Category: Energy

You Made Your Bed, Now Lie in It: Samson Exploration, LLC v. T.S. Reed Properties, Inc.

Liz E. Klingensmith, Jeremy A. Mercer, Amy L. Barrette

In Samson Exploration, LLC v. T.S. Reed Properties, Inc., the Texas Supreme Court affirmed the decision by the Ninth Court of Appeals siding with royalty owners in concluding that the operator of a well within two overlapping units had to pay twice.

Samson’s leases contractually authorized unilateral pooling. Samson created Unit 1, which had boundaries of 6,000 to 13,800 feet subsurface, and obtained production from two wells within Unit 1’s boundaries, Well No. 1 and Well No. 2. Well No. 1 produced from 12,304 feet to 12,332 feet subsurface. Well No. 2 produced from 13,150 to 13,176 feet. Samson then unilaterally amended Unit 1 to reduce the surface acreage and change the depth to 12,400 feet subsurface and below (the “Amended Unit”). No production from Well No. 1 was attributed to the Amended Unit. Continue reading “You Made Your Bed, Now Lie in It: Samson Exploration, LLC v. T.S. Reed Properties, Inc.“

Blank Rome Launches Energy and Environmental Blog

Margaret A. Hill and Kevin J. Bruno

We are pleased to announce the launch of our new blog, Energy and Environmental Trends Watch, which will provide insight and analysis on the latest developments in energy and environmental law.

“Energy and environmental law are two of the most demanding practice areas for attorneys and clients due to nonstop developments in the energy industry and environmental activism,” said Margaret A. Hill, co-chair of the Firm’s Energy, Environment, and Mass Torts practice group. “Although the ever-changing landscape can be difficult to monitor, our seasoned attorneys have the necessary depth and knowledge to identify issues and cases in our blog that will enable you to better understand significant developments in these industries.”

“There is no question that we live in interesting, yet challenging, times in the energy space and our environmental regulatory scheme,” added Kevin J. Bruno, co-chair of the Firm’s Energy, Environment, and Mass Torts practice group. “We hope our blog can be a useful tool for our clients in being made aware of and understanding the latest trends in these areas.”

Our Energy and Environmental Capabilities
Blank Rome’s energy practice offers a full range of energy industry-specific services. With more than 60 attorneys practicing across the United States, the group provides strategic and forward-looking insight into an ever-evolving industry while also understanding the unique business concerns of our clients. Likewise, Blank Rome’s nationally recognized environmental practice covers every substantive area of environmental law. The group provides counsel to clients in every major business sector, municipal and county governments, and redevelopment authorities. Both groups are comprised of attorneys who bring a wealth of experience from diverse backgrounds in industry and government. The teams include former U.S. Secretary of Energy, former trial attorneys from the Department of Justice, former officials of the Environmental Protection Agency, and former assistant United States attorneys.

For more information, please contact us or visit Blank Rome’s Energy or Environmental practice pages. 

Robinson Rejected: Zoning Ordinance Permitting Oil and Gas Development in Residential-Agricultural Districts Is Constitutional

Jeremy A. Mercer, Margaret Anne Hill, and Frank L. Tamulonis III

Consistent with a line of recent Commonwealth Court decisions, the Commonwealth Court once again held that a township did not violate the Pennsylvania Constitution by passing an ordinance that allowed oil and gas development in various zoning districts, including residential-agricultural (R-A) districts. In Delaware Riverkeeper Network, et al. v. Middlesex Township Zoning Hearing Board, 2017 Pa. Commw. Unpub. LEXIS 415 (Pa. Cmwlth. June 7, 2017), the Court upheld an ordinance and the zoning hearing board’s approval of an oil and gas permit in an R-A district over the objections of numerous entities, including the Clean Air Council (“CAC”) and the Delaware Riverkeeper Network (“Riverkeepers”), who claimed that the township and/or board actions violated several provisions of the Pennsylvania Constitution. Continue reading “Robinson Rejected: Zoning Ordinance Permitting Oil and Gas Development in Residential-Agricultural Districts Is Constitutional”

Drill on Through to the Other Side: No Trespass When Drilling Through Mineral Estate with Surface Use Agreement

Elizabeth E. Klingensmith, Jeremy A. Mercer, and Amy L. Barrette

The Texas Supreme Court annunciated two critical points in Lightning Oil Co. v. Anadarko E&P Onshore: (1) unauthorized interference may be a trespass only when it impacts the mineral lessee’s ability to exercise its rights to explore, obtain, produce, and possess the leased minerals; and (2) the trespass injury must outweigh the interests of the industry as a whole and society in maximizing oil and gas. Continue reading “Drill on Through to the Other Side: No Trespass When Drilling Through Mineral Estate with Surface Use Agreement”

Stretching Sovereign Immunity: The New Jersey High Court Immunizes the State from New Jersey Spill Act Liable for Pre- 1977 Discharges

Sophia Lee, Kevin J. Bruno, and Louis D. Abrams

The New Jersey Supreme Court’s decision in NL Industries, Inc. v. State of New Jersey will frustrate the equitable allocation of cleanup costs at sites involving pre-1977 discharges where the State would otherwise qualify as a responsible party. Such a result would be particularly severe considering the high cleanup price tag for many sites predating 1977. Any party involved in or contemplating such a contribution action against the State should be mindful of this decision when determining how best to proceed. This should include determining whether a federal forum and contribution claims under the NJ Spill Act’s federal counterpart, CERCLA, might achieve a better result. Continue reading “Stretching Sovereign Immunity: The New Jersey High Court Immunizes the State from New Jersey Spill Act Liable for Pre- 1977 Discharges”

Court Rebuffs Dep’s New Chapter 78A Oil and Gas Regulations

Michael L. Krancer and Michael Joseph Montalbano

The Pennsylvania Commonwealth Court stayed, at least for now, implementation of portions of the new Chapter 78a oil and gas regulations that it considered rogue. These new rules are the poster child for “train-wreck” regulation—they come with the trifecta of horribles: (1) a huge price tag; (2) little or no environmental benefit; and (3) at a time when prices for Pennsylvania producers are low.  This is good news for the competitiveness of Pennsylvania as a leader in responsible energy production. Businesses in the oil and gas industry, royalty owners, and companies in the supply chain should keep a close eye out as this case progresses, as they will be significantly impacted depending on future developments in this case. Continue reading “Court Rebuffs Dep’s New Chapter 78A Oil and Gas Regulations”

Pittsburgh Penguins Are the Energy Story of the Year!

Michael L. Krancer

Pittsburgh coal may be dead, but the NHL’s Pittsburgh Penguins are the “energy” story of the year—maybe the century. At the turn of the New Year, the Penguins were deader than a rusty, retired coal plant. The team appeared to be out of the playoffs and armchair pundits like me were saying that Penguins Captain Sidney Crosby was a spent force. Now, those same plucky Penguins have been producing more energy than a matter/antimatter reactor and moved at warp speed to take the Stanley Cup back to the Steel City. Continue reading “Pittsburgh Penguins Are the Energy Story of the Year!”

More Obstacles Ahead for Pa. Net Metering Restrictions

Christopher A. Lewis

On the heels of high-profile solar regulatory decisions in Nevada and Hawaii last year and in California earlier this year, Pennsylvania took center stage last week in the ongoing battle over net metering policy. Pennsylvania’s Independent Regulatory Review Commission (IRRC) disapproved a Pennsylvania Public Utility Commission (PUC) rulemaking that would have imposed additional limitations on the size of systems that qualify for net metering credit. IRRC’s disapproval of the rulemaking means that further attempts to reform net metering policy in Pennsylvania will likely have to come through legislative action. Continue reading “More Obstacles Ahead for Pa. Net Metering Restrictions”

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