Republican Party fusillade catches Western PA landowners by surprise - Shock and Awe!!

The entirety of the Republican Party has opened a full scale attack on PA landowners and royalty owners, but especially on those in Western PA.  This attack is called SB 259.  It will cost Pennsylvanians millions of dollars, money which will go straight into gas company coffers.  Here is a newspaper article explaining what has happened:

PA landowners come under sharp, unexpected attack!

SB 259 sits today on Governor Corbett's desk awaiting signature.  Contact him here:

Contact Corbett here - Tell him to veto SB 259!

If enough of us take action right now, this impending robbery can still be thwarted!!  But time is very, very short.  You must act now.  Tell Corbett to veto SB 259.

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Permalink Reply by Rick on July 7, 2013 at 1:21am

It may not say renegotiating is prohibited, but it does imply that it isnt necessary... and in the end its still the same outcome.. no negotiation..

Permalink Reply by Armstrong Land on July 3, 2013 at 1:39am

God forbid contracts are binding.

Permalink Reply by Frank Walker on July 3, 2013 at 1:55am

Here in PA, with a 100% gas company bought and paid for legislature, leases are only binding when the provisions favor the gas company.  Example:

Even in the wake of Kilmer, the legislature is reticent regarding clarification of the 12 1/2% minimum royalty fraction rule.  They argue you cannot amend a contract, i.e., a lease.  This argument very much favors the gas companies, obviously.

Yet in the present matter, the legislature endeavors to cut ground from beneath existing Lessors by re-defining their old leases in such manner as to benefit the gas companies immensely.

You cannot accuse the PA legislature of being inconsistent.  They are consistently on the side of the gas companies!  Use the link in the OP.  Write to Corbett.  He is facing re-election next year, so we have a bit of leverage.  Tell him to veto SB 259!!!!  Do it, or forfeit your right to complain.  Take five minutes and do the right thing on behalf of all PA landowners.  Because if the gas companies get away with this power grab, only God knows what they will pull next!

Permalink Reply by Armstrong Land on July 3, 2013 at 10:10am

But this bill doesn't re-define the lease.  It specifically notes that if the lease were to limit or prohibit pooling and unitization then the language on the contract holds.

 All this bill does is permit the unitization of leases which are silent on pooling and unitization rights.  

Every Oil and Gas Lease includes the implied covenant of development, which this act facilitates the operator to realize by updating old contracts to a standard consistent with current day industry practice, i.e. horizontal drilling.

This "fair" pooling act allows royalty owners to benefit from the contracts their properties are subject to by not being held hostage by a neighboring tract whose owner is more interested in extorting up front money to amend their lease than creating long term value through the royalty stream.  These correlative rights underpin other laws regarding migratory resources - namely groundwater.  Why is natural gas different?  

As a commonwealth, we should embrace this bill.  It outlines a path forward for development that will limit the impact of drilling by reducing the number of pad sites needed to more efficiently produce the gas.  If PA really wants drilling to be done as safely, let's make this more efficient, impact less surface, and not leave any of this gas in the ground because an antiquated contract is silent on an industry standard that didn't exist at the time of its effect. 

Permalink Reply by Frank Walker on July 3, 2013 at 3:58pm

This is an excellent statement of the industry viewpoint regarding this matter.  In reviewing others of your posts here, you are consistently pro-industry.

I am a leased landowner who cares about other landowners.  If this is such a great bill for us landowners, why is NARO going ballistic and executing a full court press to kill it!!  People like you post here in an effort to confuse landowners and to turn us against one another.  I don't appreciate hearing from industry people here.  Cannot you be satisfied with all the influence your kind buys in the PA Legislature?  Take your "divide and conquer" strategies elsewhere.  This is a landowners' forum.  Leave us alone. 

Permalink Reply by Joseph-Ohio on July 3, 2013 at 4:12pm
Keep up the good work Frank.
Thoughtful landowners know you're right and are on your side.
Similar goings on in Ohio from what I see.
Hope we as landowners prevail.
Thank you for your efforts.
J-O
Permalink Reply by Armstrong Land on July 4, 2013 at 1:49am

I am consistently pro-progress.  This opportunity is too valuable to pass up for Pennsylvania.  As for my stance, I wasn't aware go marcellus shale wasn't a forum open to al perspectives.  I may disagree with your stance, but as an American (particularly today) I would never ask you to "go away" for expressing them.  I value your opinion and think this forum will be more productive if we stay on point discussing issues rather than disparaging one another or even stating that a certain perspective is unappreciated.  

Believe it or not, I have no "strategy" and am certainly not scheming to divide and conquer.  Just another Pennsylvanian fascinated by the geo-political implications of our rocks!  Hope we can move this conversation forward like adults who have a stake in the Commonwealth's policy decisions.  I may disagree with you, but I would never state that you should leave the forum or that I didn't appreciate your presence on a free online discussion forum.  That would be un-American and unbecoming of me.

 

Permalink Reply by Frank Walker on July 4, 2013 at 2:21am

Whatever. Please just go away.

Permalink Reply by Joseph-Ohio on July 3, 2013 at 10:09am

The way I see it the Bill doesn't have to prohibit negotiation or re-negotiation of a lease to render negotiation and / or re-negotiation moot.

That's what the article says the Bill does and I believe it.

Permalink Reply by Armstrong Land on July 3, 2013 at 10:19am

Agree.  No re-negotiation required to create value for the commonwealth and its private property.

Permalink Reply by Joseph-Ohio on July 3, 2013 at 11:13am
I see this Bill / Act as having the potential to force an inadequate / deficient lease
on landowners / Utica Interval gas / oil / mineral owners; and I perceive that as it's
core intention.
Permalink Reply by Joseph-Ohio on July 4, 2013 at 5:10am

BTW Armstrong Land,

We don't agree.

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