AAPL Governmental Affairs Weekly Report - 11/18/19

  • 1.  AAPL Governmental Affairs Weekly Report - 11/18/19

    Posted 22 days ago
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    Following please find highlights from the AAPL Governmental Affairs Weekly Report for the week of November 18, 2019. The full report is attached to this post.

    Please Note: Due to the Thanksgiving holiday, the next report will be published on December 9. Wishing you a safe, happy and healthy holiday.

    FEDERAL - REGULATORY: BLM Cost Recovery Fees. On November 6, the BLM published its final rule, Minerals Management: Adjustment of Cost Recovery Fees (84 Fed. Reg. 59730), which details the annual adjustments to certain fees associated with BLM processing of minerals program-related actions, such as lease applications, assignments, and other oil and gas related documents and applications. Fee increases are negligible and in some cases remain unchanged for Fiscal Year 2020. Read more.

    STATE - LEGISLATIVE: Lease Operations – Pennsylvania. (Update to 11/4/19 Weekly Report) On November 7, SB 694 was signed into law by Gov. Tom Wolf (D) and will be effective in 60 days. The Act, sponsored by Sen. Gene Yaw (R), provides for cross unit drilling and specifically “allows an operator who has the right to drill on separate leases or units when the leases do not prohibit a traversing well, to drill a well horizontally under more than one unit or lease. The operator is required to allocate production from the well among the leases related to the acreage of the units.” According to the sponsoring memo, “This legislation will provide for a process and accounting mechanism to allow well bores to cross multiple units provided the operator has the right to drill wells on the units via leases with all landowners/members of the units. The operator is then required to reasonably and proportionately allocate the production across the various members of the units. The legislation does not impair any current contracts or leases, does not allow for any production from unleased land, and would not apply in cases where this practice would be contractually prohibited.” The House companion bill, HB 247, sponsored by Rep. Donna Oberlander (R), was removed from consideration in October in lieu of the passed Senate version. Read more.

    INDUSTRY NEWS: U.S. to dominate energy production through 2030. On November 13, the International Energy Agency released its report, World Energy Outlook 2019, in which it predicts the United States will continue to be a dominant force in oil and gas production, controlling 85% of the increase in global oil production through 2030. Moreover, the U.S. will continue as a net energy exporter and overtake the global share of oil production from OPEC countries and Russia combined. Read more.

    Russell Cohen
    AAPL Governmental Affairs