Client Advisory Archive
Saunders Interviewed for Energy Wire Article on Act 13 Challenge Following Webinar Presentation
Steve Saunders presented a web-based program on the implications of the recent Commonwealth Court decision rejecting the mandate in Act 13 that local governments adopt ordinances permitting oil and gas operations in all zoning districts. A number of media outlets viewed the webinar and Energy Wire followed up the program with an article which focused on the Commonwealth’s appeal of the ruling in Robinson Township v. Commonwealth and how the temporary suspension of one of the Supreme Court’s Justices may play a significant role in the outcome. Read the Energy Wire story by Ellen Giilmer, “All Eyes on Politics, Technicalities In Ongoing Act 13 Challenge.”
EnergyWire is written and produced by the staff of E&E Publishing, LLC. EnergyWire provides comprehensive coverage of the political, legal and business issues surrounding the rapidly evolving unconventional energy landscape.
Penn State Extension Service hosts Webinar on Act 13 Presented by Steve Saunders
The Penn State Extension Service presented the initial webinar for its 2012 Educational Outreach series on August 9. Steve Saunders was asked to develop and present a program to review the recent decision in Robinson Township v. Commonwealth in which the Pennsylvania Commonwealth Court struck down a major component of Act 13 (enacted earlier this year) which completely overhauled Pennsylvania’s Oil and Gas Act. Saunders’ presented “A Blow to Act 13: The Impact of the Commonwealth Court’s Decision on Local Zoning and Natural Gas Development in Pennsylvania” to an audience of municipal officials, lawyers, industry representatives, interested citizens and members of the media.
His power point program focused on the evolution of zoning regulation in Pennsylvania in the era of natural gas development and featured a segment addressing the consequences of the Robinson Township case (now on appeal to the Pennsylvania Supreme Court) in which he was joined by Scott Coburn, General Counsel for the Pennsylvania State Association of Township Supervisors. Saunders and Coburn also fielded questions from the audience regarding the application of the remaining portions of Act 13 that were left intact by the decision and what action local governments should take while waiting for the outcome of the appeal. The presentation will be archived on the PSE Natural Gas website and is available for viewing at http://extension.psu.edu/naturalgas/webinars
Wall Street Journal Interviews Saunders For Article “Drilling Ban Hits Leases”
The Wall Street Journal published an article reporting on litigation filed in New York State by several hundred landowners seeking to void oil and gas leases they entered into with Chesapeake Energy and asked Steve Saunders to comment on the case and the legal underpinnings of the plaintiffs’ argument. In the article, Saunders explained that the lessors were arguing that the leases had expired by their terms because Chesapeake did not take action to develop the leasehold interests under the time limits established in the leases. The lessee countered that a State-imposed ban on natural gas drilling imposed by the Governor constituted an “Act of God” under a contractual provision in the leases known as “Force Majeure” which should extend the time for Chesapeake to satisfy its contractual obligations to develop the oil and gas reserves under the landowners’ properties. Saunders explained that the defense Chesapeake asserted to the lessors’ complaint was based upon an attempt to expand the traditional understanding of the concept of force majeure to include governmentally created road blocks as opposed to natural disasters that prevent a party from performing under a contract. In a subsequent Wall Street Journal article by the same reporter, a settlement of an action brought against Chesapeake by the New York State Attorney General served to terminate some of the plaintiffs’ leases and required Chesapeake to renegotiate other leases involved in the private lawsuit.
Steve Saunders Frequently Quoted in The Legal Intelligencer, Oldest Law Journal In the United States
When it needs a source for information on trends and developments in oil and gas law, environmental law or energy law, The Legal Intelligencer routinely contacts Steve Saunders. It is the oldest law journal in the country and is read daily by thousands of lawyers and judges throughout Pennsylvania.
In separate stories about a Second Circuit Court of Appeals decision on a challenge to approval by the Federal Energy Regulatory Commission of a major new interstate gas transmission line project, the shifting economic conditions confronting the natural gas development industry in Pennsylvania and the impact of differing geologic and extraction issues associated with “dry” and “wet” gas, reporters have sought out Saunders for background information and comment.
In a story entitled “Pipeline Ruling Gives Attorneys Guidance on FERC Reviews” Saunders was asked to provide his reaction to the decision by a U. S. Court of Appeals to uphold governmental approval of a major federally regulated pipeline project designed to transport natural gas from Pennsylvania for eventual sale to customers throughout the Northeastern and Mid-Atlantic region. Suggesting that challengers to FERC decisions in this field face a difficult burden of proof, Saunders said that he was not surprised by the Court’s ruling against a landowners coalition which sought to reverse the decision to approve the project.
A second article, “Attorneys Say Drillers Moving Out of Northeastern Pa.” examined the effect of low natural gas prices on the development prospects for leaseholders in the region where the Marcellus Shale boom began and the lawyers who practice in the field of oil and gas law. Saunders offered his opinion that while lawyers who have not regularly worked in oil and gas law may retreat to more familiar practice areas, practitioners who focus on all aspects of this specialized segment of energy law should see no downturn in their workload.
Most recently, The Legal Intelligencer interviewed Saunders for “Shift Toward ‘Wet’ Gas Doesn’t Mean Bust for NEPA” in which the author sought out the opinions of several lawyers who have extensive experience in the field of natural gas development. Saunders addressed the changing reality that lessors will face concerning the timing of development of leaseholds in Northeastern and North Central Pennsylvania, suggesting that landowners with leases should not be surprised by requests from developers to revise some of the terms of the leases already entered into. He expressed no concern about the eventual exploitation of natural gas reserves in the region and the positive impact it can have for Pennsylvania residents, millions of others who will benefit from the resource and the American economy as a whole.
Associated Press Interviews Saunders for Article “Fight Possible Over Pennsylvania Drilling Rules on Zoning”
After nearly two years of discussion and debate, Pennsylvania’s legislature adopted and Governor Corbett has signed into law “Act 13” of 2012 which amends the Oil & Gas Act to impose a host of environmentally-based requirements on the conduct of oil and gas development activities. The new law also limits municipal authority to enact zoning ordinances regulating drilling activities and imposes an impact fee to be assessed on wells drilled in Pennsylvania. Steve Saunders was interviewed by the Associated Press for an article that focused attention on Act 13’s zoning restrictions and impact fee and the mixed reaction these aspects of the new law are receiving from local governments across the Commonwealth. He supplied background information and was asked to comment on the prospect of legal challenges to the law by municipal governments opposed to the requirement to adopt “model” language limiting the reach of zoning ordinances in order to receive a portion of the impact fees generated by operators within their communities. Saunders addressed attendees last November at the 2011 Marcellus Summit on the status of separate bills making their way through the House and Senate at that time which with some modification were embodied in Act 13. The AP story was picked up by over 200 media outlets (newspaper, tv and radio) across the U.S. A link to the article as carried in the online version of the Pittsburgh Tribune-Review can be found here.