Client Alert
| February 16, 2012
Pennsylvania’s Marcellus Shale Bill: Implications for Water Resources in the Commonwealth
On February 13, 2012, Pennsylvania Governor Tom Corbett signed into law H.B. 1950, also known as the “Marcellus Shale bill.” The new law amends the Pennsylvania Oil and Gas Act, 58 P.S. §§ 601.101, et seq., to impose an impact fee on unconventional wells (e.g., horizontal shale gas wells) and to establish uniform regulatory requirements throughout the Commonwealth on the development of these wells. While the economic implications of the law have been widely discussed, as well as the issue of local regulatory preemption, it is important to recognize the potential impact to water resources, particularly those of public water suppliers. As a result, owners and operators of public water supplies should become familiar with the relevant revisions to the Oil and Gas Act to ensure that all reasonable precautions are taken to protect their water sources.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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