year following the plugging of the well, and that the approved budget reports for local governments receiving impact fee payments must be filed with the PUC on or before March 31 each year (with budget reports for both 2011 and 2012 due to the PUC by March 31, 2012). Additionally, the PUC addressed in its Order the assessment of impact fees for wells that are reclassified from horizontal wells to vertical wells, as well as addressed the issue of which producer is responsible for payment of an impact fee when the interest in a well is transferred from one producer to another producer.
On Oct. 1, the Yellow Springs Village Council voted 3-2 to adopt a Community Bill of Rights ordinance banning shale gas drilling and related activities in the village. Yellow Springs is the first municipality in the state of Ohio to enact a local Bill of Rights and protect those rights by prohibiting shale gas drilling and fracing and the ensuing injection wells. However, such ordinance may not be enforceable and could face a court challenge since the local legislation would be preempted by state law under Ohio Rev. Code 1509.03. Continue reading…