PA presumption in absence of contrary evidence = Natural Gas is NOT included in mineral estate

Since North Carolina had no experience with getting fracked like Texans do, there has been two legislative attempts by the North Carolina General Assembly in 2012 and then in 2014.

In this video, Mr. Robinson refers to the legislation in 2012 called “session law 2012-143” that required certain oil & gas lease terms (may not be a complete list):

  • getting educational materials on the process before signing a lease,
  • that there be compensation if water is to be used from the property,
  • that operators arrange & pay reasonable costs for baseline water testing,
  • presumed operator liability for contaminated water within 5,000 sq ft of a well head
  • replacement water be provided if contamination occurs
  • operators liable for any property damages
  • 2 year surface reclamation

He covered topics on getting mortgage lender approval before signing a lease (unknown property devaluation risks), split estate, and compulsory pooling.

Mr. Robinson presented some of the changes to the General Assembly lease requirements in 2014 called “SL 2014-4” that:

  • required chemical disclosure unless protected by a trade secret law,
  • presumed liability for water contamination was reduced to 1/2 mile radius from the well head,
  • the shifting of the burden of arranging pre-drilling, baseline well water testing from the operator to the land owner (the companies would still have to pay a reasonable amount for baseline water testing) which weakens the presumed operator liabilities if the land owner doesn’t know or forgets to get the water tested,
  • the repeal of local ordinances trying to regulate site placement (yep that would be like our version of Texas’ HB40 ‘ban on fracking ban’)

The next presenter was attorney Theodore (Ted) Feitshans, of North Carolina State University’s Department of Agricultural and Resource Economics. Regarding lease terms in land conveyances, he discussed the difference between a deeded right and a lease.

He covered the topic that bankruptcy interests are subjected to distributions to creditors. “If theres a lease…. those lease hold interests will be part of the bankruptcy, but because the ownership of the oil, gas, and minerals remains with the landowner, the underlying assets are not part of the bankruptcy of the person that holds the lease”.

Mineral vs Natural Gas: Feitshans said in Pennsylvania theres a rebuttable presumption that Natural Gas is NOT included in the grant of a mineral estate…..what is transferred depends on the intent of the grantor, that is person transferring the interests, but the presumption in the absence of the evidence of the contrary is that Natural Gas is NOT included in the mineral estate“. 

So how inclusive is Texas in distinguishing a minerals estate from oil & gas assets? Maybe this doc is the quickest answer on that question as they seem to use the terms “minerals, oil & gas” interchangeably….

About Kim Triolo Feil

Since TX Statute 253.005 forbids drilling in heavily settled municipalities, I unsuccessfully ran for City Council Seat to try to enforce this. Since Urban Drilling, our drinking water has almost tripled for TTHM's. Before moving to Arlington in 1990, I lived in Norco’s “cancer alley”, a refinery town. It was only after Urban Drilling in Arlington did I start having health effects. After our drill site was established closest to my home, the chronic nosebleeds started. I know there are more canaries here in Arlington having reactions to our industrialized airshed (we have 55-60 padsites of gas wells). Come forward and report to me those having health issues especially if you live to the north/northwest of a drill site so I can map your health effects on this blog. My youtube account is KimFeilGood. FAIR USE NOTICE: THIS SITE MAY CONTAIN COPYRIGHTED MATERIAL THE USE OF WHICH HAS NOT ALWAYS BEEN SPECIFICALLY AUTHORIZED BY THE COPYRIGHT OWNER. MATERIAL FROM DIVERSE AND SOMETIMES TEMPORARY SOURCES IS BEING MADE AVAILABLE IN A PERMANENT UNIFIED MANNER, AS PART OF AN EFFORT TO ADVANCE UNDERSTANDING OF THE SOCIAL JUSTICE ISSUES ASSOCIATED WITH EMINENT DOMAIN AND THE PRIVATIZATION OF PUBLIC INFRASTRUCTURE (AMONG OTHER THINGS). IT IS BELIEVED THAT THIS IS A 'FAIR USE' OF THE INFORMATION AS ALLOWED UNDER SECTION 107 OF THE US COPYRIGHT LAW. IN ACCORDANCE WITH TITLE 17 USC SECTION 107, THE SITE IS MAINTAINED WITHOUT PROFIT FOR THOSE WHO ACCESS IT FOR RESEARCH AND EDUCATIONAL PURPOSES. FOR MORE INFORMATION, SEE: HTTP://WWW.LAW.CORNELL.EDU/ TO USE MATERIAL REPRODUCED ON THIS SITE FOR PURPOSES THAT GO BEYOND 'FAIR USE', PERMISSION IS REQUIRED FROM THE COPYRIGHT OWNER INDICATED WITH A NAME AND INTERNET LINK AT THE END OF EACH ITEM. (NOTE: THE TEXT OF THIS NOTICE WAS ALSO LIFTED FROM CORRIDORNEWS.BLOGSPOT.COM)
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