A Butler County company has filed a federal lawsuit against the United States Forest Service, claiming that the agency is purposefully prohibiting it from developing oil and gas rights it has in the Allegheny National Forest.

Catalyst Energy, of Cranberry, claims that the forest service has recently imposed an unauthorized regulation that requires a "notice to proceed," before mineral rights can be developed.

However, the forest service will not provide Catalyst with the notice to proceed, or any reason explaining the refusal, the lawsuit continues.

"The 'notice to proceed' is unauthorized and illegal, and has been unilaterally created by the USFS without following any rule-making procedures and without any statutory or regulatory authority," the lawsuit said.

It asserts that oil, gas and mineral exploration does not require U.S. Forest Service approval for anyone who owns those rights within the Allegheny National Forest. The only requirement the company must meet, it goes on, is to provide 60 days' advance notice, along with a set of documents to the forest service before work begins.

According to the lawsuit, Catalyst has developed more than 580 wells within the Allegheny National Forest and before 2007 never had to comply with these new conditions.

It accuses the forest service of engaging in a "deliberate effort to prevent and delay" well development in McKean County.

Catalyst is asking the court to stop the forest service from interfering with the company's preparation of the drilling sites, as well as to prevent the agency from threatening employees with arrest and prosecution for developing their rights.

After the forest service refused to issue the notice to proceed, Catalyst officials announced their intention to drill. But they were met with threats of arrest and prosecution for any employee that started development.

There are approximately 12,000 wells operating in the state's 513,000-acre national forest, located in Elk, Forest, McKean and Warren counties.

The surface rights are owned by the federal government, but 93 percent of the mineral rights remain in private hands.

Last year, 984 new wells were drilled in the forest and 1,300 were drilled in 2007.

But the forest service hasn't permitted the drilling of any new gas or oil wells for more than two months while the regional office in Milwaukee reviews the process for approving such drilling.

No one in that office could be reached for comment yesterday.

According to Catalyst's lawsuit, to preserve the company's rights under their land agreements, five wells must be drilled by the end of March. Another agreement requires the drilling of 20 wells by May 1.

Catalyst claims they are being irreparably harmed by the forest service's actions.

"Oil and gas drilling programs are subject to market demands and changes and are planned to respond to current market conditions," the lawsuit contends. "Therefore, unreasonable delays in drilling programs can completely change the economics of the drilling programs and can have an immediate impact on the value of the oil, gas and mineral rights."