Drilling
Shale Law Weekly Review – April 27, 2020
Production and Operation: Oklahoma Corporation Commission Approves Emergency Order Allowing Oil Producers to Shut-in Wells in Response to COVID-19
On April 22, 2020, the Oklahoma Corporation Commission announced approval of an emergency order allowing oil producers to shut-in or reduce production of oil wells for the prevention of waste. The order was approved in response to a request from LPD Energy Company LLC seeking to prevent waste by stopping or reducing oil production without impacting the company’s lease agreement. The request stated that due to a decline in demand and oversupply from COVID-19 circumstances, LPD is losing $200,000 per month by producing “economically […]
Shale Law Weekly Review – November 19, 2019
State Regulation: Pennsylvania Governor Signs Bill Allowing Horizontal Cross Unit Drilling
On November 7, 2019, Pennsylvania Governor Tom Wolf signed a new law which amends the Oil and Gas Lease Act and authorizes operators to drill horizontally across multiple units. This law would apply only where the operator has a lease with the landowner of each tract, and the operator is required to allocate production among the various landowners. The new law does not allow drilling where the lease terms specifically prohibit cross unit drilling. This law will be codified as section 2.2 of the Oil and Gas Lease Act. Previously, in […]
Shale Law Weekly Review – September 17, 2019
Pipelines: Circuit Court Rules PennEast Pipeline Cannot Move Forward on Condemnation Lawsuit Against New Jersey
On September 10, 2019, the U.S. Court of Appeals for the Third Circuit ruled PennEast Pipeline Company (PennEast) was barred by the Eleventh Amendment from bringing a suit against New Jersey to obtain property under eminent domain (In re: PennEast Pipeline Company, LLC, No. 19-1191). PennEast was granted approval for their pipeline project which required access to several properties owned by the state of New Jersey. PennEast filed suit under § 717f(h) of the Natural Gas Act (NGA), which allows the “necessary right-of-way” […]
