Royalty

New Brunswick officials said Thursday that while the province was enacting tougher natural gas regulations in the emerging Frederick Brook Shale, it would not implement a ban on hydraulic fracturing (fracking).

In a March 2 letter to Gov. Tom Corbett, a group of 80 Pennsylvania state representatives said they would hold up royalty revenues if the state leased additional forest land for natural gas development.

Prompted by the booming natural gas drilling industry in his district, Pennsylvania state Senator Gene Yaw (R-23rd) said he will introduce a series of bills that address issues related to the growing Marcellus Shale industry. Yaw’s district includes Bradford, Susquehanna and Lycoming counties, which are some of Pennsylvania’s top Marcellus producing areas.

A decision by Encana Corp. to pull out of an investor conference this week ramped up rumors that the natural gas giant may be close to a joint venture agreement with China National Petroleum Corp. (CNPC) to develop its vast British Columbia (BC) shale holdings.

An official with a major New York-based environmental advocacy group said he supports the practice of hydraulic fracturing (hydrofracking) in the production of shale gas, and believes it can be done safely, despite what critics claim.

The Minerals Management Service (MMS) has no “reasonable assurance” that it receives its share of natural gas royalty-in-kind (RIK) payments, and it risks losing millions in revenue because of a lack of tools and staff, according to an audit by the Government Accountability Office (GAO).

Fort Worth, TX-based producer Quicksilver Resources Inc. last Monday said it agreed to purchase producing, leasehold, royalty and midstream assets associated with the Barnett Shale formation in the Dallas/Fort Worth Metroplex area for $1.307 billion in cash and stock from various private parties, including Chief Resources LLC, Hillwood Oil & Gas LP and Collins and Young LLC.

Fort Worth, TX-based producer Quicksilver Resources Inc. said Monday it has agreed to purchase producing, leasehold, royalty and midstream assets associated with the Barnett Shale formation in the Dallas/Fort Worth Metroplex area for $1.307 billion in cash and stock from various private parties, including Chief Resources LLC, Hillwood Oil & Gas LP and Collins and Young LLC.

The federal government expects to receive more than $1 billion in revenue as a result of a royalty-in-kind (RIK) sale of natural gas conducted last month, according to Interior Department’s Minerals Management Service (MMS).