Litigation

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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Air Quality | Industrywide Issues | Litigation | Regulation

US Supreme Court Knocks Down Draconian EPA Emissions Rule
June 30, 2015June 30, 2015

Too little, too late is what sums up yesterday’s U.S. Supreme Court decision that slaps the federal Environmental Protection Agency (EPA) for not considering cost when implementing draconian new rules limiting certain emissions from coal-fired electric power plants. Many coal plants have already shut down and many more are in the process of shuttering–driven out of business by the EPA’s draconian (unlegislated) laws. The small victory is that it pushes back against an out-of-control Obama EPA–perhaps slowing them down just a bit. One analyst said the Supreme Court decision translates into a “big win” for natural gas. How? Because the draconian new rules won’t go into effect right away, that means natural gas will continue to pick up momentum as the best alternative to coal, shutting out solar and wind power as alternatives. Nothing against solar and wind (we love them both), but they’re WAY more expensive than natural gas–and last time we checked, we still live in sort-of free country that sort-of uses capitalism and sort-of has free choice when it comes to power. Which is sort-of good news for natural gas…
Read More “US Supreme Court Knocks Down Draconian EPA Emissions Rule”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

More on PIOGA Request to Keep DEP in its Regulatory Box
June 23, 2015June 23, 2015

Yesterday MDN brought you the story of the Pennsylvania Independent Oil & Gas Association’s (PIOGA) third request to intervene in the Act 13 lawsuit decided by the PA Supreme Court (see PIOGA Asks Supreme Court to Stop DEP Denying Permits Using Act 13). The point of PIOGA’s request is to make the DEP follow PA law when it comes to granting shale drilling permits. Our headline and some of the language we used in that article was not completely accurate–we’d like to admit that right up front (although our inaccuracy was not intentional). The headline states that the DEP has denied permits based on portions of the Act 13 lawsuit tossed out by the PA Supreme Court. In researching the issue and speaking with those knowledgeable about PIOGA’s request to the Supreme Court, we’ve not found a specific instance where the DEP has denied a permit based on the tossed out Section 3215(b)-(e). But while denying permits based on rejected portions of Act 13 is not taking place, something far more subtle and insidious IS going on–with the same result as if the DEP were denying permits based on tossed-out portions of Act 13. Let us explain…
Read More “More on PIOGA Request to Keep DEP in its Regulatory Box”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PIOGA Asks Supreme Court to Stop DEP Denying Permits Using Act 13
June 22, 2015June 23, 2015

Please see this MDN follow-up story for an important clarification/update: More on PIOGA Request to Keep DEP in its Regulatory Box

This story is why you pay MDN the “big bucks”–to break down complex issues into an easy-to-understand report. Last Friday the Pennsylvania Independent Oil & Gas Association (PIOGA) filed paperwork with the Pennsylvania Supreme Court asking for permission to, once again, intervene in the Act 13 lawsuit brought by seven selfish PA townships that resulted in portions of the Act 13 oil and gas drilling law to be struck down. Twice before PIOGA, which represents the companies directly affected by the Act 13 law, has filed to intervene and both times it was (incredibly) prevented from doing so. Apparently the people most affected by a lawsuit don’t have “standing” to defend themselves in PA courts–such is their system of “justice.” At any rate, PIOGA’s third attempt may succeed where the first two attempts failed, and that has the anti-drilling selfish towns, along with the Wolf administration, nervous. Why might PIOGA succeed this time? That’s where it gets complicated. In a nutshell, the zoning portions of the Act 13 law (Section 3304) were not the only sections to be struck down by the PA Supremes…
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Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Range Resources Corp | Regulation

Range Fires Back: Proof We Didn’t Cause PA Methane Migration
June 18, 2015June 18, 2015

Yesterday MDN told you about the new, negative tone being set at the Pennsylvania Dept. of Environmental Protection by its new leader, Sec. John Quigley, by fining Range Resources for a case of methane migration (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Perhaps Quigley has adopted EPA Region 6 administrator Al Armendariz’s philosophy of making an example of one or two companies (see EPA Region 6 Administrator: Crucify Energy Companies). Quigley says Range did a sloppy cement job on a gas well they drilled in 2011 and has refused to correct the situation. Range immediately fired back, very loud and very clear, that water wells in that area had high levels of methane in them BEFORE any drilling took place–and Range has the documented pre-drilling tests to prove it…
Read More “Range Fires Back: Proof We Didn’t Cause PA Methane Migration”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Public Opinion | Statewide PA

Poll: PA Voters Want AG Kathleen Kane to Resign
June 16, 2015June 16, 2015

We have a second poll to share with you today from Robert Morris University, conducted in early June, this one on the topic of Pennsylvania’s anti-drilling and law-breaking Attorney General, Kathleen Kane. We won’t recount the laundry list of Kane’s persecution of the drilling industry in the state. We’ll only remind you that a grand jury is rumored to have found that she lied under oath–a little offense called perjury (see PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath). In a desperate attempt to hold on to power, Kane hired Lanny Davis to represent her in court. Lanny was Bill Clinton’s attack dog lawyer, hired to represent him after he lied under oath about getting BJs in the Oval Office. The depressing news coming from the RMU poll is that half of the residents of Pennsylvania don’t know about the “controversies” surrounding Kane–the fact that she lied under oath, etc. But of the other half who do know about it, two-thirds of them think she should resign–now…
Read More “Poll: PA Voters Want AG Kathleen Kane to Resign”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions
June 16, 2015June 16, 2015

Cecil Township (Washington County), PA, one of the seven selfish towns that sued to overturn a portion of PA’s Act 13 oil and gas drilling law granting them the right to retain local zoning authority over oil and gas related activities, have found their Act 13 victory to be somewhat hollow. As MDN reported nearly a month ago, Cecil has steadfastly refused to grant a permit to MarkWest Energy to build a compressor station since 2010 (five years ago!). After a lawsuit that worked its way through various levels of courts, and after Cecil exhausted all other options, a judge ordered them to grant the permit no later than May 30. Cecil proceeded to violate that deadline (see Cecil Twp Violates Court Order re MarkWest Compressor Permit). Last night, after intense last minute negotiations with MarkWest, the town finally voted to grant the permit, but not before sneaking in two last minute changes to conditions both sides worked out in advance, changes that will likely mean yet another trip to the judge. Seems Cecil is still intent on stopping the compressor station…
Read More “Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions”
American Energy Partners | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

Problematic: McClendon’s AEP Not Paying Some of its Bills
June 15, 2015June 15, 2015

Does Aubrey McClendon’s American Energy Partners (AEP)–the new company he founded after being unceremoniously booted from Chesapeake Energy–have cash problems? You certainly wouldn’t think so. At last check in May 2014, McClendon had raised a staggering $8.7 billion in little more than a year (see Aubrey McClendon Raises Huge $8.7B for Shale Drilling…So Far). But the evidence keeps piling up that Aubrey isn’t paying his bills. In April, McClendon created a “blank check” company to raise $200 million in cash (see Aubrey McClendon’s New “Blank Check Company” Looks to Raise $200M). In May, Paloma Resources said a 3-way deal including McClendon’s AEP to lease 130,000 acres in the Ohio Utica Shale went bust because Aubrey didn’t have enough money to close the deal (see McClendon Running Out of Money?! Paloma Utica Deal Goes Bust). Last week MDN told you about a contractor working for AEP with several hundred thousand dollars in outstanding invoices that have gone unpaid–for more than 120 days (see Big McClendon News: Sells 35K Utica Acres, Creates New Company). Now the latest: a group of Ohio landowners have sued McClendon’s AEP along with an affiliate company and a land services company working for AEP, for non-payment of lease bonuses…
Read More “Problematic: McClendon’s AEP Not Paying Some of its Bills”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Snyder Brothers | Statewide PA | Taxation

PA PUC Sues Snyder Bros to Collect $500K in Unpaid Impact Fees
June 15, 2015June 15, 2015

CORRECTION: The PUC misspoke in the figures given to the Pittsburgh Post-Gazette. Snyder Brothers were actually fined a total of $499,520 — $390,250 for impact and administrative fees, $11,707.50 in interest and a fine of $97,562.50. Our thanks to NGI’s Shale Daily for tracking down the mistake and alerting us to it!

Last year we brought you the interesting story of strippers in the Marcellus–stripper wells, that is (see High-Priced Strippers in PA: Semantic Gymnastics with Impact Fee). Synder Brothers is an oil/gas producer in Pennsylvania. Most of the wells they drill are vertical-only wells. Among them are 24 wells from 2011 and 21 wells from 2012 that are vertical only–but all targeting the Marcellus. According to the definition of a stripper well under the Act 13 law passed in 2012, a well qualifies as a stripper well if it doesn’t produce over 90 thousand cubic feet (Mcf) of natural gas per day. Synder Bros. says their wells don’t, ergo their wells are stripper wells and not liable to pay an impact fee. The PA Public Utility Commission (PUC), charged with evaluating what does and does not qualify, says nope–your wells target the Marcellus formation and produced above 90 Mcf for at least one month out of the year, therefore must pay the impact fee. So the PUC has sued Snyder Bros. and intends to collect $500,000 in unpaid fees in the next 20 days, PLUS a $50,000 fine for inconveniencing the PUC…
Read More “PA PUC Sues Snyder Bros to Collect $500K in Unpaid Impact Fees”
Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Regulation

Bradford County, PA May Join Royalty Lawsuit Against Chesapeake
June 12, 2015June 12, 2015

In 2013, a group of Bradford County, PA landowners joined a lawsuit against Chesapeake Energy over Chessy’s apparent cheating them out of royalties using a ploy to pay high fees for pipelines in return for investments from that pipeline company later on (see Bradford County, PA Landowners Sue Chesapeake over Royalties). Some Bradford landowners were getting royalty checks from Chessy for a few dollars–literally. At issue is a state law that stipulates drillers must pay a minimum of 1/8 of revenue from gas and oil in royalties to the landowner. The controversy comes in that Chesapeake claims their contracts allow them to deduct reasonable expenses, like getting the gas to market, from the total. And with low prices–oh well–those royalty checks go far below 1/8. So what is at issue is how you define 1/8 for the purposes of paying royalties. Is it 1/8 of the gross? Or 1/8 of the net? And what would be allowed to be deducted for the net number? MDN previously told you about PA House Bill (HB) 1684 meant to clear up the confusion. HB 1684 went no where in the legislature last year (see Does PA Royalty Bill 1684 Still Have a Chance This Year?). Looks like the bill will come back around again this year–but before it does, the supervisors of Bradford County, which has land under lease with Chesapeake, are seriously considering joining the lawsuit against Chesapeake. They’re tired of waiting for 1684 to become law and tired of being shorted on their royalties…
Read More “Bradford County, PA May Join Royalty Lawsuit Against Chesapeake”
Accidents | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Seismic Testing

PA Rabbit Breeder Settles Lawsuit w/Land Co for 168 Dead Rabbits
June 12, 2015June 12, 2015

It took more than a year, but a lawsuit filed by a rabbit breeder in Lycoming County, PA has reached an out of court settlement for the death of some of her rabbits. MDN first told you about this case in May 2014 (see Fracking Killed the Rabbits!). The rabbit breeder, Susan Knowlden and her husband Terry, claim they had an agreement with CGG Land to not fly helicopters near the rabbit farm. CGG was doing seismic testing in the area at the time. CGG was supposed to stay at least 1,000 feet away–a “no fly zone” over the rabbits. But they got too close and “boo!” there goes another rabbit, keeled over dead. Nobody is saying what the settlement is for (confidentiality agreement), but rest assured CGG paid out big money for 168 hasenpfeffers–rabbits they scared, literally, to death…
Read More “PA Rabbit Breeder Settles Lawsuit w/Land Co for 168 Dead Rabbits”
Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East Invokes Eminent Domain Against 2 SWPA Landowners
June 9, 2015June 9, 2015

Another “nobody wins” eminent domain lawsuit has been filed by a pipeline company. This time it’s Sunoco Logistics filing for their Mariner East pipeline against two different families/landowners in Washington County, PA. The landowners don’t want the pipeline but Sunoco insists it’s necessary to have those specific properties. The problem is, will an eminent domain claim hold up in court? Last July, two independent administrative law judges working for the PA Public Utility Commission (PUC) ruled that Mariner East is not, according to the definition, a “public utility” (see Setback for Mariner East NGL Pipe – Judges Say Not Public Utility). But then in October, the full board of Commissioners for the PUC voted to send the case back to those judges with instructions to “reconsider” their decision (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). Sunoco has a lot riding on whether or not their claim to be a public utility will hold up in court. If Mariner East is not a public utility, they have no claim to eminent domain powers…
Read More “Mariner East Invokes Eminent Domain Against 2 SWPA Landowners”
Anti-Drilling/Fossil Fuel | Butler County | Industrywide Issues | Litigation | Pennsylvania

Shoe Now on Other Foot: Landowners Sue Martian Anti-Drillers
June 8, 2015June 8, 2015

It’s about time. Twelve (12) leaseholders and a real estate developer in Middlesex and Adams Townships, in Butler County, PA (near the Mars School District) have filed a lawsuit against local anti-drillers as well as against THE Delaware Riverkeeper and the Philadelphia-based Clean Air Council, suing them for damages because their ongoing frivolous lawsuits have keep the leaseholders from realizing profits from their leased land. And get this, the Martians and Big Green groups being sued are upset, saying their free speech rights are being infringed. Talk about nuts! It’s OK for anti-drillers to launch lawsuit after lawsuit, but as soon as someone pushes back and files a lawsuit against them, they start squealing like little piglets…
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Industrywide Issues | Litigation | Research

Babst Calland Releases Report on Legal Challenges in Marcellus/Utica
June 5, 2015June 5, 2015

Ace energy law firm Babst Calland announced yesterday they have released their fifth annual energy industry report. Called “The 2015 Babst Calland Report – Appalachian Basin Oil and Gas Industry: Rising to the Challenge; Legal and Regulatory Perspective for Producers and Midstream Operators,” the annual review of energy and natural resources development activity acknowledges the continuing evolution of the drilling industry in the face of economic, regulatory, legal and local government challenges. Here’s an overview of the report…
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Columbiana County | Industrywide Issues | Litigation | MDN Sponsor | Ohio | Pipelines

NEXUS Pipeline Sues Columbiana County Landowners for Survey Access
June 4, 2015June 4, 2015

The NEXUS Gas Transmission pipeline, you may recall, is a $1.5 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 (see NEXUS Gas Pipeline Pre-Files with FERC, New Details Come to Light). A number of landowners in Ohio have been less than cooperative when it comes to surveying their property. One old codger in Medina County, OH threatened he would meet anyone trying to survey his property with a gun (see Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). Two couples in Columbiana County aren’t threatening guns, but they have denied access to NEXUS, repeatedly, and NEXUS has had enough. NEXUS sued the two couples in Columbiana County Common Pleas Court to force them to allow their surveyors on their property…
Read More “NEXUS Pipeline Sues Columbiana County Landowners for Survey Access”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation

Anti-Drilling Groups File to Defend BLM’s New Federal Lands Frack Rule
June 4, 2015June 4, 2015

The “sue and settle” gang is back. A group of six virulently anti-drilling, fossil fuel-hating organizations, calling them (don’t laugh) “conservation groups” (nothing of the sort) have filed to intervene in two lawsuits brought by the individual states and the oil and gas industry against the federal government over the new fracking rules released by the federal Bureau of Land Management (see BLM Introduces “Final” Fracking Rules for Fed Lands – 3 Yrs Late). Here’s how it works with sue and settle: the federal government gets Big Green groups (with lots of money) to bring lawsuits against a department, like the EPA or BLM. The government agency then promulgates new restrictive and jobs-crushing rules that have the force of law because “the lawsuit and judge made us do it.” And unless those “rules” are challenged in court to get them repealed, we end up with laws created by government agencies and judges instead of the legislature, the way the Founders intended. So when the good guys sue to overturn these overreaching “rules”, the sue and settle gang with lots of Big Green money comes back to try and stop it. The groups are once again being led (by the nose) by Earthjustice and include the Sierra Clubbers, Earthworks, The Wilderness Society, Conservation Colorado Education Fund, Southern Utah Wilderness Alliance and Western Resource Advocates. None of them are truly concerned with “conservation,” contrary to what they say. They are all left-leaning political groups…
Read More “Anti-Drilling Groups File to Defend BLM’s New Federal Lands Frack Rule”