In 2008, Pennsylvania landowners filed lawsuits to have their lease agreements, signed in 2007 with Range Resources, invalidated because the royalty payments they were receiving fell below the 12 1/2 percent level that is guaranteed under PA’s Guaranteed Minimum Royalty Act (GMRA). The landowners separately were joined together into a class action lawsuit representing some 25,000 landowners. The case became known as Frederick v. Range Resources. The landowners challenged the method of calculating royalties that deducts expenses after the gas leaves the wellhead (processing, delivery, other fees). Their argument was that said fees should come from the driller’s side of the ledger sheet and not the landowner.
You can drill and produce gas all day long from a Marcellus Shale well, but if you can’t get the gas from the well to a large interstate pipeline, it’s all for naught. Right now there are 150 natural gas wells that can’t go into production in Pennsylvania because smaller “transmission” pipelines are not getting built fast enough to meet demand. The reason? The U.S. federal government.
Penn State researchers have taken a close look at tax revenues from Pennsylvania counties active in the Marcellus shale. Here’s what they found:
A new resource for those interested in drilling in the Marcellus Shale in West Virginia, developed by WV geologists: