By Charles Young, WV News
CHARLESTON, W.Va. (WV News) — A recently released study from economists at West Virginia University found that modernizing the state’s property laws could jumpstart a new era of natural gas development.
The study — “The Economic Impact of Natural Gas Unitization,” conducted by the Bureau of Business and Economic Research at WVU’s John Chambers College of Business and Economics — examines the potential economic impact of the state enacting a natural gas pooling law.
Natural gas pooling, or unitization, is the consolidation and combining of leased land with adjoining leased tracts. The area is called a pool or a unit. Pooling has the benefit to the production company of uniting all landowners’ leases into a common pool under one drilling production company and utilizing one common underground geological reservoir.
The study examined two possible scenarios, one where natural gas drilling activity in West Virginia increased by 5% as a result of enacting a pooling law and one where drilling activity increased by 10%…