No drilling lease? In some ways, it may not matter

What does compulsory integration mean to you?

This is the bottom line on compulsory integration in New York: If you're a landowner with natural gas on your property, even if you don't sign a drilling lease a company might still be able to take that gas. But, it has to pay you for it.

Those situations and remedies are covered under the New York Oil, Gas and Solution Mining Law, in a section commonly referred to as compulsory integration.

What makes compulsory integration noteworthy and necessary is the horizontal drilling process associated with development of the Marcellus Shale. After companies bore underground about a mile to reach the Marcellus, they turn horizontally and, tentacle like, drill in any direction.

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1 comments:

  1. Unknown said...

    Huge fines for contaminated drinking water in Colorado. I can only assume that the drilling companies are making so much money that these enormous fines are a small part of doing business.

    http://www.gjsentinel.com/news/articles/energy_giant_agrees_to_pay_rec/


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