Litigation

Cuyahoga County | Industrywide Issues | Litigation | Ohio | Regulation

OH Court Sides with Town Against ODNR/Driller in Cleveland Suburb
May 20, 2016May 20, 2016

In January 2015 MDN highlighted an ongoing squabble near Cleveland, in Cuyahoga County, OH, between the Ohio Dept. of Natural Resources (ODNR) and the Ohio Oil and Gas Commission (OOGC) (see ODNR Appeals Decision Overturning Drilling Permit Near Cleveland). The ODNR is responsible for evaluating and issuing permits to drill oil and gas wells in the Buckeye State. The OOGC is the body that hears appeals from people who disagree with a permit issued by the ODNR. Such an appeal was filed for what we believed was a conventional (vertical only) oil well to be drilled in North Royalton, OH to Cutter Oil Company. It now appears the permit is for a horizontal shale well. No matter whether the well is vertical-only or horizontal, if the OOGC is allowed to overturn the permit because of nebulous and unspecific “safety concerns,” it sets a legal precedence, which is likely what the ODNR is trying to prevent with their appeal. That appeal has gone through several courts and on Tuesday the 10th District Ohio Court of Appeals sided with OOGC against ODNR in saying the ODNR didn’t take safety concerns into consideration…
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Electrical Generation | Industrywide Issues | Litigation | Regulation

Unusual: Full Court to Hear Case Against Obama Clean Power Plan
May 19, 2016May 19, 2016

We’ve written plenty about President Obama’s draconian, so-called “Clean Power Plan” (see our stories here). In a nutshell, Obama and his servile Environmental Protection Agency are attempting a massive federal takeover in how electricity gets generated–by requiring more electricity is produced by so-called renewable sources. They’re doing it through limiting carbon dioxide emissions from power generating plants. It puts coal out of business completely. But the dirty little secret is that Obama is also taking aim at natural gas too (see Obama Stabs Natural Gas Electric Plants in Clean Power Plan). More than half of the states have joined together to to stop the plan by filing a lawsuit. In a surprise move, the U.S. Supreme Court stopped the EPA from implementing the plan until the lawsuit brought by the states gets a full airing (see Supreme Court Shocker – Justices Halt Obama’s Clean Power Plan). The first step in the process of getting that airing happens at the U.S. Court of Appeals for the District of Columbia Circuit. In another move that surprised everyone, the DC District Court on Monday announced that the full court (9 of 11 justices) will hear the case and not the normal three-judge panel. Typically you start with three judges, and any decision can be appealed to the full court (which typically gets denied), and from there it goes to the U.S. Supreme Court. The DC court is removing a step so the process goes faster. Is that good (for those of us who believe this is unconstitutional), or bad? Depends on the news source you read…
Read More “Unusual: Full Court to Hear Case Against Obama Clean Power Plan”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | New York | Statewide NY

Full Page NYT Ad Calls NY AG Schneiderman, Others “Un-American”
May 19, 2016May 19, 2016

In March MDN brought you news of an environmental Nazi confab in New York City, headlined by New York Attorney Attorney General Eric Schneiderman and Al Gore (see Climate Change Hucksters, Incl. NY AG & Al Gore, Threaten O&G). The aim of the meeting was to overtly threaten any company or individual who disagrees with their perverted views on man-made global warming. Schneiderman and other far-left, liberal Democrat attorneys general will “investigate” (i.e. bully) businesses, organizations and individuals who dare to disagree with them. It’s breathtaking in its abuse of power. If ExxonMobil disagrees with Schneiderman’s views on global warming and says so–watch out! Here comes a lawsuit to shut them up and shut them down (see Rise of the New (Environmental) Nazis – Free Speech Under Attack). The Competitive Enterprise Institute (CEI) recognizes the dangerous threat to our freedoms posed by Schneiderman and other out-of-control AGs with their abuses of power. On Tuesday the CEI published a full page ad in the New York Times (VERY expensive) calling out Scheiderman and others–exposing their duplicity and bullying and attempts at censoring free speech. The ad, signed by 43 organizations, legal experts, and individuals who value the First Amendment of the Constitution, calls Scheiderman and those aligned with him “un-American.” We couldn’t agree more…
Read More “Full Page NYT Ad Calls NY AG Schneiderman, Others “Un-American””
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Wayne County

Wayne County, PA Landowner Sues DRBC Over Fracking Ban
May 18, 2016May 18, 2016

Some great news to share. A landowner in Wayne County, PA–in the Delaware River Basin–has 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. 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 there is measurable quantities of shale gas that 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). He’s been a dud–at least on the drilling issue. The DRBC has blocked drilling since it considered rules for drilling in 2010, when it put a “temporary” ban in place. Enough is enough. The Wayne landowner is arguing 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. Brilliant legal move! Here’s the details, including a copy of the lawsuit as filed…
Read More “Wayne County, PA Landowner Sues DRBC Over Fracking Ban”
Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Statewide NY | Williams

Williams Sues NY Over Constitution Pipe – DEC May Lose Authority
May 17, 2016May 22, 2016

Three cheers for Williams. Hip hip horray! Williams announced yesterday a two-pronged legal challenge against New York State and its decision to deny stream crossing permits for the federally-approved Constitution Pipeline project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The first prong is a lawsuit filed in the U.S. Circuit Court of Appeals for the Second Circuit–challenging the decision itself as “arbitrary and capricious.” The second prong is a lawsuit filed in the U.S. District Court for the Northern District of New York–seeking recognition by the court that New York doesn’t even have jurisdiction over the project. It is this second case that should have Cuomo, the DEC and the antis VERY worried. If the case goes against them, it means that New York will forever be cut out of decision-making with regard to any FERC-approved projects. Properly so. NY has shown itself to be motivated by politics and not by science and certainly not by common sense. It’s time to remove NY from the equation. Staffers at the state Dept. of Environmental Conservation (DEC) feared this might happen and counseled Cuomo to approve the Constitution project–sage advice he ignored…
Read More “Williams Sues NY Over Constitution Pipe – DEC May Lose Authority”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Files 3rd Lawsuit Against ETE to Force Merger by June 28
May 16, 2016May 16, 2016

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). On Friday, Williams filed their third lawsuit to force ETE to complete the merger. ETE’s CEO Kelsey Warren says Williams is “meritless” and will “lead to delays” in the merger. What in the world is going on?…
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Dominion Energy | Energy Services | Industrywide Issues | Litigation | Pipelines | Statewide VA | Virginia

Atlantic Coast Pipeline Wins Another Virginia Court Case
May 16, 2016July 7, 2016

Atlantic Coast Pipeline Route – Virginia (click for larger version)

Last year MDN reported that anti-drilling landowners in Nelson and Augusta counties (Virginia) who don’t want a pipeline to mar their weekend horse farm pastures refused to allow surveyors for the Atlantic Coast Pipeline access to their precious pastures. Dominion, the company building the 550-mile, $5 billion natural gas pipeline that will run from West Virginia, through Virginia and into North Carolina, took the antis to federal court and won (see Fed Judge Tosses VA Landowner Lawsuit to Stop Pipeline Surveys). The same landowners won’t leave it alone and took Dominion back to court (county court in this case) over the surveys. The county judge found that Dominion’s survey notices are “insufficient” because they use imprecise language about when the surveys will take place. But the judge essentially threw out everything else. In other words, this was yet another victory for the Atlantic Coast Pipeline–a pipeline that WILL get built…
Read More “Atlantic Coast Pipeline Wins Another Virginia Court Case”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Williams

Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project
May 13, 2016May 13, 2016

It’s time to sue THE Delaware Riverkeeper out of existence. The group is a litigious nuisance and anti-American. It is led by Maya van Rossum and fed by money from the Heinz Endowments and William Penn Foundation. Even with repeated calls the IRS has refused to investigate violations of the group’s non-profit status. The latest outrage from this group of virulent radicals is to launch a lawsuit to try and stop Williams’ Atlantic Sunrise Pipeline project through southeastern PA. Just last week Williams received a favorable Environmental Assessment (EA) from the Federal Energy Regulatory Commission (see Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC). That was all it took. The writing is on the wall that FERC will approve the project and Williams will build it. This is a last-ditch effort by van Rossum and other radicals to shut down the project…
Read More “Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project”
Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

OH Attorney Predicts DMA Ruling to Come Soon, Settle Now
May 12, 2016May 12, 2016

David J Wigham

MDN has been reporting on the Ohio Dormant Minerals Act (DMA) for years (see Video: OH Lawyers Explain Dormant Minerals Act & Impact on Utica). In a nutshell, there are two DMAs in Ohio–one passed in 1989 that went into effect in 1992, and another in 2006 which added certain additional procedural requirements to the 1989 version. The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer back to the surface owner under certain conditions. The problem, for drillers and for landowners in Ohio, is in knowing which set of DMA rules to use (1989 or 2006) in determining who owns the mineral rights. A number of DMA cases have gone before the Ohio Supreme Court. Some of the minor cases have been decided (see Ohio Supreme Court Rules in Important Dormant Mineral Act Case). However, most of the big cases remain stalled at the Supreme Court. That is, until now. Ohio attorney David Wigham (Roetzel & Andress law firm) says there are signs that the Supremes are about to release a massive, all-in-one-go ruling on the DMA. He says if landowners (and drillers) were waiting to see which way the wind will blow, they may want to settle now before the Big Decision comes down…
Read More “OH Attorney Predicts DMA Ruling to Come Soon, Settle Now”
Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | SWEPI

District Court Judge Tosses PA Landowner’s Lack-of-Drilling Case
May 10, 2016May 10, 2016

This is the tale of landowners who negotiated a lease without consulting a qualified oil and gas attorney, and later regretted the decision. In 2008 the owners of a small hunting and fishing camp in Tioga County, PA negotiated and signed a lease with East Resources, which was later sold to SWEPI (i.e. the shale drilling arm of Shell). The lease, so the landowners thought, guaranteed that 11 wells would be drilled on the 240-acre property, and that a pipeline would be used to flow gas only from those wells. The landowners got a nice signing bonus–$287,000. They also got $164,000 for a pipeline right-of-way. But only one well was ever drilled–and it’s capped. And there is a pipeline–flowing other people’s gas through it. The landowners sued and a district court judge ruled last week that the landowners don’t have a case for their “shattered dreams” as they thought they did. It all comes down to a poorly worded lease and signing a lease without running it by a lawyer first…
Read More “District Court Judge Tosses PA Landowner’s Lack-of-Drilling Case”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Wastewater

Enviro Nazis File Lawsuit to “Force” EPA to End Injection Wells
May 6, 2016May 6, 2016

A group of radical/leftist environmental groups have just launched their latest “sue and settle” case against the federal Environmental Protection Agency (EPA). For a description of the despicable practice of sue and settle, where our own government colludes with these groups in a faux lawsuit which “forces” an agency to do what it wanted to do but couldn’t otherwise under existing laws, see this MDN story: Environmentalists & Government Collude in “Sue and Settle” Cases. The National Resources Defense Council (NRDC), one of the worst of the worst, is working with Environmental Integrity Project, Earthworks, Responsible Drilling Alliance, San Juan Citizens Alliance, West Virginia Surface Owners’ Rights Organization, and the Center for Health, Environment and Justice in filing a lawsuit against the EPA to “force” the EPA to stop the practice of disposing of frack wastewater via injection wells. If you can’t get rid of the wastewater, you can’t drill–which is the purpose of this latest assault on freedom and free enterprise in the U.S. These commie dirtbag pinkos (yes, we’ll tell you what we REALLY think!) are working WITH the EPA to grant the EPA sweeping new powers, via judicial decree, to shut down the oil and gas industry. This must stop…
Read More “Enviro Nazis File Lawsuit to “Force” EPA to End Injection Wells”
Allegheny County | Industrywide Issues | Litigation | Pennsylvania | Regulation

South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge
May 4, 2016May 4, 2016

Something noteworthy has happened in western Pennsylvania and (so far) local media has chosen not to cover it. So MDN is happy to break the following story about South Fayette Township in Allegheny County (near Pittsburgh). South Fayette is one of seven 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. A nutty concept that towns have the necessary skills to regulate a complex industry like oil and gas–but there you go. Range Resources and landowners in the town, including Cuddy Partners, have had a long-running feud with the town over their hyper-restrictive ordinances (see Pittsburgh Post-Gazette article Drilling regulations face challenge in South Fayette). In 2015 South Fayette decided to revise their ordinance yet again with respect to shale drilling, making the ordinance even more restrictive than before. Cuddy Partners and Alpine Partners (landowners in the town) sued over the revised ordinance. The lawsuit alleged the ordinance was improperly enacted–rushed through without proper public notice. Last week Allegheny Court of Common Pleas Judge Joseph James agreed and ruled that the South Fayette revised ordinance is “invalid, null and void”…
Read More “South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | PennEast Pipeline

PennEast Responds to Sham NJ Lawsuit Re Surveying w/o Permission
May 4, 2016May 4, 2016

PennEast Pipeline Route Map – click image for larger version

A couple of radical anti-fossil fuel groups, aided and abetted by a few landowners (members of said groups) have filed a frivolous lawsuit on Monday in New Jersey Superior Court against PennEast Pipeline claiming surveyors have illegally trespassed on private property to conduct surveys–against the wishes of said radicals, some of whom happen to be landowners in the path of the proposed pipeline. PennEast Pipeline is a $1 billion, 118-mile pipeline project that will run from near Wilkes-Barre, PA to near Trenton, NJ. The two groups behind this latest sleazy lawsuit are Homeowners Against Land Taking – PennEast Inc. (HALT PennEast) and the New Jersey Conservation Foundation. There’s nothing like a good lawsuit to drive more donations. “Help! We’re David and we’re suing Goliath. We need YOUR money.” Pathetic. PennEast has responded that the claims of trespassing to survey are (our words) horse manure. PennEast checks carefully before entering a property to survey. The pipeline company said when they get a copy of the frivolous lawsuit they will mount a vigorous defense. The radicals just may have bitten off more than they can chew this time…
Read More “PennEast Responds to Sham NJ Lawsuit Re Surveying w/o Permission”
American Energy Partners | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Statewide WV | West Virginia

WV Court Declares “Implied Right” to Pool Oil & Gas Leases
May 2, 2016May 2, 2016

A circuit court judge recently ruled on a case in West Virginia with implications for unitization or pooling. No, NOT forced pooling–or forcing landowners who haven’t signed a lease into a drilling unit, forcing drilling under their land. That’s not what this case was about. This case was about landowners with an already-signed lease for vertical wells now being used to allow that land to be pooled with other land and a horizontal well allowed to be drilled under it. The landowners, who wanted a new lease for horizontal drilling (and more money, which is reasonable in our opinion) said because the lease was silent on the matter of pooling or unitizing, it should not be allowed. The judge disagreed and found in favor of the energy company, in this case American Energy…
Read More “WV Court Declares “Implied Right” to Pool Oil & Gas Leases”
Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Tioga County (PA)

PA Supreme Court Decision on Deeds Affects Some O&G, Landowners
April 28, 2016April 28, 2016

Ever hear of a legal doctrine called “estoppel by deed”? No, we hadn’t either. But if you’re an attorney who specializes in oil and gas mineral rights in Pennsylvania, you may have. The Pennsylvania Supreme Court recently decided a case that upholds state laws of estoppel by deed. The case, called Shedden v. Anadarko, revolved around landowners in Tioga County, PA who thought they owned all of the mineral rights to 62 acres, only to find out half the rights belonged to someone else going all the way back to the 1800s. From there it gets complicated. What we can tell you is that some attorneys were concerned that the newly reconstituted PA Supreme Court would overturn the estoppel by deed law in the state–but that didn’t happen. Estoppel by deed is safe and sound in PA. Here’s the details…
Read More “PA Supreme Court Decision on Deeds Affects Some O&G, Landowners”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pipelines

Radical Sierra Club Sues NJ to Stop Much-Needed NatGas Pipeline
April 28, 2016April 28, 2016

In January MDN told you about a $130 million, 30-mile natural gas pipeline proposed by New Jersey Natural Gas (NJNG) to connect NJNG’s distribution system serving customers in Ocean, Burlington and Monmouth counties (in NJ) and the interstate pipeline system adjacent to the New Jersey Turnpike. The idea came about after Superstorm Sandy. How can NJNG create reliable natgas service in the region, preventing major disruptions like that which happened after Sandy? The “Southern Reliability Link” pipeline project was the result, and in January the NJ Board of Public Utilities (BPU) approved it 5-0 (see Southern NJ NatGas Pipeline Approved by State BPU). Because its natural gas and because the Sierra Club has an irrational hatred of all fossil fuels (and loads of money to burn), the nutjobs from the Sierra Club threatened to sue to stop it. Stop 30 miles of pipeline that would improve the lives of hundreds of thousands of people. They’ve now made good on their threat…
Read More “Radical Sierra Club Sues NJ to Stop Much-Needed NatGas Pipeline”