American Oil and Gas Reporter - March 2019 - 101

fact. "For the commonwealth to own the
streambed, it is well settled that the stream
has to be navigable in fact. This means
that a stream has to be used or susceptible
to being used in ordinary conditions as a
highway for commerce over which trade
and travel may be conducted in the customary modes of trade and travel on
water," he explains.
This case involved a DCNR claim, on
behalf of the state, of ownership of three
streambeds-Lycoming, Loyalsock and
Mehoopany creeks-although the waterways are less than a foot deep in most
places under ordinary conditions, he says.
Since 2010, Moody notes companies
have been reluctant to spend the money
and time to contest DCNR's claims, and
many entered into streambed leases with
the agency or put the disputed royalties
into escrow accounts.
"Royalty owners were not getting paid,
and that is why they have sued," Moody
says. "The legal issue is very clear: The
legislature's public highway declaration
doesn't mean the stream is navigable in
fact, which is necessary for stream ownership.
What the designation does is give the state
a navigation easement over and across the
stream. That interest is not being impacted
by drilling going on underneath the creek
or fracturing an underlying well lateral."
PIOGA is evaluating its participation
in the lawsuit, with Moody noting he
will canvass association members as to
whether they have been affected by
DCNR's claims.
❒

U.S. Energy Corp. Well
Has IPs Of 1,424 Boe/d
DENVER-U.S. Energy Corp. reports
the J. Beeler No. 1H well in Zavala
County, Tx., produced approximately
1,255 barrels of oil and 1.02 million
cubic feet of natural gas over its initial
24 hours of production. The 26,000-foot
total measured depth, dual-lateral well,
which was operated by CML Exploration,
targeted the Georgetown formation.
U.S. Energy notes that an earlier
Georgetown well, the Beeler Ranch No.
1H, made 1,227 barrels of oil equivalent
(85 percent oil) in its initial 24 hours,
and had 30- and 90-day rates of 915 boe
a day (85 percent oil) and 820 boe/d (87
percent oil), respectively.
U.S. Energy Chairman and Chief Executive Office David Veltri says, "We are
highly encouraged with the results from
the J. Beeler No. 1H. The results further
confirm the development potential on our
adjacent acreage in Dimmit County, Tx.,
where we expect to drill up to three additional wells this year."
❒

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American Oil and Gas Reporter - March 2019

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