Oil and Gas

Unanimously Passed Drilling Emergency Response Bill to be Signed by PA Governor

Although a comprehensive Pennsylvania Marcellus Shale bill is still heavily under negotiations, Governor Tom Corbitt is set to sign legislation that was unanimously passed by the Senate this week.  The legislation is designed to provide an emergency response plan and accurate GPS coordinates for each Marcellus Shale well site in Pennsylvania.  The measure introduced by Sen. Lisa Baker, a Luzerne County Republican, requires drillers to inform state and local officials of well pad locations and access roads.  They also must submit an emergency response plan to those officials, and post a reflective sign at the entrance to each well site with the address, GPS coordinates, the operator's emergency contact number and anything else state regulators decide to require.  The provisions of this law are to become effective immediately upon the Governor’s signature.  To view a full copy of the bill, click here.

http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2011&sessInd=0&billBody=S&billTyp=B&billNbr=0995&pn=1844

WV Office of Oil and Gas Industry Workshop Wants to Know if You’re Interested

The West Virginia Office of Oil and Gas (OOG) is planning an industry workshop to address the recently passed legislation, 22-6A (Natural Gas Horizontal Well Control Act) and would like to know if you would be interested in attending.  The primary focus of this workshop would be related to permitting/approval of activity covered under the article.  Consequently, the audience would likely need to be those that get into the details of putting such information together for submittal (which may include contractors, consultants, etc.). 

The workshop is intended to be conducted in Charleston, West Virginia, around the beginning of February.  If you would be interested in attending, we would be happy to collect and forward this information to the OOG and to keep you informed.  You can let us know by sending your response to srucker@jacksonkelly.comor, if you have an interest or questions and want to respond directly to OOG, you may contact Chief James A. Martin at james.a.martin@wv.gov.  A more specific invitation will be provided at a later date to give you more information.  This is simply a call for interest.

Governor Tomblin calls special session of the West Virginia Legislature regarding legislation on development of shale gas.

Governor Tomblin called a Special Session of the West Virginia Legislature beginning on December 11, 2011, to consider legislation regarding development of shale gas formations using horizontal wells and hydraulic fracturing techniques.  

West Virginia Legislature Joint Select Committee on Marcellus Shale Adds Final Amendments and Approves Bill, Seeks Special Session

The West Virginia Legislature’s Joint Select Committee on Marcellus Shale recently added final amendments and approved a bill regarding regulations to Marcellus drilling activities, and asked Governor Earl Ray Tomblin to call a special session of the Legislature to take up the measure immediately.  Previous attempts to pass legislation regulating Marcellus Shale drilling have been unsuccessful, and advocates from both industry and environmental groups remain concerned over the scope of the bill.

No-Match: A Red Flag for All Employers

As of April 6, 2011, the Social Security Administration (“SSA”) resumed the issuance of “no-match” letters notifying an employer that its records do not match those of the SSA.

Don’t Allow the Innocuous Language in the No-Match Letter Fool You.
You will receive a no-match letter when there is a discrepancy between an employee’s name and social security number as reported on a W-2 or W-2c and the SSA’s records. A no-match letter simply states that the SSA cannot put earnings on the employee’s Social Security records until the discrepancy in the records is resolved. In a trap for the unwary, the letters provide no indication that a no-match letter may provide partial evidence that you employ an individual who is unauthorized to work in the United States, and that you consequently could face fines, civil or criminal sanctions.

West Virginia Legislature Establishes Marcellus Shale Committee

On June 15, 2011, the Joint Committee on Government and Finance approved the appointment of a committee organized to study the Marcellus shale and the possibility of legislative action regarding the same, according to an article by The State Journal.

Pennsylvania House Passes SB 265 Amending the Coal and Gas Resource Coordination Act

On April 27, 2011, the Pennsylvania House passed Senate Bill No. 265 (the “Bill”).  The Bill is expected to be signed into law by Governor Corbett.  The Bill amends the act of December 18, 1984 (P.L. 1069 No. 214), which is known as the Coal and Gas Resource Coordination Act (the “Act”). 

WV Governor holds press conference about Marcellus Shale

With the West Virginia Legislature’s failure to pass comprehensive oil and gas legislation during the just-ended session, other than legislation to encourage the development of certain midstream operations such as ethane crackers, Governor Tomblin today held a press conference at which he announced that he is directing the Department of Environmental Protection to develop regulations to deal with the subject matter of the failed legislation. Governor Tomblin stated that West Virginia was blessed with natural resources, including the Marcellus Shale, and that it must take advantage of the opportunity to develop those resources in an environmentally responsible manner. He expressed his disappointment with the Legislature (and particularly the House) for not taking action on legislation. However, he feels that the DEP already has the authority to regulate the industry and is directing the DEP to develop rules to govern Marcellus Shale development.

Jackson Kelly Joins Oil and Gas Day at the Legislature

Today, February 16, 2011, a representation of Jackson Kelly lawyers and staff participated in the Oil and Gas Day at the Legislature at the West Virginia State Capitol. The goal of the event was to give those involved in the industry an opportunity to speak with state senators and delegates about the economic impact of the oil and gas industry in West Virginia.

NEW NOTICE REQUIREMENTS PROPOSED FOR WEST VIRGINIA DRILLERS

Legislators in West Virginia have proposed a new law that would impose certain additional steps for drilling companies.  The “Surface Owners’ Rights Recognition Act”, found as a part of H.B. 4408 and S.B. 529, would require that operators give notice of planned work and its impact upon the property to surface owners before entry is made.  The Act also details the contents and timing of such notice. 

Prior to entry for any well work, the operator would be required to provide ten (10) days’ written notice to the surface owner, including the purpose of the proposed entry and its expected duration.  If the surface owner does not reside on the property, the notice must be received by that owner at his or her residence. 

An operator would also be required to provide the surface owner with a minimum of thirty (30) days’ notice of its planned operations before filing any application for a well work permit.

 

A written surface use and compensation agreement would also be required. If after thirty (30) days’ notice to the surface owner the surface use and compensation agreement has not been signed, the operator would be allowed to apply for a well work permit.  In addition to other bond requirements, the operator would also be required to post a separate bond of $5,000 to cover surface damage. The surface owner would have five (5) days to rescind a surface use and compensation agreement after having signed it.

 

The complete text of H.B. 4408 and S.B. 529 by clicking here.