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Another Belmont County Landowner Threatened with Forced Pooling

In April MDN told you about a landowner in Belmont County, OH who had questions and objections to phrasing in a proposed lease agreement from XTO Energy that talks about “nuisance oil” (see XTO Threatens Belmont County, OH Landowner with Forced Pooling). NEVER sign a lease without running it by a competent oil & gas attorney, and ALWAYS get the sometimes obscure terminology in a lease explained before you sign it. That’s our advice. We have another story along the same lines as the “nuisance oil” story–language that energy companies can’t or won’t explain to landowners. This one also comes from Belmont County, OH–perhaps the hottest of the hot places for drilling right now in the Utica Shale. A landowner from Martins Ferry, OH says XTO offered him an eye-popping $8,000 per acre signing bonus with 20% royalties, and Aubrey McClendon’s American Energy Partners offered $6,000 per acre with 20% royalties. Both have a “market enhancement clause” in the lease. The landowner didn’t like the clause, fearing it would reduce his royalties. The landowner was told by either XTO or AEP or both (we’re not sure), that they would force pool him if he didn’t sign. By force pooling him he would not get a signing bonus at all and only a 12.5% royalty. These kinds of strong-arm tactics give the industry a black eye in our opinion…
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Democrat County Judge Rules PA AG’s Case Against XTO Can Proceed

Not long after she took office, Pennsylvania’s Democrat Attorney General, Kathleen Kane, brought criminal charges against XTO Energy for an accidental spill in Lycoming County, PA that happened two years before she was in office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). Yes, this is the same Kathleen Kane who may be forcibly removed from office because she lied under oath, a little criminal offense called perjury (see PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath). Meanwhile, Kane continues her reign of terror against XTO and others (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit and PA Attorney Gen. Kane Abuses Office Again, Arrest Warrant for EQT). The latest on the XTO sham case is that Democrat Lycoming County Judge Marc Lovecchio has (surprise!) refused to dismiss the charges against XTO…
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XTO Threatens Belmont County, OH Landowner with Forced Pooling

commit no nuisanceBelmont County landowner Curtis Wallner doesn’t know what the term “nuisance oil” means in the contract XTO Energy is offering him to lease his 26 acres. The contract says Wallner will receive an eye-popping $8,000 per acre in signing bonus money, plus 20% royalties, MINUS revenue for “non-commercial nuisance oil.” Because XTO can’t or won’t explain it or remove it from the contract, Wallner won’t sign (can’t say that we blame him). So XTO is threatening him that they’ll take his gas anyway via forced pooling… Continue reading

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PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath

Kathleen Kane, the anti-drilling Attorney General of Pennsylvania–lied under oath–according to a PA grand jury. That’s called perjury and it’s a crime. She should be removed from office immediately but she’s fighting the charge using Lanny Davis–the same lawyer who kept Bill Clinton in office after he lied under oath. She’s hoping lightening will strike twice and Davis will be able to restore her damaged-beyond-repair credibility as the state’s top law enforcement officer, even though she herself has committed high crimes against the state. Why do we care? Because she’s lied in at least two other cases that affect the Marcellus Shale industry: XTO Energy (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO) and Minuteman Environmental Services (see Minuteman Sues AG Kane’s Office for $20M + Punitive Damages). She’s vicious and relentless when it comes to smearing the Marcellus industry and she needs to go because of her own crimes…
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XTO Paying $5.3M for Violating Federal Clean Water Act in WV

Mother May IPushing dirt around on drill pads can get very expensive if you don’t have a signed piece of paper in your hand that says, “Mother May I?” XTO Energy, the shale-drilling subsidiary of ExxonMobil, has just learned that the hard way. The federal Environmental Protection Agency (EPA) along with the U.S. Dept. of Justice announced a settlement yesterday with XTO–fining the company $2.3 million because “fill material” (i.e. dirt and rocks) got into nearby streams and swamps in several West Virginia counties when XTO pushed that dirt and rocks around to construct roads and well pads. Oh, and XTO has to “undo” the damage, spending another $3 million or so. Total price tag of $5.3 million for violating the “Mother May I?” Clean Water Act. If XTO had had the proper paperwork, they wouldn’t have been fined. The jack boots of the feds come down again…
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XTO Gets Serious in OH Utica, Hires Summit for Gathering System

XTO Energy, wholly-owned subsidiary of ExxonMobil, has an active drilling program in the Marcellus and Utica Shale region. But when was the last time you heard anything about new wells or activity by XTO? The company largely stays off the radar. According to MDN’s Marcellus and Utica Shale Databook, the company gets somewhere between 20-25 new permits every four months to drill in the PA Marcellus. So far this year, XTO has received 11 and 17 permits (Jan-Apr and May-Aug respectively) for new wells in the Ohio Utica Shale, which is the first appreciable drilling done by the company in the Utica. With Utica drilling under way, it must be time to build pipelines to connect the wells–and right on cue, we have an announcement from Summit Midstream Partners that they’ve signed a contract with XTO to build a gathering pipeline network…
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PA DEP Issues “Cease & Desist” Notice to XTO in Butler County, PA

The Pennsylvania Dept. of Environmental Protection (DEP) says XTO Energy never applied for or received a permit to push dirt around to create a truck access area near a planned drill pad in Butler County, PA. So the DEP has issued a “cease and desist” order to XTO. Unless and until they get permission (Mother May I?), XTO has five days to patch it up and re-seed it or throw mulch over it to prevent erosion…
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Minor Setback for XTO in PA AG’s Criminal Case for 2010 Spill

Arriving with the promise to hassle the Marcellus drilling industry when she took office in January 2013, Pennsylvania Attorney General Kathleen Kane kept her promise. After assuming office, she promptly looked for old cases she could reopen in order to make a name for herself. She found one in a two year-old case of an accidental spill of frack wastewater by XTO Energy (part of ExxonMobil). She proceeded to abuse the power of her office by bringing criminal charges against XTO for that two year-old (now four year-old) case (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). There is a new development in the case. XTO requested the case be dismissed because it was previously investigated “jointly” by both state and federal investigators. The judge presiding over the case has found that there was no “jointly” in the investigation and eventual settlement…
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Major OH Court Victory for Beck Energy & XTO in Lease Case

A court case with big implications for all Ohio landowners–and drillers–was decided in March 2013. In Hupp v. Beck Energy Corp, three landowners filed suit claiming that their leases with Beck Energy Corp. were void and should be terminated because Beck never drilled wells on their property and that a provision allowing Beck to pay a nominal delay fee was against public policy. The court agreed and granted summary judgment (see OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases). Beck had sold the leases–in Monroe and Belmont counties–to XTO Energy, so XTO got involved in the lawsuit too. The court then granted class certification to the lawsuit brought by the three landowners–meaning between 600-700 landowners would also be able to invalidate their leases. A few weeks later both Beck and XTO filed an appeal (see XTO, Beck Energy Appeal OH Case Allowing Lease Termination). On appeal, this week the Seventh District Court of Appeals in Ohio overturned the lower court ruling and ruled in favor of Beck and XTO–a major victory for Ohio’s drillers and a major defeat for the landowners who say their land never got drilled and they wanted to re-sign with different company…
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XTO Seeks Documents to Prove PA AG Kane Targeted Company

It was obvious from the beginning when Kathleen Kane was elected as Pennsylvania’s Attorney General in 2012 that she had a huge Marcellus Shale chip on her shoulder and that she would go after the drilling industry (see Will New PA AG Go After the Marcellus Drilling Industry?). She’s done just that–targeting the shale drilling industry in several high profile cases. One of those cases–a three-year old accidental spill by XTO in Lycoming County, PA–she reopened after it had been closed. Why? To make an example of XTO (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). That case is back in the news with a new twist…
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XTO Energy Files to Have AG Kane’s Lawsuit Dismissed

obviousIt’s now obvious to everyone that Pennsylvania’s Attorney General Kathleen Kane abuses her office to selectively prosecute high-profile cases to support her own anti-drilling agenda. During her campaign in 2012 Kane pledged to fight to end fracking in PA. She’s doing her best to keep her promise. Example 1: Kane is persecuting/prosecuting a small business owner and his family, including his wife, mother and father (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Example 2: Kane is attempting to criminalize the accidental spill of a small amount of recycled wastewater by XTO that happened years before she took office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). XTO filed a motion on Monday to dismiss Kane’s case against the company, pointing out her anti-drilling bias to the judge…
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Rice Energy Big Winner of 2014 Energy Leadership Awards in Pitt

Three people won the prize for Top Energy Executive of the year. All three have the same last name. All three work for the same company. And the company also has the same name as the three winners: Rice. Dan Rice IV, president and CEO, Toby Rice, COO, and Derek Rice, VP of exploration and geology won the Pittsburgh Business Times’ top honors at the 2014 Annual Energy Leadership Awards. A ceremony with over 400 people was held in Pittsburgh earlier this month where Derek was on hand to collect the prize for he and his brothers. In addition to big winner Rice Energy there were 20 other categories and award winners…
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Judge in XTO Criminal Spill Case Says Figure Out Your Own Charges

A small development in the shameful case brought by Pennsylvania’s anti-drilling Attorney General, Kathleen Kane, against XTO Energy over a four year-old accidental spill that she’s trying to prosecute as a crime (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). XTO filed paperwork with the court to ask for more information about the charges that have been made against them. Apparently environmental cases are quite complex and you don’t always know what, exactly, you’ve been charged with!

The judge in the case has denied XTO’s request to be told what, exactly, they’re being charged with. Last Thursday Lycoming County Judge Marc Lovecchio essentially told XTO, “You figure it out”…
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McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma

Aubrey McClendonAubrey McClendon’s American Energy continues its rapid expansion. Aubrey is raising money like crazy–and spending it like crazy too. Last week Aubrey landed another half billion dollars to spend in the Utica (see McClendon’s New Company Gets Another Half Billion $ for Utica). Then he spent it! The rumor was the mystery buyer of Hess’ 74,000 Utica Shale acres they sold for $924 million last week was McClendon (see Hess Sells 74,000 OH Utica Shale Dry Gas Acres to Mystery Buyer). It’s no longer a mystery–American Energy verified it is the buyer of the Hess acreage.

But hey, that was last week. It’s a new week, so it’s time for a new deal for Aubrey and American Energy. And right on cue, we have one: XTO Energy has announced they’ve done a deal whereby American Energy will fund 100 percent of XTO’s near-term drilling costs in a “core area” of 55,000 Utica Shale acres. In return, American Energy will get ownership of 30,000 net acres of XTO’s holdings in three Ohio counties. Yesterday Aubrey said he’s cut three deals recently–Hess, XTO and Paloma Partners. Between the three deals, Aubrey says he’s picked up another 130,000 acres in the Utica in the past week. The man is on a tear…
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Belmont County School Gets Huge Checks from Utica Leases

A local school district in Belmont County, OH–Union Local Schools–is reaping huge rewards from leasing land for Utica Shale drilling. Union Local Schools has already received a lease signing bonus check for $519,750, and a second check is on the way for $112,000–and that’s before a penny of royalties are paid (19% for one lease agreement, 20% for a second lease agreement).

Here’s the low-down…
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PA AG Pressures Judge to Step Aside in XTO Spill Case

abuse of powerA quick update on the political persecution being shamefully conducted by Pennsylvania’s new Attorney General Kathleen Kane against XTO Energy (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). Kane is attempting to turn a 3 year-old accidental spill into a criminal case–beyond imagination.

Kane continues to abuse her power. She has pressured the judge who would have heard the XTO case to recuse himself because he has a share/interest in a gas lease. The judge’s lease is not with XTO, but that’s not good enough for anti-drilling Kane. She wanted him gone–so he’s gone…
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