Commonwealth Court Defines Stripper Wells

By:  Michael K. Reer

On March 29, 2017, the Commonwealth Court of Pennsylvania issued a decision interpreting Act 13’s impact fee provisions.  Pennsylvania’s Act 13 requires certain unconventional wells to pay impact fees during the first several years of operation.  “Stripper wells” – defined by Act 13 as an “unconventional gas well incapable of producing more than 90,000 cubic feet of gas per day during any calendar month” are exempt from the impact fee.  The Commonwealth Court determined that Act 13 uses the word “any” to mean “every” and therefore held that an unconventional well is not subject to the impact fee if the well is not capable of producing more than 90,000 cubic feet of gas per day in every calendar month.  The case is Snyder Brothers, Inc. v. Pa. Public Utility Comm’n, No. 1043 C.D. 2015. 

Thursday, April 06, 2017

Commonwealth Court to Again Hear Oral Argument on Impact Fees


In December 2016, the Pennsylvania Commonwealth Court agreed to hear additional oral argument in Snyder Brothers, Inc. v. Pa. Public Utility Comm’n. The case concerns the proper interpretation of Pennsylvania’s Act 13 of 2012, which exempts from the Commonwealth’s impact fee those unconventional gas wells “incapable of producing more than 90,000 cubic feet of gas per day during any calendar month . . .” Snyder Brothers argues that Act 13 exempts those marginal wells that are incapable of producing more than 90,000 cubic feet of gas per day during one or more months of the year. The Pennsylvania Public Utility Commission interprets the provision as requiring operators to pay the impact fee on each unconventional well that is capable to producing 90,000 cubic feet of gas per day in one or more months of the year. The PUC has ordered Snyder Brothers to pay $500,000 in impact fees on wells that have produced 90,000 cubic feet of gas per day in some, but not all, calendar months.
Tuesday, January 24, 2017

Pennsylvania's Act 13 Odyssey

by:  Michael K. Reer

On December 13, 2016, Law 360 published "Pennsylvania's Act 13 Odyssey,"  a Harris, Finley & Bogle article examining legal challenges to Pennsylvania's Act 13 of 2012 and the subsequent Chapter 78a regulations.  A copy of the article is available here.  

Tuesday, December 13, 2016

Recent Posts

Tags

Archive

The Oil & Gas Law Blog is made available for educational purposes only and to give you general information as well as a general understanding of the law, not to provide specific legal advice. Use of this blog does not create an attorney-client relationship between you and any of the blog contributors or Harris Finley & Bogle. The Oil & Gas Law Blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.