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.
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.
- 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.
- 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
- 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
- Presentations :
- Revisit Land / Mineral Owners Flow Chart – James Robinson
- Discussion of Final Report – Chairman Ray CovingtonPotential Issues for Consideration by Compulsory Pooling Study Group
- Presentations:
- Action Items:
- Developing Terms of Use – James Robinson
- Master List of Terms
- Developing Terms of Use – James Robinson
- 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
- Action Items:
- 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
- Cost Sharing in Other States – Jim Dewbre, Senior Vice President for Land and Business Development, Southwestern Energy
- 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
- Opening Discussion on Reporting and Notice Requirements – John Humphrey
- Action Items:
- 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
- Group Recommendations on When to Compel Pooling – Chairman Ray Covington
- Information Items:
- Pooling of Special Lands – Trina Ozer
- Public Questions and Comments – Chairman Ray Covington
- Closing Comments – Chairman Ray Covington
- Action Items:
- 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
- Action Items:
- 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
- Action Items:
The full Mining and Energy Commission (MEC) met review recommendations on September 6, 2013.