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Environmental Blog

Will Trespass Claims for Hydraulic Fracturing Remain Triumphant Over the Rule of Capture in Pennsylvania? An Oil and Gas Operator Seeks Reconsideration in Briggs

In oil and gas law, it is well-settled that the “rule of capture” holds that there is no liability for a mineral rights owner’s drainage of oil and gas from another person’s land so long as the oil and gas is produced from a well bottomed on the mineral owner’s property and all relevant statutes and regulations have been observed. The rule shields exploration and production operators from liability for a trespass when they extract oil and gas below ground from another person’s land, unlike the case where a prospector extracts hard minerals such as coal or precious metals such as gold or silver. The application of the rule of capture to extraction of oil and gas and not to hard or precious minerals is due in large measure to the “fugitive and wandering” nature of oil and gas.

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  • 17
  • April
  • 2018

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Federal Offshore Regulatory Agencies Announce Increased Civil Monetary Penalties for 2018

Like death and taxes, the specter of civil penalties remains ever-present. In the federal offshore energy regulatory environment, monetary penalties have increased once again in 2018. Spurred on by increases in the Consumer Price Index, each of the federal Bureau of Safety and Environmental Enforcement (“BSEE”), the federal Bureau of Ocean Energy Management (“BOEM”), and the U.S. Coast Guard (“Coast Guard”), have adjusted their civil penalty amount during 2018 to account for inflation. Consequently, offshore facility lessees or permittees or vessel operators incurring violations in 2018 after the effective date that such monetary penalty increases became effective will be subject to the bolstered penalty amounts.

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