MEC Compulsory Pooling Study Group Meetings

In July of 2012, the North Carolina legislature ratified the Clean Energy and Economic Security Act.  Also known as Senate Bill 820 (Session Law 2012-143) this law, charged the North Carolina Mining and Energy Commission with developing a “modern regulatory program” for the management of oil and gas exploration and development activities in North Carolina, including the use of horizontal drilling and hydraulic fracturing.

• Objectives of the Compulsory Pooling Study Group
• List of Mining and Energy Commission Members

Study Group Public Meetings

December 19, 2012, Archdale Building – Fifth Floor Conference Room, Raleigh, NC

• Presentations :
  • Review of North Carolina’s Statute and Overview of Critical Questions Related to Compulsory Pooling Nationally – Lynne Weaver, Assistant Attorney General, Consumer Protection Division of the North Carolina Department of Justice. 

January 11, 2013, 9am-12pm, McSwain Agricultural Center, 2420 Tramway Road, Sanford, NC

• Presentations:
  • Pooling and Unitization Laws by State – Ted Feitshans and Allison Saito, N.C. State University
  • “Lifecycle of a Mineral Rights Lease” & Draft Mineral Rights Lease Flowchart – John Humphrey and James Robinson
  • Timeline of the Compulsory Pooling Study Group – Chairman Covington. 

February 8, 2013, 9am-12pm, Multipurpose Room in Bldg 42 (also known as Bldg 2), CCCC Campus, 764 West St., Pittsboro, NC

• Presentations:
  • Extinguishment of Mineral Rights – Dr. T. Feitshans, NCSU
  • Ownership of Oil and Gas Rights: The Surface Estate and the Mineral Estate –Don Kovasckitz, Director of Strategic Services for Lee County
  • USDA Loans and the Effects of Natural Gas Drilling – John Humphrey, the Humphrey Law Firm
  • An Overview of Compulsory Pooling in Five Oil and Gas Producing States – Layla Cummings, Volunteer Attorney, DENR

March 1, 2013, 9am-12pm, Multipurpose Room in Bldg 42 (also known as Bldg 2), CCCC Campus, 764 West St., Pittsboro, NC

• Presentations:
  • Statutory Approach to Compulsory Pooling, Pennsylvania Example – Brigid Landy. “Getting to Yes” PA Compulsory Pooling Report
  • Surface Owner Rights in Various States
  • PA SB 355
  • Continental Resources vs. Farrar Oil

March 22, 2013, 9am-12pm, McSwain Extension Education & Ag Center, 2420 Tramway Rd, Sanford, NC

• Presentations :
  • Revisit Land / Mineral Owners Flow Chart – James Robinson
  • Discussion of Final Report – Chairman Ray Covington
    Potential Issues for Consideration by Compulsory Pooling Study Group

April 12, 2013, 9am-12pm, McSwain Extension Education & Ag Center, 2420 Tramway Rd, Sanford, NC

• Presentations:
  • Action Items:
    • Developing Terms of Use – James Robinson
      • Master List of Terms
  • Information Items:
    • Staff Recommendations on Cost Sharing and Payment Structures – Layla Cummings
  • • • Cost Sharing Statutes in Various States
      • Issues for Consideration
    • Opening Discussion on Indemnification Issues – Ted Feitshans
      • Indemnification Document
    • Agendas for the Next Three Meetings – Chairman Ray Covington
      • April and May Meeting Agendas

April 26, 2013, 9am-1:30pm, McSwain Extension Education & Ag Center, 2420 Tramway Rd, Sanford, NC

• Presentations:
  • Action Items:
    • Cost Sharing in Other States – Jim Dewbre, Senior Vice President for Land and Business Development, Southwestern Energy
      • Arkansas Cost Example- W. Haven Notes
  • Information Items:
    • Opening Discussion on Reporting and Notice Requirements – John Humphrey
      • Notice of Subsurface Entry
      • Reporting of Production
    • Agendas for the Next Two Meetings – Chairman Ray Covington
    • Public Questions and Comments – Chairman Ray Covington

May 17, 2013, 9am-1:30pm, McSwain Extension Education & Ag Center, 2420 Tramway Rd, Sanford, NC

• Presentations:
  • Action Items:
    • Group Recommendations on When to Compel Pooling – Chairman Ray Covington
      • Oil & Gas Terms Pooling v Unitization
      • Draft Pooling Chart – State Comparison
    • Group Recommendations on Indemnification – Ted Feitshans
    • Group Recommendations on Notice and Reporting Requirements – John Humphrey
  • Information Items:
    • Pooling of Special Lands – Trina Ozer
    • Public Questions and Comments – Chairman Ray Covington
    • Closing Comments – Chairman Ray Covington

May 31, 2013, 1:00pm-5:00pm, Green Square Training Room, 117 W. Jones Street, Raleigh, NC

• Presentations :
  • Action Items:
    • Group Recommendations on When to Compel Pooling – Layla Cummings
    • Group Recommendations on Indemnification – Ted Feitshans
    • Group Recommendations on Notice and Reporting Requirements – John Humphrey

August 28, 2013, 1:00pm-4:00pm, Green Square Training Room 1210, 117 W. Jones Street, Raleigh, NC

• Presentations :
  • Action Items:
    • Discussion of Draft Report and Final Recommendations – Director Ray Covington
    • Next Steps – Director Ray Covington
    • Public Questions and Comments – Director Ray Covington
    • Closing Comments – Director Ray Covington
  • Adjournment

The full Mining and Energy Commission (MEC) met review recommendations on September 6, 2013.