Shannon DeHarde Joins Babst Calland

PITTSBURGH, PA, June 29, 2015Shannon DeHarde recently joined law firm Babst Calland as an associate in the Firm’s Litigation Services Group. Ms. DeHarde focuses her practice on general civil litigation matters. A 2013 graduate of the University of Pittsburgh School of Law, she was previously with Norton Rose Fulbright US LLP.

Babst Calland’s Expansion Results in Move to New Charleston Location – Law Firm Sees Large Growth Since Opening Regional Office in 2011

Charleston, W. Va., June 23, 2015 – The law firm of Babst Calland has moved to a new office location in Charleston’s downtown business district at BB&T Square. Following a period of growth in number of attorneys and clients, the firm has outgrown its previous downtown location at United Center and has moved several blocks to BB&T Square’s office tower located at 300 Summers Street, Suite 1000, Charleston, WV. The firm’s local phone numbers and attorney e-mail addresses remain the same. The main phone number is (681) 205-8888.

“Our team of West Virginia attorneys welcomes the move to BB&T Square in the center of our beautiful downtown district,” said Steven Green, shareholder and energy attorney at Babst Calland. The new space will accommodate our continued growth while enabling our entire staff to better serve current and new clients,” he added.

Babst Calland opened its Charleston office in 2011 initially serving clients in the growing natural gas market in West Virginia and the Appalachian Basin. The office has grown steadily since then, and last year, it added a team of senior West Virginia attorneys in lateral moves from two other local firms. The firm focuses on representing clients through a multi-disciplinary team approach with attorneys in key practice areas, including: energy and natural resources, environmental, employment and labor, business services, title, litigation, land use, and construction law.

Among the largest fully-dedicated teams of energy and environmental attorneys in the Appalachian Basin, Babst Calland has more than 30 attorneys admitted to practice in West Virginia who have been serving the natural gas, coal and other industries for many years. In addition to Charleston and Pittsburgh, the firm also has office locations in State College, Pa., Canton, Ohio and Sewell, N.J.

Babst Calland Report Focuses on Legal and Regulatory Challenges Facing Appalachian Basin Oil and Gas Producers, Midstream Operators

Despite Economic and Regulatory Climate, Marcellus and Utica Shales among Most Productive in U.S.

PITTSBURGH, June 4, 2015 – The law firm of Babst Calland today released its fifth annual energy industry report called, The 2015 Babst Calland Report – Appalachian Basin Oil and Gas Industry: Rising to the Challenge; Legal and Regulatory Perspective for Producers and Midstream Operators. This annual review of energy and natural resources development activity acknowledges the continuing evolution of this industry in the face of economic, regulatory, legal and local government challenges. To request a copy of the Report, contact info@babstcalland.com .

In this Report, Babst Calland attorneys provide insights into Marcellus and Utica shale issues, challenges and recent developments most relevant to Pennsylvania, Ohio and West Virginia. In general, a significant challenge ahead for shale developers in the current price environment is for operators to continue to be productive and active in finding land and drilling wells while effectively delivering the natural resource to market.

According to the U.S. Energy Information Administration, regional and national natural gas production reached an all-time high at the end of 2014. Thus far in 2015, the oil and gas industry’s rig count in the Appalachian Basin and elsewhere is down substantially compared to the previous two years. Although Marcellus shale development is leading the way in the U.S. natural gas production by producing 17 million cubic feet per day of gas, persistently low gas prices are forcing producers to curtail capital expenditures, adjust staffing and wring cost savings from their respective supply chains.

Joseph K. Reinhart, shareholder and co-chair of Babst Calland’s Energy and Natural Resources Group, said, This Report identifies the many challenges faced by the oil and gas industry, including commodity pricing, efforts to impose or increase taxes, pipeline capacity, vocal opposition, environmental and litigation challenges, impacts of local regulation, and the growing importance of due diligence in asset transactions.

The 44-page Report contains five sections, each addressing key challenges for Appalachian Basin oil and gas producers and midstream operators.

  • Regulatory Shifts and Impacts, such as the current proposed amendments to Chapter 78 rules in Pennsylvania, will impose significant new regulatory burdens and create tremendous shifts in how companies manage their conventional and unconventional assets. Also, the focus on potential impacts of hydraulic fracturing and deep well disposal on seismic events may create sweeping changes to what operators will need to install and monitor these facilities. These and other impacts will increase administrative burdens and may create increased legal burdens and business considerations.
  • Environmental Challenges, resulting from the proposed Chapter 78 amendments, including waste rules, NORM requirements, retention ponds, storage tanks, noise, public resources, stream and wetland buffers, orphaned and abandoned wells, and clean-up standards, among others. Most industries do not confront this many critical environmental issues in one decade, yet the oil and gas industry in the Appalachian Basin is facing these challenges all at once.
  • Litigation Challenges will remain part of the industry’s landscape given the large number of unresolved regulatory and legal issues. Industry will be required to litigate interpretations of statutes and rules by federal and state regulators and environmental groups and continue to face issues related to the validity of leases and royalty payments. Property owner claims of personal injury and property impact from oil and gas development activities will likely continue, fueled by claims of ground water contamination and adverse health effects of shale development.
  • Local Government Regulatory Landscape Varies Significantly in Appalachia with each of the primary states providing its unique system of local regulatory authority in the oil and gas industry. Pennsylvania continues an uncertain evolution in the aftermath of the Pennsylvania Supreme Court’s decision in Robinson Twp. vs. Commonwealth of Pennsylvania (Act 13). In addition to the expected increase in local ordinance activity resulting from the Act 13 ruling, anti-industry activists are challenging the validity of zoning ordinances. By contrast, West Virginia and Ohio are far more restrictive in the authority afforded to local government to regulate the natural gas industry.
  • Negotiation of Transactions Requires Comprehensive Due Diligence in Title, Environmental, Land Use, Litigation and Lease Review particularly given the number of companies that are trading assets and/or entering or exiting operations in the Appalachian Basin. Title Due Diligence continues to play a major role in transactions. Cotenancy issues are addressed differently in each state. Pennsylvania acquisitions should include the proposed new Chapter 78 and 78a requirements moving forward, as it is likely that it will take both the oil and gas industry and Pennsylvania’s agencies a significant amount of time to fully implement these changes. Possessing clear title and all necessary environmental permits will be of little value if local ordinances, including zoning and traffic restrictions or construction requirements, do not allow certain activities. Identifying and analyzing a seller’s pending suits and threatened claims and a familiarity with recent case law and pending cases that may adversely affect the oil and gas industry is also a significant aspect of due diligence for oil and gas transactions.

Commenting on this year’s Report, Kathryn Z. Klaber of The Klaber Group said, The Babst Calland Report is a compilation of current facts and challenges with legal and regulatory perspective relevant to the interests of the Appalachian Basin oil and gas industry.

As market conditions evolve for the oil and gas industry in the Appalachia Basin, Babst Calland’s Energy and Natural Resources Group continues to stay abreast of the many current legal and regulatory challenges facing producers and midstream operators.

To stay on top of these developments, periodic update articles, news and regulatory information can be found on babstcalland.com or at the Firm’s Shale Energy Law Blog at shaleenergylawblog.com. Subscribe to receive regular updates.

Note: The Babst Calland Report is provided for informational purposes only to our clients and friends, and is not intended to constitute legal advice.

Corporate Energy Attorney Jay Hammond Joins Babst Calland’s Business Services Practices

PITTSBURGH, PA – May 18, 2015 – The law firm of Babst Calland today announced the addition of corporate attorney Jay Hammond as a shareholder in the Firm’s Energy and Natural Resources and Business Services groups.

Mr. Hammond is the former Vice President and General Counsel of Atlas Energy and the former Supervising Counsel for Chevron North America Exploration and Production’s Appalachian/Michigan business unit. Previously, he also held key legal positions with CNX Gas Corporation and CONSOL Energy. He is admitted to practice in Pennsylvania, Massachusetts and the District of Columbia and is a graduate of Cornell Law School, Oxford University and Harvard College.

“Jay Hammond is a welcome addition to our Business Services Group in its role of supporting transactions, corporate compliance, and general business counsel for our clients, particularly those in the natural gas industry,” said Chester R. Babst III, managing shareholder of Babst Calland. “He also joins our established multi-disciplinary team of energy attorneys after having been involved in Marcellus Shale development throughout the Appalachian Basin during the past decade. He will work collaboratively with our Energy and Natural Resources Group attorneys and clients. We’re pleased that Jay will be a part of our team,” added Babst.

Babst Calland’s Energy and Natural Resources Practice Group represents many energy clients on a variety of matters related to energy and environmental law, business transactions, land use, title, litigation, construction, and employment and labor.

January 2015

Babst Calland Adds Six Energy and Natural Resources, Environmental, Employment and Labor, Business Services and Litigation Associates

PITTSBURGH, PA, January 29, 2015 – Patrick C. Auth, Naeha Dixit, Kate H. Cooper, Molly E. Meacham, Esther S. Mignanelli and Sarah Molinero recently joined the law firm Babst Calland as associates.

Patrick Auth, who joins the Firm’s Title Services and Energy and Natural Resources groups, counsels various energy, oil, gas and mineral-related clients on transaction matters as they relate to gas title issues and opinions. Mr. Auth, a 2010 graduate of Duquesne University School of Law, was previously with Steptoe & Johnson PLLC. He is admitted to practice in Pennsylvania.

Naeha Dixit, who joins the Firm’s Environmental Services Group, assists clients on a wide variety of environmental matters. Ms. Dixit is a 2007 graduate of Emory University School of Law. Prior to joining Babst Calland she served as Associate Regional Counsel, Region 4, U.S. Environmental Protection Agency in Atlanta, Ga. specializing in hazardous waste enforcement and counseling. She is admitted to practice in Georgia, Michigan, New York and Pennsylvania.

Kate Cooper, who joins the Firm’s Business Services Group, counsels both for-profit and non-profit entities in connection with mergers, acquisitions and divestitures. She also provides advice to clients on a broad range of general corporate matters, including business planning and structuring, commercial contracts, securities law matters and governance issues. Ms. Cooper, a 2010 graduate of Boston College Law School, was previously with Clark Hill Thorp Reed. She is admitted to practice in Massachusetts, New York and Pennsylvania.

Molly Meacham joins the Firm’s Litigation Services, Employment & Labor Services, and Energy & Natural Resources groups. She focuses her practice in the areas of general commercial and environmental litigation, as well as to represent business entities in employment disputes. Ms. Meacham has tried jury trials to verdict, represented clients in state, federal and appellate courts, alternative dispute resolution forums, and before government agencies. She also represents clients in matters that include contract disputes, employment law, admiralty and maritime law, toxic tort, environmental and natural gas industry litigation. Ms. Meacham, a 2006 graduate of University of Notre Dame Law School, was previously with Peabody & Arnold LLP in Boston, Mass. She is admitted to practice in Massachusetts and Pennsylvania.

Esther Mignanelli, who joins the Firm’s Litigation Services Group, focuses her practice primarily on general civil litigation. Ms. Mignanelli is a 2014 graduate of Chicago-Kent College of Law. She is admitted to practice in Pennsylvania.

Sarah Molinero, who joins the Firm’s Business Services Group, focuses her practice on mergers and acquisitions, business planning and structuring, real estate matters and general corporate matters. Ms. Molinero is a 2014 graduate of Duquesne University School of Law. She is admitted to practice in Pennsylvania.

Babst Calland Names Antonelli, Dausch, Mosites and Wills Shareholders

PITTSBURGH, January 21, 2015 – Babst Calland recently named Stephen A. Antonelli, Mark K. Dausch, Jean M. Mosites and Kevin T. Wills shareholders in the Firm.

Steve Antonelli, a member of the Firm’s Employment & Labor Services, Litigation Services and Energy & Natural Resources groups, represents employers in all phases of labor and employment law, as well as matters of general litigation, including those concerning the validity of oil and gas leases, joint venture agreements and other disputes involving the natural gas industry. Mr. Antonelli earned his J.D. degree from Duquesne University School of Law in 2005.

Mark Dausch, a member of the Firm’s Litigation Services and Energy & Natural Resources groups, focuses his practice in the areas of commercial, products liability, toxic tort and environmental litigation. A sizeable portion of his litigation practice has involved defending clients in the natural resources and mining industries. As lead trial counsel, he has tried bench and jury trials to verdict and has represented clients in state and federal trial and appellate courts, alternative dispute resolution forums and before government agencies. Mr. Dausch earned his J.D. degree from Duquesne University School of Law in 2007.

Jean Mosites, a member of the Firm’s Environmental, Energy & Natural Resources, and Public Sector Services groups, focuses her practice primarily on client counseling on environmental compliance in the energy sector, as well as resolving liabilities under federal and state remediation programs. Ms. Mosites has assisted clients responding to agency requests for information, notices of violation and orders issued under Pennsylvania’s Oil and Gas Act, Clean Streams Law, and Solid Waste Management Act, as well as federal statutes including the Clean Air Act and the Clean Water Act. She advises clients on regulatory matters encountered in the development of the Marcellus Shale, including water sourcing, handling and disposal, gas migration investigations, and site restoration obligations. She also practices before the Pennsylvania Environmental Hearing Board on a variety of matters, including appeals from compliance orders and third-party permit appeals. Ms. Mosites earned her J.D. degree from Duquesne University School of Law in 2007.

Kevin Wills, a member of the Firm’s Business Services and Energy & Natural Resources groups, represents business clients in mergers, acquisitions and divestitures; drafting and negotiating a wide variety of contracts, real estate agreements and software licenses; advising clients involved in contract disputes; advising clients on business planning and structuring matters; and representing clients in natural gas and energy, including the acquisition of unconventional natural gas (such as Marcellus Shale) and natural gas pooling and unitization. Mr. Wills earned his J.D. degree from the University of Dayton School of Law in 2006.

Angela Kilbert Joins Babst Calland

PITTSBURGH, PA, September 16, 2014 – Angela M. Kilbert recently joined law firm Babst Calland as an associate in the Firm’s Environmental Services Group. Ms. Kilbert assists clients on a wide variety of environmental matters. A 2013 graduate of the George Washington University Law School, she worked as a law clerk for the U.S. Environmental Protection Agency and the Environment and Natural Resources Division of the U.S. Department of Justice. Prior to joining Babst Calland Ms. Kilbert was a clerk for the Honorable D. Quarles, Jr., U.S. District Court Judge for the District of Maryland. She is admitted to the Maryland Bar, the United States District Court of Maryland and the United States Court of Appeals for the Fourth Circuit.

Rich Saxe Rejoins Babst Calland

PITTSBURGH, PA, September 15, 2014 – Richard W. Saxe, Jr. recently rejoined law firm Babst Calland as a shareholder in the Firm’s Construction and Litigation Services groups.

Mr. Saxe concentrates his practice in the areas of construction and commercial litigation and arbitration. His construction experience includes representing contractors, subcontractors, suppliers, sureties, owners and design professionals in all aspects of disputes concerning public and private construction projects. Mr. Saxe regularly represents and advises clients on water and sewer line projects as well as wastewater and water treatment plant facilities. He has handled a wide range of construction disputes and issues including construction payment disputes, payment and performance bond claims, mechanics’ lien claims, delay, acceleration and inefficiency claims, change order disputes, claims for differing site conditions, Pennsylvania’s One Call Act, and claims involving various state prompt payment statutes. A 2001 graduate of Duquesne University school of Law, Mr. Saxe served as vice-president & general counsel for Galway Bay Corporation, a general contractor specializing in the construction and renovation of wastewater and water treatment plants and pump stations in Pennsylvania, Maryland, West Virginia, Virginia and New Jersey. In this role, he handled all of the company’s legal matters, as well as the managerial, business and day-to-day operations of the company.

Peter Schnore Rejoins Babst Calland

PITTSBURGH, PA and STATE COLLEGE, PA, September 12, 2014 – Peter H. Schnore recently rejoined law firm Babst Calland as senior counsel in the Firm’s Business Services Group and will counsel the Firm’s clients from its Pittsburgh and State College offices.

Mr. Schnore concentrates his practice in real estate-related matters, including real estate tax-assessment appeals, land use, zoning, quiet title actions, eminent domain proceedings, and negotiating real estate leases and related agreements. One area of particular concentration in his practice is real property tax assessment appeals. Mr. Schnore represents commercial and industrial property owners before county boards of assessment appeals and courts throughout Pennsylvania who are either seeking a real property tax exemption or a reduction in their tax obligations, or defending the assessed value from a challenge brought by a local taxing authority. He also represents landowners and developers who seek governmental approvals needed before proceeding with a planned real estate development project. Mr. Schnore is a member of the Institute for Professionals in Taxation and IPT’s Western Pennsylvania Local Luncheon Committee and serves on the Council of the Allegheny County Bar Association’s Real Property Section. A 2001 graduate of the University of Pittsburgh School of Law, he worked at Reed Smith LLP before returning to Babst Calland.

Krista Staley Selected by The Legal Intelligencer as a “2014 Lawyer on the Fast Track”

PITTSBURGH , PA – September 10, 2014 – Krista-Ann M. Staley, an attorney at law firm Babst Calland, was selected by The Legal Intelligencer as one of only 36 “2014 Lawyers on the Fast Track” in Pennsylvania.

A 2007 graduate of the University of Pittsburgh School of Law, Ms. Staley’s practice focuses on municipal law, with an emphasis on land use and development issues. She represents boroughs, townships, municipal authorities, zoning hearing boards, individuals and private entities in the Pittsburgh area. In addition, Ms. Staley counsels and represents private landowners and businesses in matters relating to governmental entities, such as analyzing municipal ordinances and applying for and obtaining various land use approvals. She also works with energy industry clients, including drilling and midstream companies, with a particular emphasis on the land use and roadway use issues related to the development of the Marcellus Shale throughout Pennsylvania.

With the help of The Legal Intelligencer’s legal staff, a group of eight evaluation panelists from across the Commonwealth have selected from many nominations these 36 “Lawyers on the Fast Track” who not only excel as lawyers, but also serve as exemplary members of their communities and profession. This recognition is only given to attorneys under the age of 40 who have demonstrated excellence in four categories: development of the law; advocacy and community contributions; service to the bar; and peer and public recognition.

Attorney Kevin K. Douglass Named Board President of Energy & Mineral Law Foundation Assumes Post 35 Years since His Father Founded the Organization

PITTSBURGH, PA, September 3, 2014 – The law firm of Babst Calland is pleased to acknowledge the appointment of Kevin K. Douglass, shareholder and litigation attorney, as president of the Energy & Mineral Law Foundation (EMLF), a national nonprofit educational organization which fosters the study of the laws and regulations related to natural resource development and energy use. The appointment was effective July 1, 2014.

In his capacity as Board President, Douglass will work closely with the foundation’s executive committee and executive director in implementing its three-year strategic plan, as well as assisting with program planning and governance. He is a senior attorney with Babst Calland and has more than 25 years of experience litigating complex commercial matters in a variety of forums, including federal, state and bankruptcy courts. He is admitted to practice in both Pennsylvania and West Virginia, as well as in the United States District Court for the Western District of Pennsylvania and the United States Court of Appeals for the Third Circuit.

What makes this appointment unique for Kevin Douglass is the fact that he is now the board president of the foundation that his father, Attorney Samuel Douglass, founded in 1979 with University of Pittsburgh Law Professor Cy Fox.

Based in Lexington, Kentucky, the Energy and Mineral Law Foundation’s mission is to foster the study of energy, mineral and natural resources law through quality, cost-effective and timely education, law student scholarships, and a continuing forum for the intellectually honest examination of the law.

Four Veteran West Virginia Attorneys Join Babst Calland’s Charleston Office as Shareholders

CHARLESTON, WV and PITTSBURGH, PA – August 25, 2014 – The law firm of Babst Calland today announced the lateral moves of four established West Virginia attorneys who have joined the firm’s office in downtown Charleston.

Veteran attorneys Timothy Miller from Robinson & McEIwee, and Christopher “Kip” Power, Mychal Schulz and Robert Stonestreet from the Charleston office of Dinsmore & Shohl have joined forces with Babst Calland in providing senior-level legal counsel in key practice areas including environmental, litigation and employment. The addition of the new attorneys and staff will double the size of Babst Calland’s Charleston office which opened in 2011.

Commenting about these lateral moves to the Firm, Chester R. Babst III, managing shareholder of Babst Calland, said, “We are very pleased to welcome these fine individuals to our Firm and to our established team in Charleston. They are a natural fit for us as they share our values, experience and philosophy in serving clients, some with whom we already have business relationships. The addition of these well-regarded West Virginia attorneys supports our strategy to expand Babst Calland’s senior-level legal counseling team and capabilities to serve the needs of existing and new clients in the region.”

“As a litigator who focuses on energy-related law, I am pleased to be joining Babst Calland’s well-established and full-service multi-disciplinary team representing the energy industry,” said Attorney Timothy Miller.

“Along with my colleagues Mychal Schulz and Robert Stonestreet, it is an exciting time for us to join Babst Calland’s West Virginia team and become part of a firm that is grounded in environmental law and where the energy business is a significant force,” said Attorney Christopher “Kip” B. Power.

Among the largest fully-dedicated teams of energy and environmental attorneys in the Appalachian Basin, Babst Calland now has 30 attorneys admitted to practice in West Virginia who have been serving the natural gas, coal and other industries for many years.

Michael Reer Joins Babst Calland

PITTSBURGH, PA, August 22, 2014 – Michael K. Reer recently joined law firm Babst Calland as an associate in the Firm’s Energy & Natural Resources and Environmental Services groups.

Mr. Reer’s practice involves counseling clients on a wide variety of federal and state regulatory issues related to Marcellus, Utica and other conventional and unconventional shale gas well developments in the Appalachian Basin. He also works on a variety of regulatory compliance issues related to coal mining. Mr. Reer received his J.D. from Boston College Law School in 2013, where he co-taught Environmental Law and Policy at the undergraduate institution. He completed an LL.M. in Energy, Environmental, and Natural Resources Law at the University of Houston in 2014. Mr. Reer is admitted to practice in Texas and was previously with McElroy, Sullivan, Miller, Weber & Olmstead L.L.P in Houston, TX, where he drafted field rule proposals for unconventional oil and gas plays.

Robert M. Palumbi and Dylan B. Spadaccino Join Babst Calland

PITTSBURGH, PA, July 18, 2014 – Robert M. Palumbi and Dylan B. Spadaccino have recently joined law firm Babst Calland as associates in the Firm’s Construction and Litigation Services groups.

Mr. Palumbi has experience in cases involving the Pennsylvania Mechanics’ Lien Law, the Contractor and Subcontractor Payment Act the Pennsylvania Home Improvement Consumer Protection Act, and the Pennsylvania Municipal Torts Claim Act. He also represents clients in a variety of commercial and construction related disputes including products liability claims, construction defect, breach of contract actions, municipal law, and litigation involving energy and natural resources. Mr. Palumbi, a 2009 graduate of Duquesne University School of Law, was previously with Picadio Sneath Miller & Norton, P.C. He is admitted to practice in Pennsylvania, New Jersey and West Virginia.

Mr. Spadaccino concentrates his practice on construction litigation, which includes prosecuting and defending construction payment disputes, including mechanics’ liens, payment/performance bond claims and Contractor and Subcontractor Payment Act claims. He also provides counsel to contractors, subcontractors, suppliers and project owners in the negotiation and administration of construction contracts. Prior to becoming a construction lawyer, Mr. Spadaccino owned and operated a commercial demolition company in Philadelphia, Pennsylvania that specialized in selective interior space demolition services. Mr. Spadaccino, a 2009 graduate of South Texas College of Law, was previously with Leech Tishman Fuscaldo & Lampl, LLC. He is admitted to practice in Pennsylvania, New Jersey and Texas.

The 2014 Babst Calland Report Focuses on the Appalachian Shale Industry in Transition

Challenges Evolving for Producers and Midstream Operators

PITTSBURGH, June 9, 2014 – The law firm of Babst Calland released its fourth annual energy industry report, The 2014 Babst Calland Report – Appalachian Shale Industry in Transition: Evolving Challenges for Producers and Midstream Operators. This annual review of natural gas and energy development activity acknowledges the significant growth of the Appalachian shale industry and offers insights on the issues and legal implications resulting from such growth.

This year’s Report explores major challenges for the industry ranging from political, regulatory and local government influences to property rights, land use issues and workforce safety. As the industry transitions from its startup years to an era of production efficiencies and a promising outlook of manufacturing renaissance, Babst Calland attorneys provide comment in this Report on related Marcellus and Utica shale issues and developments relevant to Pennsylvania, Ohio and West Virginia.

Commenting on this year’s Report, Joseph K. Reinhart, Shareholder and Co-Chair of Babst Calland’s Energy and Natural Resources Group, said, This Report offers a unique glance at key issues for the industry. In addition to navigating increased regulatory and legislative challenges, the next chapter for the shale gas industry will be shaped by political influences, regulatory and local government developments, property rights challenges and workforce safety.

The Appalachian Basin is playing a leading role in the United States’ production of record amounts of oil, gas and natural gas liquids. New business opportunities are rapidly developing from plentiful and globally competitive, low cost gas and natural gas liquids. This industry dynamic is opening the way for new and expanded derivative manufacturing facilities. While shale development unto itself will sustain for many years, this region’s ability to attract downstream users will ultimately tell the story of increased economic activity overall, added Reinhart.

The 32-page Report reflects the perspectives of Babst Calland’s multi-disciplinary team of energy attorneys. It contains six sections, each covering a specific subject matter considered to be a key challenge for Appalachian Shale producers and midstream operators. This year, Kathryn Z. Klaber, shale industry advisor to Babst Calland and former CEO of the Marcellus Shale Coalition, offers a Foreword perspective and also contributed to the Report’s content.

The Report incorporates commentary for each key issue, including specific implications for shale operators in the primary Appalachian shale states such as:

  • Governments and politics are playing a major role in shale energy. State elections will shape how the industry operates. In Ohio and Pennsylvania, the tax debate is still very much alive. In West Virginia, a gas severance tax has been in effect and has remained unchanged despite attempts to raise it. The industry faces increased budgetary and operational challenges from legislative sessions in all three states. Politically-driven developments continue to impact the prospects for new and existing underground injection wells, ranging from new seismic testing requirements to public objections to pending permit applications.
  • Regulatory issues remain fluid for the Appalachian shale gas industry. There is no shortage of regulation for the burgeoning shale gas industry, particularly given the degree of transparency, public scrutiny and political influence for and against the extractive industries. A large number of regulatory issues remain requiring constant attention to developments and details across a spectrum of subjects including: reporting, permitting, well site construction, impacts to species, and unique standards for water and air quality.
  • Local government regulation of the industry is expanding. The line between state and local control is still being tested in the state of Ohio, while the implications of Post-Robinson Twp. (Act 13) local regulation in Pennsylvania will not be evident until later in 2014.
  • Property rights and land use present more challenges than ever before. Myriad unresolved property rights, royalty disputes and land-related issues are pending in the courts. Producers in Ohio, West Virginia and Pennsylvania are facing a continuously evolving environment concerning property rights and land use.
  • Safety and labor remain priorities. The industry’s workforce and supply chain partners are keys to productivity gains and maintaining the all-important license to operate. As the oil and gas industry must protect its workers 24/7, it must remain vigilant on safety compliance and labor matters.
  • Next step in the transition: we are at the threshold of a manufacturing renaissance. The Appalachian Basin is playing a leading role in the United States’ production of record amounts of oil, gas and natural gas liquids. New business opportunities are rapidly developing, and the Appalachian Basin has the potential to evolve from our vastly successful resource extraction activities to reclaim its historic reputation as a manufacturing juggernaut.

To request a copy of the Report, contact info@babstcalland.com.

To stay on top of these developments, periodic update articles, news and regulatory information can be found on babstcalland.com or at the Firm’s Shale Energy Law Blog shaleenergylawblog.com. Subscribe to receive regular updates.

Note: The Babst Calland Report is provided for informational purposes only to our clients and friends, and is not intended to constitute legal advice.

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