CITIZEN POWER ALLIANCE

Pennsylvania Rep. Sandra Major, R-Montrose, introduced legislation Wednesday to amend the Pennsylvania Oil and Gas Conservation Law in light of increased interest in developing the Marcellus Shale Formation.

Major, whose House district includes Susquehanna County, said the bill would extend the Oil and Gas Conservation Law to development within the Marcellus Shale deposit, define a lease under the act, exclude production costs from being deducted from royalty payments, and ensure that horizontal drilling is not conducted under any lands where a lease between a landowner and a well operator does not exist.

“As currently written, the Oil and Gas Conservation Law protections do not extend to the Marcellus Shale deposits, which are located deeper than current natural gas deposits,” Major said.

The Marcellus Shale is a large natural gas-bearing shale formation in the Appalachian Basin. It is estimated the deposit contains recoverable natural gas reserves of between 50 trillion and 200 trillion cubic feet. As a result a number of gas development companies have been attracted to Pennsylvania.