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Board denies Buchanan and Diversified petitions to reconsider Pocahontas pooling orders after debate over jurisdiction, royalties and reimbursed costs
Summary
The Virginia Gas and Oil Board denied petitions for reconsideration by Buchanan Energy and Diversified Production, after hearing arguments that the board lacks jurisdiction over surface easements and that prior contracts and reimbursed costs should be honored; Pocahontas/CNX defended the orders, saying pooling and royalty provisions follow the 1990 Act and the operator will pay royalties on sold gas.
The Virginia Gas and Oil Board on Dec. 16 denied petitions by Buchanan Energy and Diversified Production LLC seeking reconsideration of pooling orders the board entered in October affecting several units tied to longwall mining panels.
Tom Pruitt, speaking for Buchanan Energy, told the board the petitions raised two principal jurisdictional objections: that surface easements tied to the coal estate cannot be repurposed for gas harvesting and that the board cannot, under the statute, override or impair existing private lease payment provisions. "The granting of any applications that would allow the drilling through the Canada energy surface for the purpose of harvesting gas would be a…
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