Litigation

Elk County | Indiana County | Industrywide Issues | Litigation | Pennsylvania | Regulation | Wastewater

2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells
April 17, 2017April 17, 2017

We’ve previously reported on the story of two Pennsylvania towns that were either hoodwinked, or perhaps willing led astray, by the radical Community Environmental Legal Defense Fund (CELDF) into passing (now overturned) bans on fracking and injection wells in their towns–Highland Twp (Elk County) and Grant Twp (Indiana County). The two townships thought they would do an end-run around the state’s authority to issue permits for two injection wells–one in each township, by re-incorporating under so-called home rule charters. The towns essentially declared themselves independent of the state for a variety of matters, including oil and gas permits–which the PA state constitution clearly says is a function of ONLY the state Dept. of Environmental Protection. In March, the DEP issued final permits to each town, and at the same time sued each town to get those portions of their home rule charters, dealing with oil and gas, overturned (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). The new news is that the towns will “stand down” and, during their lawsuits, not oppose the DEP’s permits. The towns have “temporarily” acquiesced and will allow the companies building the wells to proceed…
Read More “2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells”
Anti-Drilling/Fossil Fuel | Beck Energy | Energy Companies | Industrywide Issues | Litigation | Ohio | Summit County

Beck Energy Still Fighting Munroe Falls, Years Later
April 17, 2017April 17, 2017

Last June MDN shared with you the news that Munroe Falls (Summit County), OH had filed yet another frivolous lawsuit against Beck Energy to prevent drilling–after already losing a similar case before the Ohio Supreme Court (see Munroe Falls Won’t Let it Go: Files New Lawsuit Against Beck Energy). MDN received a statement from Beck Energy’s lawyer which said, among other things: “…the complaint the City of Munroe Falls recently filed lacks any good faith basis under existing law, and it is clear Munroe Falls’ intention in filing this complaint is to harass and maliciously injure Beck Energy” (see Beck Energy Lawyer Responds to Frivilous Munroe Falls Zoning Case). Munroe Falls’ harrasment of Beck Energy has been going on for years (see our list of stories here). Beck counter sued Munroe Falls in this latest case and asked for unspecified damages–meaning the potential for the city to be bankrupted by a big judgment (a very real possibility). Beck has now backed away from the ledge and has dropped some of the counterclaims against Munroe Falls. After all, Beck doesn’t want to bankrupt the good people of Munroe Falls over the illicit actions of its leaders. But there is still “legal wrangling” going on in an effort to end Munroe Falls’ harassment of Beck. Here’s the latest…
Read More “Beck Energy Still Fighting Munroe Falls, Years Later”
Energy Services | Industrywide Issues | Litigation | Ohio | Pipelines | Statewide OH | Sunoco Logistics

OH Lawsuit Tries, Fails to Stop Mariner East 2 Pipeline
April 13, 2017April 13, 2017

Click map for larger version

The Mariner East 2 (ME2) Pipeline has always been a story about Pennsylvania. Almost always. ME2 is actually two pipelines, laid side by side, that are meant to carry natural gas liquids (propane and butane) from southwestern Pennsylvania and eastern Ohio all the way across PA to the Philadelphia area–terminating at the Marcus Hook refinery/terminal. Most (not all) of the NGLs are exported to other countries. And therein lies the bone of contention. ME2 was granted status as a public utility and with it, the right to use eminent domain to force landowners to allow the pipeline across their property. Some landowners resisted, and (with help from anti groups) sued, repeatedly, claiming there is no public benefit from NGLs that get exported to other countries. They do have a point. So ME2 built four “off ramps” in PA–points where propane and butane will be purchased and used locally, which helps justify the public utility/eminent domain claim. Until now we’ve always read about lawsuits against ME2 originating in PA, where 95% of the pipeline will be built. However, there was a vigorous challenge to ME2 in Ohio on the same grounds–that ME2 is not in the public interest. That lawsuit argued, among other things, there are no “off ramps” in Ohio where the NGLs will be sold and used. However, a lower court and then an appeals court didn’t buy that argument and ruled against the landowner and in favor of ME2. That case appears dead, but it was appealed to the Ohio Supreme Court (no decision yet on hearing the case). This post will catch you up on the arguments for and against ME2 and its claim to be a public utility with the right of eminent domain in Ohio…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pipelines

Sierra Club Sues NJ to Stop 22-Mile Pipeline Thru Scrub Pines
April 12, 2017April 12, 2017

In January 2014 MDN brought you the story that due to incessant nagging from the NJ Sierra Club and the NJ League of [Liberal Democrat] Women Voters the Pinelands Commission, which oversees a stand of scrub pines in South Jersey, nixed a plan for a new natural gas pipeline to bring cheap, clean, abundant Marcellus Shale natural gas to South Jersey for use by residents and to feed an electric plant a local utility wants to convert from burning coal to natgas (see Sierra Club, LWV Chooses Coal over NatGas in South Jersey). Without recounting the entire history of this issue (see our previous stories), suffice it to say the Commission eventually saw the light and in February approved the short, 22-mile pipeline (see NJ Pinelands Commission Approves 22-Mile Pipe Thru Scrub Pines). It took them two months, but the litigious (and radical) Sierra Club, along with their radical blood brothers at Environment New Jersey, this week sued to stop the project. The NJ Sierra Club’s Jeff Tittel says the Pinelands Commission has “sold out the Pinelands” and so the Clubbers must now shoulder the burden of protecting scrub pines from an evil fossil fuel pipeline…
Read More “Sierra Club Sues NJ to Stop 22-Mile Pipeline Thru Scrub Pines”
Anti-Drilling/Fossil Fuel | Energy Companies | Indiana County | Industrywide Issues | Litigation | Pennsylvania | Pennsylvania General Energy | Wastewater

Grant Twp Antis Threaten to Break Law, Block Legal Injection Well
April 11, 2017April 11, 2017

Two weeks ago MDN brought you the news that not only has the Pennsylvania Dept. of Environmental Protection (DEP) issued final permits for two new injection wells in the state, they also sued the two townships where those permits were granted because the towns had adopted home rule laws that are illegal, in contravention to state law that give power to permit and control injection wells to the DEP only–not to local municipalities (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). Grant Township (Indiana County) tried to block Pennsylvania General Energy (PGE) from building a wastewater injection well in the township first by passing an illegal law, stirred up and proposed by the odious Community Environmental Legal Defense Fund, or CELDF (see Fed Judge Overturns Grant Twp, PA Ban on Injection Wells). The town then tried to reorganize under a “home rule” charter in order to avoid the judge’s ruling (see Grant Twp, PA Reorganizes to Avoid a Court-Ordered Injection Well). The DEP is now suing Grant (and Highland Township, in Elk County) to nullify those provisions in the home rule charter that affect oil and gas regulation. In the meantime, PGE previously filed a lawsuit against Grant Township, demanding $1 million (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). On March 31 and April 4, two decisions were handed down by the judge, essentially in PGE’s favor and against Grant. Below we have analysis of those decisions. All of this “bad news” for antis has created the perfect storm in Grant. Antis are now threatening to engage in so-called civil disobedience against the injection well. They plan to shut it down–or go to jail trying. Their leaders are criminals who have done this sort of thing elsewhere…
Read More “Grant Twp Antis Threaten to Break Law, Block Legal Injection Well”
Energy Services | Industrywide Issues | Kinder Morgan | Litigation | NGLs | Ohio | Pipelines | Statewide OH | Wood County (OH)

UTOPIA East Pipe Re-Routes Around OH Antis, Drops Eminent Domain
April 10, 2017April 10, 2017

In January 2016, Kinder Morgan committed to building the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada (see Kinder Morgan Ready to Move Forward with UTOPIA East Pipeline). However, all was not utopia in UTOPIA–some Ohio landowners got a bumble bee in their bonnet and refused to deal, so KM took them to court (see UTOPIA Pipeline Sues Holdout OH Landowners Using Eminent Domain and UTOPIA Pipeline Still Battling OH Landowners with Eminent Domain). UTOPIA hit a brick wall in Wood County when a judge blocked the use of eminent domain in that county, saying the project does not benefit the public good (see Wood County OH Judge Blocks Eminent Domain for UTOPIA Pipeline). No worries. UTOPIA has been hard at work and has signed lease agreements with more reasonable landowners and is altering the route to avoid the ones who don’t want it. Hey, some people don’t want a truckload of money, who are we to argue? As we previously reported, tree clearing began in February (see Utopia has Arrived! Construction in OH Begins on Ethane Pipeline). KM says construction on the actual pipeline will begin later this month. Here’s the latest, about UTOPIA changing the route in Wood County to avoid those who don’t want it…
Read More “UTOPIA East Pipe Re-Routes Around OH Antis, Drops Eminent Domain”
CNX Resources | CONSOL Energy | Energy Companies | EQT Corp | Industrywide Issues | Lease & Royalty Payments | Litigation | Statewide VA | Virginia

Judge Certifies Royalty Class Action Against EQT, CONSOL in VA
April 4, 2017April 3, 2017

This is a story we have not previously covered on MDN. It goes back to 2010 and involves two of the biggest Marcellus/Utica drillers–although in this case the issue is not related to the Marcellus/Utica. Landowners in southwestern Virginia previously sued both EQT and CONSOL Energy’s CNX subsidiary over charges that EQT and CNX shorted landowners out of royalties owed to them, claiming post-production expenses, deductions for severance taxes, etc. that should not have been taken. The wells drilled were conventional wells–some 3,347 EQT wells and 4,261 CNX wells. The vertical wells targeted methane extraction from coal seams–not horizontal wells through shale, which is far more common today. Some lawsuits were green lighted as class action cases in 2013, with a potential for “thousands of landowners” to participate in sharing $30 million in payouts. Last week a federal judge certified three of the five class action lawsuits, allowing them to move forward…
Read More “Judge Certifies Royalty Class Action Against EQT, CONSOL in VA”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Fed Court Overturns $4.2M Dimock Judgement Against Cabot O&G
April 3, 2017April 3, 2017

Big news broke Friday afternoon. Short history lesson for those who are new to MDN: There were 14 families along the Carter Road area of Dimock Township, PA (Susquehanna County) that reportedly experienced turbidity in their water from methane migrating, supposedly from Cabot’s drilling operations nearby. The state Dept. of Environmental Protection (DEP) investigated in 2010 and declared Cabot guilty and imposed stiff fines and requirements, including a requirement to install permanent water treatment systems at each home and even an offer to each of the families to pay twice what their property was worth at the time (see PA DEP Takes Aggressive Action Against Cabot Oil & Gas over Dimock Township Methane Contamination). We won’t recount all of the twists and turns we documented over the years, including research that showed Cabot wasn’t responsible for the methane migration. All of the 14 properties either sold to Cabot or got their water systems repaired–except for two holdout families who were riding the horse of hope that they could sue Cabot for big money and retire millionaires. For a time, it appeared their plan worked. Last year, in March 2016, a trial took place in Scranton. It was a sham trial, with the lawyer for the two families engaging in borderline unethical practices in the courtroom in her attempt to influence the jury. One of the two families admitted, under oath on the witness stand, that their water had too much methane in it BEFORE Cabot Oil & Gas began to drill nearby. The same family, the Elys, later built a 22-room, $1 million mansion on the same property AFTER they admit there was trouble with the water. And yet the jury found Cabot at fault and awarded the Elys $2.75 million. The other family suing Cabot got $1.49 million. As we said at the time: “That’s called brain-dead. A total miscarriage of justice–stupidity on the same level as the OJ Simpson jury” (see Dimock Jury Levies $4.24M Judgement Against Cabot in Dimock Case). Indeed it was brain-dead, as we now see from a federal court which heard Cabot’s appeal. On Friday a federal judge tossed out the $4.24 million verdict against Cabot, calling the evidence against Cabot “spare, sometimes contradictory, frequently rebutted by other scientific expert testimony, and relied in some measure upon tenuous inferences” (full copy of the ruling below). Unfortunately the judge did not find for Cabot and dismiss the case, but instead ordered a new/second trial. However, the new trial will not happen in state court amateur hour–instead it will happen in federal court–IF it happens…
Read More “Fed Court Overturns $4.2M Dimock Judgement Against Cabot O&G”
Energy Services | Industrywide Issues | Litigation | Luzerne County | Pennsylvania | Pipelines | Transco | Williams | Wyoming County (PA)

Atlantic Sunrise Uses Eminent Domain in Northeast & Central PA
April 3, 2017April 3, 2017

As sometimes happens, Williams has had to file 27 eminent domain lawsuits against landowners in northeastern and central Pennsylvania–landowners who have refused to negotiate with the company to allow the now FERC-approved Atlantic Sunrise Pipeline to cross their property. We understand the reluctance of some landowners who would rather not have the pipeline cross their property. But we also understand the necessity of the project–and the need to be reasonable. Some landowners are not reasonable. And so eminent domain is a rare, option-of-last-resort necessity in those cases. But don’t shed too many tears for landowners now being sued. One PA landowner in Luzerne County (Wilkes-Barre area) was originally offered $260,000 for an easement on 7.6 acres of land ($34,211/acre!). He refused. The price has now dropped to $225,000. Guess he should have signed before eminent domain was on the table…
Read More “Atlantic Sunrise Uses Eminent Domain in Northeast & Central PA”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Snyder Brothers | Statewide PA | Taxation

PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due
March 30, 2017March 30, 2017

In 2014 MDN brought you the interesting story of strippers in the Marcellus–stripper wells, that is (see High-Priced Strippers in PA: Semantic Gymnastics with Impact Fee). Synder Brothers is an oil/gas producer in Pennsylvania. Most of the wells they drill are vertical-only wells. Among them are 24 wells from 2011 and 21 wells from 2012 that are vertical only–but all targeting the Marcellus. According to the definition of a stripper well under the Act 13 law passed in 2012, a well qualifies as a stripper well if it doesn’t produce over 90 thousand cubic feet (Mcf) of natural gas per day for at least one month. Synder Bros. says although their wells may have produced over 90 Mcf in some months, they didn’t produce that much in at least one month during the years in question. Ergo, their wells qualify as stripper wells and not liable to pay an impact fee. The PA Public Utility Commission (PUC), charged with evaluating what does and does not qualify, said nope–your wells target the Marcellus formation and produced above 90 Mcf for “at least” one month out of the year, therefore must pay the impact fee. So the PUC sued Snyder Bros., intending to collect $500,000 in unpaid fees PLUS a $50,000 fine for inconveniencing the PUC (see PA PUC Sues Snyder Bros to Collect $500K in Unpaid Impact Fees). In January of this year, more than a year after first hearing the case, PA Commonwealth Court wanted to hear it all over again (see High-Priced PA Strippers Go Back to Court, Impact Fee Semantics). The court has finally ruled: the law clearly means if production is less than 90 Mcf in any single month, that well is a stripper. Snyder Bros. doesn’t have to pay the $500K impact fee on those wells…
Read More “PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Pike County | Regulation | Wayne County

Wayne Co. Landowner Welcomes Decision in Dismissed DRBC Lawsuit
March 30, 2017March 30, 2017

As MDN reported, last week U.S. District Judge Robert Mariani ruled against a Wayne County landowner in a lawsuit that challenged the right of the Delaware River Basin Commission (DRBC) to stop fracking in the Delaware River Basin (see Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC). At first blush this may see 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 that judge wanted to send this 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. It also has the Wayne Land and Minerals Group, the plaintiff in the case, really happy. MDN friend Tom Shepstone (Natural Gas Now) does a superb job of analyzing Mariani’s decision, and in predicting where things will (rapidly) go from here…
Read More “Wayne Co. Landowner Welcomes Decision in Dismissed DRBC Lawsuit”
Elk County | Energy Companies | Indiana County | Industrywide Issues | Litigation | Pennsylvania | Pennsylvania General Energy | Regulation | Seneca Resources | Wastewater

PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns
March 29, 2017March 29, 2017

Good news for Pennsylvania drillers: the PA Dept. of Environmental Protection (DEP) finally, after years of review, granted permission to two different companies to operate two new wastewater injection wells in the Keystone State. One well is located in Elk County, the other in Indiana County. With these two new injection wells coming online, the state will have a total of eight operating injection wells (vs. hundreds in Ohio). You may have seen news about the newly authorized injection wells from other news sources yesterday. But you read MDN for “the rest of the story.” And here it is, something you won’t find anywhere else (until other news sources read MDN): As soon as the DEP issued the permits for the injection wells, the DEP filed lawsuits against the two townships where the injection wells will be located, because both of those townships–Highland Township in Elk County, and Grant Township in Indiana County–had previously passed so-called Home Rule Charters in an attempt to prevent the injection wells from being located in their towns. The DEP has sued each of them (copy of the Highland lawsuit below) to correct laws that attempt to prevent the DEP from doing its job in authorizing the injection wells. We have the full news of the DEP’s decision to permit the injection wells, along with details about the lawsuits, below…
Read More “PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns”
Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Statewide NY | Williams

Constitution Pipeline Still Waiting on “Biggie” Court Decision
March 28, 2017March 28, 2017

Last week MDN brought you the news that a federal judge had dismissed a case brought by the Constitution Pipeline against the New York Dept. of Environmental Conservation (DEC) over the issue of denying water crossing permits for the project (see Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC). What we have since come to understand is that this was one of two lawsuits filed by the Constitution against the NY DEC. In fact, it was the lesser of the two lawsuits. The “biggie” lawsuit is still not yet decided. That decision will come from the U.S. Court of Appeals for the Second Circuit–and is due to arrive within the next two months. The fate of the project hangs in the balance. Lawyers for the Constitution are confident that the court will find the DEC’s denial of permits is capricious and politically motivated, and will strip the DEC of its role in the project. If that happens, it is the equivalent of a 10.0 earthquake. The DEC will no longer play a role in federally regulated pipeline projects. Perhaps if the DEC wants to maintain a role in such projects, they ought to move forward and issue those permits now (i.e. “settle out of court”), before the ruling comes down…
Read More “Constitution Pipeline Still Waiting on “Biggie” Court Decision”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Pike County | Regulation | Wayne County

Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC
March 27, 2017March 27, 2017

In May 2016 a landowner in Wayne County, PA–in the Delaware River Basin–filed a lawsuit against the Delaware River Basin Commission (DRBC) asking a judge to declare the DRBC does not have jurisdiction to prevent construction of a natural gas well (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). MDN has chronicled, for years, the lawless actions of the DRBC in seizing power it does not have to block shale drilling in essentially two PA counties where measurable quantities of shale gas could be extracted: Wayne County and Pike County. DRBC’s former director, Carol Collier, is a hardened anti-driller who colluded with Josh Fox in making his infamous propaganda film Gasland. Collier is gone and it was thought her replacement, Steve Tambini would bring some order and sense to the organization (see DRBC Selects Steve Tambini as New Leader, Enviro Groups Unsure). Unfortunately that hasn’t happened–so far. The DRBC has blocked drilling since it considered rules for drilling in 2010, when it put a “temporary” ban in place. A Wayne County landowner argued in the lawsuit that oil and gas wells, under the DRBC’s charter, do not constitute a “project” that is regulated by the DRBC and therefore are exempt from oversight from the DRBC. Last week U.S. District Judge Robert Mariani disagreed and ruled against the landowner (copy of his ruling below). However, this may not be “bad news” for landowners and “good news” for the DRBC, as it may first appear, on the surface…
Read More “Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Radical Green Groups File Fed Court Case to Stop Atlantic Sunrise
March 27, 2017March 27, 2017

Radical green agitating groups, including the Sierra Club, Lancaster Against Pipelines, Lebanon Pipeline Awareness, Allegheny Defense Project, Clean Air Council, Concerned Citizens of Lebanon County, and Heartwood, have filed a lawsuit in the liberal U.S. Court of Appeals for the District of Columbia in an attempt to block construction of the $3 billion Atlantic Sunrise Pipeline project in Pennsylvania. Instead of waiting for the Federal Energy Regulatory Commission (FERC) to consider a so-called re-hearing of their decision to authorize Atlantic Sunrise, a group of radical green organizations are jumping the queue and going directly to court, demanding that a judge stop construction until a quorum is in effect at FERC. Yes, it’s all complicated. We’ll break it down for you. What you need to know up front is that more Big Green money is behind the lawsuit to stop Atlantic Sunrise…
Read More “Radical Green Groups File Fed Court Case to Stop Atlantic Sunrise”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | PennEast Pipeline | Pipelines

PennEast Celebrates Lawsuit Dismissal, Takes Swipe @ Riverkeeper
March 24, 2017March 24, 2017

As we reported yesterday, a federal judge dismissed a lawsuit filed a year ago by THE Delaware Riverkeeper against the Federal Energy Regulatory Commission (see Fed Judge Dismisses Dela. Riverkeeper Lawsuit Against FERC). The lawsuit aimed to shut down the entire agency by defunding it (see THE Delaware Riverkeeper Sues FERC, Tries to Close it Down). The lawsuit claimed FERC can’t objectively make decisions about projects like the Penn East Pipeline (running from the Wilkes-Barre area to New Jersey) because FERC derives some of its operating revenue from the projects it either approves or does not approve. In other words, Delaware Riverkeeper tried to shut down a national agency because they object to a single pipeline project. Liberal U.S. District Justice Tanya Chutkan found Riverkeeper’s arguments lacking, to say the least. It took a day, but PennEast released their own statement about Riverkeeper’s lawsuit going down in flames. It is an interesting response from PennEast and continues a trend in what we’ve previously noticed: PennEast has (finally) taken the gloves off and is pushing back hard against enviro-jihadists like Riverkeeper…
Read More “PennEast Celebrates Lawsuit Dismissal, Takes Swipe @ Riverkeeper”