Litigation

Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Sunoco Logistics

Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline
July 15, 2016July 15, 2016

Seems like Sunoco Logistics Partners has been fighting in court for years to get the right to use eminent domain for it’s Mariner East 2 pipeline project. ME2 is a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia–carting ethane, butane and propane to the facility from both the Utica and Marcellus region, where it will be separated and sent on its way to destinations both domestic and international. Because the project technically crosses a state line, opponents have tried to state PA is not the proper government body to oversee it–it should come under the exclusive oversight of the federal government. However, Sunoco LP has maintained from the beginning that it is a public utility, properly regulated by the PA Public Utility Commission (PUC) and not the Federal Energy Regulatory Commission (FERC). The PUC has recognized Sunoco LP and its Mariner pipeline projects as public utilities, with the right to use eminent domain to condemn properties of holdout landowners in PA (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). However, the PUC’s authority and ME2’s right to use eminent domain was challenged in state Common Pleas Court in Cumberland County, which ruled in favor of Sunoco (see PA Judge Rejects Landowners’ Challenge to Mariner East 2 Pipeline). The judge’s ruling was appealed and now PA’s Commonwealth Court has also ruled in favor of Sunoco LP, saying that Mariner East 2 is regulated by both the PUC and FERC, and it has the right to use eminent domain…
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Anti-Drilling/Fossil Fuel | Energy Companies | Exxon Mobil | Industrywide Issues | Litigation

NY AG, Others Served Congressional Subpoena re Exxon Witch Hunt
July 14, 2016July 14, 2016

The Attorney General from Massachusetts, Maura Healey, the AG from New York, Eric Schneiderman and several other far-left radicals drunk on their own power have made fantastical claims that Exxon “knew” that burning their evil, filthy, nasty oil and natural gas is causing Mom Earth to warm up, so they serving subpoenas to Exxon to turn over every piece of communication the company has ever had, so they can build a case against Exxon’s free speech (see NY AG Targets/Accuses ExxonMobil of Lying about ‘Climate Change’). As we wrote, these far-out libs represent the rise of the new Enviro Nazis (see Rise of the New (Environmental) Nazis – Free Speech Under Attack). Exxon isn’t taking it lying down–they’re fighting back (see Exxon Beats Back Free Speech Attack by Liberal AGs in Climate Fight). Interestingly, Schneiderman and other anti-drilling AGs are suspected, now with proof, that they’ve been colluding with each other and with radical Big Green groups in their witch hunt of Exxon (see Smoking Gun: AGs Signed Pact to Keep Exxon Documents Secret). Those who champion free speech and common sense (i.e. they don’t believe in the fairy tale of man-made global warming) have now turned the tables on these vicious, criminal AGs and their Big Green posse. Another group of AGs have not-so-subtly told the anti-drilling AGs they themselves may face prosecution for knowingly overstating the case of man-made global warming (see Is it Time to Prosecute Global Warming Alarmists?). It’s the other side of the argument. If you can prosecute someone for “knowingly” underplaying the case for man-made global warming, as Scneiderman, Healey and other AGs are trying to do to Exxon, why can’t you also prosecute someone for knowingly overplaying the case? Schneiderman, Healey and others now have something else to worry about. Yesterday the U.S. House of Representatives Science, Space, and Technology Committee sent subpoenas to Schneiderman, Healey and eight radical enviro organizations requiring them to cough up the documents they’ve been hiding that show their collusion to try and bring down Exxon…
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Energy Services | Industrywide Issues | Litigation | PennEast Pipeline | Pipelines

NJ Judge Dismisses Trespassing Lawsuit Against PennEast Pipeline
July 8, 2016July 8, 2016

In May MDN told you about a sham lawsuit brought by two radical environmental groups–Homeowners Against Land Taking – PennEast Inc. (HALT PennEast) and the New Jersey Conservation Foundation–against the PennEast Pipeline (see PennEast Responds to Sham NJ Lawsuit Re Surveying w/o Permission). The lawsuit falsely claimed PennEast was surveying on New Jersey landowners’ property without permission. PennEast has responded that the claims of trespassing to survey are (our words) horse manure. PennEast checks carefully before entering a property to survey. So the company mounted a “vigorous defense.” A New Jersey State Superior Court judge yesterday tossed the HALT lawsuit…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Regulation | Wayne County

Delaware Riverkeeper “Intervenes” to Protect its Patsy – the DRBC
July 8, 2016July 8, 2016

In May MDN reported the great news that the Wayne Land and Mineral Group has filed a lawsuit against the Delaware River Basin Commission (DRBC) to contest the DRBC’s ongoing blockade of shale drilling in Wayne (and Pike) counties in Pennsylvania (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). The DRBC has blocked drilling since it considered rules for drilling in 2010, when it put a “temporary” ban in place. The Wayne Land and Mineral Group argues in its 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. A brilliant legal move! The DRBC has become little more than a patsy for radicalized Big Green Groups, including THE Delaware Riverkeeper. The DRBC inevitably does the bidding of Riverkeeper, and Riverkeeper is strongly anti-drilling. So it was no surprise for us to learn that THE Delaware Riverkeeper has filed to intervene and indeed has joined the lawsuit, to defend their patsy…
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Anti-Drilling/Fossil Fuel | Beck Energy | Energy Companies | Industrywide Issues | Litigation | Ohio | Regulation | Summit County

Summit County Judge Blocks Munroe Falls’ Attempt to Stop Drilling
July 6, 2016July 6, 2016

Earlier this month 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). Beck Energy’s lawyers fought this new challenge (see Beck Energy Lawyer Responds to Frivilous Munroe Falls Zoning Case). We have some good news. A Summit County judge has blocked Monroe Falls’ motion for a temporary restraining order to stop Beck from drilling a new well. Let the drilling begin! A final decision on Munroe Falls’ latest frivolous lawsuit is still pending. The judge is considering Beck’s motion to grant summary judgment in its favor. How much longer will the residents of Munroe Falls tolerate their “leaders” blowing taxpayer’s money on frivolous lawsuits?…
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Dominion Energy | Energy Services | Industrywide Issues | Litigation | Pipelines | Statewide WV | West Virginia

WV Drillers Sue Dominion over Long-Term Pipeline Contract
July 5, 2016July 5, 2016

In 2008 Dominion approached oil and gas producers in West Virginia, before the Marcellus Shale was a household word, looking to build a pipeline for “several hundred million dollars” (ended up costing $750 million). Dominion held several meetings and told West Virginia’s independent natural gas producers that the producers would need to commit to firm transportation if they wanted to sell their natural gas. At those meetings Dominion handed out forms asking producers to write down how much production they might have for firm commitment. Following the meetings, producers received contracts in the mail “out of the blue” with a very short deadline and a not-so-subtle threat that if they wanted to sell their gas, they would sign on the dotted line. The producers say they were pressured into signing a 10-year deal. Dominion’s Appalachian Gateway Project, with 110 miles of new pipeline and upgrades to several compressor stations, went online in September 2012 (see Dominion Turns On Appalachian Gateway Project Pipeline). Now some 37 of the producers that signed that deal are suing Dominion looking to break the contract and receive “compensatory and punitive damages”…
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Anti-Drilling/Fossil Fuel | Energy Companies | Exxon Mobil | Industrywide Issues | Litigation | New York | Statewide NY

Exxon Beats Back Free Speech Attack by Liberal AGs in Climate Fight
July 1, 2016July 1, 2016

MDN previously chronicled an insidious effort being spearheaded by the odious New York State Attorney General Eric Schneiderman in an attempt to criminalize free speech by accusing Exxon Mobil of “knowing” man-made global warming is “true” but suppressing that knowledge (see NY AG Targets/Accuses ExxonMobil of Lying about ‘Climate Change’). You disagree with Scheiderman on global warming, he wants to take your money away and put you in jail. As we’ve pointed out, it’s Nazi-like (see Rise of the New (Environmental) Nazis – Free Speech Under Attack). Schnedierman has convinced other state AGs to join his cackle (what a group of hyenas is called), including the far-left AG of Massachusetts, Maura Healey, and the hapless, bumbling idiot of an AG in the Virgin Islands, Claude Walker. What the cackle didn’t expect is that their prey would turn around and begin hunting them! Exxon has already stopped Mass. AG Healey (see Exxon Fights Back Against Mass. AG’s Illegal Subpoena). Now, add one more victory to Exxon’s tally: the hapless Virgin Islands AG Walker has withdraw his subpoena against the company…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Admits There Will be no Merger, Suing ETE for “Damages”
June 30, 2016June 30, 2016

Finally Williams has admitted, in writing, that the attempted buyout/merger by Energy Transfer Equity (ETE) is, as we said yesterday, dead (see Dead as a Doornail: ETE Terminates Merger with Williams). Williams has also admitted (in so many words) what we’ve been saying for more than a month: the vote by Williams “for” the merger and all of the recent goings on have been legal posturing. Williams says they are suing ETE “for monetary damages” for “its breaches.” Here’s the Williams admission issued yesterday in response to ETE’s termination of the deal…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Dead as a Doornail: ETE Terminates Merger with Williams
June 29, 2016June 29, 2016

As we previously reported, last Friday a Delaware court ruled that Energy Transfer Equity (ETE) has the right to terminate its merger agreement with Williams (see Court Says ETE Can Terminate Williams Merger; Williams Votes Today). But as we also said, at that time ETE had not officially announced they were terminating the merger. They now have. Yesterday ETE said they have filed the official paperwork to dump the merger/takeover of Williams. Williams is continuing to litigate to try and force ETE to do the deal by appealing the court’s decision (see Williams Shareholders Vote “For” ETE Merger; Appeal Court Ruling). This deal is as dead as a doornail and everyone knows it–including Williams. What’s going on is legal posturing so Williams can try and extract money from ETE over the now-abandoned takeover attempt. In some ways we don’t blame Williams–they resisted ETE’s overtures for nine months before caving and agreeing. Of course, Williams caved and agreed because there are evil corporate raiders on the board pressuring the company to do so. As we’ve maintained all along–no one comes out of this smelling pretty…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Shareholders Vote “For” ETE Merger; Appeal Court Ruling
June 28, 2016June 28, 2016

Yesterday 63% of Williams Companies shareholders voted in favor of a merger with Energy Transfer Equity at a specially called meeting at Williams’ HQ in Tulsa, Oklahoma. Specifically, they voted to approve the merger and receive their proceeds in all cash, thank you very much. Not that it makes a hill of beans worth of difference–because the deal is dead. Last Friday ETE won the right to walk away from the deal not owing Williams anything (see Court Says ETE Can Terminate Williams Merger; Williams Votes Today). As we’ve maintained for some time, this is all window dressing and legal posturing. Williams also said yesterday they will appeal the courts decision from last Friday, maintaining they (Williams) believes ETE is still contractually bound to buy (and more importantly pay) the big investors of Williams. Below are a pair of announcements from Williams about yesterday’s vote, along with some analysis…
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Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Litigation | Pipelines | Regulation

Sierra Club Petitions FTC to Stop Atlantic Coast Pipeline
June 28, 2016June 28, 2016

It’s time to sue the nutjobs at the Sierra Club out of existence. The “non-profit” so-called environmental organization is a menace to all Americans. It’s a vipers nest of lawyers who exist solely to line their own pockets. The way they do it is to file lawsuits and “petitions” by the dump truck-load (generating work for lawyers). One of the projects they’re trying to stop is the much-needed Dominion Atlantic Coast Pipeline, a 550-mile, $5 billion project that will run from West Virginia into Virginia and on into North Carolina–benefiting the residents of all three states (see New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline and Sierra Club Pressures WV County to Oppose Atlantic Coast Pipeline). The Sierra Club’s latest tactic to try and stop the project is to petition the Federal Trade Commission (FTC) with wild claims that the project violates antitrust laws. We have a copy of the paperwork/petition they filed with the FTC (full copy below). It runs 1,215 pages long! How’s that for a mountain of legal horse manure…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Court Says ETE Can Terminate Williams Merger; Williams Votes Today
June 27, 2016June 27, 2016

Big news happened in the Energy Transfer Equity (ETE) proposed merger/buyout of Williams to report. Last Friday a Delaware court ruled that ETE is contractually entitled to terminate its merger agreement with Williams. However, in a press release, ETE doesn’t say it has officially terminated the agreement. In commenting on the ruling, Williams said they still don’t think ETE has the right to wiggle out of the deal and Williams is pushing forward with holding a vote today by shareholders to approve (or not approve) the merger. As we have maintained now for a month or more, we don’t think the merger will happen–and we think all of the press releases and votes, etc. is posturing in preparation to launch lawsuits. The court’s decision essentially says ETE can terminate the agreement and won’t owe Williams any money for their trouble. ETE wanted this merger in the first place and pursued Williams for nearly a year to get it (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). But Williams is not lily white innocent in this ongoing soap opera. Lurking in the background pulling strings are corporate raiders on Williams’ board–people who want to line their pockets with cash from this deal (see Evil Corporate Raiders Double Investment (& Control) in Williams). Even though ETE wants out of the deal and even though (in our opinion) Williams is better off not merging, Williams will continue to push for a merger/takeover, so the raiders can get buckets of cash. Below we have a copy of the court opinion from Friday, along with a couple of analysts’ thoughts on what happens next…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Appeals Court: Mariner East 2 Eminent Domain Can be Challenged
June 27, 2016June 27, 2016

In February, a Philadelphia judge for the Court of Common Pleas (low-level court in PA) ruled in favor of the anti-drilling Clean Air Council against Sunoco Logistics Partners and their Mariner East 2 pipeline (see Philly Judge Says Case Against Mariner East 2 Can Proceed). The ruling was nothing more than “this case has merits” (in the eyes of the judge) and can proceed. The case itself is challenging the right of Mariner East 2 to use eminent domain against landowners in building the new pipeline. The Clean Air Council’s argument is that since most of the natural gas liquids that will flow through the pipeline will get exported or otherwise not used in PA itself, that moves Mariner East from being a public utility with eminent domain power to an interstate pipeline more properly reviewed and permitted by federal authorities. It’s a delay tactic, because if Mariner East 2 were to come under the aegis of the Federal Energy Regulatory Commission and eventually permitted, they would also be entitled to use eminent domain. But a FERC review would take years. Sunoco LP appealed the ruling and last week the appeals court rejected Sunoco’s arguments, sending the case back to the lower court where it will now be tried…
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Hydraulic Fracturing | Industrywide Issues | Litigation | Regulation

Federal Judge Strikes Down Obama Fracking Regulations
June 24, 2016June 24, 2016

Big news to report with an effort to beat back President Obama’s wild and mad grab at executive power. Earlier this week a federal judge in Wyoming–appointed by Obama himself–ruled that the Dept. of Interior’s Bureau of Land Management (BLM) fracking rules are an illegal power grab and has struck them down. MDN has written about this issue since the new rules were proposed in 2012 (see BLM Issues Proposed New Rule for Fracking Federal Lands). The proposal was a disaster and quickly pulled by the BLM for reconsideration. Another set was issued in 2013 (see BLM Releases Revised Rules for Fracking – Why it Matters). The BLM issued their “final” set of rules in March 2015 (see BLM Introduces “Final” Fracking Rules for Fed Lands – 3 Yrs Late). As we’ve warned from the beginning, the reason the BLM rules, which only apply to federal lands (we don’t have much in the way of federal land in the northeast) is still important, is because Obama had planned to expand the rules, once adopted, to also apply to private, non-government land (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking). The industry put up a vigorous defense, and in the end, the Obama judge (we still can’t get over that!) ruled Congress specifically withheld fracking oversight from the BLM and Dept. of Interior. The law is unambiguous–and yes, we still have a nation of laws–if we can survive until Obama is ejected from office in January 2017…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

ETE Makes Moves to Terminate Buyout/Merger with Williams
June 24, 2016June 24, 2016

As we’ve said for some time now, we don’t believe the Energy Transfer Equity (ETE) buyout/merger with Williams will ever take place. It’s been pretty plain that the blizzard of press releases by both companies saying “vote yes” on the deal has been legal posturing–so that when the deal is finally, completely, 100% dead–the lawyers can litigate for years to come, with each side trying to extract money from the other. The latest evidence comes from several news stories this week that Wall Street is betting that a judge is about to rule that a law firm (hired by ETE) to review the tax implications rendered their opinion “in good faith” that there will be significant tax implications arising from the deal. The way the agreement is structured, such a finding releases ETE from the deal. If the judge rules the opinion was in good faith, it’s 99.99999999% that ETE will announce the deal is dead–and the lawyers from Williams will be suing to extract boatloads of money from ETE…
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Anadarko | Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

PA AG Files Motion to Keep Chesapeake Lawsuit in State Court
June 22, 2016June 21, 2016

Last December Pennsylvania’s felony-indicted Attorney General, Kathleen Kane, brought a lawsuit against Chesapeake Energy, Anadarko and Williams accusing them of, among other things, royalty fraud (see PA Atty General Sues Chesapeake Energy, Williams for Royalty Fraud). In May MDN reported that Chesapeake and Anadarko had filed to dismiss Kane’s complaints against them, accusing Kane of attempting to litigate federal antitrust claims in state court (see Chesapeake, Anadarko Try to Wiggle Out of PA Royalty Lawsuit). Kane is now pushing back, filing a brief to respond to Chesapeake/Andarko, claiming she DOES have the right to pursue anti-trust matters that affect the state and its residents. As with many legal cases, this one is complicated. We’ll try and break it down into understandable form…
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