Coal Bed Methane Well Dispute Act Clears Committee

SB 1330 would establish panel to resolve objections

A Senate Committee today 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.

"That's a lengthy, expensive and often acrimonious process for all parties involved," Senator White said. "My legislation would establish a special panel with specific expertise in resolving those disputes, which could streamline the process."

Senate Bill 1330, approved today by the Senate Environmental Resources and Energy Committee, 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.

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

The 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.

"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," Senator White continued. "My legislation is not intended to change the respective rights and obligations of either party, but rather to create a timely, less expensive process."

Contact:

Joe Pittman
(724) 357-0151