Marcellus Gas Drillers Face Potential ‘Chaos’ in Pennsylvania Legal Ruling

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Not sure how this will play out, but it may put a hold on shale drilling. Thoughts, comments?

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A Pennsylvania appeals court ruling has raised questions about who can claim ownership of natural gas embedded in the Marcellus shale formation, potentially putting in doubt the legitimacy of thousands of drilling leases.

The state’s Superior Court said Pennsylvania law governing ownership of oil and gas rights isn’t clear and a lower-court judge should solicit expert opinions in a case pitting current landowners against the heirs to an 1881 deed.

“Dozens of energy companies have invested billions of dollars in leasing shale gas production rights in Pennsylvania,” Larry Nettles, an attorney with the Houston- based law firm Vinson & Elkins LLP, said in a telephone interview. “This opinion calls into question whether they have those rights.”

Tags: drilling, shale

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It's a facinating legal question - is the gas part of the coal seem or separate rock?  I don't think we have this problem in the HS (anyone know?)  but I bet almost every lease in Penn is questionable until this gets solved.

 

(I'm not a lawyer, but I did once play Clarence Darrow in a high school play)

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