Marcellus Gas Producers Face ‘Chaos’ From Land Law Ruling

Bloomberg reported that a Pennsylvania appeals court ruling has raised concern over the ownership of natural gas embedded in the Marcellus shale formation.

The market news is quoted as saying:

The state’s Superior Court said Pennsylvania law governing ownership of oil and gas rights isn’t clear and a lower-court judge should solicit expert opinions in a case pitting current landowners against the heirs to an 1881 deed.

“Dozens of energy companies have invested billions of dollars in leasing shale gas production rights in Pennsylvania,” Larry Nettles, an attorney with the Houston- based law firm Vinson & Elkins LLP, said in a telephone interview. “This opinion calls into question whether they have those rights.”

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