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					             Agricultural Law Resource and Reference Center
                           Ross H. Pifer, J.D., LL.M., Director




 Current Legal Issues in
Natural Gas Development
                              Agricultural Law Resource and Reference Center




   Overview of Presentation
• Current Natural Gas Litigation
• Legislative Proposals
• Basic Pennsylvania Laws
  – Oil and Gas Act
  – Oil and Gas Conservation Law
  – Dormant Oil and Gas Act
                             Agricultural Law Resource and Reference Center




        Natural Gas Litigation
•   Lease Termination / PA Minimum Royalty Act
•   Eminent Domain
•   Environmental / Use of Surface Estate
•   Oil and Gas Act Preemption
                                 Agricultural Law Resource and Reference Center




   Lease Termination Cases
• Middle District of Pennsylvania
  – Kropa v. Cabot Oil & Gas Corp. (3/25/08)
  – Lauschle v. The Keeton Group (10/9/08)
• Western District of Pennsylvania
  – Frederick v. Range Resources (10/17/08)
• Susquehanna Co. Court of Common Pleas
  – Kilmer v. Elexco Land Services, Inc., and
    Southwestern Energy Production Co.
                              Agricultural Law Resource and Reference Center




    Lease Termination Cases
• Critical statute is 59 P.S. § 33 – Guarantee of
  Minimum Royalties

• Primary Issue – Does reduction of royalty for
  post-production costs create a problem with
  minimum royalty statute?
                              Agricultural Law Resource and Reference Center




        58 P.S. § 33 –
Guarantee of Minimum Royalties
• A lease or other such agreement conveying
  the right to remove or recover oil, natural gas
  or other designation from lessor to lessee
  shall not be valid if such lease does not
  guarantee the lessor at least one-eighth
  royalty of all oil, natural gas or gas of other
  designations removed or recovered from the
  subject real property.
                             Agricultural Law Resource and Reference Center




       Definition of Royalty
• Royalty is undefined in minimum royalty
  statute.
• “Royalty Owner” is defined in Oil and Gas
  Conservation Law.
• “Royalty Interest” is defined in Dormant Oil
  and Gas Act.
• Industry practice
                             Agricultural Law Resource and Reference Center




  Oil and Gas Conservation Law
• Royalty Owner – “. . . An owner of an interest
  in an oil and gas lease which entitles him to
  share in the production of the oil and gas
  under the lease or the proceeds therefrom
  without obligating him to pay any costs
  under the lease.”
                             Agricultural Law Resource and Reference Center




    Dormant Oil and Gas Act
• Royalty Interest – “An interest in an oil and
  gas lease which entitles the owner to share
  in the production of the oil and gas under the
  lease or proceeds from a lease without the
  obligation to pay any costs of production
  under the lease.”
                                     Agricultural Law Resource and Reference Center




 Kropa v. Cabot Oil & Gas Corp.
• Facts
  – Five year lease for $25 per acre executed on
    March 7, 2006
  – Fraudulent inducement?
     • Assertion that company “will never pay more than $25
       per acre.”
                                   Agricultural Law Resource and Reference Center




 Kropa v. Cabot Oil & Gas Corp.
• Procedural History
  –   Removed to federal court
  –   Motion to Dismiss pending
  –   Argument heard on September 16, 2008
  –   Additional briefing on integration issue
                           Agricultural Law Resource and Reference Center




 Kropa v. Cabot Oil & Gas Corp.
• Issues
  – Contract integration
  – Minimum Royalty Act
  – Appropriate remedy
                            Agricultural Law Resource and Reference Center




  Lauschle v. The Keeton Group
• Case filed by over 100 plaintiffs who own
  18,200 acres.
• Lease agreements were executed in 2005 and
  2006.
• Motion to Dismiss was filed on November 24,
  2008.
• Oral argument is scheduled for May 29, 2009.
                             Agricultural Law Resource and Reference Center




Frederick v. Range Resources
• Plaintiffs have received and continue to
  receive royalties from lease agreements in
  question.
• If plaintiffs are successful, what is
  appropriate remedy?
                                 Agricultural Law Resource and Reference Center




Kilmer v. Elexco Land Service
• Susquehanna Co. Court of Common Pleas
  – March 3, 2009 – Order ruled in favor of gas
    company
  – March 16, 2009 – Opinion
• Notice of Appeal filed with Superior Court on
  March 13, 2009
• Petition for Extraordinary Relief filed with
  Supreme Court on April 6, 2009.
                                  Agricultural Law Resource and Reference Center




  Eminent Domain Litigation
• Steckman Ridge
  – Underground storage fields in Bedford County
  – Will limit drilling into Marcellus Shale formation
  – FERC has granted certificate of public
    convenience.
  – On February 27, 2009, Steckman granted
    injunction to obtain immediate access onto
    properties.
  – Trial has been scheduled for June 15, 2009.
                               Agricultural Law Resource and Reference Center




   Environmental Litigation
• POGAM v. USFS
  – POGAM and Allegheny Forest Alliance object to
    the Revised Forest Plan issued in March 2007.
  – Plan included restrictions on OGM development
    that were not subject to public comment.
  – Remedy sought is vacation of plan and remand to
    require public comment.
                                  Agricultural Law Resource and Reference Center




    Environmental Litigation
• Forest Service Employees for Environmental
  Ethics v. USFS
  – Plaintiffs claim violations of NEPA for failure to
    require EIS or EA prior to issuance of Notices to
    Proceed.
  – Case was filed on November 20, 2008.
  – Case was settled on April 9, 2009.
                                 Agricultural Law Resource and Reference Center




    Environmental Litigation
• Duhring v. USFS
  – Plaintiff owns interest in mineral estate and seeks
    access to surface estate to develop resource.
  – Notice to Proceed contained several conditions.
  – On March 6, 2009, court dismissed some claims
    pursuant to ruling on Motion for Summary
    Judgment.
  – Trial has been scheduled for February 1, 2010.
                                Agricultural Law Resource and Reference Center




    Environmental Litigation
• Belden & Blake Corp. v. DCNR
  – Petitioner holds OGM rights beneath Oil Creek
    State Park.
  – DCNR imposed conditions for use of surface
    estate:
     • Coordination agreement
     • Performance bond
     • Double stumpage fees
                               Agricultural Law Resource and Reference Center




    Environmental Litigation
• Belden & Blake Corp. v. DCNR
  – Commonwealth Court ruled that DCNR had no
    authority to impose conditions.
  – Supreme Court heard oral argument on April 14,
    2008.
                                 Agricultural Law Resource and Reference Center




      Use of Surface Estate
• What is reasonable use?
  – Is reasonable use impacted by horizontal drilling
    techniques?
• What are options for owner of surface
  estate?
  – Object to permit
  – Surface use agreement
  – Court injunction
                                      Agricultural Law Resource and Reference Center




 Oil and Gas Act Preemption
• Supreme Court opinions
  – Borough of Oakmont
    • Restriction on oil and gas wells in R-1 zoning district
      was not preempted by Oil and Gas Act.
  – Salem Township
    • Surface and land development ordinance was preempted
      by Oil and Gas Act.
• Pending before Commonwealth Court
  – Nockamixon Township
    • Argument was held on February 23, 2009.
                                      Agricultural Law Resource and Reference Center




              Natural Gas
         Legislative Proposals
• Amendment of Clean and Green
  – Goal: Establish uniformity statewide
  – Issues:
     • Similar treatment to cell phone towers?
     • Severance of surface estate
     • Well sited on adjacent property
                           Agricultural Law Resource and Reference Center




      Legislative Proposals
• Severance tax
• County Assessment Law
• Surface owners rights
• Expand Oil and Gas Conservation Law to
  encompass Marcellus Shale
• Reporting requirements
                                          Agricultural Law Resource and Reference Center




Pennsylvania’s Oil and Gas Laws
• 58 P.S. §§ 1-701.7
  – Chapter 1: Oil and Gas Wells
  – Chapter 2: Test of Illuminating Oil
  – Chapter 5: Interstate Conservation Compact
  – Chapter 7: Oil and Gas Conservation Law
  – Chapter 8: Underground Storage Act
  – Chapter 9: Pennsylvania Used Oil Recycling Act
  – Chapter 10: Coal and Gas Resource Coordination Act
  – Chapter 11: Oil and Gas Act
  – Chapter 12: Dormant Oil and Gas Act
                                Agricultural Law Resource and Reference Center




Pennsylvania Oil and Gas Act
• Organization of Oil and Gas Act
  –   Chapter 1: Preliminary Provisions
  –   Chapter 2: General Requirements
  –   Chapter 3: Underground Gas Storage
  –   Chapter 4: Eminent Domain
  –   Chapter 5: Enforcement and Remedies
  –   Chapter 6: Miscellaneous Provisions
                                 Agricultural Law Resource and Reference Center




     Preliminary Provisions
• Declaration of Purpose – Section 102
  – Permit optimal development . . . consistent with
    protection of health, safety, environment, and
    property;
  – Protect safety of employees and facilities;
  – Protect safety and property of those near
    development; and
  – Protect natural resources
                                      Agricultural Law Resource and Reference Center




      General Requirements
• Permitting Requirements – Section 201
  – DEP permit is required prior to drilling.
  – Notice must be provided to:
     • Surface owner;
     • Surface landowner or water purveyors who have water
       supply within 1000 feet of proposed well location; and
     • Owner / operator of underlying coal seams.
                                     Agricultural Law Resource and Reference Center




      General Requirements
• Permit Objections – Section 202
  – Surface owner has right to object to permit.
  – Objection must be filed with DEP within 15 days
    of receipt of notice and plat.
     • Objection can be based upon improper location of well
       or inaccurate information in permit application.
  – Coal mine owner / operator also has 15 days to
    file objection.
                                        Agricultural Law Resource and Reference Center




         General Requirements
• Permitting Requirements – Section 201
  – DEP has 45 days to issue permit.
     • Time period can be extended for additional 15 days.
  – Permit can be rejected due to:
     •   Issuance of permit would violate law;
     •   Incomplete application;
     •   Unresolved objection from coal mine;
     •   Improper bonding;
     •   Violations on other wells.
                                  Agricultural Law Resource and Reference Center




      General Requirements
• Permitting Requirements – Section 201
  – Well must be drilled as indicated on permit
    application.
  – Permit generally expires after one year if drilling
    does not occur.
  – Permit remains in force until the well is plugged.
  – Permit cannot be transferred without DEP
    approval.
                                       Agricultural Law Resource and Reference Center




      General Requirements
• Well Locations Restrictions – Section 205
  – Wells cannot be drilled:
     • Within 200 feet from building or water well;
     • Within 100 feet from spring, stream, body of water, or
       wetland larger than one acre.
  – Waiver or variance can be granted from distance
    requirements.
     • DEP may impose conditions to protect people, property,
       and waters.
  – DEP is to consider impact of well on public
    resources when granting permit.
                                 Agricultural Law Resource and Reference Center




      General Requirements
• Bonding Requirements – Section 215
  – Bond must be obtained after submitting permit
    application but before drilling.
  – Bond is conditioned upon faithfully performing all
    of the drilling, water supply replacement,
    restoration, and plugging requirements of the Act.
  – Failure to comply with Act causes forfeiture of
    bond funds to Well Plugging Restricted Revenue
    Account.
                                       Agricultural Law Resource and Reference Center




      General Requirements
• Ground Water Protection – Section 207
  – Casing is required when:
     • Drilling through fresh water strata;
     • Certain coal seams.
  – Brines must be disposed of in compliance with
    Clean Streams Law.
                                     Agricultural Law Resource and Reference Center




      General Requirements
• Protection of Water Supplies – Section 208
  – Well operator must restore or replace a water
    supply that is polluted or diminished.
  – Presumption of Liability
     • Well is presumed to have caused pollution or diminution
       of water supply located within 1000 feet of well.
     • Presumption can be rebutted by performing a predrill
       test of water supply.
     • Presumption also is rebutted if landowner refuses
       permission to perform a predrill test.
                                        Agricultural Law Resource and Reference Center




      General Requirements
• Reporting Requirements – Section 212
  – Completion report must be filed within 30 days of
    the completion of drilling.
  – Annual report containing production data must be
    filed with DEP.
     • Report is kept confidential for five years.
  – DEP has authority to request industry logs and
    other information.
                                    Agricultural Law Resource and Reference Center




      General Requirements
• Well Site Restoration – Section 206
  – Surface estate must be restored from
    disturbances caused by drilling activities.
  – Well operator must follow erosion and sediment
    control plan at all times during drilling.
  – Equipment must be removed and well site
    restored within nine months of completion of
    activity.
     • Time period can be extended for six months
     • Equipment can be stored on-site with landowner
       permission.
                               Agricultural Law Resource and Reference Center




     General Requirements
• Registration Requirements – Section 203
  – Unpermitted wells must be registered with DEP.
  – Abandoned wells are to be reported to DEP so
    that well can be considered as an orphan well.
                                 Agricultural Law Resource and Reference Center




      General Requirements
• Plugging Requirements – Section 210
  – Plugging stops the “vertical flow of fluids or gas
    within the well bore.”
  – Well must be plugged prior to abandonment.
  – Operator must provide DEP with notice of
    plugging to afford DEP with the opportunity to be
    present at time of plugging.
                               Agricultural Law Resource and Reference Center




      General Requirements
• Coal Operator Responsibilities – Section 214
  – Coal operators who are removing coal within 500
    feet of well must file maps with DEP.
  – Generally, coal operators can remove coal up to
    150 feet from well after notifying DEP.
                                 Agricultural Law Resource and Reference Center




  Underground Gas Storage
• General Gas Storage Reservoir Operations –
  Section 303
  – Operators must attempt to locate all wells drilled
    into the reservoir.
  – All known wells must be plugged and
    reconditioned.
                                     Agricultural Law Resource and Reference Center




  Underground Gas Storage
• Reporting Requirements for Gas Storage
  Operations – Section 301
  – Storage operators with a reservoir within 10,000
    feet of a coal mine must file maps with DEP.
  – All storage operators must provide DEP with
    municipality in which their reservoir is located.
     • DEP may request maps detailing the specific boundaries
       of reservoir.
                                Agricultural Law Resource and Reference Center




  Underground Gas Storage
• Reporting Requirements for Coal Mine
  Operations – Section 302
  – Coal mine owners / operators must file a map with
    DEP.
  – A coal mine that has been pierced by a well must
    file a map with DEP each year.
  – Coal mines have notice and reporting obligations
    if their mines come within 10,000 or 2,000 feet
    from a gas storage reservoir.
                               Agricultural Law Resource and Reference Center




   Underground Gas Storage
• Inspection of Facilities and Records –
  Section 305
  – Coal mines and gas storage operators can inspect
    records and facilities of the other.
  – Parties can request additional information from
    the other party (Section 306).
                                     Agricultural Law Resource and Reference Center




 Eminent Domain – Section 401
• Limited Right of Eminent Domain for Gas
  Storage Reservoir
  – Cannot be exercised until:
     • Original recoverable oil or gas reserves have been
       depleted by at least 80%; and
     • Condemnor has acquired right to store gas underlying at
       least 75% of proposed storage area.
                                  Agricultural Law Resource and Reference Center




 Enforcement and Remedies
• Conferences – Section 501
  – Any party “having a direct interest in the subject
    matter” may request that DEP convene a
    conference.
  – DEP representative shall be at conference.
  – Any agreement reached at conference shall be
    effective unless rejected by DEP within 10 days
    after conference.
                                Agricultural Law Resource and Reference Center




 Enforcement and Remedies
• Enforcement Orders – Section 503
  – DEP has authority to suspend or revoke permit for
    violations of Act or other law such as Clean
    Streams Law.
  – DEP must provide written notice prior to
    suspension or revocation
  – Operator can request conference prior to
    determination and appeal to Environmental
    Hearing Board within 30 days after determination.
                                Agricultural Law Resource and Reference Center




  Enforcement and Remedies
• Restraining Violations – Section 504
  – DEP can pursue injunction before:
     • Court of Common Pleas
     • Commonwealth Court
  – Injunction can be sought to stop or prevent
    violation of Act.
                                    Agricultural Law Resource and Reference Center




  Enforcement and Remedies
• Criminal Penalties – Section 505
  – A violation is a summary offense.
     • Fine not more than $300
     • Imprisonment not more than 90 days
  – A willful violation is a misdemeanor offense.
     • Fine not more than $5,000
     • Imprisonment not more than one year
  – Each day is considered to be a separate offense.
                                       Agricultural Law Resource and Reference Center




  Enforcement and Remedies
• Civil Penalties – Section 506
  – Environmental Hearing Board can impose penalty
    up to $25,000 plus $1,000 per day of continued
    violation.
  – The amount of the penalty depends upon:
     •   Wilfullness of violation
     •   Damage to natural resources
     •   Endangerment of safety
     •   Cost of remedying harm
     •   Savings resulting to person
                                Agricultural Law Resource and Reference Center




   Miscellaneous Provisions
• Local Ordinances – Section 602
  – “[A]ll local ordinances and enactments purporting
    to regulate oil and gas well operations regulated
    by this act are hereby superseded. No ordinances
    or enactments adopted pursuant to the
    aforementioned acts shall contain provisions
    which impose conditions, requirements or
    limitations on the same features of oil and gas
    well operations regulated by this act or that
    accomplish the same purposes as set forth in this
    act.”
                                      Agricultural Law Resource and Reference Center




       Proposed Amendments
        to the Oil and Gas Act
• 2007-2008 Proposed Legislation
  – House Bill 2227
     • Provide compensation for surface damage caused by oil
       and gas exploration.
  – House Bill 2533
     • Proposing enactment of the Surface Owners’ Protection
       Act, which would provide for duties of oil and gas well
       operators, for notice of operations and surface use
       compensation agreement, for restriction on issuance of
       permits, for attorney fees, and for emergency situations.
                                     Agricultural Law Resource and Reference Center




       Proposed Amendments
        to the Oil and Gas Act
• 2007-2008 Proposed Legislation
  – House Bill 2741
     • Provide for bonding and well-plugging funds.
                                Agricultural Law Resource and Reference Center




     Proposed Amendments
      to the Oil and Gas Act
• 2009-2010 Proposed Legislation
  – HB 473
    • Proposing amendments to the Oil and Gas Act
      that would add definitions and secure
      compensation for surface damage
  – HB 808
    • Proposing amendments to the Oil and Gas Act
      that would further provide for bonding and well
      plugging funds
                              Agricultural Law Resource and Reference Center




     Proposed Amendments
      to the Oil and Gas Act
• 2009-2010 Proposed Legislation
  – HB 934
    • Proposing amendments to the Oil and Gas Act
      that would provide for secured meters and
      further well reporting requirements
  – SB 297
    • Proposing amendments to the Oil and Gas Act
      that would provide additional well reporting
      requirements.
                                Agricultural Law Resource and Reference Center




  Oil and Gas Conservation Law
• Declaration of Purpose
  – “[F]oster, encourage, and promote the
    development, production, and utilization” of
    Pennsylvania’s oil and gas resources;
  – Prevent the waste of oil and natural gas;
  – Permit the Commonwealth to “realize and enjoy
    the maximum benefit of these natural resources.”
  – Impractical to include shallow wells
                                     Agricultural Law Resource and Reference Center




  Oil and Gas Conservation Law
• Application – Section 3
  – OGC Law applies to all land within Pennsylvania.
  – The following wells are excluded from OGC Law:
     • Those that do not penetrate the Onondaga horizon;
     • Those that are less than 3,800 feet where the Onondaga
       horizon is closer than 3,800 from surface;
     • Those drilled prior to OGC Law;
     • Those for use in storage reservoir.
                    Agricultural Law Resource and Reference Center




The Oil and Gas Conservation
 Law and the Marcellus Shale
                    The Oil and Gas
                    Conservation Law does not
                    apply to wells that do not
                    penetrate the Onondaga
                    horizon, meaning wells
                    drilled into the Marcellus
                    Shale are not covered by
                    this law.

                               Depth of Marcellus Shale
                               Depth of
                               Onondaga Horizon
                Image by: Robert Milici and Christopher Swezey, 2006, Assessment of
                Appalachian Basin Oil and Gas Resources: Devonian Shale–Middle
                and Upper Paleozoic Total Petroleum System. Open-File Report Series
                2006-1237. United States Geological Survey.
                                        Agricultural Law Resource and Reference Center




  Oil and Gas Conservation Law
• Prohibition of Waste – Section 4
  – Physical waste
     • Allowing gas, oil, or water to migrate to a different
       stratum
     • Drowning a stratum
     • Unnecessary loss of oil or gas at the surface
  – Inefficient spacing of wells
                                  Agricultural Law Resource and Reference Center




  Oil and Gas Conservation Law
• Well Spacing – Section 7
  – Definition of pool:
     • “an underground reservoir containing a
       common accumulation or oil and gas, or both,
       not in communication laterally or vertically with
       any other accumulation of oil or gas.”
                           Agricultural Law Resource and Reference Center




             Well Spacing
• When a well is drilled into, or below, the
  Onondaga horizon, those “directly and
  immediately affected by the drilling” of
  the well can apply to DEP for a well
  spacing order.
                            Agricultural Law Resource and Reference Center




             Well Spacing
• Process to Establish Spacing Order
  – Notice of hearing
  – DEP holds public hearing
  – DEP will render determination within 45
    days.
                             Agricultural Law Resource and Reference Center




              Well Spacing
• Spacing Order
  – DEP will establish a “unit” representing
    the area in which a well can efficiently and
    economically extract natural gas.
  – The units within a pool generally will have
    uniform sizes and shapes.
  – The order will cover all land believed to be
    in the pool.
                               Agricultural Law Resource and Reference Center




              Well Spacing
• Spacing Order
  – DEP will consider the following factors:
    • Surface topography and individual property
      lines;
    • Proposed well spacing plans;
    • Depth of production;
    • Charateristics of the producing formation;
    • Other geologic and scientific data.
                            Agricultural Law Resource and Reference Center




             Well Spacing
• Spacing Order
  – DEP will set a minimum distance that a
    well must be located from a unit boundary.
  – Under some circumstances, an operator
    may be permitted to drill a well outside
    prescribe distance, but production of well
    may be limited.
                                      Agricultural Law Resource and Reference Center




  Oil and Gas Conservation Law
• Integration of Interest in Spacing Units –
  Section 8
  – Multiple owners within a spacing unit may
    voluntarily integrate their separate parcels to
    develop natural gas within spacing unit.
  – If voluntary agreement is not reached, an operator
    can apply for an integration order.
     • DEP will conduct public hearing after notice.
     • DEP can issue “just and reasonable” order.
                                    Agricultural Law Resource and Reference Center




  Oil and Gas Conservation Law
• Penalties – Section 12
  – Violations are punishable by:
     • A fine ranging from $500 to $5,000;
     • Imprisonment not more than six months.
  – Each day is considered to be a separate offense.
                                 Agricultural Law Resource and Reference Center




 Oil and Gas Conservation Law
• Enforcement – Section 14
  – DEP can pursue injunctive relief to prevent or
    stop violations.
                         Agricultural Law Resource and Reference Center




 Oil and Gas Conservation Law
      and Marcellus Shale
• Until further legislation is passed,
  drilling into the Marcellus Shale will
  remain exempt from the unitization and
  spacing provisions of the OGC Law.
                                Agricultural Law Resource and Reference Center




Proposed Amendments to the
Oil and Gas Conservation Law
• 2007 – 2008 Session
  – House Bill 2453
    • Proposing amendments to the Oil and Gas
      Conservation Law, 58 P.S. §§ 401-419, to make
      the law applicable to Marcellus Shale wells.
• 2009 – 2010 Session
  – House Bill 977
    • Reintroduction of House Bill 2453.
                           Agricultural Law Resource and Reference Center




     Dormant Oil and Gas Act
• Enacted by legislature in 2005.
• Permits development when all owners
  cannot be located.
                                 Agricultural Law Resource and Reference Center




     Dormant Oil and Gas Act
• Purpose – Section 2
  – “to facilitate the development of subsurface
    properties by reducing the problems caused by
    fragmented and unknown or unlocatable
    ownership of oil and gas interests”
  – “to protect the interests of unknown or
    unlocatable owners of oil and gas”
  – “It is not the purpose of this act to vest the
    surface owner with title to oil and gas interests
    that have been severed from the surface estate.”
                                 Agricultural Law Resource and Reference Center




      Dormant Oil and Gas Act
• Creation of Trust – Section 4
  – Any person with interest in oil and gas may
    petition Court of Common Pleas to declare a trust
    for benefit of unknown owners.
  – Petitioner must make diligent effort to locate
    owners.
  – Court will appoint financial institution as trustee
    for unknown owners.
                                Agricultural Law Resource and Reference Center




      Dormant Oil and Gas Act
• Administration of Trust – Section 5
  – All payments due to the unknown owner(s) shall
    be made to trustee.
  – Trust shall remain in force until unknown owners
    have been identified.
  – Funds held in trust are subject to provisions in
    Fiscal Code relating to unclaimed and abandoned
    property.
                                Agricultural Law Resource and Reference Center




     Dormant Oil and Gas Act
• Responsibility of Lessee – Section 6
  – Lessee who pays income to trustee shall not be
    liable for additional claims by unknown owners.
                             Agricultural Law Resource and Reference Center




      Coal and Gas Resource
        Coordination Act
• Requires coordination of coal mine and gas
  well operators
• Applies to all gas wells that penetrate a
  workable coal seam
• Provides for the establishment of a panel to
  make recommendations to DEP regarding
  well site locations
• Provides for plugging requirements of wells
  that penetrate coal mines
                              Agricultural Law Resource and Reference Center




The Agricultural Law Resource and
Reference Center is a collaboration between:

– Penn State Dickinson School of Law
– Penn State College of Agricultural Sciences
– Pennsylvania Department of Agriculture
                          Agricultural Law Resource and Reference Center




       Contact Information
• Penn State Dickinson School of Law
  Agricultural Law Center
  207C Lewis Katz Building
  University Park, PA 16802
  Phone: (814) 865-3723
  Email: rhp102@dsl.psu.edu
  Web: www.dsl.psu.edu/centers/aglaw.cfm

				
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