Drilling Company Sues Morgantown, WV for $42 Million in Lost Investment & Lost Future Revenue

Another chapter in the ongoing saga of Morgantown, WV. For those who have not followed the story, Morgantown city council members took it upon themselves to ban hydraulic fracturing outside of the city limits—up to one mile—which they say is allowable under a West Virginia law that grants cities the right to exceed their boundaries in certain circumstances. The council members are concerned that two Marcellus gas wells that will be hydraulically fractured are too close to the city’s water supply and the risks are too great.

The drilling company, Northeast Energy, says the state DEP issued permits for those two wells and that Northeast has worked with the city every step of the way to ensure there will be no problems, and that the city at the last minute changed their tune. Northeast has sued to overturn Morgantown’s ban, and if that doesn’t work, they want compensation not only for their lost investment, but also for potential lost revenue.

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