Litigation

Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Troubling Win in PA Court Victory that Allows State Land Drilling
January 13, 2015January 13, 2015

Last week MDN told you about the crushing defeat of the Pennsylvania Environmental Defense Foundation (PEDF) in one of the their many lawsuits to stop drilling in PA (see PA Court Rules to Allow More Leasing/Drilling of State-Owned Land). What’s kind of funny about it is that the very case they sought to win–the Act 13 case that allows local towns to impose their own zoning on drilling–was used against the PEDF in the decision. Citing the “Robinson” case some 16 times, the Commonwealth Court told the PEDF that yes, the state can lease state land for drilling and yes, the General Assembly can decide how and where they want to spend the money such activity raises. Even though the outcome (for pro-drillers) was a positive, the way the court got there–using the Robinson decision–is troubling for the Marcellus industry…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Impeachment, Arrest Looms for PA AG Kane, Caught Leaking Info
January 12, 2015January 12, 2015

It seems no one IS above the law, including Pennsylvania’s Attorney General, Kathleen Kane. She is, you may recall, anti-drilling and has targeted both large and small companies related to the Marcellus industry. She abused her office by filing criminal charges against XTO Energy for an accidental spill that occurred two years before she took office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). She also abused her office by filing criminal charges against EQT (see PA Attorney Gen. Kane Abuses Office Again, Arrest Warrant for EQT). But it’s not only the big boys she has a vendetta against. She also shut down a small company that does environmental remediation and wastewater disposal (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Now Kane has been caught red-handed leaking privileged grand jury information to a newspaper and she’s resorted to crying about men bullying her. So predictable…
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Industrywide Issues | Landfills | Litigation | Luzerne County | Pennsylvania

Hazleton, PA Drill Cuttings Project Opposed by Competitors, Enviros
January 12, 2015January 12, 2015

On Dec. 1, MDN told you about a cool idea: Use non-toxic, non-polluting shale cuttings (leftover rock and dirt that comes out of a borehole when a well is drilled) to reclaim former coal mining land that sits barren now, so the land can host businesses and even a huge outdoor amphitheater (see Shale Cuttings Used to Rehab Site of Future Business, Amphitheater). That’s the idea of Hazleton Creek Properties (HCP) for reclaiming a 270-acre site with abandoned coal mines and an old landfill on the edge of Hazleton, PA. Local “environmentalists” from a nutty-sounding group called SUFFER (Save Us From Future Environmental Risks) used a Philadelphia law firm to oppose the original “demonstration” project, settling in 2012 (see this background the Public Interest Law Center of Philadelphia). SUFFER is still suffering from FDS (Fracking Derangement Syndrome) and is critical of the new plan, approved last November by the Dept. of Environmental Protection (DEP). However, in a strange twist, it’s not SUFFER that’s challenging the plan, but instead it’s competitors that belong to the Pennsylvania Waste Industries Association–other landfills that presumably want the cuttings that would go to Hazleton. The Association, on behalf of their members, have filed an appeal of the DEP decision that allows the cuttings to be used in Hazleton. It appears the other landfills are trying to stop the cuttings that presumably now go to their own landfills from slipping away to Hazleton…
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Cuyahoga County | Industrywide Issues | Litigation | Ohio | Regulation

ODNR Appeals Decision Overturning Drilling Permit Near Cleveland
January 12, 2015January 13, 2015

A squabble has erupted near Cleveland, in Cuyahoga County, OH, between the Ohio Dept. of Natural Resources (ODNR) and the Ohio Oil and Gas Commission (OOGC). 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 believe is a conventional (vertical only) oil well to be drilled in North Royalton, OH to Cutter Oil Company. The OOGC says yep, the ODNR didn’t take into consideration “safety concerns” by the city in issuing the permit. ODNR disagrees and is appealing OOGC’s decision to un-permit the permit granted by ODNR. Yes, it’s about a conventional well, but it has implications for unconventional (shale) drilling as well if the OOGC becomes activist in overturning permits based on the nebulous “safety concerns” of citizens and municipalities…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Court Rules to Allow More Leasing/Drilling of State-Owned Land
January 8, 2015January 8, 2015

In a crushing blow to the litigious anti-drilling group Pennsylvania Environmental Defense Foundation (PEDF), the PA Commonwealth Court ruled yesterday against the PEDF’s lawsuit that attempts to stop all drilling and leasing of state-owned lands for oil and gas drilling. The court said a) such drilling is just fine and b) the decision of whether or not to allow drilling on state-owned lands (and which parcels) rests with the Department of Conservation and Natural Resources. The court further said that the General Assembly can decide how the monies received from leasing and production royalties will be spent–even as part of the general budget (former Gov. Ed Rendell leased hundreds of thousands of acres so he could use the money to prop up his failing budgets). It was a clean sweep. The PEDF lost all of their points in the lawsuit. The downer is that incoming Gov. Tom Wolf has said he won’t lease any more state lands for drilling…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | Regulation

9 Anti-Drilling Groups Sue EPA Hoping to Damage the O&G Industry
January 8, 2015January 8, 2015

Here we go again. In what has been a tried-and-true formula for success for anti-drillers, a group of nine far-left anti-drilling “environmental” organizations have sued the federal Environmental Protection Agency (EPA) claiming the agency doesn’t require the oil and gas industry to spend big bucks to fill out reams of paperwork to prove it’s not polluting Precious Mother Earth with nasty chemicals. The lawsuit was filed by the Environmental Integrity Project, Natural Resources Defense Council (NRDC), the Center for Effective Government, the Chesapeake Climate Action Network, Citizens for Pennsylvania’s Future (PennFuture), the Clean Air Council, THE Delaware Riverkeeper Network (i.e. Maya van Rossum), the Responsible Drilling Alliance, and Texas Campaign for the Environment. The lawsuit by the litigious gang of nine will provide cover and an excuse for the EPA. What happens next is easy to predict. The EPA actually WANTS this lawsuit. They send a junior lawyer to defend themselves in the case, intentionally lose the case, and the court orders the EPA to start doing something they are not otherwise legally empowered by current law to do. That is, a liberal judge just created a new law that the EPA is then only too happy to follow. That’s how this sleaze tactic works…
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Axiall | Energy Companies | Energy Services | Gastar Exploration | Hydraulic Fracturing | Industrywide Issues | Litigation | Marshall County | West Virginia

Gastar Wins WV Lawsuit to Keep Fracking, Completes 10 New Wells
January 5, 2015January 6, 2015

In November we told you that Chemical manufacturer Axiall, with a plant in Natrium (Marshall County), WV, had successfully stopped Gastar from fracking several drilled shale wells located near the chemical plant (see Gastar Fracking Near WV Chemical Plant Halted Pending Court Review). Axiall was afraid that fracking the wells would release fugitive methane into their nearby brine wells. Axiall says something similar happened previously with some of their brine wells near a Triad Hunter fracking operation. But Gastar fought back and today announced a WV court has thrown out the lawsuit brought by Axiall and that Gastar is now free to frack. According to Gastar, Axiall tried to stop them in PA with a similar kind of lawsuit which was also dismissed…
Read More “Gastar Wins WV Lawsuit to Keep Fracking, Completes 10 New Wells”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Regulation | Statewide MD

Anti Groups Ask FERC to Stop Construction on Cove Point LNG Plant
December 31, 2014December 31, 2014

The Federal Energy Regulatory Commission (FERC) recently concluded a years-long process of evaluating all of the ins and outs, environmental and otherwise, for the proposed LNG (liquefied natural gas) export facility in Cove Point, Maryland. FERC decided, after years of research, untold thousands of comments and hundreds of hours of testimony, to approve the project (see Dominion Gets Final Fed Approval to Build Cove Point LNG Plant). Dominion has since broken ground and is actively building the new plant. So what do the environmental extremists from the Allegheny Defense Project (ADP) and Wild Virginia, people who hate fossil fuels, do? They tell FERC, “You didn’t do your job right, stop Dominion’s construction until we can file a lawsuit to block the project.” Before ADP and Wild Virginia can file a lawsuit, they must first get a “rehearing” with FERC, something they’ve requested. FERC takes its time with these things, and the groups are afraid Dominion’s construction will get far enough along that the project can’t be stopped. So ADP and Wild Virginia are asking FERC to temporarily stop the Dominion project until the rehearing, the inevitable ruling in favor of Dominion, and then a newly-minted lawsuit can be filed in federal court. In other words, ADP and Wild Virginia want FERC to help them stack the deck against Dominion. FERC isn’t playing along…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Chesapeake & PA Landowners Settle Royalty Lawsuit…Again
December 30, 2014December 30, 2014

In September 2013 MDN told you that Chesapeake Energy had “settled” a lawsuit that would reimburse Pennsylvania landowners for post-production costs Chesapeake had deducted from royalty checks, leaving some landowners with checks for pennies (see Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M). As we said at the time, it was a pittance that Chessy would pay $7.5 million to be shared among “several thousand” landowners, with 1/3 of it going to lawyers. The suit was never settled because some landowners sued to block it while they filed their own, separate lawsuit. The disagreeing landowners have finally joined and have (now) accepted an offer from Chesapeake to settle–for $11 million. Still peanuts if you ask us, but perhaps something is better than nothing?…
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Dominion Energy | Energy Services | Industrywide Issues | Litigation | Pipelines | Statewide VA | Virginia

Dominion Sues VA Landowners to Allow Survey for Pipeline
December 30, 2014December 30, 2014

In September, Dominion committed full force to building a 550-mile, $5 billion natural gas pipeline that will run from West Virginia, through Virginia and into North Carolina (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). The project, called the Atlantic Coast Pipeline, will transport Marcellus and Utica Shale gas to the southeast. In November, Dominion asked the Federal Energy Regulatory Commission (FERC) to begin an environmental review of the project (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). In order to do a proper review and to finalize plans for the route, Dominion surveyors need to get on property of landowners in Virginia who have, so far, refused them entry. So Dominion has now taken 40 Virginia landowners to court to force them to allow a survey…
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Anschutz Exploration | Chemung County | Energy Companies | Industrywide Issues | Litigation | New York

Exclusive: Anschutz Wins 4 Yr-Old NY Methane Contamination Case
December 29, 2014December 29, 2014

An MDN exclusive: In 2010, at the beginning of widespread public consciousness about the Marcellus Shale and a time when drilling was just taking off in Pennsylvania, a New York City personal injury law firm smelled opportunity with a group of landowners in Chemung County, NY. Nine families living in Big Flats claimed that nearby gas drilling from Anschutz Corporation had “contaminated” their water wells (see our story at the time, Supposed “First Claim” Filed in New York Alleging Water Contamination from Hydraulic Fracturing Gas Drilling). The NYC law firm claimed in a press release (falsely) that the two wells drilled by Anschutz had been fracked (see Anschutz Exploration Responds to Lawsuit Claiming Drilling Operations Contaminated Water Wells in Big Flats, NY). The case started out in a lower court, called Supreme Court in New York (go figure) and eventually ended up in U.S. District Court in Western NY. Last week, U.S. District Court Judge Charles Siragusa dismissed the case against Anschutz…
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Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Do “Takings” Lawsuits Stand a Chance for NY Landowners?
December 23, 2014December 23, 2014

Last week MDN posed the question, In Light of NY Frack Ban, What Happens to Signed Leases? In that article, we also began to address the topic of lawsuits based on “takings”–the fact that New York has stripped away the right of a landowner to profit and use his or her land as he or she sees fit–including fracking under it–and those landowners are owed just compensation. Today we pick up that thread. What recourse do New York landowners have at this juncture, and what actions can they take next? Would a takings lawsuit have a prayer of a chance?…
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Industrywide Issues | Litigation | Ohio | Statewide OH

4 Important Dormant Mineral Act Cases with OH Supreme Court
December 15, 2014December 15, 2014

In September, MDN shined a light on an important issue for both landowners and drillers in the Ohio Utica Shale: the Dormant Minerals Act, or DMA (see Video: OH Lawyers Explain Dormant Minerals Act & Impact on Utica). The Ohio Supreme Court currently has four cases before it that deal with the DMA. The high court could rule on any one (or all) of them at any time. Here’s a helpful summary of the situation from legal beagle David Wigham, from the firm Critchfield, Critchfield & Johnston, in Wooster, Ohio…
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Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

New Wrinkle in NY: Towns Must Pass Zoning Laws to Allow Fracking
December 9, 2014December 9, 2014

Anti-drilling former “reporter” for the Binghamton Press & Sun-Bulletin, Tom Wilber, is back with an insightful article in the P&SB. Wilbur highlights an issue just now coming to light for residents in New York. Earlier this year the New York Court of Appeals (NY’s highest court) made a disastrous ruling that allows townships to ban fracking (see Shale Drilling in NY is Over – High Court Upholds Town Bans). The continuing sliver of hope for NY landowners is that Gov. Andrew “can’t make up his mind” Cuomo will make up his mind, lo these 6 years later, and allow fracking to take place. The thinking has been that the fight (for anti-drillers) will now focus on attempting to get town boards to enact a ban–something not likely to happen in places most likely to drill. Wilber’s article points out a big, fat problem with that thinking: the high court’s decision in July did a lot more than just allow towns to ban drilling. In light of the July decision, towns with zoning ordinances (almost all towns in NY) must specially allow drilling–or it can’t take place by default…
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Air Quality | Industrywide Issues | Litigation | Pennsylvania | Regulation | Sand/Proppant | Wyoming County (PA)

Deuling Air Quality Studies for NEPA Frac Sand Transfer Station
December 9, 2014December 9, 2014

MDN has tracked the case of a proposed D&I Silica (owned by Hi-Crush Partners) frac sand transfer facility in Tunkhannock (Wyoming County), PA and some of the ins and outs along the way. D&I is ready to build the facility but lacks one important permit–from the county. So D&I has sued to get it (see NEPA Town Residents Resist Frack Sand Transfer Station). That lawsuit was settled in November and construction will now go forward. We recently brought you a report from a resident and long-time reader of MDN on the situation (see Revisiting Frac Sand Facility Controversy in Tunkhannock, PA). We have a new update: Both the county and the state Dept. of Environmental Protection (DEP) are proposing air quality studies to ensure nearby residents are not exposed to silica dust which acts a lot like asbestos particles and can, in the most extreme cases, can cause lung cancer. The question is, whose study will get done, or will taxpayers pay for both studies?…
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Industrywide Issues | Jobs | Litigation | Supply Chain

Thorny Issues in Using Independent Contractors in Shale Drilling
December 5, 2014December 5, 2014

Most exploration & production (E&P) companies–the ones who risk the money to have oil and gas wells drilled–don’t actually DO the drilling themselves. They hire it done by using oilfield services companies like Schlumberger, Halliburton and Baker Hughes. In addition, they hire just about everyone done–from security at well pads to earth moving to water trucking to you name it. The shale drilling industry, particularly in the Marcellus and Utica, is a bonanza for local businesses or “independent contractors” that plug in to the industry supply chain. However, there are some negatives for E&Ps when it comes to using independent contractors rather than having employees on the payroll do the work. The sharp lawyers at Vorys, Sater, Seymour and Pease say lawsuits alleging violations of the Fair Labor Standards Act are now more common than employment discrimination cases for oil and gas companies. They’ve just issued an alert/advisory on the pros and cons of using independent contractors in the oil and gas industry…
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