Multiple Lawsuits Against Chesapeake for Alleged Securities Fraud
We remember watching Marlin Perkins on “Mutual of Omaha’s Wild Kingdom” growing up. For the younger generations, it was a TV program roughly the equivalent of watching today’s Discovery channel. In particular we remember watching a wildebeest being taken down by a pack of jackals. The jackals would watch for an advantage–a wildebeest that was old and slow, or wounded, or maybe too young to keep up with the herd. They would single it out and one after another jump on it to bring it down. That’s the image that floated through our heads as we noticed a sudden surge of law firms filing class action lawsuits against Chesapeake Energy. No, these lawsuits have nothing to do with Chesapeake shorting landowners in their royalty checks–there’s already a bunch of those lawsuits. These lawsuits are new and stem from the recent announcement that the U.S. Department of Justice, Securities and Exchange Commission and even the U.S. Postal Service have launched investigations into Chesapeake (see Everybody Just Subpoenaed Chesapeake Energy for Everything). The suspicion is that Chesapeake may have engaged in securities fraud by making misleading or false statements that led investors to buy or sell stocks, bonds and debts in the company. With blood drawn (i.e. government suspicion and investigation), a plethora (at least 10) law firms have jumped on the back of the beast and are attempting to bring it down…
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Since April of 2014, MDN has written about and monitored a new project to build a $615 million electrical generating plant in Marshall County, WV that will burn Marcellus Shale gas (see
As a general rule and principle, local control over decisions that affect an entire community is a good thing. Our great country as founded gives precedence to individual freedom. However, what do you do when two neighbors disagree on an important, community-changing issue? Our founding fathers wrestled with this concept and crafted an ingenious solution. If everyone in a community voted on every issue, the founding fathers recognized such a system descends into mob rule. However, in order to preserve democracy and cherished individual freedom, people should have the right to vote. Instead of voting on every issue, the founders created a system where citizens vote for small groups of representatives who act as a buffer between the “mob” and common sense/fairness for everyone–people who dedicate their time to understanding issues, how their constituents feel about those issues, and then voting in accordance with their own conscience and findings. Such a representative democracy is called a republic, which is the political system we have in the United States (NOT a straight up democracy). Even among the layers of elected representatives (local, state, federal) there is a pecking order. The founders recognized there are certain rights and issues best decided and enforced on either the federal or state level, rather than the local level. Each local community (lets call it a township) does NOT have the right to craft its own constitution and confer rights on individuals, corporations, eco-systems or any other entity. Conferring of such rights is the purview of either the federal or state government–NOT a local government. For example, in every state in the union oil and gas development is regulated by the state–not by local entities. In some states, Pennsylvania among them, zoning can affect and influence oil and gas development–where it happens, when it happens–but not control how it happens. So what if a community decides to ban oil and gas development (or pipelines, or injection wells)–in other words, “whether” such an activity happens? Such a ban is illegal. Introducing zoning regulations that result in a de facto ban is also illegal–but it’s happening in pockets across the Keystone State. Perhaps it’s time to criminally charge local representatives who pass these illegal laws (laws that trample individual property rights guaranteed under the U.S. Constitution) under a PA law called “official oppression.” That’s what the Pennsylvania Independent Oil & Gas Association (PIOGA) is considering right now…
We’re not trying to beat a dead horse here with yet more coverage of last week’s PA Supreme Court ruling in yet another Act 13 case (see
Last Friday the Pennsylvania Independent Oil and Gas Association (PIOGA) filed a letter with the PA Joint House Senate Committee on Documents asking them to NOT publish the Dept. of Environmental Protection’s (DEP) final Chapter 78a Marcellus Drilling regulations, citing last week’s PA Supreme Court ruling on Act 13 as the basis. As MDN previously reported, the DEP plans to publish the final regulations in this week’s Oct. 8 Pennsylvania Bulletin (see
Yesterday MDN reported that the Pennsylvania Supreme Court has essentially gutted the rest of the Act 13 drilling law passed in 2012 (see
Following up on yesterday’s Pennsylvania Supreme Court decision to eviscerate the rest of the 2012 Act 13 drilling law (see
The Democrat-controlled Pennsylvania Supreme Court ruled yesterday in another (hopefully final) decision on the 2012 Act 13 Marcellus drilling law passed and signed by then-Gov. Tom Corbett. Four Democrat judges have just struck down more of Act 13, leaving not much left except the part that raises money and gives it away (called an impact fee, otherwise known as a severance tax). You will recall that seven selfish towns sued the state over the Act 13 law and it’s provision that would substitute a statewide, uniform and fair set of zoning ordinances for drilling in place of a patchwork, crazy quilt system of local ordinances for oil and gas drilling. These seven selfish towns wanted their own ordinances and sued, ultimately winning at the Supreme Court (see
We’ve written plenty about President Obama’s so-called Clean Power Plan (CPP), introduced last summer, a plan to force electric generators to convert to using more “renewable” sources of energy–and less fossil fuels (see
In the southeastern U.S. much of the Big Green opposition to pipelines has centered on preventing pipeline companies from entering properties to complete required surveys. If you can stop the process before it begins (so they reason), it saves them from having to hop in the VW Microbus and go to (pot smoking) anti-pipeline rallies all over the place. Peace man! Landowners in West Virginia and Virginia have challenged the rights of various pipeline companies to enter their property. It happened with EQT’s Mountain Valley Pipeline (see 
Two days ago MDN told you that the Natural Gas Supply Association (NGSA) had filed a brief in a lawsuit brought by anti-drilling zealots against the much-needed Constitution Pipeline (see
Anti-fossil fuel zealots in Athens, Meigs and Portage counties in Ohio are spitting and sputtering after the Ohio Supreme Court on Tuesday once again shut down their childish frack ban ballot measures–ruling that Secretary of State Jon Husted and the election boards of those counties did not violate the law in tossing out the ballot measures. The radical Pennsylvania-based Community Environmental Legal Defense Fund (CELDF) is particularly torqued off. It’s not the first time the Supremes have slapped them down. Their frack ban ballot measures were also tossed last year by the Supremes (see
The Natural Gas Supply Association (NGSA) has gone into action to support two currently-stalled pipeline projects in the People’s Republic of New York, where Chairman Cuomo rules. Yesterday the NGSA filed a brief in federal court to respond to an effort by the rogues gallery of environmental extremist groups (including Catskill Mountainkeeper, Riverkeeper, Sierra Clubbers and other ne’er–do–wells) to stop the Constitution Pipeline from getting built. The Constitution is a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. The enviro groups sued in federal court to challenge the Federal Energy Regulatory Commission’s (FERC) environmental review of the Constitution. If the wackos can get FERC’s review cast aside, they can slow the project to the point where they can (hopefully for them) kill it. That’s the game plan. NGSA is pushing back, legally. Also this week the NGSA asked the NY State Dept. of Environmental Conservation (DEC) to get off its rear-end and approve air permits for Dominion’s New Market Project–a fairly dull $159 million capacity upgrade to an existing natural gas pipeline which runs across upstate New York from the PA line, west of Horseheads, and then northeasterly to the state’s Capital Region. Once again the DEC is doing their master’s bidding by refusing to grant necessary air permits for the New Market Project to proceed…