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Arizona Revised Statutes Title 27 - Minerals, Oil and Gas § Universal Citation: AZ Rev Stat § (through 1st Reg Sess 51st Leg. ).
Table of contents

Transportation from wells to rails and then to national and international markets was considered more difficult and costly than production. Bradley, Jr. Experience Transporting oil between wellheads and rail stations cost oil producers more than the longer shipping distances between rail stations and refineries in major cities. Giddens, supra note 5, at Giddens reports that Union Mills near Harrisburg in central Pennsylvania was a rail destination for oil at the time, but it is more likely he intended to include Union City , a locality very close to Corry and Garland in the Oil Region.

Though water transport for oil has decreased as pipeline and rail use increases, water carriers such as tankers and barges remain important to the petroleum industry. As of , water carriers moved Moreover, with insufficient pipeline capacity to meet new oil shale production, water transport, along with rail, increased significantly in to Johnson, supra note 11, at 2; see also George S.

Wolbert, Jr. Oil Pipe Lines 3 explaining that railroads initially benefited from pipeline development because pipelines increased the quantities of crude oil that could reach railroads, which would then carry the oil longer distances to refineries in Pittsburgh, Cleveland, and the East Coast. The first pipelines were small; for example, one connected a well to an on-site refinery, stretching to feet; a second was constructed in from the same land parcel to another refinery two miles away; and a three-mile-long gathering line was constructed in the same year.

The shortest line worked best, while the latter two suffered from leaky joints, poor pipe quality, and faulty machinery. Giddens, supra note 5, at —44; Johnson, supra note 11, at 7—8; Samuel T.

Books and Monographs

See Johnson, supra note 11, at 8—9. The Warren Oil Company and the Pennsylvania Tubing Transportation Company built pipelines from the oil-field boomtown of Pithole to towns along the Allegheny River, permitting subsequent river transport to Pittsburgh. Over teamsters left the Oil Region boomtown of Pithole in a single week. A method of transport i. See Belle Fourche Pipeline Co. Arthur M. Johnson, Petroleum Pipelines and Public Policy, —, at 21 Standard Oil built some portion of its pipelines without using eminent domain to secure right-of-way.

See Wolbert, supra note 22, at 4— See Wolbert, supra note 22, at 4—5. Johnson, supra note 39, at 4.

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Pipelines had only been used to transport refined products short distances from refineries to rail transfer points. The new product line to Wilkes-Barre had a barrels per day bpd capacity and was able to transport three different grades of kerosene with minimal intermixing of the grades. Johnson, supra note 39, at The Mid-Continent field had been discovered in , but was only drawing local attention at the time. By , several inch diameter lines had been built though 8-inch lines were the norm. Wolbert, supra not 22, at Texas produced over million barrels of oil in Energy Info. In the s, lates, and s, Texas regularly produced over a billion barrels of oil annually.

Johnson, supra note 39, at 14— Wolbert, supra note 22, at Gulf and Texaco built pipelines from Oklahoma fields to their Sabine, Texas-area refineries, representing just a few of the pipelines connecting the Mid-Continent field to refineries at points south and east. For an analysis of some of the reasons why Standard Oil was able to obtain control over the oil production and distribution industry, see George L.

Elisabeth R. Mogel eds. On the other hand, these tender requirements could also be viewed as what was necessary to keep pipelines full, running at capacity, and thus operating at their most efficient per barrel cost. But requirements did have the effect of hampering competition from smaller refiners who could not refine or store such large quantities of crude oil.

David E. Pierce Publications, Presentations, and Other Activity

Johnson, supra note 39, at 41— Segments were under separate ownership, and ownership of the oil was transferred at each state border crossing. Standard Oil argued that it had not availed itself of eminent domain, nor had it ever acted as a common carrier, and thus refused to acknowledge the new law applied to its pipelines. There is no taking and it does not become necessary to consider how far Congress could subject them to pecuniary loss without compensation in order to accomplish the end in view. Standard Oil Co. United States, U.

In , the U. In , over 2 billion gallons of gasoline and less than 1. Most of the Cole Act terminated in according to its own terms as set out in section 9 of the Act.

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What remains of the Act is codified in 15 U. Wolbert, supra note 22, at 20; see also William A. D discussing state eminent domain authority for oil pipelines. This pattern is now reversing as crude is carried to Gulf Coast refineries from booming inland production areas.

See infra Part II. See Neelesh Nerurkar, Cong. Oil Imports and Exports 1 Carl E. Energy: Overview and Key Statistics 4 Not surprisingly, public interest also increased dramatically. Although oil prices had leveled off somewhat in the mids, many people still expressed concern about overall energy issues. See Nerurkar, supra note 96, at 1 fig. Oil imports dropped sharply in the mids but increased again in the mids, and have once again fallen from a peak in See Alyeska Pipeline Serv.

Crude Oil Production , U. See generally Annual Energy Outlook , supra note See generally Wiseman, supra note arguing that as resources deplete, extraction is increasing in areas closer to human populations including in Texas, New York, and Pennsylvania.

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Christopher E. In its annual energy report, the EIA projected a reference case in which total U. Annual Energy Outlook , supra note , at MT Oil , Star Trib. See generally Alan Riley, Op-Ed. Times Dec. David Shaffer, N. As of October , North Dakota continued to produce over 1 million barrels of oil per day. Christopher J.

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For a discussion of the range of adverse social impacts arising from the oil boom in North Dakota, see Joshua P. Wesleyan L. The U. Charles K. Ethane is a component of ethylene, which is used in the production of plastics and other goods. NGLs also drive production decisions because they tend to fetch higher prices than dry gas, and thus encourage producers to exploit wet gas plays where they can produce NGLs and dry gas. NGLs are used in a variety of industrial and commercial products and applications, including plastic bags, antifreeze, detergent, barbeques and small stoves, home heating, aerosols, refrigerants, synthetic rubber for tires, polystyrene, gasoline, and lighter fuel.

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See U. Pipeline Basics , U. Barr, supra note , at See generally Am. Petroleum Inst. Products next to each other in the pipeline may mix, though shipping them in a specific sequence can minimize the problem. Mixed products can be re-refined to separate them.


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Railroads and motor carriers are the other transport options in addition to pipelines and water carriers. Consultant, Blackcreek Envtl. Consulting testifying that the current build-out of crude oil pipelines is unwarranted and benefits pipeline companies while costing consumers more as shippers pass along the costs of the higher rates they must pay to pipelines. Blackburn argues that comprehensive federal permitting is needed for oil pipelines, asserting that interstate oil pipelines benefit from the chaos and confusion created by multiple state jurisdictions and the fact that no one is making a determination of overall need.

Petak et al. B for a discussion of gas flaring. Ramseur et al.