Litigation

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…
Read More “Dead as a Doornail: ETE Terminates Merger with Williams”
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…
Read More “Williams Shareholders Vote “For” ETE Merger; Appeal Court Ruling”
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…
Read More “Sierra Club Petitions FTC to Stop Atlantic Coast Pipeline”
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…
Read More “Court Says ETE Can Terminate Williams Merger; Williams Votes Today”
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…
Read More “Appeals Court: Mariner East 2 Eminent Domain Can be Challenged”
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…
Read More “Federal Judge Strikes Down Obama Fracking Regulations”
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…
Read More “ETE Makes Moves to Terminate Buyout/Merger with Williams”
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…
Read More “PA AG Files Motion to Keep Chesapeake Lawsuit in State Court”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Statewide MD

Sierra Club Gets Desperate, Sues DOE to Stop Cove Point LNG
June 22, 2016June 21, 2016

The Sierra Club is one of the worst, most radical Big Green groups in existence. We sincerely hope you never give them a penny of your money. They don’t care a whit about the environment–they only care about feeding the beast, money for their own organization. One way to do that is to keep your name in the news constantly. And a way to do that is by filing frivolous lawsuits. The Sierra Club has been railing against the Cove Point LNG export facility being built by Dominion for years (see Sierra Club Files Objection to Cove Point LNG Export Facility and Sierra Club, Others Trash Talk Cove Point LNG Export Terminal). As we previously reported in March, the facility is a quarter done (see Cove Point LNG Export Plant Now 24% Complete, Rapid Progress). There is no stopping it. But the odious Sierra Clubbers continue to try. The Sierra Club formally filed a petition with the Dept. of Energy asking the DOE to re-hear (and reconsider) their decision to allow Cove Point to export LNG for 20 years. In April the DOE rejected the request (see DOE Rejects Sierra Club’s Request to Re-Hear Cove Point Decision). So now the Sierra Club is taking the DOE to court to challenge their decision to allow Cove Point exports…
Read More “Sierra Club Gets Desperate, Sues DOE to Stop Cove Point LNG”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation

Is it Time to Prosecute Global Warming Alarmists?
June 21, 2016July 14, 2016

shoe on the other foot

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 are making fantastical claims that Exxon “knew” that burning their evil, filthy, nasty oil and natural gas is causing Mom Earth to warm up, so they’ve been 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). But what’s this? In a master stroke, another group of AGs have ridden in to town and are using the fossil fuel haters tactics against them. The argument being used by the haters is that knowingly covering up global warming from burning fossil fuels is tantamount to committing fraud–and they’re threatening lawsuits based on fraud. The new group of AGs is saying hold on there a minute. If it’s fraud to minimize the effects of global warming, why wouldn’t it also be fraud to overstate the case? The new group of AGs is dropping the not-so-subtle threat that they may go after “green” companies (and individuals) who intentionally overstate the effects of so-called global warming. Love it! Rub their green noses right in it! Below is a copy of the letter sent to the haters telling them to back off Exxon Mobil and other fossil fuel companies…
Read More “Is it Time to Prosecute Global Warming Alarmists?”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Washington County

South Fayette, PA Pushing Defacto Frack Ban, Again
June 17, 2016June 17, 2016

Last month MDN brought you some news that mainstream media in Pittsburgh intentionally ignored: a judge ruled that a new hyper-restrictive (defacto ban) ordinance passed by South Fayette Township, in Allegheny County, was “invalid, null and void” (see South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge). South Fayette is one of seven selfish PA towns that sued the state after the Act 13 law was enacted in 2012 (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law). Ultimately the towns won their case at the PA Supreme Court level, winning the right to enact their own ordinances with respect to oil and gas drilling. Last year South Fayette enacted a new defacto ban, calling it a zoning ordinance. The judge, as we mentioned, tossed it out last month–but he tossed it because South Fayette didn’t follow proper protocol and procedure. So South Fayette is back–re-advertising the new zoning rule and in July, they intend to adopt it…
Read More “South Fayette, PA Pushing Defacto Frack Ban, Again”
Anti-Drilling/Fossil Fuel | Energy Companies | Exxon Mobil | Industrywide Issues | Litigation

Exxon Fights Back Against Mass. AG’s Illegal Subpoena
June 17, 2016June 17, 2016

Massachusetts Attorney General Maura Healey, New York AG Eric Schneiderman and several other Democrat AGs have ganged up like a pack a hyenas with saliva dripping from their legal fangs at the prospect of bringing down one of the biggest preys imaginable–Exxon Mobil. Healey, Schneiderman and others are making fantastical claims that Exxon “knew” that burning their evil, filthy, nasty oil and natural gas is causing Mom Earth to warm up, so they’ve been serving subpoenas to Exxon to turn over ever 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’ve previously written, these far-out libs represent the rise of the new Enviro Nazis (see Rise of the New (Environmental) Nazis – Free Speech Under Attack). The legal hyenas believe they could bring down the “beast”–stealing Exxon’s money and redistributing it to voters who will keep them in office forever. Just one little problem: Exxon isn’t playing along. The beast is not wilting, not running, not willing to give up and give in, like the legal hyenas thought it would. In fact, the beast is fighting back…
Read More “Exxon Fights Back Against Mass. AG’s Illegal Subpoena”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Homeowner Claims Range Doctored Well Test Results, Suing for Fraud
June 16, 2016June 16, 2016

In 2014, the Pennsylvania Dept. of Environmental Protection (DEP) fined Range Resources a whopping $4.15 million for violations related to several of Range’s wastewater impoundments in Washington County, PA (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). Some of the nearby neighbors claimed that Range’s impoundments had leaked, contaminating their water wells. One of those landowners was Loren Kiskadden, who sued Range in civil court. The problem is, the DEP found that the nearby Yeager impoundment had not contaminated Kiskadden’s well, which led to allegations that the DEP had bungled the investigation (see Did DEP Mishandle Range Wastewater Impoundment Investigation?). Kiskadden had to press on, because if the DEP didn’t reverse its finding, he would have no civil case against Range. Press on he did (see Hearing on Range Yeager Impoundment/Water Contamination Continues). The matter was heard by the DEP’s Environmental Hearing Board (EHB). The EHB found that Kiskadden didn’t have a case–his well was not contaminated by Range’s impoundment. So Kiskadden and his lawyers asked for a re-hearing. Kiskadden’s re-hearing request got turned down (see DEP Final Determination: Range Didn’t Pollute Kiskadden Water Well). End of story. Except, we now have a new wrinkle. Another homeowner–we’re not sure if this is for the Yeager or a different impoundment–is suing both Range and a lab Range used to test their water well claiming fraud–that Range changed the test results that the DEP based its “faulty” investigation on…
Read More “Homeowner Claims Range Doctored Well Test Results, Suing for Fraud”
Beck Energy | Energy Companies | Industrywide Issues | Litigation | Ohio | Regulation | Summit County

Beck Energy Lawyer Responds to Frivilous Munroe Falls Zoning Case
June 16, 2016June 16, 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). MDN received a statement from Beck Energy’s lawyer which says, 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.” Fighting words! Sounds like the taxpayers of Munroe Falls should get ready to open their pocketbooks to pay into a settlement with Beck after Beck wins again. Our question: When will Munroe Falls voters get rid of the obstinate jerks running the place? Here’s the statement from Beck’s lawyer…
Read More “Beck Energy Lawyer Responds to Frivilous Munroe Falls Zoning Case”
Energy Companies | EQT Corp | Fayette County | Industrywide Issues | Litigation | Wastewater | West Virginia

Federal Judge Rules Fayette County Injection Well Ban Illegal
June 13, 2016June 13, 2016

In January, three liberal Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). The ban was intentionally written so broadly it would also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). Not long after, a U.S. District Court judge slapped an injunction on the county preventing them from enforcing the ban at least until a hearing was held (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). One of the chief architects of the ban, from the Mountain Party, admits the ban was intended to stop all oil and gas activity in the county (see Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells). Fearing they would lose the EQT lawsuit, in March the commissioners backed away from the position of banning everything to do with drilling in the county. They revised the proposed ban regulation as a tactic to avoid losing their court case (see Fayette WV Commissioners Change Ban to Focus on Injection Wells). Last Friday a federal judge ruled as we knew he would to toss out Fayette’s illegal ban. That is, EQT just won the case and the taxpayers of Fayette County have three lib Dems to thank for wasting money in legal fees to defend the indefensible…
Read More “Federal Judge Rules Fayette County Injection Well Ban Illegal”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Jailed Ben Lupo Sued Again over OH Wastewater Dumping
June 8, 2016June 8, 2016

An update on the notorious case of illegal frack wastewater dumping near Youngstown, OH that happened in 2012 and 2013. Ben Lupo, previous owner of D&L Energy and its associated company Hardrock Excavating, directed employees to dump frack wastwater hauled by Hardrock into a drain that emptied into a stream that emptied into the Mahoning River near Youngstown, OH (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). It was later discovered that from September 2012 to end of January 2013, Lupo was responsible for dumping at least 30 loads of frack wastewater literally down the drain and into the river. After an investigation and charges, in August 2014 Lupo plead guilty and was sentenced to 23 months in prison and a $25,000 fine (see Final Chapter for Youngstown Illegal Wastewater Dumper: Prison & Fine). The company itself plead guilty and was fined $100,000 in May 2015 (see Hardrock Pleads Guilty to Illegal Wastewater Dumping, Fined $100K). That should have been the end of the story. But now this: Ohio Attorney General Mike DeWine has filed a civil lawsuit against Ben Lupo, two of his companies and three of his employees–for more than $25,000…
Read More “Jailed Ben Lupo Sued Again over OH Wastewater Dumping”