HUGE NEWS: PA Supreme Court Keeps ‘Rule of Capture’ for Fracking
There is one court case in Pennsylvania that we’ve been concerned about since April 2018. The Briggs v Southwestern Energy case had the power to block most new Marcellus Shale drilling in the state. The case, revolving around the oil and gas “rule of capture” principle, was appealed by Southwestern all the way to the PA Supreme Court. We are elated to report that yesterday the Supremes ruled supreme and found in favor of Southwestern–retaining the rule of capture in the Keystone State. This is seriously good news for both drillers and leased landowners. Below we explain what the rule of capture is, the background of the case, and what the Supremes said in yesterday’s important ruling.
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Yesterday the U.S. Environmental Protection Agency announced it has reached a settlement with Gulfport Energy over alleged air emissions violations found at 17 well pad locations Gulfport operates in the Ohio Utica. The violations happened in 2015. The settlement includes Gulfport paying $1.7 million in fines and spending another $2 million in “improvements” to cut down on volatile organic compound (VOC) emissions at the 17 well pads.
The $4.2 billion, 713-mile Rover Pipeline system that flows Marcellus/Utica natural gas from western PA and eastern OH all the way to Canada, placed the final two pieces of the system online in November 2018 (see 
We are sad to report that over 1,000 dedicated workers who used to work at the Philadelphia Energy Solutions (PES) oil refinery in Philly will permanently remain out of the jobs they once held at the facility. The owner of PES has decided to sell the now-closed refinery to a real estate developer from Chicago who intends to convert the property from a refinery (the nation’s oldest and largest refinery along the East Coast) into…warehouses. Yeah, warehouses. Complete with an increase in truck traffic, diesel fumes, and all sorts of headaches that come from a massive warehouse complex located in an urban area. It’s sad.
MARCELLUS/UTICA REGION: Restricting natural gas access in Westchester is a bad play; EQT wants out of stock-drop suit over Rice Energy merger; NATIONAL: McDermott expects natural gas, oil projects to ‘seamlessly’ continue through Chapter 11 process; Kinder Morgan and Baker Hughes find profits amid shale slump; U.S. shale has already peaked for major service companies; Democrats’ war on fracking will cost them in battleground states; Industrials call for extra US FERC oversight of gas pipe capacity reliability.