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30 New Shale Well Permits Issued for PA-OH-WV Mar 6-12
New shale permits issued for Mar. 6-12 in the Marcellus/Utica increased by one from the prior week. There were 30 new permits issued in total last week, including 21 new permits for Pennsylvania, 5 new permits for Ohio, and 4 new permits issued in West Virginia. Last week the top receiver of new permits was EQT with 7 new permits–all of them (interestingly) issued in Lycoming County, PA. The second highest number of permits went to Repsol, with 6 permits in Bradford County, PA. Chesapeake Energy came in third with 5 permits for Bradford County, PA.
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The Ohio Court of Appeals recently issued a decision in a case involving lease language about a “depth severance clause” that is very important for both landowners and drillers to know about. In Tera LLC v. Rice Drilling D LLC, et al., a landowner in Belmont County, OH, signed a lease with language that leases both the Marcellus and Utica shale layers, but all other formations were “reserved to the lessor” (i.e. the landowner). However, the driller, Rice (now EQT), drilled into and produced hydrocarbons from the Point Pleasant layer that sits immediately below the Utica. According to the lease (and the decision by the court), that was a no-no.