American Oil and Gas Reporter - February 2015 - 116

"We have to see widespread modifications
of the U.S. driving and fueling mentality
to see any real impact in transportation,"
he offers.
Dominion's Cove Point liquefied natural gas export project is a very attractive
marketing opportunity for Pennsylvaniaproduced gas, D'Amico says. According
to the company, it has begun construction-related activities on the site in Lusby,
Md. When it is completed, the Chesapeake
Bay facility will export as much as 5.75
metric tons a year, using 860,000

dekatherms a day of natural gas, with a
significant portion likely to come from
Pennsylvania. The U.S. Department of
Energy reports it has approved the site
for exports to both free trade agreement
and non-FTA countries.
"LNG exports in the near future certainly will help on the demand side.
Whether that is a 5 or 10 percent share of
the production, anything is going to help
at this point," Slagel says. "Unfortunately,
we are looking at a two- to three-year
time frame."
Ì

PIOGA Deems Decision About
State Lands Leasing Favorable
Support
Energy Education
The American Oil & Gas
Historical Society seeks
your help building new
partnerships with community museums, teacher
workshop practioners, and
other energy educators.
This Society, a 501(c)-3 nonprofit organization established
in 2003, needs immediate
financial support to continue
making a difference in public
education. Our "Petroleum
Age" newsletter and network
of community oil and gas
museums serve as frontline
energy educators. Together we
explain the many historic
achievements of today's energy
business. The public gains a
new appreciation for geology,
petroleum engineering and
chemistry. Funding remains the
constant challenge for accomplishing this outreach. Now
more than ever, America needs
an educated public making
informed decisions about energy.
Please make a tax-deductible
donation today.
American Oil & Gas
Historical Society
1201 15th Street, NW, Ste. 300
Washington, DC 20005
Ph: 202-857-4785 F: 202-857-4799

www.aoghs.org

WEXFORD, PA.-A seven-judge panel
has ruled the Pennsylvania General Assembly has the right to use revenue from
a dedicated oil and gas leasing fund for
general state budget purposes, reports the
Pennsylvania Independent Oil & Gas Association. In its Jan. 7 ruling, commonwealth court also finds that the Department
of Conservation and Natural Resources
has the exclusive authority to decide
whether to lease lands the agency administers.
PIOGA says the ruling constitutes a
defeat for the Pennsylvania Environmental
Defense Foundation, which challenged
natural gas leasing on state forest lands
and the legislature's use of revenue from
the Oil & Gas Lease Fund for general
budget needs. Under a 1955 law, leasing
rents and royalties are directed into DCNR
funds for conservation, recreation and
flood control.
However, as the fund has swelled with
revenue from Marcellus Shale leasing,
lawmakers have begun transferring money
to help balance the state budget, PIOGA
explains. The current budget takes $95
million from the fund, with revenue to
come from new leasing ordered by previous Governor Tom Corbett.
According to PIOGA, commonwealth
court has rejected PEDF's argument that
the Oil & Gas Lease Fund is a constitutionally based trust fund that must be
used only to advance the purposes of Article I, Section 27 of the Pennsylvania
Constitution-the Environmental Rights
Amendment the Pennsylvania Supreme
Court cites in its December 2013 ruling
about the state's ability to set uniform
municipal standards for oil and gas development under Act 13 of 2012.
"Although the Environmental Rights
Amendment places an affirmative duty
on the commonwealth to 'prevent and
remedy the degradation, diminution, or

116 THE AMERICAN OIL & GAS REPORTER

depletion of our public natural resources'-
i.e., to conserve and maintain-the Environmental Rights Amendment does not
also expressly command that all revenues
derived from the sale or leasing of the
commonwealth's natural resources must
be funneled to those purposes and those
purposes only," writes Judge P. Kevin
Brobson.
PEDF also challenged Corbett's May
2014 directive to DCNR to offer more
state lands for lease, provided that under
such leases the natural gas could be accessed with no additional long-term surface disturbance on state lands or if
drilling could occur horizontally from
adjacent private lands, PIOGA notes. A
moratorium on new state-lands leasing
had been put into effect in late 2010,
shortly before Corbett's predecessor,
Ed Rendell, left office, the association
notes.
The Commonwealth Court has ruled
that the 1995 law creating DCNR gives
the department's secretary-and not the
governor-sole authority to make leasing
decisions. Although the ruling nullifies
Corbett's executive order on new leasing,
PIOGA contends, it also may preclude a
moratorium such as the one put in place
by Rendell, for which Pennsylvania's
new governor, Tom Wolf, has expressed
support.
"In my opinion, this decision should
be welcomed by the Wolf administration
because it provides a significant revenue
source to use in balancing the upcoming
budget-if the new governor is willing to
do the right thing and not try to reinstate
the Rendell moratorium," opines PIOGA
General Counsel Kevin Moody. PIOGA
participated as an amicus in the case, the
group says.
According to published reports, PEDF
is appealing the ruling.
Ì



American Oil and Gas Reporter - February 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - February 2015

Contents
American Oil and Gas Reporter - February 2015 - Cover1
American Oil and Gas Reporter - February 2015 - Cover2
American Oil and Gas Reporter - February 2015 - Contents
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American Oil and Gas Reporter - February 2015 - Cover3
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