December 11, 2013
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In This Issue
Forced Pooling Update
Did You Know
Facts on Marcellus Shale
Quotable Quote
NY: Norse threatens to Sue
Pa. Oil and Gas Lease Act

Forced Pooling Update

Last month we told you about Hilcorp's attempt to force pool acreage in Mercer and Lawrence Counties.  In its Order last week, the Environmental Hearing Board dismissed the case for lack of jurisdiction.  See the Order here.

Did You Know... 

 

Approximately four million Americans are employed either directly or indirectly by the natural gas industry. 

Facts on Marcellus Shale

Quotable Quote:

 

"Happiness does not come from doing easy work but from the afterglow of satisfaction that comes after the achievement of a difficult task that demanded our best." --Theodore Isaac Rubin

Quick Links

 

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Penn-York Land Services

 

 
Greetings!


Thanks for taking the time to read our latest Update.  Our goal is to keep you current on legal issues facing our industry.  If there is an oil and gas law topic you would like to see addressed, please let us know!

Have a happy and safe Holiday Season!

Norse Plans to Sue over NY Fracking Delay 

  

Lindhome & Songster keeps a close watch on the fight to lift the moratorium on the issuance of drilling permits for high-volume hydraulic fracturing (HVHF) in New York state.  Here is the latest development:

  

On November 20 the bankruptcy trustee for Norse Energy Corp. USA filed an application with the U.S. Bankruptcy Court Western District of New York seeking to hire an attorney to represent Norse in a so-called Article 78 Proceeding, which seeks to compel the New York State government, or a New York government official, to "fulfill their constitutionally appointed role."

  

The Court subsequently approved the request and the opening salvo was fired on December 2 when Norse attorneys issued a letter to the New York State DEC demanding a definitive timetable for the release of the long-overdue Supplemental Generic Environmental Impact Statement ("SGEIS").  According to the letter, absent action by the DEC, the Norse Trustee intends to seek mandamus relief which, in plain English, is a Court order to compel a governmental body to take an action required by law that it has neglected or refused to take.

 

Stay tuned for further updates on this latest legal battle. 

 

Payments to Interest Owners - Complying with the Pennsylvania Oil and Gas Lease Act  

  

On September 9, the Oil and Gas Lease Act (2013 Act 66) took effect.  The new Act amends the Guaranteed Minimum Royalty Act (Act 60 of 1979).

Payments to landowners must now include the following information:
  1. A name, number, or combination of name and number that identifies the lease, property, unit, or well or wells for which payment is being made; and the county in which the lease, property or well is located.
  2. Month and year of gas production.
  3. Total barrels of crude oil or number of Mcf of gas or volume of natural gas liquids sold.
  4. Price received per barrel, Mcf, or gallon.
  5. Total amount of severance and other production taxes and other deductions permitted under the lease, with the exception of windfall profits tax.
  6. Net value of total sales from the property less taxes and deductions from paragraph (5).
  7. Interest owner's interest, expressed as a decimal or fraction, in production from paragraph (1).
  8. Interest owner's share of the total value of sales prior to deduction of taxes and deductions from paragraph (5).
  9. Interest owner's share of the sales value less the interest owner's share of taxes and deductions from paragraph (5).
  10. Contact information, including an address and telephone number.