Cumberland Times-News

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February 2, 2012

Natural gas leasing bills filed in Md.

CUMBERLAND — Two local legislators who represent the Marcellus shale-rich areas of Western Maryland have introduced legislation to clarify issues regarding gas leases and mineral rights. One of the bills offers protections for landowners entering oil and gas leases.

Delegate Wendell Beitzel and Sen. George Edwards introduced two companion bills each in the Senate and the House of Delegates.

“Based largely on discussions with local officials and concerned citizens, we believe that the current statutes regarding the recordation of leases for natural gas and oil should be addressed this session,” Beitzel said.

House Bill 403 would require clerks of court to have a complete intake sheet before recording a lease for real property dealing in oil or gas.

Senate Bill 471 is the companion bill.

Current law does not allow a clerk to reject an otherwise completed lease based on the lack of an intake sheet, Beitzel said.

The new law would help the tracking and indexing of the documents.

“These sheets will be used by the folks in the land records department to properly index the properties leased by natural gas and oil companies. With this important change in the law, people can more easily find these records,” Edwards said.

Beitzel and Edwards also plan to file a bill requiring the recordation of leases of oil and natural gas. The bill, the text of which was not available at press time, also stipulates general information to be included within the leasing documents.

Ohio, along with other states, already have similar provisions on the books, according to a joint press release from the legislators.

“It has been reported to us that some individuals who have entered into these leases were caught off guard with some of the provisions found in the fine print that bind them indefinitely to the lease provisions. Though legislation cannot be crafted to safeguard everyone from every provision, this measure will put into place some very important protections for landowners,” Beitzel said.

Beitzel has filed House Bill 402, requiring terminated dormant mineral leases to be recorded in land records and requiring a judge terminating the leases to make specific information available in his orders. Senate Bill 472 is the companion bill filed by Edwards.

The two also plan to file a bill requiring the registration of land agents, Beitzel said.

Marcellus shale formations throughout the eastern U.S. harbor large untapped natural gas resources. The total value of the natural gas in Allegany County’s Marcellus shale could be close to $15.72 billion, with the average well earning $65,000 to $524,000 yearly, University of Maryland Extension staff has said.

In order to get the natural gas trapped in Marcellus shale to the surface, chemicals, water and sand are pumped underground to break apart rock formations and free the gas. The process is called hydraulic fracturing.

Interested parties can find a list of hydraulic fracturing chemicals and other information at the following site: http://fracfocus.org/

Contact Matthew Bieniek at mbieniek@times-news.com.

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