Litigation

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!)…
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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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Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Rex Energy

ACLU Bullies Threaten Butler County Landowners over Martian Lawsuit
July 13, 2015July 13, 2015

The most anti-American group on the planet that we know of, aside from ISIS/ISIL/Al-Qaeda, is the American Civil Liberties Union (ACLU). So we find it truly rich that the ACLU–always on the lookout to squash anything to do with the American way and freedom and apple pie–has now involved itself in what we loving call “the Martian controversy.” A small group of rabidly anti-drilling (and liberal) parents in the Mars School District in Middlesex Township (Butler County), PA want to prevent the legal, legitimate, and now fully permitted right of Rex Energy to drill a few Marcellus Shale wells three-fourths of a mile away from the Mars School. We’ve long chronicled this battle (see MDN’s list of Mars School stories). Four local residents used two non-profits backed by Big Green money and from the opposite side of Pennsylvania–THE Delaware Riverkeeper and the Philadelphia-based Clean Air Council–to file a lawsuit against the little town of Middlesex to stop any kind of drilling, a move that has so far cost local taxpayers over $35,000 in legal defense fees (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). So a group of 12 Middlesex landowners and a business launched their own lawsuit against the two Big Green groups and the four local residents claiming (rightly) that they are being economically harmed (see Shoe Now on Other Foot: Landowners Sue Martian Anti-Drillers). What do the anti-drilling, liberal, wacko parents and Big Green groups do? They go crying like little girls to the ACLU and now the Big Bully ACLU has ridden into town to tell the 12 landowners and local business they have no right to file a lawsuit! In America!!!…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Medina County | NEXUS Pipeline | Ohio | Pipelines

NEXUS Pipeline Sues 4 Medina County Landowners for Survey Access
July 13, 2015July 13, 2015

A small group of Ohio landowners in Medina County are resisting requests by NEXUS Pipeline to allow surveyors on their property. We told you about one such old geezer who threatens to shoot surveyors coming on to his property (see Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). Old Walt Giebeler, the geezer in question, can put his 12 gage shotgun away. NEXUS isn’t interested in his property. But they are interested in four other properties where landowners have refused to let them in to simply survey–so NEXUS has filed a lawsuit against them, asking a judge to allow them access. Without a survey, NEXUS can’t finish their application for the Federal Energy Regulatory Commission (FERC), which is, of course, the entire point of denying surveyors access…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Everyone’s Talking Lawsuit over New York DEC Frack Ban
July 7, 2015July 7, 2015

Everybody knows a lawsuit is coming against the New York Dept. of Environmental Conservation’s “Findings Statement” that bans fracking (see It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY). Anti-drillers, including DEC Commissioner Joe Martens, the guy hired by the Rockefellers to ban fracking who is now leaving the DEC to return to a Rockefeller job at his previous organization (the Open Spaces Institute), certainly expects there to be a legal challenge to his non-science-based political decision to ban fracking…
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Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Regulation

Chesapeake Energy’s Theft of PA Landowner’s Royalties
July 6, 2015July 6, 2015

It’s no wonder Pennsylvania landowners are up in arms over their treatment by Chesapeake Energy. Two weeks ago MDN told you about a new bill, HB 1391, that will ensure Pennsylvania landowners receive a minimum 12.5% in royalties for any gas or oil taken from their land (see New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties). The reason such a bill is necessary is because landowners are being robbed by some (not all) drillers who are deducting certain “post production” expenses from royalty checks–essentially stealing money that belongs to landowners. Here is a perfect example from Bradford County, PA–the most drilled Marcellus county in the state…
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Anti-Drilling/Fossil Fuel | Cuyahoga County | Industrywide Issues | Litigation | Ohio | Regulation

The Mad Moms of Broadview Heights Remain Mad over Tossed Lawsuit
July 6, 2015July 6, 2015

The Mad Moms of Broadview Heights, OH (a suburb of Cleveland) say they’re “not going away” when it comes to opposing fossil fuels in their neighborhood. MADION (Mothers Against Drilling in Our Neighborhood) are appealing a tossed-out lawsuit filed by the group following a defeat handed to them by the Ohio Supreme Court. In March, the Ohio Supreme Court ruled a 2012 so-called Community Bill of Rights law adopted by Broadview Heights that prohibits drilling is unconstitutional (see OH Antis Handed Crushing Defeat in Broadview Hghts Home Rule Case). That didn’t sit well with the (stark raving) Mad Moms (see Broadview Heights, OH Moms: Don’t Frack With Us). The Mad Moms filed a new lawsuit to stop the drilling. Last week Cuyahoga County Common Pleas Judge Timothy McCormick tossed the new lawsuit citing the Supreme Court decision. The Mad Moms plan to appeal Judge McCormick’s decision…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Susquehanna County

PA Court Decision: Leases Don’t Go on Pause When Landowners Sue
July 2, 2015July 2, 2015

Put on your hip boots, we have some deep waters to wade through with respect to an important court decision in Pennsylvania that affects landowners and drillers. Last October MDN told you about an important lawsuit that went to the Pennsylvania Supreme Court, a case called Harrison v Cabot Oil & Gas (see Important Landowner/Driller Case Heads to PA Supreme Court). In brief, Susquehanna County, PA landowners Wayne and Mary Harrison signed a lease with Cabot Oil & Gas for $100 per acre and 12.5% royalties in 2010. Learning that others in their area got better deals and feeling they were not only hoodwinked but pressured into signing, they sued Cabot halfway through the lease (before any drilling was done) to dissolve the lease. Ultimately that lawsuit was decided in favor of Cabot. But by the time the lawsuit was done and dusted, the original 5-year term had expired without Cabot drilling. The Harrisons claimed since Cabot hadn’t drilled, the lease is now over with. Cabot said the lease went on “pause” when the Harrison’s sued–you can’t very well drill with an active lawsuit. This “lease on pause” case was appealed all the way to the Supreme Court in PA, and in February the Supreme Court ruled that just because there is ongoing litigation, Cabot didn’t have the presumption that the lease was paused (see Cabot O&G Loses PA Supreme Court Case to Extend Lease). That is, Cabot lost the case. But it was referred back to the Third Circuit Court of Appeals for more work before a final final ruling. We now have that final final ruling…
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