New Well Drilling on Upswing in Northeast Pennsylvania as Harrisburg Passes New Bill to Protect Landowner Royalties

Date: October 27, 2014

As expected, new natural gas well construction is on the upswing in Northeast Pennsylvania.  A trip up Route 6 last week revealed a significant increase in drilling trucks and trailers.  This writer personally followed three drilling rig heavy trucks for over 20 miles–a slow trip!!

Now reports today indicate that several companies have increased their number of new wells currently being drilled and planned for next year.  It seems the only issue slowing drilling is the continued low price of natural gas putting pressure on the drilling companies.

Also acting as a stimulus to new gas drilling and fracking is commencement of construction of the new $1.8 billion dollar pipeline project.  A recent story in the Scranton Times highlighted the progress being made on initiation of this new project.  Lack of gathering pipelines and sufficient infrastructure to move gas to market has severely influenced new drilling in the Pennsylvania Marcellus Shale regions.  However, as reported recently. gas drilling activity has increased significantly in Potter and western Tioga counties in anticipation of completion of several gathering pipeline projects in the region.

Finally, in other news, the Pennsylvania legislature passed, and Governor Corbett signed a new law which requires natural gas companies to report production numbers on a monthly basis.  This amends the prior 6 month reporting requirement.  The new law was passed in response to landowner complaints and concerns with  accurate royalty payments.  Although faced with some initial resistance from the gas companies, the bill passed with significant support of the industry.  The law is effective in the near future.

Joe Price
Attorney Joe Price is a seasoned Trial Lawyer serving Northeast, Central and Southeast Pennsylvania for the past forty (40) years. He has handled serious personal injury cases in courts throughout the Federal system including New Jersey and New York. Attorney Price is A.V. Rated by Martindale Hubble. He is Board Certified in Civil Practice by the National Board of Trial Advocacy since 1996.