Multiple Mineral Development: Coal Versus Oil and Gas Pennsylvania Oil and Gas Act

摘要

Foundation Coal is the owner of some 45,000 acres of coal reserves in Greene County. It has plans to mine the Pittsburgh and Sewiekley Seams that are located at depths of 900-1200 feet below the surface. Penneco has approximately 20,000 acres of oil and gas leases in Greene County. The target formation for oil and gas production is some 3000 to 4000 feet below the coal seams. Penneco seeks 7 drilling permits and notifies Foundation pursuant to 58 P.S. § 601.201(b) of its permit application. Foundation is arguing that its proposed plan falls within the statutory phrase "coal mine already projected and platted but not yet operated" so as to give it the right to file objections to the drilling permit application. 58 P.S. § 601.202(b). Foundation requests mat DEP place several conditions on the drilling permits relating to the location of the wellbore, post-drilling testing and plugging standards. At the time that Foundation submits its objections and conditions, it had not yet submitted a coal mining activity permit application. DEP eventually issues all 7 drilling permits with some, but not all, of Foundations' recommended conditions. Foundation appeals to the Environmental Hearing Board (EHB) which issues an extensive report that affirms the issuance of the permits. It places upon Foundation the burden of proof to show that the DEP permit decisions are an abuse of discretion.