Litigation

Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Dela. Court Grants Williams Request to Speed Up ETE Lawsuit
April 15, 2016April 15, 2016

A Delaware court has granted a motion by Williams to hurry-it-up with their recently filed lawsuit against Energy Transfer Equity (ETE)–the company trying to buy Williams. No, Williams is not trying to fend off the purchase. They’re trying to ensure Williams stockholders (and the managers of Williams) get the agreed-to price. Last week Williams sued ETE and its CEO Kelsy Warren for issuing private shares of stock to select investors to help finance the deal (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). Williams believes the private stock offering is a sweetheart deal that in the end devalues or puts at a disadvantage Williams stockholders. The court has granted Williams request to speed things up. The Williams board still maintains they want the merger/buyout to go forward. Strange way to show you love your new owner–by suing him. But this isn’t about affection and getting along and kumbaya–it’s about money…
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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA House and Senate Panels Vote to Reject DEP’s New Drilling Regs
April 13, 2016April 13, 2016

Yesterday the Pennsylvania State House and Senate energy committees voted to disapprove the state Dept. of Environmental Protection’s proposed new Article 78 and 78a drilling rules. In February when the Pennsylvania Environmental Quality Board (EQB) approved the new regulations after those regs were vigorously opposed by conventional drillers in the state, the Pennsylvania Independent Oil & Gas Association (PIOGA) blasted the decision calling the DEP “deceptive” (see PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). The Pennsylvania Independent Petroleum Producers Association (PIPP) filed a lawsuit on March 24, 2016, in the Commonwealth court of Pennsylvania challenging the legality of controversial new regulations (see PA Conventional Drillers File Lawsuit to Stop New DEP Regulations). The fight has now gone to the legislature, which has some, but not ultimate, authority to derail the new regulations. Yesterday the legislature used that authority when the energy committees for both houses voted to not approve the new regs. What happens next? The state’s the Independent Regulatory Review Commission (IRRC) will review the new regs on April 21 and make a decision about whether to approve them or not…
Read More “PA House and Senate Panels Vote to Reject DEP’s New Drilling Regs”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Talks About Appeal Request re Tragic Dimock Verdict
April 13, 2016April 13, 2016

Last week MDN brought you news that mainstream media has all but ignored, in hopes of burying it: Cabot Oil & Gas has filed a legal motion to appeal the OJ jury decision to award two landowner families in Dimock, PA $4.24 million (see Cabot Files Appeal in Dimock Case – Alleges Judicial Misconduct). The jury made the award even though there was hard evidence that Cabot did not cause methane migration into the landowners’ water wells. Which is why we call them the equivalent of the OJ jury. Total disregard for evidence and decide “with your heart” instead. “That evil big oil & gas company has boatloads of money. Look at those little kids on the stand. Let’s just give them some money, even if the evidence says otherwise.” That must have been the thinking. At any rate, on Sunday Cabot, who has until now been silent about the appeal, issued the following statement. They’re either asking for (a) the court to overturn the verdict, or (b) order a new trial because of judicial misconduct on the part of the landowners’ attorney…
Read More “Cabot Talks About Appeal Request re Tragic Dimock Verdict”
Energy Services | Industrywide Issues | Lebanon County | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

Lebanon County Judge Says Mariner East 2 Can Use Eminent Domain
April 11, 2016April 11, 2016

The last refuge of the desperate in Lebanon County, PA to stop new pipelines from being built is to use the courts to try and delay or stop both the Williams Transco Atlantic Sunrise or the Sunoco Logistics Partners Mariner East 2 pipelines. That refuge is now gone–at least for Mariner East 2. Last Thursday Lebanon County Judge Robert Eby ruled that yes, Mariner East 2 is an intrastate as well as interstate pipeline–giving it authority under PA state law to use eminent domain for those (very) few holdout landowners who refuse to bargain in good faith and simply want to stop the pipeline…
Read More “Lebanon County Judge Says Mariner East 2 Can Use Eminent Domain”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Files Appeal in Dimock Case – Alleges Judicial Misconduct
April 8, 2016April 8, 2016

Cabot Oil & Gas has appealed the (OJ-like) jury verdict in the “Dimock” case–a case where the jury ignored the evidence and instead found Cabot guilty of methane contamination of two families’ water wells in Dimock, PA–even though the families admit their wells were fouled BEFORE Cabot began to drill (see Dimock Jury Levies $4.25M Judgement Against Cabot in Dimock Case). Not a single news outlet is covering the appeal. Mainstream media’s favorite tactic is to ignore stories in hopes people won’t notice. Fortunately there are now alternative news outlets, like MDN, where you can learn the truth. The only way we knew about the Cabot appeal was through friend Phelim McAleer, the talented director and star of the documentary FrackNation. Phelim is reporting the appeal on his Facebook page. In the appeal, Cabot says the attorney for the plaintiffs engaged in “repeated misconduct” during the trial. She’d lob false innuendos and statements that were immediately retracted–but the jury heard and obviously believed her. You can’t “unhear” a false statement. In other words, she gamed the system–she didn’t play by the rules. Cabot is asking a judge to overturn the verdict…
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Industrywide Issues | Litigation | Regulation | Sand/Proppant

OSHA Sued to Prevent New Silica Dust Rule – but Not by O&G
April 8, 2016April 8, 2016

Last week MDN told you that the federal Occupational Safety & Health Administration (OSHA) has published new rules for the handling of silica and silica dust (see OSHA Publishes New Silica Dust Rule, O&G Must Comply by 2018). As we pointed out at the time, the “good news” if there is any, is that the new rules don’t take effect for the oil and gas industry for two years. However, more than just the oil and gas industry are affected by the rules. The Louisiana chapter of The Associated General Contractors of America (AGC) has filed a petition against OSHA to block the new rules. AGC represents more than 26,000 firms, including over 6,500 general contractors and over 9,000 specialty-contracting firms. AGC was joined by an alphabet soup of other associations in their petition. A second petition was filed by the American Foundry Society (AFS) and the National Association of Manufacturers (NAM). Both petitions were filed with the U.S. District Court for the 5th Circuit. Notably, associations for the oil and gas industry, while critical of the proposed new rules, have not (yet) joined these other industry groups in filing a petition with the court…
Read More “OSHA Sued to Prevent New Silica Dust Rule – but Not by O&G”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren
April 7, 2016April 7, 2016

It was a long courting period before Energy Transfer Equity finally cajoled, harangued, and eventually forced the board of Williams to agree to a merger/takeover. ETE’s billionaire CEO Kelsy Warren revealed he had been propositioning Williams for over six months–offering Williams $64 per share to buy the company, totaling $48 billion (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams resisted, but eventually they caved and agreed to the deal–although the deal price went down $10 billion by the time they accepted (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). But things changed. Prices for natural gas (and oil) went into the basement, and ETE/Kelsy Warren had second thoughts (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Yesterday Williams sued ETE and Kelsy Warren over ETE’s issuance of private shares to select investors to help finance the deal, and they sued Warren for “interfering” with the merger by issuing said private shares. The upshot seems to be Williams feels as though their shareholders are getting shafted. Williams wants the deal done, and they want to get the agreed-to amount. That’s why they’re suing. ETE disputes Williams’ claims and says they will “vigorously defend” themselves. Looks like this marriage is already turning sour…
Read More “Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A | Regulation

Obama DOJ Sues to Block Halliburton/Baker Hughes Merger
April 7, 2016April 7, 2016

That didn’t take long. Yesterday MDN told you that sources in the Obama Dept. of Justice (DOJ) were leaking to the press that they would soon file a lawsuit against the Halliburton/Baker Hughes merger, in order to block it (see DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead). They did. Yesterday the DOJ filed to block the merger saying the “merger would eliminate significant head-to-head competition in oilfield services industry.” Halliburton and Baker Hughes were quick to respond saying they will “vigorously contest the U.S. Department of Justice’s (DOJ) effort to block [the] pending merger.” Bring on the lawyers! Halliburton/BH say the DOJ has “reached the wrong conclusion in its assessment of the transaction and that its action is counterproductive, especially in the context of the challenges the U.S. and global energy industry are currently experiencing.” Here’s the dueling press releases issued yesterday…
Read More “Obama DOJ Sues to Block Halliburton/Baker Hughes Merger”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A | Regulation

DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead
April 6, 2016April 6, 2016

Yesterday MDN told you that the U.S. Dept. of Justice has sued investment firm ValueAct Capital with an accusation that ValueAct has inappropriately pulled strings with both Halliburton and Baker Hughes in their planned merger (see DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger). It seems that’s not the only lawsuit the DOJ is going to lodge. According to the Wall Street Journal and other national media sources, the Obama DOJ has let leak they plan to sue Halliburton/Baker Hughes to stop the merger. It appears as if it’s all but dead. The Europeans are not fans of the plan (see Europe Puts Halliburton/BH Merger Under a Microscope). Brazil is also against the deal (see Is the Halliburton Buyout of Baker Hughes in Trouble?). If the DOJ turns against it–there’s no way the deal will happen, in our humble opinion. Here’s the latest in the shotgun wedding that may turn out to be a couple at the alter with no one willing to marry them…
Read More “DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead”
Elk County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Seneca Resources | Wastewater

Judge Rules Seneca May Challenge Injection Well Ban in Elk County
April 5, 2016April 5, 2016

There is a new development in the case of an illegal ban on injection wells passed by Highland Township in Elk County, PA. In 2013 the radical leftist PA-based group Community Environmental Legal Defense Fund (CELDF) convinced enough ignoramuses in Highland Township to pass a so-called Community Bill of Rights. Seneca Resources, a driller with leases and an active drilling program in Elk, had planned to drill an injection well on their own property to dispose of their own flowback and produced water. The CELDF-inspired ordinance Highland Twp prevented it, and Seneca threatened to sue the town (see Seneca Resources Threatens to Sue PA Town over Injection Well). Seneca made good and filed to sue, but the town and CELDF tried to prevent the lawsuit. Last week U.S. Magistrate Judge Susan Paradise Baxter ruled that Seneca has standing to sue and the lawsuit will now go forward. By the way, in October of 2015, Judge Baxter ruled in an almost identical case in Grant Township (located in nearby Indiana County) that the town’s injection well ban was illegal (see Fed Judge Overturns Grant Twp, PA Ban on Injection Wells). Even the dullards who enacted the ban in Highland should be able to see the writing on the wall. They’re about to lose. Taxpayers in Highland who are footing the bill (since the CELDF doesn’t pay for legal fees and judgments) are the biggest losers. They may want to remember that come election time…
Read More “Judge Rules Seneca May Challenge Injection Well Ban in Elk County”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A

DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger
April 5, 2016July 14, 2016

So what’s happening with Halliburton’s $34.6 billion buyout of Baker Hughes? At last check the deal was at best a 50/50 proposition as to whether or not it would happen. Europe currently has the deal under a microscope (see Europe Puts Halliburton/BH Merger Under a Microscope). The European Commission launched a “second phase” of their investigation into the deal, which is problematic for Halliburton. The European Commission says they see “serious potential competition concerns” with the deal. Not good. But that was in January. Since then we’d not heard anything about the deal’s progress–until now. Yesterday the U.S. Dept. of Justice sued ValueAct Capital, accusing the company of purchasing $2.6 billion worth of stock in Halliburton and BH with “the intent to influence the companies’ business decisions as the merger unfolded.” The company has been charged with violating the reporting and waiting period requirements of the Hart-Scott-Rodino Antitrust Improvements Act…
Read More “DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger”
Anti-Drilling/Fossil Fuel | Crime | Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline
March 31, 2016March 31, 2016

Another environmentalist has tipped over the edge. The daughter of a landowner in Huntingdon County, PA scampered up a tree and planted herself there to prevent that tree and others near it from being cut down by crews clearing a path for the Mariner East 2 pipeline. Just two days ago we told you that Huntingdon County Common Pleas Judge George Zanic previously issued an order to Ellen Gerhart to allow tree clearing on three acres of her property (see Court Grants Mariner East 2 Right to Clear Trees in Huntingdon, PA). Gerhart’s daughter Elise literally “went up a tree” yesterday to a platform pre-built there, between two trees, and says she’ll stay there until the end of the week when tree-clearing season is over. You can’t clear trees after March 31st for fear of killing a threatened bat species. No word on when/if authorities will climb the tree and forcibly remove her. Thing is, she’s not alone. Radical environmentalists are behind Gerhart’s stunt. Two well-known anti-drilling radicals were arrested for blocking work at the site–and bail was set at $100,000 each. Yes, it’s time to get serious with these repeat lawbreakers. It’s also time to go up the tree and extricate Ms. Gerhart and put her in jail with them…
Read More “PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Climate Change Hucksters, Incl. NY AG & Al Gore, Threaten O&G
March 30, 2016March 31, 2016

A small group of rabidly partisan Democrats who have drunk deeply from global warming Kool Aid–including New York’s corrupt Attorney General Eric Schniederman and global warming huckster Al Gore–gathered yesterday in New York to declare they are ready to litigate from sunup to sundown to ensure Dictator in Chief Obama’s Clean Power Plan (currently being challenged in court) is implemented–both now and by the next El Presidente. It is, of course, a sham. They don’t really believe in global warming–most of them anyway. They’re not that stupid (although Al Gore may be). They want total control over the source of energy you use–because it personally empowers them (in the case of New York Attorney General Schneiderman) and enriches them (in the case of Al Gore who buys and sells energy credits). It’s corruption at the highest levels…
Read More “Climate Change Hucksters, Incl. NY AG & Al Gore, Threaten O&G”
Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

Court Grants Mariner East 2 Right to Clear Trees in Huntingdon, PA
March 29, 2016March 29, 2016

It’s always sad when a pipeline company has to resort to eminent domain in order to install a pipeline through/under a property. Once the pipeline is there, you don’t even know it. Our observation is that pipeline companies bend over backwards to avoid sensitive areas and to reroute away from properties that don’t want it. Sometimes that’s not possible. It seems to us like reasonable people should be able to come to terms when it’s not possible to avoid having a pipeline installed. However, some people are not reasonable (able to be reasoned with)–that’s life. And that’s why eminent domain exists. A sad necessity. Such is the case with the Mariner East 2 pipeline being built by Sunoco Logistics Partners. Many landowners have signed agreements with Sunoco LP for Mariner East 2–but some have not. Those not granting permission have been sued using eminent domain, to allow Sunoco to clear trees and begin building. In almost every case Sunoco has won the eminent domain argument in court. The latest instance of victory for Sunoco comes in Huntingdon County, PA. Start the chainsaws! Today more trees are coming down in Huntingdon to make way for Mariner East 2…
Read More “Court Grants Mariner East 2 Right to Clear Trees in Huntingdon, PA”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Conventional Drillers File Lawsuit to Stop New DEP Regulations
March 28, 2016March 28, 2016

Pennsylvania’s small, conventional oil and gas drillers have had enough of Gov. Tom Wolf and his Secretary of the Dept. of Environmental Protection, John Quigley. Last week a trade association representing many of PA’s small, independent oil and gas drillers–the Pennsylvania Independent Petroleum Producers Association (PIPP)–filed a lawsuit against implementation of new rules and changes to existing rules known as Chapters 78 & 78a (see PA DEP Issues “Final” New Drilling Regulations; Industry Pushback and PA DEP On Course to Jam New Regulations Down Drillers’ Throats). PIPP objects to conventional drillers being subjected to many of the same rules as unconventional (shale) drillers. PIPP says the two types of drilling are apples and oranges and to make small drillers jump through the same hoops as big shale drillers will literally eliminate small drillers from the Keystone State–making it unprofitable to continue drilling. So PIPP, on behalf of those drillers, sued to stop the new regulations…
Read More “PA Conventional Drillers File Lawsuit to Stop New DEP Regulations”
Energy Companies | EQT Corp | Greene County (PA) | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

PA Court Says Leaseholder Can Sublease Production Rights
March 28, 2016March 28, 2016

We’re not sure how many landowners this may potentially affect, but we found a recent court decision by Pennsylvania Superior Court to be interesting. Landowners who had inherited property (and a lease) in Greene County, PA asked the court to “sever” the lease into two parts. The lease is with EQT and its affiliates and is 50 years old–long before Marcellus drilling. The landowner makes the case that because EQT had assigned the production rights to a third party and had never themselves drilled, the lease is terminated. There are two parts to the lease: one which said EQT had up to 10 years to extract oil and gas, the other that EQT can store natgas underground. The landowners were looking to end that portion of the lease that allows drilling because EQT never drilled on or under the property–and by assigning those rights to someone else, they have abrogated their rights under the lease. The court disagreed and said you can’t “sever” production rights from storage rights. If one OR the other happened, under the original lease, that is enough to make all parts of the lease ongoing and enforceable. Our description is likely not very good. Here’s what the legal beagles at Vorys say about the case, along with a copy of the decision…
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