PA Forced Pooling for Utica Wells Remains Unclear, Confusing
As MDN previously reported, the single most productive Utica Shale well ever (to date) was drilled by Range Resources–in Pennsylvania (see Range Resources Drills Highest-Ever Initial Producing Utica Well). Because of the way PA’s laws are written, producers cannot use forced pooling for Marcellus layer wells they want to drill–but they can use PA law to file forced pooling requests for Utica layer wells. Given the success of Range (and others) with drilling Utica wells in PA, it’s a sure bet that sooner or later such a request will be filed. Problem is, the forced pooling law was written in 1961 and was designed for conventional/vertical wells, not unconventional/horizontal wells. The law was due to have a test by Hilcorp, but Hilcorp abandoned their request in September 2014 (see Hilcorp Drops Forced Pooling Request in W PA). With that case gone, forced pooling for Utica wells remains a muddled mess in PA…
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Between Christmas and New Year, Middlesex Township (Butler County), PA held the second of what may be up to five hearings on the already-granted permits for Rex Energy to drill five wells on a single well pad in the township. You may recall that two agitating “environmental” groups–headquartered on the other side of the state, in the Philadelphia area–along with four parents from the Mars School District, filed an appeal of the legal and legitimate permits granted by the state Dept. of Environmental Protection to Rex in September (see 
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Time to follow the bouncing ball–this is a tad complicated, but we’ll do our best to explain it. In 2008, Chesapeake Energy (under then-CEO Aubrey McClendon) took on a “silent” investing partner for 600,000 net acres in the Marcellus of West Virginia and southwest Pennsylvania. The non-operating partner for the acreage was Norwegian company Statoil, with a 32.5% interest in the acreage. Statoil put up buckets of money and Chessy did the drilling. Fast forward to October of this year. Chesapeake cut a deal to sell most of that acreage–some 413,000 acres with 435 drilled wells (see