Getting to “Yes”: A Proposal for a Statutory Approach to Compulsory Pooling in Pennsylvania
The natural gas reserves in the Marcellus Shale gas play offer profound economic potential as new technologies make its extraction economically viable. However, Pennsylvania’s current oil and gas conservation laws lack a comprehensive statutory scheme for compulsory pooling in the state. Existing statutes in major oil and gas-producing states like Oklahoma and Texas, as well as their courts’ interpretation of those statutes, offer lessons for how Pennsylvania might construct an appropriate statutory scheme. Proposed language for such a scheme distinguishes leased and unleased landowners, recognizing the specific needs and desires of each, and highlights how all interested parties may benefit.