Coal Bed Methane Dispute Measure Headed to Governor

Legislation will establish panel to resolve Land Use Disputes

Legislation establishing a special review board to arbitrate coal bed methane (CBM) well- location disputes between land owners and gas companies received final legislative approval and is headed to the Governor for enactment into law, according to Senator Don White (R-41).

Senator White authored Senate Bill 275, which called for the creation of a three-member Coal Bed Methane Review Board to consider objections by property owners and reach agreements with gas companies on issues such as the location of coal bed methane wells and/or access roads. Currently, disputes between surface land owners and the holders of mineral rights for those properties are often unresolved as landowners have very little recourse if they do not approve of the location of a CBM well.

The key provisions of SB 275 were amended into House Bill 1847 by the Senate and subsequently approved by the House today (January 25). The bill now awaits Governor Rendell’s approval, and is expected to be signed into law.

"I am extremely pleased we have moved this measure through the legislative process. I appreciate the efforts of Representative Dave Reed, who was the prime sponsor of this legislation (House Bill 539) in the House," Senator White said. "This is the conclusion of a long process that included extensive negotiations between the Pennsylvania Farm Bureau – who represented landowner interests - as well as the gas and coal industry. This bill does not change the ownership of property or mineral rights, but creates a timely, less expensive process for property owners to clear up disputes that arise over the location of CBM wells without going to court."

Representative Reed continued, "I am pleased the House of Representatives has moved this legislation to the Governor. Addressing the issue of CBM well locations is very important to the land owners of Indiana County – particularly farmers - who deserve the opportunity to ensure their fields and pastures remain usable while gas companies drill these wells."

The proposed Coal Bed Methane Review Board will 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. The board is required to make a decision within 10 days from the time a hearing is held on a CBM well location dispute.

"CBM wells are particularly unique to southwestern Pennsylvania and have been the center of several disputes between landowners and gas companies. CBM wells are a relatively new process of extracting natural gas from coal seams," said Senator White.

Contact:

Joe Pittman
(717) 787-8724