Litigation

American Energy Partners | Ascent Resources | EMG | Energy Companies | Energy Services | Industrywide Issues | Litigation

Ascent Resources/EMG Sues Aubrey McClendon’s Law Firm for Fraud
August 12, 2015August 12, 2015

Everybody’s suing everybody. That about sums up the mess created (sadly) by none other than Aubrey McClendon. The subsidiary businesses that were once part of McClendon’s new company, American Energy Partners (AEP), continue to run away from Aubrey as fast as they can. On Monday, Ascent Resources, once called American Energy Appalachia Holdings but separated from the AEP mothership in June (see Big McClendon News: Sells 35K Utica Acres, Creates New Company), sued the law firm representing Aubrey in the “stolen data” case brought by Chesapeake Energy. Yes it’s complicated and it’s a mess. We’ll attempt to sort this all out so it’s understandable…
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Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics | Washington County

Sunoco Files Eminent Domain Cases in PA Courts for Mariner East 2
August 12, 2015August 12, 2015

Two days ago MDN told you that Sunoco Logistics Partners had settled, out of court, cases in Harrison and Jefferson counties (Ohio) that will allow the company to build a pair of new pipelines called Mariner East 2 through the area (see Sunoco Settles Case with OH Landowners to Allow Mariner East 2). As we said at the time, Sunoco still faces stiff opposition in other places–particularly in Pennsylvania where the bulk of the pipeline will be built. And sure enough, a new article has popped up about Sunoco LP taking landowners in Washington and Huntingdon counties (PA) to court using eminent domain to gain access to their properties. The problem is, the issue of whether or not Mariner East is a public utility with the right to invoke eminent domain is still an unsettled issue and likely headed to the PA Supreme Court…
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Accidents | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Regulation | Statewide PA | Tioga County (PA)

EPA Causes Environmental Disaster in CO; Connection to Marcellus?
August 11, 2015August 11, 2015

We’ve watched, with some interest, the unfolding story that began last week in Colorado when the federal Environmental Protection Agency (EPA) caused an environmental disaster of incalculable proportions. EPA workers were fiddling around with, what, testing?, at the now abandoned Gold King Mine, an old gold mine where millions of gallons of wastewater used during mining was stored. During their testing (or whatever they were doing) at the site, they accidentally unplugged the wastewater storage pond and millions (originally said to be 1 million, now disclosed as 3 million) gallons of very nasty wastewater with lead, arsenic and other heavy metals flowed into the the Animas River north of Silverton, CO, turning the water “an opaque orange color reminiscent of boxed mac and cheese.” Stick with us–we’re about to make a connection to the Marcellus Shale…
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Air Quality | Anti-Drilling/Fossil Fuel | Beaver County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Shell

Big Green Groups File to Block Shell Cracker Air Quality Permit
August 7, 2015August 7, 2015

Simply amazing. Two Big Green environmental groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project–are trying to scuttle the Shell ethane cracker in the Pittsburgh area that would bring thousands of new jobs and eventually pump something like $20 billion into the regional economy, with a ripple effect of jobs and prosperity for the entire tri-state region. The two groups have just filed an appeal with state regulators saying the PA Dept. of Environmental Protection (DEP) erred when granting an air quality permit that will allow the plant to operate (see Shell Receives Air Quality Permit from PA DEP for Cracker Plant). These two litigious Big Green groups hope to tie the whole matter up in court and “encourage” (scare) Shell away from its investment. It’s hard to put into words the depth of depravity of people who do disgusting things like this…
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Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Summit County

NEXUS Pipeline Files Lawsuits for Survey Access in Summit County
August 6, 2015August 6, 2015

Yesterday MDN told you about the City of Green in Summit County, OH and their leaders’ opposition to (and lies about) the NEXUS pipeline (see NEXUS Pipeline Sends Armed Guards with Surveyors to Protect Them). NEXUS is sending out armed security guards with surveyors because they’ve been threatened. Apparently a number of landowners in Green are refusing to allow surveyors access to their property, so NEXUS is, today, filing lawsuits in Summit County to force landowners to allow surveyors on their property to make a simple survey for potential pipeline routes…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Litigation | Pipelines | Tennessee Gas Pipeline

Deerfield’s 2nd Bite at the Litigation Apple Against NED Pipeline
August 3, 2015August 3, 2015

Back in February MDN told you about a group of aging hippies, er, a, New Englanders from Deerfield, MA who decided to sue the federal government to block Kinder Morgan’s Northeast Energy Direct (NED) pipeline project from being built across their property (see Mass. Town Sues FERC to Stop Pipeline Claiming Gas is for Export). The Town of Deerfield is using the pro bono services of a lawyer that doesn’t live in Deerfield, Cristobal Bonifaz. Bonifaz filed the lawsuit in federal court. His argument is that “most of the gas” flowing through NED will be exported and not even used in New England, and taking private property via eminent domain to do so is illegal. His claim is false–but truth isn’t what always wins in court cases. These days it’s finding a liberal judge you can influence that wins in court. Bonifaz is back and he’s filed the same exact lawsuit a second time–with a different (small) group of people from Deerfield and surrounding areas…
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Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

PA Court: Gas Storage Fields Lock Up Property for Drilling Too
July 30, 2015July 30, 2015

In some locations there are small or large underground storage fields for natural gas located in the Marcellus/Utica. We’ve covered stories in the past about one such field–the Brinker Storage Field, a 35,000 acre area in Columbiana County, Ohio that Columbia has used to store natural gas going back more than 50 years (see Some Brinker Field (OH) Leases Revised, Others in Lawsuit). More often than not these fields seem to be a flash point with respect to leases and potential drilling under them. Because the fields were leased years ago, there are disagreements about what the leases say about royalties for any gas drilled under them. Little did we know (in fact we didn’t know) there are such storage fields located in Pennsylvania too. A case went to court challenging the right of Range Resources and NiSource (their Columbia Gas subsidiary) to retain lease rights for both storing natural gas and drilling for natural gas for property partially included in a unit that includes a 14,000 underground Donegal Storage Field operated by NiSource in Washington County, PA. The landowners have just lost the case–meaning units with storage fields under them can “hold by production” undrilled land in the unit solely because there is gas stored…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East Pipeline Uses Eminent Domain Against SWPA Landowners
July 28, 2015July 28, 2015

Confession: We have a tough time with eminent domain cases filed by pipeline companies. We believe property rights are sacrosanct–you don’t tell me what I can and can’t do with my property, and I don’t tell you what you can and can’t do with your property. But then zoning laws enter the picture. And statewide bans on fracking. Etc. What happens if all but a handful of landowners sign up to allow a pipeline? Should an entire project that when built results in a greater “good” for society get nixed because of half a dozen of holdout landowners? Tough tough issues. The latest skirmish comes from Washington County, PA where Sunoco Logistics has filed eminent domain cases against a handful of landowners who won’t allow new construction through their property for the Mariner East Pipeline project. Sunoco has taken them to court and seeks leases on a total of 11 acres…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Industrywide Issues | Litigation

Multiple Courts Dismiss Shareholder Lawsuits Against Magnum Hunter
July 27, 2015July 27, 2015

Here’s one flying under the radar that we didn’t know about–until now. In the spring of 2013 Magnum Hunter Resources (MHR), a driller now focused totally on the Marcellus and Utica Shale region, dismissed it’s accounting firm. Apparently some investors didn’t like that action and accused MHR’s senior management and board of directors of “breaches of fiduciary duties and other matters.” The investors filed lawsuits in seven different courts alleging misconduct. As of June 22, the last of those lawsuits was dismissed. In fact, all of the lawsuits filed have been dismissed and MHR paid out zero dollars to settle. Yes, it cost the company big money to defend themselves, but they held firm and didn’t cave and in the end they were exonerated from any wrongdoing…
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Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

Pipeline Case: OH Judge Finds Public Right to Free Flow of Energy
July 27, 2015July 27, 2015

There are a number of pipeline battles currently going on. While residents in New England tend to be more unreasonable than most when it comes to pipelines, landowners in other regions also oppose new pipeline construction. Some of their opposition stems from nutty opposition to fossil fuels. But some opposition is legitimate–concerns over where the pipeline will go through a property. Or concerns about lease terms/compensation. One thing that doesn’t hurt anyone is to allow a survey of a property. We would encourage landowners to begin their dialog about a potential pipeline with the surveyors–to make companies aware of your concerns about the routing of a pipeline across your land. But some holdout landowners unreasonably resist even a survey–and they’re consistently losing in Ohio courts. Specifically we’re talking about the NEXUS Gas Transmission pipeline–a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada. We recently told you that in most cases when landowners refuse access to surveyors, they lose (see NEXUS Pipeline Sues for Survey Access, Wins Most of the Time). Below we have news of a court decision from Fulton County, OH in which the judge outlines his reasons for ruling in favor of NEXUS to allow surveys to commence on properties for 15 hold-out landowners. The judge’s ruling is instructive. In it, the judge says the general public has a “right” to expect a “free flow” of energy products…
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Allegany County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

1st Lawsuit Filed Against NY Cuomo Frack Ban – in Allegany County
July 23, 2015July 22, 2015

An Allegany County, NY attorney quietly filed a lawsuit–two months ago–against the New York Dept. of Environmental Conservation (DEC) over their infamous frack ban. It is the first such lawsuit that we are aware of to be filed against the DEC since the frack ban was officially declared (see It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY). The beauty of the Allengany attorney’s lawsuit is that it uses the DEC’s own words against them. The DEC, according to the lawsuit, admits in their own documentation that fracking for shale gas and oil is a “viable and acceptable” method for capturing natural gas. Those words may come back to haunt the DEC. This clever attorney is suing on his own behalf, for the right to drill and frack on his own property. He filed the lawsuit in a relatively low court, called (ironically) Supreme Court–one step up from county court in NY. Here’s the details on what we hope is the beginning of the end of the infamous Andrew Cuomo frack ban in NY…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Energy Takes Cecil, PA Back to Court over Compressor Stn
July 23, 2015July 22, 2015

As we noted in June, after more than four years of resisting, Cecil Township, PA–under court order–finally approved a compressor station proposed by MarkWest Energy (see Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions). We also noted that Cecil pulled a fast one with their so-called approval. The reason they got away with violating the court ordered deadline was because they were supposedly bargaining in good faith with MarkWest–nailing down final details both sides could live with. But it wasn’t good faith on the part of Cecil. At the last minute, Cecil tacked on 26 “conditions” making it all but sure that MarkWest would not agree to the plan. And sure enough, MarkWest has had to take Cecil, one of seven selfish towns that sued to overturn the Act 13 law, back to court yet again. Perhaps the judge should just remove the town supervisors this time since they habitually refuse to obey the law?…
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Butler County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | XTO

PA Landowners Sue XTO Energy for Shorting Them on Royalties
July 21, 2015July 21, 2015

Two Butler County, PA landowners with a combined 245.7 acres of land leased to XTO Energy have sued XTO claiming that XTO is breaking the lease agreement by paying royalties below 1/8 of what XTO receives in revenue for the gas. So far we’ve heard about Chesapeake Energy being the focus of these types of lawsuits for their shenanigans of inflating post-production costs from the pipeline company and then receiving a “kick back” of investments by the same pipeline company (see Chesapeake Shafting Landowners out of Royalties Mess Gets Messier). Although we don’t believe the XTO lawsuit claims the exact same thing, what it does claim is that the lease signed with the landowners does not include language that would allow XTO to deduct certain charges that they are now deducting. That’s the claim. Of course you need lawyers to sue and the lawyers in this case aren’t content with representing just two landowners. They want to turn this into a massive class action and represent hundreds of landowners (cha ching!)…
Read More “PA Landowners Sue XTO Energy for Shorting Them on Royalties”
Energy Services | Industrywide Issues | Litigation | Lorain County | Medina County | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH | Wood County (OH)

NEXUS Pipeline Sues for Survey Access, Wins Most of the Time
July 20, 2015July 20, 2015

An update on a story we brought you one week ago. Last Monday MDN told you that the NEXUS pipeline, primarily a project of Spectra Energy, sued four Medina County, OH landowners who refuse NEXUS surveyors access to their property (see NEXUS Pipeline Sues 4 Medina County Landowners for Survey Access). On Friday, a Medina County Common Pleas judge rejected NEXUS’ request for a restraining order that would allow them access. The case goes to trial on September 24. But lest we leave the wrong impression, judges in just about every other Ohio county where NEXUS has had to sue for survey access have granted NEXUS the restraining orders they were seeking…
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Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Litigation | Ohio | Regulation

Athens, OH Antis Win Court Approval for Anti-Injection Well Vote
July 20, 2015July 20, 2015

You have to give the anti-drilling nutjobs one thing: they’re persistent. And we need to be just as persistent if we’re going to overcome their lunatic objections to fossil fuels. Case in point: In February the Ohio Supreme Court, once and for all, struck down so-called “home rule” legislation passed by local municipalities where anti-drillers are able to convince enough citizens to vote for it (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). When it comes to creating local laws and zoning ordinances that prohibit or otherwise try to control oil and gas drilling and associated activities, Ohio state law stipulates only the State regulates it–not towns and villages and cities. That’s the law, and that’s the law the Supreme Court upheld. Athens County, hotbed of anti-drilling radicalism, has put numerous ballot measures before its citizens in an attempt to stop shale drilling. They finally won one last November (see 3 of 4 Frack Ban Ballot Measures in Ohio Fail – Athens Exception). However, the Supreme Court decision renders the Athens ballot initiative null and void. But that doesn’t stop the crazies in Athens. They’re back again with another ballot measure–this one targeting wastewater injection wells. A lower court judge gave them clearance last week to put their proposed measure, illegal as it is, on the ballot in November…
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Belmont County | Carroll County | Columbiana County | Energy Services | Industrywide Issues | Jefferson County (OH) | Litigation | Monroe County | Ohio | Pipelines | Spectra Energy

Spectra’s OPEN Ohio Pipeline on Track to be Done by End of 2015
July 17, 2015July 17, 2015

Spectra Energy announced a new natural gas pipeline in Ohio called the Ohio Pipeline Energy Network, or OPEN, way back in December 2011. OPEN is an interesting project because it will build 76 miles of new pipeline running through Belmont, Columbiana, Carroll, Jefferson and Monroe counties that will connect to the Texas Eastern Pipeline, and then reverses the flow on the Texas Eastern to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. The Texas Eastern will become a bi-directional pipeline, sometimes bringing gas north from the Gulf, other times sending it to the south to the Gulf. Spectra filed their official application with the Federal Energy Regulatory Commission (FERC) in February 2014 (see Spectra Energy Files Formal Request with FERC for OPEN Pipeline). FERC granted its blessing in December 2014 (see FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast). Since that time, a few Ohio Landowners filed a lawsuit asking an Ohio court to stop the OPEN pipeline from claiming eminent domain (see OH Landowners ask Court to Stop OPEN Pipeline Eminent Domain). Apparently nothing has come from that lawsuit because OPEN is getting built, right on schedule with plans to be completed by the end of this year…
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