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Babst Calland: Pennsylvania House and Senate Pass Budget Without Marcellus Gas Severance Tax

By Matthew L. Lambach Marcellus Drilling News reports that the Pennsylvania House and Senate passed a budget that did not include a Marcellus Shale severance tax. Governor Tom Corbett withheld his signature while he continues to work with lawmakers on pension reform. Copyright 2014 • Babst...

Babst Calland: Warren Resources to Acquire Marcellus Assets

By Scott K. McKernan Warren Resources has executed a purchase and sale agreement to acquire Marcellus shale assets from Citrus Energy Corporation and two other working interest owners, reports Shale Energy Insider. The acquired assets, located in Wyoming County, Pennsylvania, are all held by production...

Rice Energy to Acquire Wells and Acreage in Greene County, Pa.

By Scott K. McKernan The Pittsburgh Business Times reports that Rice Energy Inc. is acquiring 12 wells and 22,000 net acres in Greene County, Pennsylvania from Chesapeake Energy Inc. Seven of the wells are currently producing and the five other wells are being developed, according to a statement by...

Pennsylvania’s Landlord and Tenant Act Is not Applicable to Oil and Gas Leases

By Alana E. Fortna In a recent opinion, the Pennsylvania Superior Court addressed whether Pennsylvania’s Landlord and Tenant Act of 1951 (the “Act”), and the applicable statute of frauds contained therein, applies to oil and gas leases.  In Nolt v. TS Calkins & Associates, LP...

Babst Calland: Commonwealth Court Issues Decision On Remaining Issues In Act 13 Case

By Lawrence H. Baumiller In its far-reaching decision in Robinson v. Commonwealth [ enhanced opinion available to lexis.com subscribers ], which was issued on December 19, 2013, the Pennsylvania Supreme Court invalidated several critical provisions of Act 13. Additionally, the Supreme Court remanded...

Babst Calland: Proposed Pa. Legislation Seeks to Require Use of Steel Products Produced in U.S.

By Elena L. Rorabaugh Two pieces of proposed legislation were introduced to the Pennsylvania Senate on Thursday, July 31. Each has been referred to the Senate Environmental Resources and Energy Committee. Senate Bill 1458 , if passed, would amend Title 58 by requiring that steel casings (or other...

Babst Calland: Pennsylvania’s Natural Gas Production Hits New High in First Half of Year

By Elena L. Rorabaugh As reported in the Pittsburgh Business Times , Pennsylvania’s reported natural gas production in the first six months of 2014 reached 1.9 trillion cubic feet. Production is up from 1.7 trillion cubic feet reported over the second half of 2013 and 1.4 trillion over the first...

Babst Calland: Public Utility Commission Appeals Pennsylvania Act 13 Ruling

By Lawrence H. Baumiller ‘ The Pennsylvania Public Utility Commission appealed the Commonwealth Court’s July 17, 2014 Opinion and Order in the Act 13 case, which resolved a number of issues remanded by the Supreme Court [ enhanced opinion available to lexis.com subwscribers ]. Review...

Babst Calland: Colleges in Western Pennsylvania Offer Programs Geared Toward Energy Industry

By Matthew L. Lambach The Pittsburgh Tribune Review reports that colleges located in Western Pennsylvania are creating programs to prepare students for jobs in the energy industry. For example, Kennedy Township’s Rosedale Technical Institute (soon to be re-named Rosedale Technical College) currently...

Babst Calland: Drilling Severance Tax Bill Proposed In The Pennsylvania House

By Elena L. Rorabaugh A bill that would amend taxation on oil and gas drilling was referred to the Pennsylvania House Committee on Environmental Resources and Energy on Monday. House Bill 2508, which was introduced by Margo Davidson (Democrat, Delaware County) and others, seeks to impose a severance...

Babst Calland: Pa. Zoning Hearing Board Erred When It Denied Application for Natural Gas Compressor Station

By Alana E. Fortna On September 26, 2014, the Commonwealth Court of Pennsylvania issued an opinion in favor of MarkWest Liberty Midstream & Resources, LLC [ enhanced opinion available to lexis.com subscribers ]. MarkWest had purchased a 71.5 acre parcel of undeveloped land in Cecil Township, Pennsylvania...

Babst Calland: Bills Affecting Production Reporting And Lease Termination Pass Pennsylvania House and Senate

By Elena L. Rorabaugh Two bills primarily sponsored by PA Representative Tina Pickett (Republican, Bradford/Sullivan/Susquehanna) have recently passed the State House and Senate. House Bill (HB) 2278 , Unconventional Well Report Act, would require the operator of an unconventional well to file a monthly...

Babst Calland: Recording of Surrender Documents from Oil and Natural Gas Lease Act Signed Into Law

By Matthew L. Lambach On October 22, 2014, Pennsylvania Governor Tom Corbett signed House Bill 402, also known as the Recording of Surrender Documents from Oil and Natural Gas Lease Act, into law. The Act imposes a duty on a lessee to deliver a surrender document to a lessor within 30 days of the...

Babst Calland: Unconventional Well Report Act Signed Into Law in Pennsylvania

By Michael K. Reer On October 22, 2014, Pennsylvania Governor Tom Corbett signed House Bill 2278, The Unconventional Well Report Act, into law. The Act requires operators of unconventional wells to submit monthly production reports to the Department of Environmental Protection. The change is to revise...

Babst Calland: Sunoco Moves Forward With Marcellus/Utica Pipeline

By Elena L. Rorabaugh Fox Business reported that Sunoco Logistics Partners will invest $2.5 billion in the Mariner East 2 pipeline, which will carry natural gas liquids from the Marcellus and Utica Shale plays to an East Coast port. Mariner East 2 will connect processing plants in Pennsylvania, West...

Babst Calland: Pennsylvania Amends Mechanics’ Lien Law to Create New Notice Procedures and Requirements

By James D. Miller, Esq. On October 14, 2014, Governor Tom Corbett signed into law Act No. 142 (the “Act”) amending the Pennsylvania Mechanics’ Lien Law, 49 P.S. 1101 et seq., which brings Pennsylvania in line with several other states by creating a more structured notice procedure...

Babst Calland: Pennsylvania High Court Prohibits Tolling of Oil and Gas Leases During Litigation

By Steven B. Silverman [On Feb. 17], the Pennsylvania Supreme Court issued Harrison v. Cabot Oil & Gas Corp. , a significant opinion in which the Court refused to apply equitable tolling principles that other oil and gas jurisdictions have adopted [ enhanced opinion available to lexis.com subscribers...

Babst Calland: Pennsylvania Natural Gas Operator Prevails in Air Aggregation Case

By Meredith Odato Graham {On Feb. 23}, the U.S. District Court for the Middle District of Pennsylvania granted a motion for summary judgment in favor of a natural gas operator in a closely-watched case involving air aggregation issues [ enhanced opinion available to lexis.com subscribers ]. In 2011...

Babst Calland: Pennsylvania Governor Tom Wolf Creates Task Force on Pipeline Infrastructure Development

By Joshua F. Hall On May 27, 2015, Pennsylvania Governor Tom Wolf announced the formation of a task force to help the Commonwealth, the natural gas industry and communities partner for the development of new pipeline infrastructure to allow natural gas and related byproducts to more effectively reach...

Babst Calland: Pennsylvania Federal Court Holds 1961 Dual Purpose Lease Still In Effect

By Matthew L. Lambach | In the case titled Mason v. Range Res.-Appalachia LLC (2015 U.S. Dist. LEXIS 97471), the United States District Court for the Western District of Pennsylvania recently held that a 1961 oil and gas lease remained in effect pursuant to the terms of the lease [ enhanced opinion...

Babst Calland: Pennsylvania DEP Releases Latest Revisions Of Oil And Gas Rulemaking

By Matthew L. Lambach The Pennsylvania Department of Environmental Protection (DEP) recently announced the draft final revisions to the “Environmental Protection Performance Standards at Oil and Gas Well Sites” rulemaking (Chapters 78 and 78a). Following the most recent round of public...

Babst Calland: Pa. Superior Court Holds ‘Express’ Misrepresentations are not Required in Bilt-Rite Pleadings

By Esther S. Mignanelli, Esq. The Pennsylvania Superior Court recently held that a negligent misrepresentation claim may be based on an architect’s faulty design, even absent allegations of an express misrepresentation by the architect. Gongloff Contracting, L.L.C. v. L. Robert Kimball &...

Babst Calland: Pennsylvania Court Rules That Gas Lease Was Not Forfeited

By Elena L. Rorabaugh The Pennsylvania Superior Court ruled on Friday that an oil and gas lease was not forfeited by the failure of the operators to pay delay rentals lexis.com subscribers may view the enhanced opinion | Lexis Advance ] . In Dewing v. Abarta Oil & Gas Co. , the landowners (the...

Babst Calland: Federal Court Invalidates Portions of a Local Ordinance, Which Banned the Use of Underground Injection Wells

By Alana E. Fortna On October 14, 2015, the United States District Court for the Western District of Pennsylvania invalidated several provisions of a Grant Township, Indiana County, Pennsylvania local ordinance that was intended to prevent an oil and gas operator from operating an injection well that...

Babst Calland: Pa. Court Upholds Zoning Ordinance Permitting Oil and Gas Well Development In Agricultural/Residential Zoning District

By Lawrence H. Baumiller | On October 21, 2015, Judge Richard McCormick, President Judge of the Westmoreland County Court of Common Pleas, issued a decision and order upholding the validity of Allegheny Township’s zoning ordinance, which permits oil and gas well development in the Township’s...