For Immediate Release
6/27/08

Senate Approves Coal Bed Methane Well Dispute Act

SB 1330 would establish panel to resolve objections

The Senate yesterday (June 26) approved legislation introduced by Senator Don White (R-41) to establish a special review board to arbitrate coal bed methane well disputes. Currently, disputes between surface land owners and the holders of mineral rights for those properties are often resolved in county courts of common pleas.

Senate Bill 1330 calls for the creation of a three-member Coal Bed Methane Review Board to consider objections and attempt to reach an agreement on issues such as the location of coal bed methane wells and/or access roads. The bill now goes to the House of Representatives for consideration.

 "Under a 1983 Pennsylvania Supreme Court ruling, coal bed methane is considered part of the property rights transferred under coal agreements. Now, with energy prices rising, methane extraction is becoming more and more attractive to developers," Senator White said. "As a result, many landowners who previously entered into coal agreements subsequently gave up their rights to coal bed methane and are confronted with mineral estate development on their property. Senate Bill 1330 is not intended to change the respective rights and obligations of either party, but rather to create a timely, less expensive process."

State Representative Dave Reed (R-62) has introduced a companion bill (House Bill 2446) in the House of Representatives.

"I am pleased that the Senate has moved this bill," Representative Reed said. "It is important that we put this proposal on the Governor's desk as soon as possible in order to provide a fair and expeditious system for resolving disputes that may arise."

The proposed Coal Bed Methane Review Board would be made up of a member appointed by the Pennsylvania Farm Bureau, a member appointed jointly by the Pennsylvania Oil and Gas Association, the Independent Oil and Gas Association and the Pennsylvania Coal Association, and a member appointed jointly by the deans of the College of Agricultural Sciences and the College of Earth and Mineral Sciences of Penn State University.

Contact:

Joe Pittman
(717) 787-8724 or cell (724) 541-0552

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