PA Superior Court Reaffirms Dunham Rule Separating O&G from Minerals
In most states, when a deed or lease agreement is signed for mineral rights, it includes natural gas and oil on the theory that the gas and oil come from a mineral—shale rock. But that has not been the case in PA. Going back to a case in 1882, PA has had “the Dunham rule,” which separates natural gas rights from the broader concept of mineral rights (for background on the Dunham rule, see the MDN article PA Supreme Court Hears Arguments in Critical O&G Case). In 2013, the PA Supreme Court upheld the Dunham rule in a key decision (see Big News: PA Supreme Court Decides Shale Mineral Rights Case). Last November, the PA Superior Court reaffirmed and upheld the Dunham rule again in a different case. Read More “PA Superior Court Reaffirms Dunham Rule Separating O&G from Minerals”
In September, the Executive Director of the Susquehanna River Basin Commission (SRBC) renewed 20 water-use permits for individual shale gas well drilling pads in Bradford, Clearfield, Lycoming, Sullivan, and Susquehanna counties. We’re just learning of the action via an official notice published in the Oct. 26 edition of the Pennsylvania Bulletin. The approvals, which are NOT subject to public review according to SRBC regulations, are general water permits. Each site will be required to receive a specific water withdrawal approval at a later date. 
Ten permits were issued to drill new shale wells in Marcellus/Utica for the week of Oct. 7 – 13, half the number issued the prior week (see 
Over the past seven-plus years, BKV Corporation (Banpu Kalnin Ventures), the American arm of Banpu (96% owned by Banpu, Thailand’s largest coal mining company), has become one of the top 20 gas-weighted natural gas producers in the U.S. BKV originally entered the American shale sector by investing $500 million in 2016-2017 to buy existing Marcellus wells and acreage in northeast Pennsylvania. Then the company went wandering into other shale plays (see 
We tried to cram the gist of the news into the headline but found we could not. This is a big story, for multiple reasons. Most news outlets are reporting (and this is not incorrect) that EQT pulled off a big deal to divest a good chunk of its nonoperated assets (acreage and functioning wells in which EQT owns a minority stake) in northeastern Pennsylvania, trading those assets for 10,000 operated acres in Lycoming County, PA (in northeastern PA), plus 26,000 operated acres in Monroe County, OH, plus receiving $500 million cash, in a deal with Norway’s Equinor (formerly Statoil). EQT divesting from its nonop assets is a big deal. However, the bigger news, in our humble opinion, is that Equinor has (with this deal) completely exited all operated assets in U.S. shale. The company wants to keep its fingers in the U.S. shale pie, but only as a nonop operator — that is, investing in wells that other companies drill and maintain.
In August, the Executive Director of the Susquehanna River Basin Commission (SRBC) approved 34 water-use permits for individual shale gas well drilling pads in Bradford, Lycoming, Sullivan, Susquehanna, and Tioga counties. We’re just learning of the action via an official notice published in the Sept. 23 edition of the Pennsylvania Bulletin. The approvals, which are NOT subject to public review according to SRBC regulations, are general water permits. Each site will be required to receive a specific water withdrawal approval at a later date.
Last week, the Pennsylvania Board of Game Commissioners announced it had cut two different deals with Pennsylvania General Energy (PGE). Both deals involve land swaps with the prospect of new shale drilling by PGE on the way in both Lycoming County and Sullivan County. The Game Commission’s remit is “to protect, propagate, manage and preserve the game or wildlife of Pennsylvania.” Money from shale drilling helps the Game Commission accomplish its objectives. Both deals with PGE will provide the Game Commission with a 16% royalty for any natural gas produced.