A Law360 article reported that on Tuesday, July 9, Gov. Tom Corbett signed legislation obligating natural gas companies operating in the state to standardize all deductions listed on royalty check payment stubs. The amendment also included legislation allowing horizontal drillers to combine multiple contiguous leases that have already been negotiated unless this combining is expressly prohibited by the lease.

The article titled, “PA Lease Pooling Law Paves Way for Marcellus Expansion,” explained that experts say the law will allow for more efficient — and, subsequently, expanded — oil and gas production in the state.

According to the article, “Horizontal drilling maximizes oil and gas recovery while minimizing disturbances to surface lands, because it's more efficient for operators to drill one, centralized well on lands they've leased than drilling a well on each lease parcel. It’s really a gap-filler provision more than anything,” Sean W. Moran told Law360. He added, “This is still relatively new activity, where the rules are being written as we go. Not everyone’s expectations have been completely fleshed out.” 

Read the full article - “PA Lease Pooling Law Paves Way for Marcellus Expansion” (Law360, July 9, 2013)