Skip to Main Content
Services Talent Knowledge
Site Search
Menu

Blog Post

November 22, 2013

PADEP Has Jurisdiction To Decide "Forced Pooling" Request

Forced pooling in Pennsylvania is a controversial issue and one that remained largely untested until now.  Pennsylvania’s pooling law was enacted in 1961 and does not apply to the Marcellus Shale.  It does, however, apply to the deeper Utica Shale and allows an operator to gather landowners into a unit who have not voluntarily entered into an oil and gas lease.  One of the questions under Pennsylvania’s Oil and Gas Conservation Law was who decides whether to grant an operator’s application to force pool parcels into a spacing unit?

On November 20, 2013, the Pennsylvania Environmental Hearing Board (PAEHB) decided that question and ruled that it does not have “original jurisdiction” to approve requests for forced pooling.  Rather, the Pennsylvania Department of Environmental Protection (PADEP) must first decide whether a drilling company can force pool Utica Shale gas properties without the consent of all owners in the unit.

The PAEHB’s decision stemmed from a request by Hilcorp Energy Co. to establish a drilling unit by pooling property on a 3,267 acre stretch of land in northwest Pennsylvania.  Interestingly, Hilcorp had all but 35 acres under lease.  When Hilcorp filed the request this past July, the PADEP responded that “it did not have the authority to act on Hilcorp’s application and that an application seeking an order for well spacing or drilling units must be submitted to the Pennsylvania Environmental Hearing Board.”  The PAEHB disagreed and ultimately determined that the PADEP must first decide such request and then, only after it does so can the PAEHB hear an appeal.

Hilcorp’s request now goes back to the PADEP for consideration.  If granted, it would represent the first time that a company has used force pooling in Pennsylvania to facilitate horizontal hydraulic fracturing.

Featured Media

Alerts

First Department Reinforces Labor Law § 240(1) Protections Where Defective Ladder Causes Fall Following Electrical Shock

Alerts

New York City and State Bans on Gas Appliances in New Buildings Upheld by the Second Circuit

Alerts

Legal Update: US Supreme Court Resolves Key Fourth Amendment Question in Chatrie v. United States

Alerts

Proposed Legislation Would Codify and Expand City and County Liability for Child Abuse Post-Weisbrod-Moore

Alerts

Federal Energy Regulatory Commission Issues Show Cause Orders Regarding Large Load Interconnection to the NY Independent System Operator, Other Regional Grid Operators

Alerts

New York Establishes First-in-the-Nation Statewide Moratorium on Data Center Permits