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Binghamton Univ. Study Says Drillers Bully Landowners to Sign Leases

A study led by Binghamton University and the University of Nevada, Las Vegas (UNLV) claims it has uncovered that energy companies pressure landowners into allowing hydraulic fracturing (fracking) on their properties, “often resorting to persistent and personalized tactics.” In other words, those nasty frackers bully poor landowners into signing leases. We have no doubt there are landmen who twist arms a little too tightly, but this study has a few flaws in our humble opinion. Read More “Binghamton Univ. Study Says Drillers Bully Landowners to Sign Leases”

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ODNR Issues Forced Pooling Order for Encino Well in Harrison County

On May 23, the Ohio Dept. of Natural Resources (ODNR) issued a pooling order to Encino Energy that combines a number of properties into a single unit for drilling wells. The total of the surface land pooled is 1,081.076 acres, located in Stock Township, Harrison County, Ohio. There are 121 (!) properties or pieces of property involved, largely due to the unit passing under what appears to be a housing development. This type of thing goes on frequently — the ODNR issuing a pooling order. What’s different and unusual about this one is that the ODRN appears to have denied a request by Encino to raise the penalty against those who refused to sign a lease but ended up being forced to participate anyway.

UPDATE to this story (see below).
Read More “ODNR Issues Forced Pooling Order for Encino Well in Harrison County”

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Forced Pooling (Unitization) in Ohio Sees Big Jump Last 3 Years

Forced pooling is the practice of forcing landowners (rights owners) who don’t want to allow drilling under (not on top of) their land from blocking such drilling for their neighbors. Underground horizontal drilling used in shale wells often crosses borders into neighboring land. There’s no way around it. There is no surface disturbance for those who don’t want to lease. In Ohio, the practice of forced pooling is called “unitization.” At least 65% of landowners in a proposed unit must be leased in order to force the others in the unit to accept drilling under their land.
Read More “Forced Pooling (Unitization) in Ohio Sees Big Jump Last 3 Years”

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Federal Court Tosses Challenge to WV’s 2022 Forced Pooling Law

Hopefully, we’re now at the conclusion of an effort to overturn a bill passed in early 2022 by the West Virginia legislature, Senate Bill (SB) 694, which finally brought forced pooling for shale wells to the Mountain State after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). A lawsuit brought by two West Virginia landowners seeking to overturn the state’s forced pooling (i.e., unitization) law was put on pause by a federal judge in December 2022 (see WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow). The federal judge said the lawsuit belongs in state court and that he did not have jurisdiction over the case. West Virginia officials disagreed and appealed the ruling to the next rung up the federal court ladder (see WV Appeals Lawsuit re Forced Pooling Law to Higher Fed Court).
Read More “Federal Court Tosses Challenge to WV’s 2022 Forced Pooling Law”

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Lawsuit Against WV’s 2022 Forced Pooling Law Still Alive, for Now

Hopefully, we’re near the end of an effort to overturn a bill passed in early 2022 by the West Virginia legislature, Senate Bill (SB) 694, which finally brought forced pooling for shale wells to the Mountain State after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). A lawsuit brought by two West Virginia landowners seeking to overturn the state’s forced pooling (i.e., unitization) law was put on pause by a federal judge in December 2022 (see WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow). The federal judge said the lawsuit belongs in state court and that he did not have jurisdiction over the case. West Virginia officials disagreed and appealed the ruling to the next rung up the federal court ladder (see WV Appeals Lawsuit re Forced Pooling Law to Higher Fed Court). It took a while, but the U.S. Court of Appeals for the Fourth Circuit ruled two days ago that the federal district court judge didn’t do his job right (he DOES have jurisdiction) and bounced the matter back to him for resolution.
Read More “Lawsuit Against WV’s 2022 Forced Pooling Law Still Alive, for Now”

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WV Appeals Lawsuit re Forced Pooling Law to Higher Fed Court

Another twist in the effort to overturn a bill passed earlier this year by the West Virginia legislature, Senate Bill (SB) 694, which finally brings forced pooling for shale wells to the Mountain States after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). Earlier this month, a lawsuit brought by two West Virginia landowners seeking to overturn the state’s new forced pooling (i.e. unitization) law was put on pause by a federal judge (see WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow). The federal judge said the lawsuit belongs in state court. West Virginia officials disagree and have appealed his ruling to the next rung up the federal court ladder.
Read More “WV Appeals Lawsuit re Forced Pooling Law to Higher Fed Court”

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WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow

A lawsuit brought by two West Virginia landowners seeking to overturn the state’s newly enacted forced pooling (i.e. unitization) law was put on pause by a federal judge on Dec. 1. The same two landowners had a previous version of the same lawsuit tossed by the judge back in September (see Lawsuit to Block West Virginia’s New Forced Pooling Law Tossed Out). The previous lawsuit sued the wrong people, according to the federal judge. This newer version sued the right people (mostly), but certain parts of it are more properly handled by state (and not federal) courts, according to the judge’s Dec. 1 ruling.
Read More “WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow”

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Landowners Refile Lawsuit to Block WV’s New Forced Pooling Law

Two weeks ago, a lawsuit brought by two West Virginia landowners seeking to overturn the state’s newly enacted forced pooling (i.e. unitization) law was tossed by a federal judge (see Lawsuit to Block West Virginia’s New Forced Pooling Law Tossed Out). The judge told the landowners the lawsuit they filed had sued the wrong person/entity by suing Gov. Jim Justice for signing the measure into law. The judge left the door open for the lawsuit to be refiled. Taking the judge’s direction and advice, the landowners have just refiled the lawsuit, this time against the state Dept. of Environmental Protection, the Oil and Gas Conservation Commission, and Attorney General Patrick Morrisey.
Read More “Landowners Refile Lawsuit to Block WV’s New Forced Pooling Law”

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Lawsuit to Block West Virginia’s New Forced Pooling Law Tossed Out

Back in March, MDN told you about a bill passed by the West Virginia legislature, Senate Bill (SB) 694, which finally brings forced pooling for shale wells to the Mountain States after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). Shortly after passage, Gov. Jim Justice signed the bill into law. SB 694 went into effect on June 7, some 90 days following passage. However, two farmers from Brooke County sued Gov. Justice to overturn the new law claiming it is unconstitutional (see Landowners Sue to Block West Virginia’s New Forced Pooling Law). The lawsuit was thrown out last Wednesday.
Read More “Lawsuit to Block West Virginia’s New Forced Pooling Law Tossed Out”

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Landowners Sue to Block West Virginia’s New Forced Pooling Law

Back in March MDN told you about a bill passed by the West Virginia legislature, Senate Bill (SB) 694, which finally brings forced pooling for shale wells to the Mountain States after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). Shortly after passage Gov. Jim Justice signed the bill into law. SB 694 is set to become active on June 7, which is 90 days following passage. However, two farmers from Brooke County have just sued Gov. Justice to overturn the new law claiming it is unconstitutional.
Read More “Landowners Sue to Block West Virginia’s New Forced Pooling Law”

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WV House Passes Forced Pooling Bill, Done Deal When Gov Signs

We’ve been tracking a bill in West Virginia that will finally, after more than eight years of trying, bring forced pooling to the Mountain State for Marcellus/Utica shale wells. Senate Bill (SB) 694 sailed through the WV Senate in record time and earlier this week hit the WV House. Yesterday the full House voted to approve SB 694 with some tweaks, sending it back to the Senate. Last night the Senate approved the House changes and the bill is now officially passed and on its way to the desk of Gov. Jim Justice for his signature. Will he sign it?
Read More “WV House Passes Forced Pooling Bill, Done Deal When Gov Signs”

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Public Hearing Held on WV Forced Polling Bill, Final Vote This Week

Yesterday the West Virginia House Energy and Manufacturing Committee held a public hearing to elicit feedback and comments on Senate Bill (SB) 694, a bill that will, after nearly a decade, provide for forced pooling for shale wells in the state. The bill has already passed the WV Senate and likely will come up for a vote by the full House this week. Based on support from both drillers and landowner groups, it appears this bill is a done deal. Even surface owners are “OK” with the bill. Not thrilled, but OK. About the only dissent we could detect from the hearing is that some believe it doesn’t go far enough with forced pooling.
Read More “Public Hearing Held on WV Forced Polling Bill, Final Vote This Week”

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WV Forced Pooling Bill Passes Senate, House Votes Next Week

One week ago MDN told you about the fast track for West Virginia Senate Bill (SB) 694, a bill that will, after nearly a decade, provide for forced pooling for shale wells in the state (see New WV Forced Pooling Bill Moves Rapidly, Up for Full Senate Vote). Over the past week, the bill passed a vote by the full WV Senate, went to the House Judiciary Committee (where it passed), and is likely due for a vote by the full House next week. This one looks, by all accounts, like a done deal.
Read More “WV Forced Pooling Bill Passes Senate, House Votes Next Week”

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New WV Forced Pooling Bill Moves Rapidly, Up for Full Senate Vote

Will this finally be the year that West Virginia has a new forced pooling bill passed into law? Quite possibly, given the supersonic speed with which Senate Bill (SB) 694 was introduced and, without any discussion, passed through the Senate Finance Committee (at the last possible moment), and sent on to the full Senate for a vote. Of course, the bill still has to go to the WV House. SB 694 is complicated, but this time the bill appears to have widespread support, not only from drillers but from royalty owners too.
Read More “New WV Forced Pooling Bill Moves Rapidly, Up for Full Senate Vote”

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ODNR Drops “Market Enhancement” Clause in Forced Pooling Orders

Ohio mineral rights owner Gateway Royalty researched unitization (aka force pooling) in the state and discovered a disturbing change introduced in existing unitization beginning three years ago. Since February 13, 2018, a “market enhancement” clause has been included in Ohio Dept. of Natural Resources’ (ODNR) forced pooling unitization orders, which allows the unit operator to deduct post-production costs from the royalties owed to mineral owners. These post-production costs are sometimes as much as 95% of the gross sale price. Gateway called attention to the practice and ODNR has since backed down and no longer includes the market enhancement clause in new unitization orders.
Read More “ODNR Drops “Market Enhancement” Clause in Forced Pooling Orders”

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ODNR Change to Forced Pooling Unitization in 2018 Reduces Royalties

In May MDN brought you the news that Ohio mineral rights owner Gateway Royalty was sounding the alarm over a new bill quickly advancing in the Ohio legislature. House Bill (HB) 152 would use forced pooling if 65% of a proposed unit’s landowners are leased (too low a bar) and also would force the landowner to accept a 12.5% royalty and force them to accept post-production deductions with royalties in some cases potentially going down to nothing (see Ohio HB 152 Forced Pooling Bill Disadvantages Unleased Landowners). As part of their effort to either defeat or significantly change HB 152, Gateway has been researching unitization (aka force pooling) in the state and discovered a disturbing change introduced in existing unitization beginning in 2018.
Read More “ODNR Change to Forced Pooling Unitization in 2018 Reduces Royalties”