September 25, 2014
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In This Issue
Save the Date
Hilcorp Drops Forced Pooling Request
Rig Tour
Operating on State Lands
Re-thinking Community Relationships

Save the Date!  


On Dec. 3 Jess will be part of a PBI panel on Advanced Mineral Title Examination for Attorneys.  Come join us! Or sign up for the Live Webcast on Dec. 17. 
Hilcorp Drops Forced Pooling Request  

Hilcorp announced on Aug. 29 they would withdraw their request for forced pooling for several properties in Lawrence County, PA. See our prior coverage in this issue here and here.
Rig Tour   
 
Nomac 79 Rig

Our sincere thanks to Noble Energy, MLBC and Nomac Drilling for a tremendously engaging tour of the Nomac 79 Rig in Moundsville, WV. We appreciated the opportunity to get out of the office and see American energy in action!   
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Greetings!

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Pa. DCNR Outlines Proposals for Operations on State Lands 

 

     

In May of this year Gov. Tom Corbett lifted a four-year ban on new subsurface oil and gas leases in state forests and parks. However, that Order still bars any "additional surface disturbance on state forest or state park lands."

DCNR recently outlined proposed rules to define what constitutes a "surface disturbance." In sum, expansion or construction of roads and the installation of surface equipment, such as pipelines and compressor stations, would not be allowed; but short-term disruptions, such as seismic surveys, would be permitted as long as the effects of such activities can be remediated.

New leases with the Commonwealth, however, may not be quick in coming. In July, the Commonwealth agreed not to enter into any leases until a dispositive Order is issued in a lawsuit by the Pennsylvania Environmental Defense Fund currently pending before the Commonwealth Court. 

Re-thinking Community Relationships         

 

One of the toughest challenges an E&P company can face in today's news-hungry climate is a PR crisis. As reported here, negative publicity is extremely detrimental to producers and their bottom line. Companies must, therefore, be
proactive, developing an integrated media strategy and communications protocol to "control the message," establishing strong local and landowner relationships before activists and anti-drilling forces gain a foothold.  

Some tips:  
  • Be transparent whenever possible
  • Engage impacted residents - create realistic expectations
  • Build a corporate culture of respect for local residents
  • Create an "Upside" for impacted non-Lessor residents
  • Work with (and get to know) local government & EMS
  • Know local media outlets; "get your story out"
  • Take responsibility when warranted

Drilling is, by its nature, an industrial activity on largely residential land. There will always be inherent use conflicts, but a smart strategy of engagement can greatly modulate the fallout (both legal and non-legal) from those conflicts.