Litigation

Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

PA Judge Rejects Antis’ Final, Desperate Attempt to Stop ME2 Pipe
February 24, 2017February 24, 2017

As we reported earlier this week, Sunoco Logistics Partners has begun active construction activities related to building the twin Mariner East 2 pipelines (see Mariner East 2 Pipeline Constructions Begins Across PA). Last week the Pennsylvania Dept. of Environmental Protection (DEP) gave its final approval for the project (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). It didn’t take long for a coordinated attack from the the enviro left–THE Delaware Riverkeeper, the Philadelphia-based Clean Air Council and the Mountain Watershed Association (see Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe). Their efforts failed when a judge rejected a last-minute plea to stop construction (see Last Minute Attacks Fail to Stop Mariner East 2 Pipeline Progress). However, Maya & Friends went back to the judge, claiming there was “new” information, and would he ‘pretty please’ reconsider? Yesterday the judge said “no” to reconsidering. Apparently the attempt to shove a binder full of BS in front of the judge didn’t have the desired effect…
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Anti-Drilling/Fossil Fuel | Columbia County | Energy Services | Industrywide Issues | Lebanon County | Litigation | Northumberland County | Pennsylvania | Pipelines | Schuylkill County | Transco | Williams

Atlantic Sunrise Files 13 Eminent Domain Cases in 4 Counties
February 23, 2017February 23, 2017

There’s always a few holdouts, no matter how hard you try to be reasonable. We’re talking about landowners who refuse to negotiate in good faith with pipeline companies. Earlier this month amidst a flurry of activity, the Federal Energy Regulatory Commission (FERC) handed Williams a final final final approval for its Atlantic Sunrise Pipeline project–a $3 billion, 198-mile pipeline running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). There have been a committed small number of protesters against the project (what’s new?), including some of the landowners along the pipeline route. Although Williams has been attempting to negotiate with them for the past two years, some (very few) landowners have refused. So now Williams, via its Transco subsidiary, has sued 13 landowners in Columbia, Lebanon, Northumberland and Schuylkill counties using eminent domain. Meanwhile, the only thread antis are left hanging by is a lawsuit against a single landowner who they say illegally signed with Williams…
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Industrywide Issues | Litigation | Regulation

CO Bill Compensates Landowners, Drillers in Towns with Frack Bans
February 22, 2017February 22, 2017

Over the years MDN chronicled the long, sad battle in New York State over both a statewide moratorium on fracking, and on the issue of whether towns can ban fracking. The statewide moratorium, under Gov. Andrew Cuomo, continues. However, lawsuits filed against townships that enacted bans went all the way to New York’s highest court, the Court of Appeals–and in June 2014 we lost (see Shale Drilling in NY is Over – High Court Upholds Town Bans). There have long been rumors and talks among New York landowners about launching a “takings” lawsuit–in which landowners would get compensation from the state because the state has “taken” their right to lease land and allow drilling. If the state runs a highway over your land, they have to pay you fair market value for it. Same principle. But so far, a takings lawsuit has not materialized in New York. Perhaps we can look to the west–to Colorado–to see how we still might prevail. A Colorado legislator has introduced a bill in Colorado that would allow landowners (and drillers) to sue local towns in the state that pass fracking bans–using the principle of takings. Should we consider such legislation in New York?…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Washington County

Dealing with Pipeline Cos. – Lessons re Rover’s Eminent Domain
February 20, 2017February 20, 2017

Two weeks ago MDN ran a story about the fact that time has run out on recalcitrant landowners in Ohio who have refused to negotiate with Rover Pipeline–and are now being sued using eminent domain (see Time’s Up – Rover Pipe Uses Eminent Domain on Holdout OH Landowners). Because of our nutty (or should we say batty) environmental regulations that require pipeline companies to clear trees only from Oct. 1 to Mar. 31 due to U.S. Fish and Wildlife regulations against disturbing nesting bats, and because the Federal Energy Regulatory Commission (FERC) was slow off the mark in approving the Rover project, the company must now clear trees in double time. There is no time left to negotiate–even though landowners have had two years to do so. As a last resort, Rover is using eminent domain procedures in court to (yes) force their way onto property and get it ready for construction this summer. Perhaps a little-known fact: Rover also runs through portions of Washington County, PA. The Pittsburgh Post-Gazette found a couple of landowners with sad stories about the big bully Rover using eminent domain against them. Look, we’re not unsympathetic. If we owned a farm (as one of the interviewees does) and they want to run the pipeline through a prized hay field, we’d likely be opposed too. However, the story highlights the fact that others in similar circumstances worked hard early on with Rover to reroute the pipeline through their property–and were successful. The moral of the story is this: the pipeline WILL come, your best chance of influencing WHERE it comes happens EARLY in the process…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Last Minute Attacks Fail to Stop Mariner East 2 Pipeline Progress
February 20, 2017February 20, 2017

We appear to be in the final death throes of radical environmental efforts to block the construction of Mariner East 2–a $2.5 billion, 306-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. Last week the Pennsylvania Dept. of Environmental Protection (DEP) gave its final approval for the project (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). It didn’t take long for a coordinated attack from the the enviro left–THE Delaware Riverkeeper, the Philadelphia-based Clean Air Council and the Mountain Watershed Association (see Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe). On Thursday they asked the PA Environmental Hearing Board to block construction until they can figure out a new way to try and stop the project, claiming “irreparable harm” will happen if construction proceeds. On Friday a judge refused their request. They asked the judge to reconsider a few hours later, after they had manufactured new “evidence” for the judge. Meanwhile, supervisors in West Goshen (a Philly suburb) filed a complaint against Mariner East 1 and 2 with the PA Public Utility Commission, in a apparent effort to stop any new construction there. Try as they might to stop it, this pipeline is about to get built…
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Columbia County | Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Litigation | Northumberland County | Pennsylvania | Pipelines | Schuylkill County | Transco | Williams

Eminent Domain Begins for Landowners in Path of Atlantic Sunrise
February 17, 2017February 17, 2017

You beg and plead and beg and plead. You come with your hat in your hand. You try to explain that no, the pipeline isn’t going to avoid your property, Mr. or Ms. Landowner. But some landowners refuse to negotiate. So the last resort option must be exercised. That’s the situation with Williams’ Atlantic Sunrise Pipeline in several counties in Pennsylvania–including Lancaster, Lebanon, Columbia, Northumberland and Schuylkill. The Federal Energy Regulatory Commission (FERC) issued a final certificate for Atlantic Sunrise, allowing construction to begin, just two weeks ago today (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). Although the project is still waiting on an approvals from the Army Corps of Engineers, the U.S. Fish and Wildlife Service and the State Historic Preservation Office, Williams expects to begin construction soon. Very soon. Landowners who either oppose the pipeline because they hate fossil fuels, or because they thought they might get a higher offer, or because they thought they could just make it go away by singing, “La la la la, I don’t hear you!”–are now out of time. Atlantic Sunrise is taking recalcitrant landowners to court and will soon have a court order allowing them to proceed with construction…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Regulation

Trump Administration Delays Listing Bumble Bee as Endangered
February 16, 2017February 16, 2017

We’ve written before about the thuggish nature of U.S. Fish and Wildlife Service (USFWS). The USFWS is responsible for recommending and listing varies species as threatened or endangered–empowered to do so under the Endangered Species Act (ESA). USFWS has WAY too much power under dictatorial rulers like the ignominious B.H. Obama. On September 22, 2016 the USFWS published a proposed rule to list the rusty patched bumble bee (Bombus affinis) as “endangered” under the ESA. The rusty patched bumble bee is found in the Midwest and eastern parts of the U.S. If it gets listed, it will have SIGNIFICANT impacts on drillers and midstreamers (see “Endangered” Bumble Bee May Slow/Stop O&G Projects in Northeast). With just a few days left in Obama’s reign of terror, the USFWS pulled the trigger and did it (see USFWS Pulls the Trigger and Lists Bumble Bee as Endangered). Except happily, that’s not the end of the story. The white knight rode into town (D.J. Trump) and with the stroke of his pen, delayed implementation of the onerous new listing. Which has antis, like the Rockefeller-backed Natural Resources Defense Council, up in arms. They’ve just sued…
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Energy Services | Industrywide Issues | Litigation | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe
February 15, 2017February 15, 2017

Mariner East 2 map – click for larger version

Well that didn’t take long. On Monday the Pennsylvania Dept. of Environmental Protection (DEP) issued their final water and erosion permits to Sunoco Logistics to build the 306-mile Mariner East 2 natural gas liquids (NGL) pipeline (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). Even though anti-drilling radicals, like Maya van Rossum (THE Delaware Riverkeeper), the Philadelphia-based Clean Air Council and the Mountain Watershed Association have repeatedly sued (and lost) to stop the project, they sued again on Monday following the DEP announcement. The three groups filed an appeal with the Pennsylvania Environmental Hearing Board, a special type of court set up to hear appeals of decisions by the DEP. In an interview, Miss Maya lashed out at her own party, blaming Democrat Gov. Tom Wolf for supporting the pipeline project. She is, of course, on the leftmost fringe of the environmental movement–no pipeline anywhere for any reason is acceptable because pipelines flow evil fossil fuels. But you can’t just file a lawsuit to stop a pipeline because you have batty beliefs about them. You need an excuse, something a liberal judge can use as justification to grant your wish. In the case of Miss Maya & friends, they claim Mariner East 2 provided an “incomplete and deficient” application, and that by granting the permits, the DEP is covering up and/or ignoring the deficient application…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

PA Landowner Wins Case Against Chesapeake re Royalty Deductions
February 13, 2017February 17, 2017

Paul Sidorek, an accountant representing some 60 northeastern Pennsylvania landowners who receive royalty income from drilling, is also a landowner himself. In 2009 Sidorek leased 145 acres, a lease that was eventually sold to Chesapeake Energy. Because of the troubles encountered by others, Sidorek wrote into his lease a 20% royalty and made sure the lease explicitly stated that no expenses could be deducted from the sale of the gas produced on his property. That is, NO post-production expenses could be deducted. And yet, Chesapeake disregarded the lease and deducted as much as 30 percent from his royalties, attributing it to “gathering” and “third party” expenses, an amount that adds up to some $40,000 a year (see Chesapeake Short-Changes PA Landowner on Royalty Checks). Sidorek fought Chesapeake in court, and ended up in arbitration. The arbitrator has just ruled–in Sidorek’s favor. The good news is that a PA landowner has gotten some justice against Chesapeake’s sleazy practice. The bad news is that it’s not a precedent and can’t be used in other court cases…
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Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Lycoming County | Pennsylvania | Range Resources Corp | Statewide PA

PA Case Highlights Risk in Using Non-Lawyer to Negotiate Lease
February 10, 2017February 10, 2017

In August 2013 an extensive investigative article about a then-director for the Pennsylvania Game Commission, William A. Capouillez, appeared in the Philadelphia Inquirer (see PA Director of Game Commission Double-Dipping with Gas Leases?). The article spotlighted a potential conflict of interest between Capouillez’s day job and his moonlighting side job as an agent for property owners who lease their land for oil and gas development. The issue? He was signing private deals with the same companies that often work with his state agency. The State Ethics Commission did a lengthy investigation and three years later, the Commission levied a $75,000 fine, which Capouillez agreed to pay (see Former PA Game Commissioner Fined $75K for Lease Moonlighting). Although he paid the fine, Capouillez remained defiant and said the fine is a tiny fraction of the original fine sought–an indication of his vindication. There is new litigation involving Capouillez. One of the leases he negotiated was on behalf of the Laurel Hill Game and Forestry Club with Range Resources. The way Capouillez constructed his leases was that he would get a cut, a percentage, of any lease signing bonus and ongoing royalty payments, in return for the leases he brokered. Range never drilled on Laurel Hill’s property, but they did start to push dirt around a few hours before the lease expired as a way of holding the acreage (some would call their action a less-than-honorable practice). Laurel Hill sued Range and the lawsuit was later settled by drafting up a new lease with new terms. The new lease/terms were not brokered by Capouillez and he was cut out of the deal–so Capouillez sued both Laurel Hill and Range. The moral of the story, according to lawyers writing about the case, is to never use non-lawyers to represent you in lease negotiations…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Ohio | Pipelines | Statewide OH

Time’s Up – Rover Pipe Uses Eminent Domain on Holdout OH Landowners
February 8, 2017February 8, 2017

The clock just ran out for Ohio landowners who either thought Energy Transfer’s Rover Pipeline would not get authorized, or hoped to hold out and get higher rates of payment to agree to allow the pipeline to cross their land. As pipeline companies often say, the use of eminent domain to gain access to property is a “last resort.” The time of last resort has come. As soon as Rover received its final authorization from the Federal Energy Regulatory Commission on Friday (see ET Rover Pipeline Gets Final Approval by FERC), it filed eminent domain lawsuits against landowners who have refused for over a year to negotiate. Now those landowners must allow Rover access–their bargaining position is gone. Rover intends to fell trees by March 31 to comply with batty laws to protect federally-protected bats. The chainsaws are revved and ready to go. The courts will decide how much compensation holdout landowners will receive–far less than if they had struck a deal before now…
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Allegheny County | Electrical Generation | Industrywide Issues | Litigation | Pennsylvania

Invenergy Proposes Deal to Elizabeth Twp to Move Gas Power Plant
February 7, 2017February 7, 2017

In January 2016, Invenergy announced their intention to build a natgas-powered electric plant in Elizabeth Township, in Allegheny County (see Invenergy Eyes SWPA for Second Marcellus-Powered Electric Plant). Compared to Invenergy’s other PA plant now under construction in Jessup, PA (1,480 megawatts), the proposed Elizabeth plant is much smaller, at 550 megawatts. It would be built on a brownfield site near Pittsburgh. Even though the site is a former landfill where fly ash was dumped, making it unusable for just about any other purpose, a group of local residents would prefer to keep the site a contaminated dump rather than convert it to a beneficial use like generating electricity (see Invenergy Gets Pushback on Proposed Natgas Power Plant in SWPA). Such is the kooky world of antis. Unfortunately, the local antis enlisted the support of Elizabeth Township’s zoning board, which rejected the plan in June (see Elizabeth Twp Rejects Clean Invenergy Power Plant at Dump Site). So Invenergy sued the town in October (see Invenergy Sues Elizabeth Twp to Allow NatGas-Fired Electric Plant). Rather than drag out the lawsuit, causing Elizabeth taxpayers big money to defend a defenseless decision, Invenergy has offered an olive branch. Invenergy is proposing to locate the plant at a new, more rural location about 10 miles away. If Elizabeth Twp agrees to the plan, Invenergy will drop the lawsuit. The new location is a junk yard–so Invenergy is proposing to change locations from one kind of dump to another. Meanwhile, the residents who live near the first location will continue to live near a contaminated dump instead of a cleaned-up, clean-burning natural gas plant…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Ohio | Statewide OH

Radical Enviro Groups Suing to Block Wayne Natl Forest Drilling
February 6, 2017February 6, 2017

In December the Bureau of Land Management proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see 10-Yr Wait is Over, BLM Auctions Wayne Natl Forest Leases Today). The BLM plan was to auction 33 parcels totaling 1,600 acres. As it turns out, only 17 parcels totally 719 acres actually got auctioned (see BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest). At the last minute the BLM withdrew 881 acres (16 parcels) because there were remaining issues with ownership title of the mineral rights. The 719 acres was all leased by noon and brought bids ranging from $2,000 to $5,000 per acre–a laughably small (but important) amount of acreage because it will allow drilling units to be formed with nearby private acreage. The BLM recently announced they will hold another auction in March (see BLM Leasing Another 1,186 Acres in Wayne Natl Forest on March 23). Progress! We suppose it’s not surprising that four radical environmental organizations–on the far outreaches of the environmental movement–have just issued a notice to announce they are suing to stop any drilling in WNF. Which four groups?…
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Energy Companies | EQT Corp | Industrywide Issues | Lease & Royalty Payments | Litigation | Statewide WV | West Virginia

EQT Catches Big Break in WV Supreme Court re Royalty Deductions
February 1, 2017February 1, 2017

In December MDN reported on the huge West Virginia Supreme Court decision against driller EQT that disallows EQT from deducting post-production expenses from royalty checks, even with signed contracts in place (see WV Supreme Court Rules EQT Can’t Deduct P-P Costs from Royalties). Specifically, the justices in their ruling said that drillers can “not deduct from that (royalty) amount any expenses that have been incurred in gathering, transporting or treating the oil or gas after it has been initially extracted, any sums attributable to a loss or beneficial use of volume beyond that initially measured or any other costs that may be characterized as post-production.” We can’t stress just how big a deal this is. So the following news is equally as big: In a rare and unusual move, the same WV Supreme Court has agreed to rehear the case…
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CNG/LNG | Commodity Price | Economic Impact | Industrywide Issues | Litigation | NGLs | Pennsylvania | Pipelines | Regulation | Statewide PA | Taxation

Exclusive: MSC’s Dave Spigelmyer Goes On the Record with MDN
January 30, 2017January 30, 2017

Dave Spigelmyer

Last Friday MDN editor Jim Willis had the pleasure of speaking (via phone) with the president of the Marcellus Shale Coalition, David Spigelmyer. Some 300 companies make up the membership of the organization–including all of the top exploration & production (E&P) companies and midstream (pipeline) companies operating in our region. Dave himself used to work for Chesapeake Energy once upon a time. He is a Pennsylvania boy, born and bred, and knows the industry inside and out. Dave made time to speak with MDN about a wide range of issues. We should note nothing was “off limits”–Jim asked some tough questions. Below is a transcript of that interview. We tackle topics including the Marcellus industry outlook for 2017, the commodity price of natural gas in our region vs. other locations, the proposed severance tax in PA, various pipeline projects, the Shell cracker, MSC’s lawsuit against DEP Chapter 78a regulations, and the “civil war” between drillers and landowners over the royalty issue. It’s all in there…
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Industrywide Issues | Litigation | Regulation

Waters of U.S. Case on Hold Until U.S. Supreme Court Weighs In
January 27, 2017January 27, 2017

In May 2015 Obama’s rogue Environmental Protection Agency (EPA) along with the Obama U.S. Army Corps of Engineers (USACE) released a finalized rule clarifying what “Waters of the United States” (WOTUS) means vis a vis what can be regulated under the federal Clean Water Act (see EPA Power Grab: Redefines Waters of the U.S. to Include Everything). Essentially the rule change redefines everything down to muddle puddles (we’re not exaggerating) as subject to the federal Clean Water Act. In October 2015 a federal judge stopped WOTUS from going into effect, while it’s litigated (see Sixth Circuit Court Stops EPA from Implementing WOTUS Anywhere). It took a year, but in November 31 states along with other entities filed briefs with the 6th U.S. Circuit Court of Appeals opposing the rule (see 31 States Ask Court to Dump Obama WOTUS Rule as Unconstitutional). Right after that, 21 U.S. Senators and 67 House of Representatives members (Congresspersons) filed a “friend of the court” (amicus) brief urging the court to vacate the EPA’s WOTUS rule (see 21 Senators, 67 Representatives Join Case Against EPA WOTUS Rule). However, the 6th Circuit Court hearing the case has temporarily stopped the case, until the U.S. Supreme Court decides if the 6th Circuit has the right to be the court hearing the case…
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