October 2013
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In This Issue
Facts on Marcellus Shale
Natural Gas Price Forecast
Quotable Quote
Forced Pooling in Pa.
Royalties on Flared Gas?
2013 WEN

Lindhome & Songster, P.C.


Facts on Marcellus Shale

Natural Gas Price Forecast

Did You Know... 


- Since the first commercial oil well was drilled in Pennsylvania in 1859, it is estimated that 325,000 oil and gas wells have been drilled in the state

Quotable Quote:


"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur."  --Red Adair

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As the weather grows colder and we keep our fingers crossed for a bump in natural gas prices, we are following a number of interesting legal issues:

Keeping our Eye on: Forced Pooling in Pa. 


Hilcorp Energy Company first to test 1961 state law.

It is a little-known fact that Pennsylvania's 
Oil and Gas Conservation Law allows for so-called "forced pooling."  That is, the issuance of a unitization or pooling order at the request of a producer on a neighboring parcel to compel development on an unleased parcel.  The law applies to wells that penetrate the Onondaga horizon or 3,800 feet, whichever is deeper.  Making the law applicable (depending on the location) to some Utica Shale wells, but not Marcellus Shale wells (which sit above the Onondaga formation). On August 26, Hilcorp filed with the Pa. Environmental Hearing Board for a pooling order for unleased acreage in Lawrence and Mercer Counties.  An opinion and order is expected on or before November 1.  Follow the proceedings here 

North Dakota Natural Gas Producers Sued for Royalties on Flared Gas


Royalty owners have filed ten class-action lawsuits against natural gas producers: Burlington Resources Oil & Gas, Continental Resources, Crescent Point Energy, HRC Operating, Marathon Oil, Samson Resources Company, SM Energy Company, Statoil Oil & Gas LP, WPX Energy, and XTO Energy to collect unpaid royalties on the value of the gas that the producers allegedly flared from the horizontal wells over the past six years. The royalty owners allege that 30% of the natural gas produced in North Dakota is flared, which amounts to burning $100 million of natural gas a month. More

Women's Energy Network   


Jessica Songster (left) at the Women's Energy Network Retreat October 10-11; Nemacolin Woodlands Resort