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Pa. Lease Pooling Law Paves Way For Marcellus Expansion

Law360, New York (July 9, 2013, 8:58 PM EDT) -- Buried in a brand-new Pennsylvania law that increases the transparency of fracking royalties is a provision that allows oil and gas operators to easily pool adjoining leases for production purposes, enabling drillers to expand production in the Marcellus Shale while stripping landowners of a key bargaining chip in lease negotiations.

Pennsylvania Gov. Tom Corbett signed legislation Tuesday obligating natural gas companies operating in the state to standardize all deductions listed on royalty check payment stubs. Included in the legislation, known as S.B. 259, was an amendment that allows drillers to use horizontal drilling to pool multiple contiguous leases that have already...

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