Cross-unit drilling of unconventional wells into the Marcellus and Utica shales is now reality in Pennsylvania. Signed into law on November 7, 2019, Act 85 permits horizontal well bores to cross unit boundaries, without regulatory approval and only requires that a lessee’s allocation of royalties due from production among lessors included in affected units be “reasonable.”
The effects of Act 85 on future natural gas exploration and development in Pennsylvania will be significant for the energy industry, lessors of oil and gas rights and, to a lesser extent, surface owners.
Join our legal experts for a one-hour discussion on Act 85 as they explore:
- Cross-unit drilling and allocation wells in general
- The manner in which other oil and gas jurisdictions have addressed cross-unit drilling
- The legislative background and development of Act 85
- How it will change development practices in unconventional shale formations
- Legal and financial implications for existing leases and negotiation of future leases
- Allocation of royalties among interest owners in multiple units
Materials are not available for purchase.
Recorded in January 2020.