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Weekly Shale Drilling Permits for PA, OH, WV: Jun 14-20

Two of three Marcellus/Utica states received permits to drill new shale wells last week, and boy did they open the floodgates! Pennsylvania issued 30 new permits, the majority of which are located on three well pads operated by EQT, Chesapeake Energy, and Range Resources. Ohio issued no new permits. After getting skunked for two weeks in a row, West Virginia issued 16 new permits–to just two drillers: Antero Resources and EQT. All of the WV permits were issued in the same county.
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Weekly Shale Drilling Permits for PA, OH, WV: Jun 7-13

Two of three Marcellus/Utica states received permits to drill new shale wells last week. Pennsylvania issued just 4 new permits, spread all around the state, all in different counties. Ohio issued 8 new permits, split equally between Encino Energy (EAP) and Southwestern Energy (Eclipse). West Virginia’s shale industry got skunked last week with no new permits for a second week in a row! We can’t remember that ever happening.
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Weekly Shale Drilling Permits for PA, OH, WV: May 3-9

All three M-U states received permits to drill new shale wells last week. Pennsylvania received a big 18 new permits (after receiving no new permits the previous week). More than half of those 18 permits were for wells on two pads in southwestern PA. Ohio received 7 new permits last week all in one county (Jefferson), split between Encino Energy and Ascent Resources. And West Virginia received 10 new permits with 7 of them for a single pad in Lewis County.
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Weekly Shale Drilling Permits for PA, OH, WV: Feb 22-26

All three M-U states received permits to drill new shale wells last week. Pennsylvania received 7 new permits. In something of a twist, Ohio received 15 new permits (two companies), far more permits than we’ve seen in some time. And West Virginia received 5 new permits.
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Weekly Shale Drilling Permits for PA, OH, WV: Feb 15-19

All three M-U states received permits to drill new shale wells last week. Pennsylvania received 10 new permits. Ohio received 6 new permits. And West Virginia received 3 new permits.
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Snyder Bros Off the Hook for Penalties & Interest re Strippers

In December 2018, the Pennsylvania Supreme Court ruled that so-called “stripper wells” (low-producing wells) can be taxed under the 2012 Act 13 law, slapped with an impact tax assessment if those wells produce more than 90 thousand cubic feet per day (Mcf/d) of gas in a single month, any month (see PA Supreme Court Rules Strippers Not Exempt from Impact Fee). Snyder Brothers, the driller whose stripper wells were the target of the lawsuit, asked the Supremes to reconsider their decision. They did, kicking elements of the case down to a lower court (Commonwealth Court). Synder still owes the impact tax, that’s not in question. But Snyder argued they shouldn’t also have to pay interest and late-payment penalties just because they challenged the original assessment.
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PA Superior Court Rules Landowner Can’t Nix Lease for Shut-ins

A recently decided court case, while not precendential (doesn’t apply to anyone else other than the landowners/drillers in this case), is still instructive. This story begins when the Wilson family in Armstrong County, PA (western part of the state) leased three different tracts of land totaling 473 acres to Synder Brothers in 2003 for vertical drilling.
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Snyder Bros Pays $1.2M to Drill Under Allegheny River in W PA

Armstrong County, PA

Snyder Brothers, headquartered in PA, used to drill mostly conventional (vertical only) wells in PA. However, these days the company drills horizontal shale wells in the Marcellus in southwestern PA. Just coming to light now is a lease Synder Brothers signed with the PA Dept. of Conservation and Natural Resources (DCNR) in 2019 to pay DCNR $1.2 million to lease land under the Allegheny River in Armstrong County.
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PA Supreme Court Tires of Strippers – Turns Down PIOGA Request

In late December, the Pennsylvania Supreme Court ruled that so-called “stripper wells” can be taxed under the 2012 Act 13 law, slapped with an impact fee assessment if those wells produce more than 90 thousand cubic feet per day (Mcf/d) of gas in a single month, any month (see PA Supreme Court Rules Strippers Not Exempt from Impact Fee)?
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Was PA Supreme Court Right to Tax Strippers? PIOGA Pushes Back

Did the Pennsylvania Supreme Court err in its judgment declaring so-called “stripper wells” can be taxed under the 2012 Act 13 law, slapped with an impact fee assessment, if those wells produce more than 90 thousand cubic feet per day (Mcf/d) of gas in a single month (see PA Supreme Court Rules Strippers Not Exempt from Impact Fee)? We have a different take on the high court’s decision than others.
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PUC Says PA Strippers Reduced 2017 Impact Fee by $6.1 Million

Once again we’re talking about strippers. Uh, stripper *wells* that is. In 2012 Pennsylvania passed the Act 13 drilling law that includes an impact fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells targeting the Marcellus. All 45 of the vertical-only wells were fracked. Initially those wells produced more than 90 thousand cubic feet per day (Mcf/day), but by December of the year in which they were drilled, the wells produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day, arguing the word “any” is not a get-out-tax-jail-free card. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won the case in March 2017, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy with claims the Act 13 impact fees are now in jeopardy. So the PUC appealed the case to the PA Supreme Court. The Supremes heard arguments in the case in April (see PA Supreme Court Takes a Close Look at Strippers…as in Wells). The PUC released its full impact fee revenue generated and disbursed report yesterday (see today’s lead story). The PUC reports that not only are the fees from the Snyder wells missing from the total, but fees for some wells from other drillers as well–some 318 wells in all. Those other drillers cite the Snyder Bros. case as evidence they don’t owe money on what they consider to be stripper wells. In fact, when you total it all up, the PUC says the impact fee revenue for 2017 would have been ~$6.1 million higher if the “missing” fees from those 318 wells were part of the mix…
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PA Supreme Court Takes a Close Look at Strippers…as in Wells

It’s always fun to talk about strippers here on MDN. Uh, stripper wells that is. Background: In 2012 Pennsylvania passed the Act 13 drilling law that includes an impact fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells targeting the Marcellus. All 45 of the vertical-only wells were fracked. Initially those wells produced more than 90 thousand cubic feet per day (Mcf/day), but by December of the year in which they were drilled, the wells produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day, arguing the word “any” is not a get-out-tax-jail-free card. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won the case in March 2017, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy with claims the Act 13 impact fees are now in jeopardy. So the PUC appealed the case to the PA Supreme Court. The Supremes heard arguments in the case last Wednesday…
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PA Strippers Back in News, Supremes to Hear Synder Bros Case

The Pennsylvania Supreme Court said last week it will accept a case about strippers–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 drilling law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy with claims the Act 13 impact fees are now in jeopardy. The PUC is not letting it alone. They conscripted a sympathetic ally in the PA legislature to introduce a bill to “fix” the “loophole” (see PA Lib Dem Introducing Bill to “Fix” Strippers Once and for All). At the same time the PUC kept pushing on the legal front, and last week the PA Supremes agreed to hear an appeal of the case. Looks like those strippers just won’t go away…
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New PA Bill an Overreaction to Court Ruling on Strippers

As previously reported, liberal Pennsylvania House of Representatives Democrat Pam Synder has now introduced a bill (HB 1283, copy below) to “clear up” what the state Public Utility Commission (PUC) is a loophole in the Act 13 law that may allow some drillers to avoid paying impact fees (i.e. drilling taxes) on some Marcellus Shale wells (see PA Lib Dem Introducing Bill to “Fix” Strippers Once and for All). In 2012 Pennsylvania passed the Act 13 law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, targeting the Marcellus–all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, won their case in March, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy. The PUC and the PA Democrat Party is using the court case to try and accomplish two things they haven’t been able to accomplish heretofore: (1) claim this is a prime example of why a nosebleed high severance tax is needed, in this year’s budget, and (2) fundamentally change the intent of the Act 13 law by passing a “clarification” as introduced by Snyder’s HB 1283 bill. Below we explore this issue in depth and tell you why the Snyder case win is NOT a way for drillers to avoid paying impact fees. In fact, the court’s decision makes it clear that drillers cannot simply reduce production for one month and then claim it’s a stripper well under the 90 Mcf/day definition. Snyder’s bill is an overreaction and does not clear up anything. Instead, it changes everything…
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PA Lib Dem Introducing Bill to “Fix” Strippers Once and for All

Pam Snyder

The kerfuffle over strippers in PA continues–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy. The PUC, under liberal Democrat chairwoman Gladys Brown, is painting nightmare scenarios where impact fee revenue will be in jeopardy (see PA PUC Wants Act 13 Language Changed to Avoid Stripper Abuse). Brown wants the PA legislature to pass a new law amending the Act 13 law to “clear up” the language to say if a well produces more than 90 Mcf/day in ANY month, it qualifies to pay the impact fee. Brown has found a willing accomplice in PA State Rep. Pam Snyder, liberal Democrat representing Greene, Fayette, and Washington Counties. Snyder issued a press release to say she’s about to introduce a bill that Brown wants…
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