Thursday, March 3, 2011

State Senate Passes Marcellus Drilling Fee, Regulatory Bill; House To Determine Bill's Fate

Legislation to increase permit fees and establish added regulatory requirements for Marcellus drilling activities is sitting in the House of Delegates. The bill, Com. Sub for SB 424, was passed by the Senate yesterday and was communicated to the House and read a first time. The bill does not include key provisions sought by horizontal producers, such as forced pooling. It is unclear as to whether the bill, as passed by the Senate, will be accepted by the full House and enacted...or sent to a House committee for further modification during the final two weeks of the 2011 regular session. Passage of a final bill likely will be dependent upon the degree to which changes, if any, are made by the House versus what the Senate passed.