Penn Virginia Corp. (PVA) is acquiring 11,660 net acres in the Eagle Ford Shale, which would give it about 101,800 net acres total with more than 1,600 drilling locations. The Radnor, PA-based operator agreed to $45 million for property in Lavaca County, TX from an undisclosed seller. The transaction, set to close by the end of August, includes $35 million to be paid at closing and $11 million paid over time as a drilling carry. The acreage is adjacent to PVA’s Shiner development and is estimated to contain around 150 gross potential drilling locations. In 1Q2014, PVA set a quarterly oil production record on a 15% increase in output from the Eagle Ford (see Shale Daily, May 14).
Sunoco Logistics Partners LP continues to face opposition in southeast Pennsylvania as it proceeds with plans for its Mariner East pipeline, which includes the construction of 17 valve stations and 18 pumping stations in more than 30 municipalities. The pipeline would move natural gas liquids from Ohio and southwest Pennsylvania to a terminal near Philadelphia (see Shale Daily, Sept. 9, 2013; Dec. 5, 2013). Sunoco has had issues with local ordinances and rights-of-way problems in areas such as York and Chester counties, PA. West Bradford Township has joined a growing list of communities opposed to Sunoco’s request of the Pennsylvania Public Utilities Commission (PUC) to grant it status as a public utility corporation, which would exempt it from local zoning ordinances. West Bradford supervisors have agreed to write a letter in opposition to the PUC. The township joins four others, along with multiple environmental organizations, that have either filed a petition to intervene, voiced opposition or sent letters to the PUC opposing Sunoco’s plans (see Shale Daily, June 11; April 28).
Pennsylvania Republican Gov. Tom Corbett has signed the state’s $29.1 billion budget, which does not include an oil and gas severance tax, more than a week after the General Assembly sent it to his desk. Corbett had held out in the hopes lawmakers could find additional ways to offset soaring pension costs (see Shale Daily, July 1). Instead, Corbett signed the budget, which includes no new taxes or tax hikes, after vetoing $65 million from the legislature’s operating budget. Facing a $1.5 billion budget deficit, state legislators went back and forth for weeks on whether to pass a severance tax on oil and gas production (see Shale Daily, June 17). They ultimately decided on no tax increases and sent a budget to Corbett that relies heavily on one-time funds, fees and postponements to bridge the gap.
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