Litigation

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    NG Advantage Meets with Virtual Pipe Neighbors in Broome County

    NG Advantage is making a concerted effort to dispel false rumors and misunderstanding on the part of neighbors who live near a proposed “virtual pipeline” site that is a series of compressor stations grabbing gas from the Millennium Pipeline in a Binghamton suburb, compressing it and loading onto tanker trucks. As MDN reported yesterday, two different groups have now filed lawsuits to stop work at the site, one by a local elementary school (more than a half mile away) and one by residents living nearby, including a local Catholic church parish (see Church Asks NY Court to Stop Broome County CNG Virtual Pipeline). Last night officials with NG held a meeting for area residents (with more meetings scheduled for tonight) to answer questions and get the truth out about the facility. Two items in particular were front and center: (1) There are no emissions from the compressor station–it is a series of compressors (4 initially, up to 12 in all) that are powered with electricity, not diesel. So there are zero emissions from the plant. NONE. (2) The plant will be quieter than the Interstate highway it sits next to. If you are walking in the nearby Port Dickinson park (as MDN editor Jim Willis sometimes does), you will continue to hear the highway which runs overhead–but you won’t hear the compressor station. Neither will neighbors like the Catholic church hear it. Here’s a summary of last night’s meeting…
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    PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev

    It’s clear that radical environmentalists who (irrationally) oppose the use of fossil fuels believe the recent decision by Pennsylvania Supreme Court is a gift from Gaia (Mother Earth goddess). As MDN previously reported, last week the Pennsylvania Supreme Court of Appeals, in a sharply divided 3-2 decision, sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and drilling on state-owned land MUST be used solely for conservation and the environment (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). However, denying the state Dept. of Environmental Conservation (DCNR) from funding itself with lease/royalty revenue was inconsequential, a distraction from the real aim. The decision, according to the radicals, further strengthens the state’s so-called Environmental Rights Amendment to the state constitution. What it means, in very practical terms, is that the antis now plan to use a decision ostensibly about how a single state agency gets its funding, to apply the philosophical underpinnings (the right to a clean environment) as a weapon against judges and the Dept. of Environmental Protection (DEP), to force them to consider whether or not issuing a given permit for a project “harms” the “rights” of PA citizens to a “clean environment.” In other words, the radicals are weaponizing a court decision to use against the shale industry–and they’re signaling, via their sycophantic mouthpieces at StateImpact Pennsylvania, that’s exactly what they intend to do…
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    Church Asks NY Court to Stop Broome County CNG Virtual Pipeline

    NG Advantage is building a new compressor station to tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County, NY (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called virtual pipelines compress natural gas and load it onto tanker trucks, and then distribute the CNG to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: LOTS of truck traffic. The Town of Fenton Planning Board recently approved the project, and MDN can report (since we swung by the site) that bulldozers and backhoes are hard at work transforming the site, getting it ready to construct the compressor station. However, a local elementary school, more than half a mile away, decided to sue to try and stop the project (see NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe). Now, a local Catholic church’s parish center, St. Francis of Assisi, has joined several nearby residents to launch their own lawsuit/petition asking a local court to halt construction…
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    Indian Tribe Fights FERC Over Tiny Pipeline in Mass.

    In March 2016, the Federal Energy Regulatory Commission (FERC) approved Tennessee Gas Pipeline’s (TGP) Connecticut Expansion project (see FERC Approves TGP Connecticut Expansion Pipeline Project). The project includes building 13.42 miles of new pipeline loops in three states: Connecticut, Massachusetts and New York. When completed, the new looping will serve an additional 72,100 dekatherms of (mostly) Marcellus Shale gas to three utility companies in Connecticut. The $86 million project is in no way connected to TGP’s now-dead Northeast Energy Direct (NED) pipeline project. However, antis continue to pitch a fit and try to block the project. Can you imagine? They don’t want a single new inch of pipeline anywhere, for any reason. They are, in a word, insane. The latest tactic is to invoke the Indian gods to try and stop it. A local Indian tribe in Massachusetts has filed paperwork with FERC accusing the agency of violating the National Historic Preservation Act by not protecting “ceremonial stone landscapes” supposedly found along the path of the pipeline. If FERC refuses to “re-hear” their decision to allow the project, the Indians say they’ll sue in court…
    Read More “Indian Tribe Fights FERC Over Tiny Pipeline in Mass.”

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    DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay

    An Appeals Court decision issued Friday has (in our opinion) HUGE ramifications for New York State and the Dept. of Environmental Conservation (DEC) that has been corrupted by political influence from Gov. Andrew Cuomo. It also has ramifications in other states with overactive environmental agencies too. It is hard for us to overstate how important we think this decision is. The NY DEC has been corrupted and politicized by one of the most corrupt governors New York has ever had: Andrew Cuomo. The Cuomo DEC has unilaterally decided not to issue 401 water crossing permits for several federally-authorized pipeline projects, including Williams’ Constitution Pipeline, NFG’s Northern Access Pipeline, and a teeny tiny 9-mile pipeline Millennium wants to build from their main pipeline to an under-construction natgas-fired electric plant in Orange County, NY, called the Valley Lateral Project. Millennium took the bull by the horns early on, when it was apparent the DEC was following the same pattern of delay and then deny, suing the DEC (see Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay). On Friday, the U.S. Court of Appeals for the District of Columbia Circuit dismissed the lawsuit by Millennium, which at first blush may seem like a blow. But it was the reasoning and opinion of the judges in dismissing the case that may change everything in New York. The judges said there is no case because if, as Millennium says, the DEC is denying the water permits, FERC itself has the power to jump back in and simply override NY DEC and issue the permits. This is a BOMBSHELL decision. That is, it’s a bombshell if FERC (with a soon-to-be-in-place quorum) exercises its constitutional authority…
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    Radical Enviros Now the Tail Wagging the PA DCNR Dog re Funding

    As they so often do, radical environmentalists are creating chaos and confusion–this time in Pennsylvania. As MDN reported, earlier this week the Pennsylvania Supreme Court of Appeals, in a sharply divided 3-2 decision, sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and drilling on state-owned land MUST be used solely for conservation and the environment (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). The aim of the PA EDF is to disrupt Marcellus Shale drilling by any means necessary. This is one of those means. The three liberal justices who rendered the decision say the law is clear on intent–that money raised from leasing state-owned lands for drilling must be used for environmental purposes. Now the PA EDF is arrogantly telling the State of Pennsylvania that the money raised from drilling can’t be used for general operating expenses of the Dept. of Conservation and Natural Resources (DCNR)–the very organization that oversees the state lands and is in charge of said leasing. In the upcoming budget, due to be ratified by June 30th, PA Gov. Tom Wolf and the legislature had planned to use $100 million from the lease and royalty fund to “pay for DCNR’s daily operations or be transferred to another fund for statewide environmental and infrastructure projects.” But in an ominous threat, the EDF lawyer said spending money on DCNR operations “doesn’t comply with the court opinion on how the funds can be used.” Which begs the question: What in the world CAN you spend the $100 million raised from royalties and lease fees on?…
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    PA Supreme Court Hands Antis Partial Victory re State Land Drilling

    In a sharply divided 3-2 decision (full copy below), the Pennsylvania Supreme Court of Appeals has sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and drilling on state-owned land MUST be used solely for conservation and the environment. The state cannot treat, as former Gov. Ed “fast Eddie” Rendell did, revenue from oil and gas drilling on state land as money that can be used for any old cockamamie political reason. That is, the money cannot go into the black hole of the “general fund” in Harrisburg. The three justices who rendered the decision say the law is clear on intent–that money must be used for environmental purposes. Fine. Except the foundation on which they decided the case is PA’s so-called environmental rights amendment. Even though this case is about how money from drilling will get used (a fairly narrow ruling), already antis at PA Big Green groups like THE Delaware Riverkeeper claim they will use this decision and the environmental rights amendment to try and block drilling on state lands because it “violates” the state constitution. That’s where they ultimately want to take this. Block it on state lands first, then go for private land next…
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    OH Supremes to Decide if Landowner Getting Free Gas can End Lease

    Here’s a case in Ohio that has the potential to impact Utica Shale, as well as conventional, leases. According to OOGA (the Ohio Oil and Gas Association) it has the potential to affect “the validity and viability of thousands of oil and gas leases across the state.” In brief, a conventional gas well was drilled on property in Washington County, OH in 1951. The landowner later agreed to exchange royalty payments for free, unlimited gas to her home. Leases can be terminated if they stop producing profitable amounts of oil and gas. Between 1977 and 1981 there was no commercial sale of gas from the well–but the landowner kept getting her free gas. Using that five-year period of time of no commercial output, the landowner filed paperwork to declare the lease has been terminated and reverts back to her, the landowner. The driller says she continued receiving her “royalty payments” (i.e. free gas) even though nothing was sold from the well–and that’s enough to keep the lease in effect. There appear to be strong arguments on both parts, and apparently this arrangement of receiving free gas in lieu of royalty payments is not uncommon in Ohio. So the Ohio Supreme Court will decide, having recently heard oral arguments…
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    Wayne County Landowner Files Brief in Case Against DRBC Frack Ban

    Whatever happened to the lawsuit filed by a Wayne County, PA landowner against the egregious overreach by the Delaware River Basin Commission (DRBC) in its ongoing stall/delay/block of any shale drilling within the Basin? In March, MDN reported that U.S. District Judge Robert Mariani ruled against the Wayne landowner in a lawsuit that challenged the right of the DRBC to stop fracking in the Delaware River Basin (see Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC). At first blush, it may seem like a setback for landowners in Wayne and Pike Counties who have been denied the right to lease and allow drilling under their land for the past 10 years. But looks can be deceiving. As we pointed out in our article, if you read the judge’s decision, he harpoons all of the DRBC’s legal arguments, but in the end rules against the landowner. Why? Because the judge wanted to send the case to a higher court for an ultimate decision–the 3rd Circuit Court of Appeals. In fact, Judge Mariani set up the appeal of the case perfectly, we’d say intentionally, and that has the DRBC and their cohorts at THE Delaware Riverkeeper really nervous (see Wayne Co. Landowner Welcomes Decision in Dismissed DRBC Lawsuit). We have an update. The Wayne landowners filed their court brief in an appeal of the case yesterday. The case turns on the concept of what constitutes a “project” for the DRBC. The DRBC claims that all gas well pads, drilling, etc.–anything that uses water within the Basin–is a “project” as defined under the original compact forming the DRBC, and therefore under their jurisdiction. The lawsuit (an excellent read, full copy below) states such a reading of the original compact, and based on 40 years of history since that time, says otherwise. Just because you push dirt around and use some water, does not mean that activity falls under the DRBC’s current overreach in defining a project. The lawsuit askes the 3rd Circuit to rule on what is, and what is not, a project for the DRBC…
    Read More “Wayne County Landowner Files Brief in Case Against DRBC Frack Ban”

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    WV Leads 11-State Group Supporting EPA’s Move to Delay Obama Rule

    Kudos to West Virginia and its Attorney General, Patrick Morrisey, for leading the charge (along with 10 other states) to stop the Environmental Protection Agency’s implementation of the Obama methane rule. Earlier this month the Trump EPA filed paperwork to stop implementation of the egregious and illegal rule (see Beginning of the End: EPA Issues 90-Day Stay for Methane Rule). The federal government cannot regulate oil and gas, that’s left up to the states under the Constitution. However, the Obamadroids found a way around that legal limitation by using lawsuits and naked power grabs. The Trump EPA is reversing it. Of course Big Green groups with deep pockets immediately sued to keep the rule going (see Liberal DC Court Asks EPA to Respond to Lawsuit by Radical Enviros). The EPA is defending its right to undo a rule it did, and Morrisey and the other AGs filed a motion to intervene in the case, to help out the Trump EPA…
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    Rover Pipe Settles with OH Historical Group, Pays Additional $1.5M

    Rover Pipeline (i.e. Energy Transfer) has settled an ongoing dispute with the Ohio State Historic Preservation Office (a PRIVATE organization) to pay them $1.5 million in what MDN views as shakedown money. Which is far less than the “asking” price of $1.5 million PER YEAR over the next five years ($7.5 million total). The payment comes after Rover paid the same organization $2.3 million for knocking down a dilapidated old house that was under consideration to be added to the National Register of Historic Places. In addition to the $2.3 million paid for This Old House, the Ohio State Historic Preservation Office said they had worked out a deal with Rover to pay the organization $1.5 million as compensation for something they haven’t even done yet but presumably will do–disturbing other “historic sites” as the pipeline cuts across the state. Apparently the history buffs felt the agreement was for $1.5 million per year over the next five years. Rover said (in so many words), “in your dreams.” No way. So the matter was referred to the Federal Energy Regulatory Commission (FERC) for dispute resolution. Before FERC could render a decision, the history buffs settled with Rover for a one-time additional payment of $1.5 million (a $1.5M bird in the hand is worth more than a $7.5M bird in the bush). Here’s the background for this shakedown, and a copy of the signed agreement stipulating a one-time payment of $1.5 million to the PRIVATE Ohio State Historic Preservation Office…
    Read More “Rover Pipe Settles with OH Historical Group, Pays Additional $1.5M”

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    Sunoco Seeks Injunction Against Radicalized ME2 Pipe Protesters

    You may recall our story about the daughter of a Huntingdon County, PA landowner, radicalized by Big Green groups (as evidenced by her association with well known protesters previously arrested), who took to a tree on her mom’s property in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). It ultimately didn’t matter, because Sunoco came back and cut down the few trees they need to cut anyway (see Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees). In December, the up-a-tree girl and her mom (Elise and Ellen Gerhart), with lawyers and backing by Big Green money, launched a final “hail Mary” pass by appealing a case to the PA Commonwealth Court, asking the court to stop the ME2 project by claiming it doesn’t have the right to use eminent domain (see Desperate Antis Try One Last Legal Maneuver to Stop Mariner East 2). Like so many other “hail Mary” desperation passes, this one never found the arms of a receiver. In May, the court turned down the appeal (see Huntingdon Family Lawsuit Against ME2 Pipeline Fails, Game Over). With nothing left to do but break the law in an attempt to block the pipeline from their property, that’s just what the Gerharts have pledged to do. That is, invite in outside help (i.e. paid protesters) to block the path, so Sunoco Logistics Partners can’t build the pipeline across their property. Sunoco has asked a Huntingdon County judge to order the family and the outsiders to step aside, or be thrown in jail…
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    PA Court Rules Fracking Not ‘Abnormally Dangerous’ Under PA Law

    An article in the left-leaning Harrisburg Patriot-News has this incendiary opening: “Is it ‘abnormally dangerous’ to drill and frack for oil under a massive oil refinery, particularly if that well is bored beneath a tank filled with 3.6 million gallons of gasoline? A decision issued by a divided Commonwealth Court panel on Monday will give a Pennsylvania community a chance to find out.” In a court decision filed on Monday, the Commonwealth Court of Pennsylvania will allow a driller to drill and frack a well that is close to (but not directly underneath) the above-ground 3.6 million gallon petroleum tank. At first blush, especially when reading an opening like the one in the Patriot-News story, the average reader would think such a plan is stark raving mad. But when you dig into the details, a far different story emerges. As usual, mainstream media misrepresents many of the facts. We’re here to sort it out for you…
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    Westmoreland Zoning Challenge Heads to Court, Delays H&H Drilling

    Westmoreland County townships (Click for larger version)

    In May MDN told you that Huntley & Huntley was conducting seismic surveys in Lower Burrell, in Westmoreland County, PA (see Huntley & Huntley Targets New Drilling in Westmoreland County, PA). When a company begins to conduct seismic surveys, you know that applications for drilling permits are not far behind. Next door to Lower Burrell is Upper Burrell. H&H plans to drill there too. A landowner in Upper Burrell filed an appeal against Upper Burrell’s zoning ordinance that allows drilling in rural, agricultural districts. H&H plans to drill a well near where this woman lives, and she’s arguing such drilling will violate the state’s environmental rights clause and (more importantly), “devalue her property.” Of course nothing of the kind has happened in areas where there is drilling. Quite the opposite, in fact. Still, the lawsuit is stopping H&H from sinking any new holes in the ground. The case was supposed to go to township’s Zoning Hearing Board, but all of the (many) lawyers involved agreed to instead move it to county court, making the process faster and less expensive. The only problem with that is the judge may decide to hold off on a decision until two similar cases are heard and decided by the PA Supreme Court. No telling how long that will take…
    Read More “Westmoreland Zoning Challenge Heads to Court, Delays H&H Drilling”

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    NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe

    We just knew getting a “virtual pipeline” facility built in ultra-liberal Broome County, NY was proceeding a little too easy. MDN recently told you about a proposed virtual pipeline (i.e. natgas trucking system) coming to MDN’s neighborhood. NG Advantage wants to build a new compressor station and tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called virtual pipelines compress natural gas and load it onto tanker trucks, and then distribute that gas to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: LOTS of truck traffic. The Town of Fenton Planning Board recently approved the project and although we thought it wasn’t quite yet a done deal, apparently it is a done deal, as a small group of antis learned earlier this week at a Town of Fenton meeting (see NG Advantage Virtual Pipe “Done Deal” in Broome County, Antis Stymied). However, that may not be the end of it. Antis (in New York as elsewhere) don’t fade away without a LOT of loud-mouthed opposition, and a LOT of legal action. Antis are now pegging their hopes to defeat this fossil fuel intruder on the actions of a local school district. The Chenango Valley School District operates the Port Dickinson Elementary school close to (half mile? quarter mile?) the proposed compressor station for the virtual pipeline project. The CV school board voted last night 8-0 to hire a law firm to fight the project, with no cap on how much in legal fees local taxpayers will have to pay for this folly. The clock is now ticking. It’s quite likely the project will get built before it ever sees its first court hearing–and antis know it…
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    NEPA Landowners Fight to Sue Chesapeake’s Partners

    We’re going to take a stab at this, and we are not confident we will get it 100% right. With that as a warning, we recently reported that a case brought by landowners in northeastern PA against Chesapeake Energy over unwarranted royalty deductions suffered a bit of a setback (see Chesapeake Scores Court Victory to Prevent PA Royalty Class Action). Essentially, the landowners (in this case Scout Energy) argued that since the leases signed say royalty disputes must go to arbitration, we want mass arbitration. A class action, in other words. In May, U.S. District Judge Matthew Brann of the Middle District of Pennsylvania (overseeing the case) issued an opinion that said Chesapeake is right in demanding each case get arbitrated individually–not as part of a class action. The landowners in four cases (all of which seem to be joined, or at least moving along together) filed briefs last week to make a new argument. And here’s where we are not 100% sure, but we think the argument is this: OK, we have to go to arbitration and now it has to be individually. However, there are other defendants named in the case (Anadarko, Williams, Statoil, Mitsui E&P). Since the lease language says the lease is between the landowner and the driller (i.e. Chesapeake), that means the other defendants are NOT covered by the arbitration clause and we (the landowners) can still sue them as a class action. Why? Because (allegedly) those companies colluded together with Chesapeake to “reduce, restrain or eliminate competition for gas and mineral rights, operations rights and gathering serves in multiple counties in Northern Pennsylvania.” Oy vey! It keeps getting more complicated as the days go by…
    Read More “NEPA Landowners Fight to Sue Chesapeake’s Partners”