Litigation

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    Constitution Pipeline Still Waiting on “Biggie” Court Decision

    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…
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    Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC

    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…
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    Radical Green Groups File Fed Court Case to Stop Atlantic Sunrise

    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”

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    PennEast Celebrates Lawsuit Dismissal, Takes Swipe @ Riverkeeper

    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”

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    Judge Grants Atlantic Sunrise Pipe Access to Schuylkill Property

    Ryan Regec owns 78 acres in Schuylkill County, PA (eastern part of the state). He plans to subdivide the property into smaller properties and sell the building lots–but the Atlantic Sunrise Pipeline is coming through a portion of the property, and Mr. Regec says that means he can’t subdivide and sell it the way he planned. Regec has, in the past, allowed surveyors from Atlantic Sunrise on his property–but recently has refused. Atlantic Sunrise (i.e. Williams) took him to court to force access to complete their surveys, and Williams just won. A judge for the U.S. Middle District Court in PA issued an order allowing Atlantic Sunrise access. A spokesman for the pipeline says the pipeline will only cut through a small portion of Mr. Regec’s 78 acres. Regec claims his subdivision plans will be destroyed. Who’s right?…
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    Court Says was OK for ETE to Scuttle $33B Williams Takeover Deal

    Last year an elaborate midstream drama unfolded before our very eyes. Energy Transfer Equity (ETE) pushed and prodded and poked and cajoled and insisted, and finally with the help of an inside corporate raider, forced Williams to agree to a buyout/merger (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Then the bottom dropped out of the price of natural gas and drillers scaled back drilling and consequently midstream (i.e. pipeline) companies like ETE and Williams got pinched. And ETE got cold feet (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Williams said “not so fast, you wanted us, you’ll be taking us” and consequently sued ETE to force the merger to happen (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). However, in the end, the merger never happened (see Dead as a Doornail: ETE Terminates Merger with Williams). Since breaking the agreement, Williams and ETE have been in court battling over lots of things, including a $1.5 billion breakup fee. Earlier this week an appeals court ruled ETE was within its rights to break the deal. What does that mean about paying Williams a breakup fee?…
    Read More “Court Says was OK for ETE to Scuttle $33B Williams Takeover Deal”

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    Fed Judge Dismisses Dela. Riverkeeper Lawsuit Against FERC

    It took a whole year, but a federal court has just thrown out a frivolous lawsuit filed by Maya van Rossum, THE Delaware Riverkeeper, which attempted to defund the Federal Energy Regulatory Commission (FERC). Last year MDN reported on the lawsuit filed by Maya and company–a lawsuit which aimed to shut down the entire agency by defunding it (see THE Delaware Riverkeeper Sues FERC, Tries to Close it Down). Delaware Riverkeeper filed their lawsuit against FERC in U.S. District Court for the District of Columbia–one of the most liberal jurisdictions in the country. 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. Liberal U.S. District Justice Tanya Chutkan found Riverkeeper’s arguments don’t hold water (pun intended). In her 20-page opinion (copy below), Chutkan doesn’t buy Maya’s BS line that FERC is hopelessly biased. Although Maya tried to spin the bad news as good (because Riverkeeper achieved “standing” in the case), the decision is, in fact, a crushing blow for Maya and her merry band of eco-nuts…
    Read More “Fed Judge Dismisses Dela. Riverkeeper Lawsuit Against FERC”

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    OH Court Says Grandkids Can Claim Mineral Ownership Under DMA

    MDN has previously highlighted the importance of last year’s Ohio Supreme Court decision with regard to the Ohio Dormant Mineral Act (DMA). In September 2016 the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). Following that ruling, we brought you insights on what it means from international law firm Jones Day (see One More Look at Important OH Supreme Court DMA Decision). We later ran a copy of an analysis done by attorney David Wigham, who said, “[T]he landscape regarding title and ownership to mineral interests in Ohio has significantly changed” (see Expert Says OH DMA Decision “Significantly Changed” Mineral Rights). The ramifications of the Supreme Court’s decision continues–and various aspects of the now-settled law are still, well, getting settled. Under the DMA if a surface landowner advertises his or her intent to reclaim mineral rights (when the rights have been dormant for period of years), the rights owners have a certain amount of time to respond to reassert their ownership. But what if the original rights owners are now dead. Can their heirs, as in grandchildren, claim those rights? Under a case just decided in Ohio’s Seventh District Court of Appeals, the answer to that would be, “Yes”…
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    Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC

    A disappointing setback for the much-needed Constitution Pipeline–a $683 million, 124-mile pipeline due to run from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. As you may recall, in April 2016, New York’s anti-drilling governor, Andrew Cuomo, decided he would cave to pressure from radical environmentalists and block the building of the federally-approved Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Cuomo’s toadies at the Dept. of Environmental Conservation (DEC) decided not to grant (i.e. denied) the Constitution the permits it needs to cross creeks and swamps. That was finally enough for Williams and the other partners in the project, who promptly sued NY in federal, NOT state, court (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). Judge Norman Mordue of the Northern District of New York ruled last week that since NY has not officially denied the water crossing permits–simply not yet acted on them–there is no injury to the project. Even though the pipeline is losing money every day it doesn’t get built due to NY’s inaction. We fail to see how not acting on the permits over the long-term is any different from denying those same permits. It is a distinction without a difference in our book. But that’s what the judge ruled, granting the DEC’s motion to dismiss the case. The thread of hope that remains for the project is another case in which Williams (the builder of the Constitution) filed in an appeals court. Williams is maintaining the second case will go in their favor and when it does, construction is not far behind…
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    OH Supreme Court to Hear Appeal re Driller Who Won’t Explore Utica

    What if a landowner leased his or her land decades ago and a driller drilled a conventional natural gas well on the property, and that well has produced commercial volumes of natural gas for years–and still does. And what if the lease gives that driller the right to drill (or not drill) in any given rock lawyer. And what if that driller is content to simply let that conventional well keep producing and not drill further down, into the now commercially viable Utica (or Marcellus) shale layer? Does the landowner, whose land is located where the Utica/Marcellus exists, have any case for taking back the rights to the deeper shale layers the conventional driller refuses to go after? That’s a case that has now worked its way all the way to the Ohio Supreme Court. The question turns on whether or not “reasonable development” in a lease includes unexplored, deep formations…
    Read More “OH Supreme Court to Hear Appeal re Driller Who Won’t Explore Utica”

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    Michigan Judge Rules Rover Pipeline Can Access Holdout Properties

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). When FERC approves a project like Rover, the project automatically gets the power to invoke eminent domain against landowners who refuse to sign easements to allow the pipeline. Rover has done that in several states, including Ohio and Michigan. Landowners who own 116 tracts of land in Michigan where Rover will traverse have refused to negotiate or allow Rover access to their land. Those days are over. A federal judge in Michigan has just ruled Rover can immediately seize land along the route of the pipeline and begin tree clearing and construction…
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    NY’s AG Schneiderman Sowing the Seeds of His Own Destruction

    New York’s corrupt Attorney General, Eric Schneiderman, is getting desperate. We want to go on record as one of the first to say he’s sowing the seeds of his own destruction. Schneiderman is a train wreck waiting (and about) to happen. We refer, of course, to Schneiderman’s eerie similarity to Captain Ahab in Moby Dick in attempting to hunt down ExxonMobil, Schneiderman’s great white whale. Recently Schneiderman, in cooperation with a sycophantic mainstream media, released information that former CEO Rex Tillerson (now Secretary of State) had a second email account. But unlike Hillary Clinton, Tillerson’s second account was not on a private server and was not used (as Schneiderman alleges) to secretly discuss how Tillerson “knew” burning oil and other fossil fuels causes mythical man-made global warming. Schneiderman’s action in running to the press to “reveal” a “secret” email account is a faint–a way to misdirect people from the real story, which is that Schneiderman continues to refuse to disclose his own emails that prove this whole Exxon witch hunt began when Schneiderman colluded and closely coordinated with the Rockefeller Brothers Fund, Rockefeller Family Fund, and billionaire green activist Tom Steyer. A log of emails shows coordination just prior to the launch of the #ExxonKnew campaign for which Schneiderman is the point man. He’s desperate to avoid releasing his own emails–emails that will implicate him…
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    Some Ohio Landowners Say Rover Violating FERC Tree Clearing Order

    A group of approximately 250 Ohio landowners, represented by an Ohio eminent domain law firm, is doing its best to stop Energy Transfer’s Rover Pipeline project dead in its tracks. Rover is playing beat the clock to finish tree clearing following a Federal Energy Regulatory Commission (FERC) final approval of the project on Feb. 3 (see ET Rover Pipeline Gets Final Approval by FERC). In order to comply with the batty regulation to have trees cleared no later March 31 (due to roosting bats that are protected), Rover moved immediately to begin the tree clearing process. Most Ohio landowners have granted easements and permission to Rover to clear trees. But there are those that have not–either because they want more money, or because they’re anti-fossil fuelers. Regardless, Rover has the right to do it and is using eminent domain procedures to do it. The group of 250 trying to stop Rover has taken two actions: (1) filed a complain with FERC claiming Rover is violating the terms of FERC’s order by not giving landowners advanced notice before clearing trees, and (2) filed a lawsuit in Ohio federal court asking for a restraining order. Will it work?…
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    4 Things to Know re Trump’s Energy Orders/Repeals

    President Trump has issued a number of Executive Orders to overturn some of the egregious over-regulation that popped up during the reign of terror known as the Obama Administration. Some of the orders encourage new pipeline development (Keystone XL and Dakota Access). Some “require” American-made pipelines to be used when building new pipeline projects. Some roll back truly onerous regulations like Waters of the United States (WOTUS)–which puts all bodies of water down to the size of mud puddles under EPA authority. Trump has been going great guns. But, those orders may not be a slam dunk, given our court system populated with Obamadroids. Here’s four things to consider, to be aware of, when it comes to Trump’s Executive Orders and directives aimed at the energy industry…
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    Antis Attempt to Stop Atlantic Sunrise Pipe by Attacking FERC Order

    Sometimes this regulatory stuff gives us a headache. Like today. A common practice by anti-fossil fuel nutters when opposing a pipeline project at the Federal Energy Regulatory Commission (FERC) is to request a “re-hearing” on a decision FERC has made to authorize a project. It’s just standard operating procedure. If the antis can get FERC to agree to a re-hearing, it effectively slows, even stops, an active pipeline project. So in an effort to prevent important projects from being slowed or stopped, FERC developed something called a “tolling order”–which grants FERC more time to consider whether or not a full re-hearing is justified. During the time of the tolling order (which can last up to six months), work on a pipeline continues. Sometimes the work even gets completed! Which of course drives the antis bonkers. Antis claim FERC uses tolling orders to avoid lawsuits. You see, antis can’t take their frivolous cases to a court until FERC has officially denied a re-hearing request. So by using a tolling order, FERC can drag out the process of deciding to deny a re-hearing, avoiding the inevitable frivolous lawsuit that comes with it, and work on important projects gets done. This is how things must operate in our litigious society that tolerates the antics of anti-fossil fuelers (with seemingly bottomless pockets of money to litigate every project). New wrinkle: When FERC Commissioner Norman “cry baby” Bay resigned in a huff effective Feb. 3, it left FERC without enough Commissioners (without a quorum) to vote on tolling orders, re-hearing requests, etc. So on Feb. 3, before Bay left, the existing three Commissioners delegated their authority over re-hearings and tolling orders to FERC staffers–until a new Commissioner is appointed and sworn in. Antis against Atlantic Sunrise are using the delegated tolling order issue against FERC in their attempt to stop commencement of construction on Williams’ Atlantic Sunrise Pipeline project, claiming they are being deprived of their “due process”…
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    West Goshen’s Last Stand to Stop Mariner East 2 Pipeline

    There are a few last, desperate gasps at attempting to stop Sunoco Logistics Partners’ Mariner East 2 natural gas liquids (NGL) pipeline from being built. The pipeline is currently under construction (see Mariner East 2 Pipeline Constructions Begins Across PA). Even though trees are getting cut and pipeline is being laid, that doesn’t stop libs in places like West Goshen Township (Chester County, near Philadelphia) from attempting to deny Sunoco a zoning permit for a valve on the pipeline. Sunoco has politely, but firmly, told West Goshen the pipeline doesn’t need a permit from the town to install a valve because it’s a state-permitted project. In other words, go pound sand. Sunoco plans to move forward, at the appropriate time, with installation and wants assurances from West Goshen the town won’t send in a local cop to stop them. It could get messy…
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