Royalty

Royalties withheld by the U.S. Department of Interior for fiscal year (FY) 2013, estimated at $109 million to date, will be returned to the states in FY 2014, but when that happens remains a question, according to a spokesman for Interior’s Office of Natural Resources Revenue (ONRR).

A Pennsylvania lawmaker wants to repeal a controversial section of a new drilling law — as well as portions of state law dating back to 1961 — to protect landowners from what she says amounts to forced pooling.

Thirteen days after Pennsylvania Gov. Tom Corbett signed a controversial drilling bill into law, the debate over how it will affect Marcellus Shale development took a new turn when EQT Corp. filed a lawsuit against 69 landowners and a golf course in Allegheny County, PA.

NGI’s Shale Daily reported that lawmakers in Pennsylvania had passed a bill that the state chapter of the National Association of Royalty Owners (NARO) opposes because it would allow forced pooling, and that it was unclear if Gov. Tom Corbett, a foe of forced pooling, would sign it (see Shale Daily, July 5). Patrick Henderson, Corbett’s energy adviser, told NGI’s Shale Daily the administration still opposes forced pooling, but doesn’t believe SB 259 would allow the practice. “Nothing in SB 259 requires someone to lease their land; changes the terms of a lease; or reduces the royalties paid to landowners,” Henderson said. “SB 259 is not forced pooling and has no relation to forced pooling.” The governor, he said, has until Wednesday (July 10) to decide whether to sign the bill.

A petroleum geosciences professor said hydraulic fracturing (fracking) can be performed safely in New Brunswick, and believes that Canadian province and others will eventually establish appropriate regulations to govern the practice.

Abraxas Petroleum Corp. said a recent Eagle Ford Shale well has been performing better than expected, but its operations in the Williston Basin in North Dakota have been hampered by equipment troubles.

Justin Furnace, president of the Texas Independent Producers & Royalty Owners Association (TIPRO), is resigning Aug. 12 and the organization is seeking a replacement. Candidates should have a bachelor’s degree and management experience, with solid working knowledge of the oil and natural gas business. An understanding of the Texas and U.S. legislative process will also be helpful. Interested parties should send a resume and cover letter to rvarela@tipro.org by Sept. 15. A search committee will contact finalists. For information, visit www.tipro.org. “This is a critical time for the oil and gas industry, and we feel confident we will find the right candidate to fill the position. In the meantime, we are very fortunate to have Rich Varela, senior vice president and a past TIPRO president, agree to serve as interim president of the association while we search for a new leader; therefore, we will not miss a beat during this transition period,” said TIPRO Chairman David Martineau.

Shale talk and action are both picking up in Illinois as oil/gas exploration and production (E&P) companies and state officials are getting more involved in the fields and in the state capital in Springfield. As the energy companies seek more leases from farmers, the lawmakers have a proposed state law (SB 3280) covering hydraulic fracturing (fracking).

Hopeful that it is seeing the final months of a moratorium on high-volume hydraulic fracturing (HVHF) tick away in New York, Norse Energy Corp. ASA — a company that, like many others, has suffered through years of uncertainty at the hands of the delay — is positioning itself to hit the ground running in the Marcellus and Utica shales.