Litigation

Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Regulation | Washington County

Civil War Between Cecil Supervisors/Zoning Board Over Compressor
October 20, 2014October 20, 2014

As MDN reported in early October, MarkWest Energy finally (after four years) won the right to build a compressor station in Cecil (Washington County), PA (see MarkWest Wins Court Case to Build Compressor Station in Cecil, PA). The compressor station will be built on property owned by Range Resources. It’s Range’s gas that will flow through that station on its way to market. The Cecil Board of Supervisors voted to not challenge a Commonwealth Court (a lower court) decision that said the zoning board erred when denying MarkWest a permit to build the compressor station. However, the zoning board itself can still appeal the decision (see Cecil Supervisors Vote to NOT Appeal MarkWest Compressor Decision). It appears to us like a civil war has erupted between the Cecil board of supervisors and the zoning board…
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Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Rex Energy

Martian Chronicles: Delaware River Basin Shifts to Western PA?
October 14, 2014October 14, 2014

The Martians are getting an assist from THE Delaware Riverkeeper herself (Maya van Rossum). Get this: The Delaware Riverkeeper, along with another anti-drilling group called The Clean Air Council (both based near Philadelphia), have filed an appeal with Adams Township (Butler County), PA over the town’s decision to grant Rex Energy permits to drill gas wells 3/4 of a mile away from the Mars public school. In June, Adams Township supervisors voted 4-1 to allow drilling to commence, subject to getting permits from the Dept. of Environmental Protection (see Adams Twp, PA Votes to NOT Block Drilling “Near” Mars School). Just a month ago, Rex got the permits from the DEP to begin drilling (see Rex Gets Permits to Drill Near Martian School, Antis Apoplectic). Some Martian parents objected, and found a sympathetic wallet all the way across the state in Philadelphia with van Rossum. What does Butler County, on the western edge of PA have to do with van Rossum’s Delaware River Basin group, which is focused exclusively on the eastern edge of PA? NOTHING. Except for her personal hatred of fossil fuels and willingness to spend her own (and other people’s) money to fight shale drilling wherever it happens…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Susquehanna County

Important Landowner/Driller Case Heads to PA Supreme Court
October 13, 2014October 13, 2014

A Pennsylvania landowner signed a lease with Cabot Oil & Gas in 2007. Part of the way through the lease, before Cabot initiated drilling, the landowner sued Cabot to dissolve the lease, citing certain reasons that they believe justified that action. The case went to court and the court eventually threw out the landowner’s case, meaning the lease is still in effect. Cabot then filed a counterclaim to have the lease term extended, something called an “equitable extension of lease terms.” In other words, once sued, the lease term should go on pause, and because they won, Cabot should then be able to un-pause the lease term and continue (which would otherwise have expired due to the long time it takes for court cases to play out). The court did not grant Cabot’s request and the case has now been appealed all the way to the PA Supreme Court. The decision will set an important precedent for both landowners and drillers…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Minuteman Environmental Services | Northumberland County | Pennsylvania

Minuteman Sues AG Kane’s Office for $20M + Punitive Damages
October 10, 2014October 10, 2014

What a sad story. In May 2013, Pennsylvania’s anti-drilling Attorney General, Kathleen Kane, had the offices of Minuteman Environmental Services in Milton (Northumberland County) raided using the FBI, IRS and the PA Dept. of Environmental Protection (DEP) agents, in addition to agents from the AG’s office (see Shale Environmental Services Company Raided by PA AG’s Office). After conducting a witch hunt of Minuteman for 13 months following that raid, Kane finally charged them (see PA’s Anti-Drilling AG Charges Minuteman with Enviro Crimes). During that 13 months and following, Kane’s office terrorized the family and drove the company–that employed over 100 people with $49 million in revenues–into bankruptcy (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Minuteman’s owners threatened to sue the AG’s office and they followed through. We have an exclusive copy of the lawsuit…
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Chester County | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline
October 9, 2014October 9, 2014

Even though Sunoco Logistics’ Mariner East pipeline is already buried in the ground and has been for decades, some communities along the path of the pipeline don’t want Sunoco to repurpose the pipeline for use to flow natural gas liquids (NGLs) like ethane and propane. In order to repurpose the pipeline, Sunoco needs to build 18 pump stations and 17 valve control stations in 31 municipalities along its 299-mile route. Communities like West Goshen (Chester County, near Philadelphia) are fighting it because they don’t want such a station built in their township. Sunoco recently won a very important decision by the state Public Utility Commission (PUC) that said Mariner East always has been and still remains a “public utility” under PA law, which exempts them from local zoning ordinances (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). West Goshen isn’t happy with that so they’re appealing the decision in PA Commonwealth Court, asking the court to stop Sunoco from beginning construction before the appeal process plays out. West Goshen is holding the gun of the courts to the head of Sunoco and will intentionally try to play this out as long as they can (death by a thousand cuts)…
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Accidents | Energy Companies | EQT Corp | Industrywide Issues | Litigation | Pennsylvania | Regulation | Tioga County (PA) | Wastewater

PA DEP Levies Biggest Fine Ever, $4.5M Against EQT
October 8, 2014October 8, 2014

We’ve got some bad blood happening between EQT–a big Marcellus driller headquartered in Pittsburgh, PA–and the PA Dept. of Environmental Protection (DEP). The DEP has just filed a lawsuit against EQT to force the company to cough up a new record–$4.53 million in fines–for a leaky wastewater impoundment in Tioga County, PA. The fine comes a week after the anti-drilling PA Attorney General, Kathleen Kane, once again abused her office’s powers by filing criminal charges against EQT (see today’s companion story). The DEP says EQT filed for and received permission to build a freshwater impoundment at that location in 2012, but after the impoudment was built, they decided to change and use it for frack wastewater. Problem is, with a wastewater impoundment you need monitoring wells drilled around the impoundment and extra protections that were lacking because it was supposed to be used for freshwater only. EQT then built a second impoundment next to it for wastewater and did install monitoring wells, figuring those monitoring wells would cover both impoundments. The first impoundment leaked and, according to the DEP, EQT just doesn’t get how serious the problems were/are that resulted, and so they’ve slapped them with their biggest single fine ever. EQT is already fighting back both legally and with their own press release…
Read More “PA DEP Levies Biggest Fine Ever, $4.5M Against EQT”
Accidents | Energy Companies | EQT Corp | Industrywide Issues | Litigation | Pennsylvania | Regulation | Tioga County (PA) | Wastewater

PA Attorney Gen. Kane Abuses Office Again, Arrest Warrant for EQT
October 8, 2014October 8, 2014

Last year Pennsylvania’s anti-drilling Attorney General, Kathleen Kane, abused her office and filed criminal charges against XTO Energy over a spill of fracking wastewater at a site in Lycoming County, PA that happened more than three years ago–long before she took office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). In a Britney Spears “Oops!…I Did It Again” moment, Kane has filed a second case of criminal charges against a driller over an accident. Last week Kane filed charges against EQT over a leaky wastewater impoundment in Tioga County, PA. Yesterday the PA Dept. of Environmental Protection fined EQT $4.53 million–it’s highest ever fine–over the same incident (see today’s lead story). Kane is claiming that EQT polluted and disturbed PA waterways and committed misdemeanor crimes in the process…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

Cecil Supervisors Vote to NOT Appeal MarkWest Compressor Decision
October 7, 2014October 7, 2014

Last week ago MDN told you about the victory for MarkWest Energy in Cecil Township (Washington County), PA. A Commonwealth Court judge has ruled Cecil must and will allow MarkWest to build a compressor station in an area clearly zoned for it under Cecil’s own rules–a station they’ve been trying to build since 2010 (see MarkWest Wins Court Case to Build Compressor Station in Cecil, PA). As with all things legal, the question then became–will Cecil appeal the ruling to a higher court in hopes of further delaying the inevitable? That question was partially answered last night. Cecil’s board of supervisors voted 3-2 against appealing the decision–meaning the town must now, as the judge ordered, grant a permit to MarkWest within 45 days (now about 38 days) to build the compressor station. However, there is one more storm cloud ahead for MarkWest…
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Accidents | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County | Wastewater

Hearing on Range Yeager Impoundment/Water Contamination Continues
October 6, 2014October 6, 2014

More from the ongoing hearing into the Pennsylvania Dept. of Environmental Protection’s actions, or lack of actions, in determining a private water well 2,800 feel (half a mile) downhill from a Range Resources wastewater impoundment that was found to be leaky was fouled by that impoundment. We previously explained that in order for a lawsuit by the landowner Loren Kiskadden against Range for “contaminating” his water well to be valid, the DEP must reverse a previous finding that Range’s Yeager impoundment did not foul his well (see Did DEP Mishandle Range Wastewater Impoundment Investigation?). So one of the DEP’s investigators has been on the hot seat explaining his previous findings and reports…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Major Milestone: PA PUC Rules Mariner East IS a Public Utility
October 3, 2014October 3, 2014

Sunoco Logistics is not home free yet–but almost. As MDN readers will know, for some time anti-drillers have attempted to prevent Sunoco Logistics from repurposing their 400+ mile Mariner East pipeline that stretches from western PA to Philadelphia to begin flowing natural gas liquids–ethane and propane. The legal tussle has been over whether or not the pipeline is a “public utility” with the right of eminent domain and the right to be exempt from local zoning ordinances. Bear in mind the Mariner East pipeline has been in the ground for decades, always considered a public utility in years gone by. Local municipalities are now seeking to stop a string of 18 pump and 17 value stations (in 31 locations) that will be needed along the pipeline’s route in order to flow the ethane and propane. So the municipalities launched a legal fight to remove Mariner East’s classification as a public utility. Yesterday the Commissioners of the PA Public Utility Commission put that issue to rest once and for all…
Read More “Major Milestone: PA PUC Rules Mariner East IS a Public Utility”
Accidents | Beck Energy | Energy Companies | Industrywide Issues | Litigation | Ohio | Summit County

Beck Energy & Munroe Falls Go to Court – Again
October 3, 2014October 3, 2014

Munroe Falls, a “city” with 5,000 people located near Akron, OH (in Summit County) has a longstanding feud (and court case) with Beck Energy over Beck’s right to drill a shale well on private property within city limits. The drill site was evaluated and properly permitted by the Ohio Dept. of Natural Resources (ODNR) in 2012, but as soon as Beck started drilling, the city slapped them with a stop work notice for violating local zoning ordinances. That set off a court battle over “home rule” and the rights local municipalities have over oil and gas activity. An Ohio Appeals Court eventually stuck down home rule (see OH Appeals Court Strikes Down Home Rule for Drilling). The case was appealed and is now before the OH Supreme Court, awaiting a decision (see Home Rule Case Heads to Ohio Supreme Court). A new/second case was filed earlier this week by Beck Energy against the city of Munroe Falls. It seems about three barrels of oil were spilled at the site and the city is (unbelievably) preventing Beck from cleaning it up…
Read More “Beck Energy & Munroe Falls Go to Court – Again”
Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Washington County

MarkWest Wins Court Case to Build Compressor Station in Cecil, PA
October 2, 2014October 2, 2014

Cecil Township in Washington County, PA is one of the original seven selfish townships that sued and eventually had portions of the state’s Act 13 Marcellus drilling law overturned. The portion overturned restored to local municipalities the right to establish their own zoning regulations when it comes to oil and gas related activities. Apparently Cecil thought they had a blank check to deny anything they wanted, but a recent court decision has brought them back to reality. A Commonwealth Court judge has ruled Cecil must and will allow MarkWest to build a compressor station in an area clearly zoned for it under Cecil’s own rules–a station they’ve been trying to build since 2010…
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Beck Energy | Belmont County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | XTO

Major OH Court Victory for Beck Energy & XTO in Lease Case
October 1, 2014October 3, 2014

A court case with big implications for all Ohio landowners–and drillers–was decided in March 2013. In Hupp v. Beck Energy Corp, three landowners filed suit claiming that their leases with Beck Energy Corp. were void and should be terminated because Beck never drilled wells on their property and that a provision allowing Beck to pay a nominal delay fee was against public policy. The court agreed and granted summary judgment (see OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases). Beck had sold the leases–in Monroe and Belmont counties–to XTO Energy, so XTO got involved in the lawsuit too. The court then granted class certification to the lawsuit brought by the three landowners–meaning between 600-700 landowners would also be able to invalidate their leases. A few weeks later both Beck and XTO filed an appeal (see XTO, Beck Energy Appeal OH Case Allowing Lease Termination). On appeal, this week the Seventh District Court of Appeals in Ohio overturned the lower court ruling and ruled in favor of Beck and XTO–a major victory for Ohio’s drillers and a major defeat for the landowners who say their land never got drilled and they wanted to re-sign with different company…
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Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

OH 7th Circuit Court of Appeals Decision on Dormant Minerals Act
October 1, 2014October 2, 2014

A few weeks ago MDN told you about the important court case before the Ohio Supreme Court concerning the 1989 and 2006 Ohio Dormant Minerals Act (see Video: OH Lawyers Explain Dormant Minerals Act & Impact on Utica). While the OH Supremes have not yet ruled, there was a ruling on the periphery of the DMA from the Seventh District Court of Appeals concerning the 1989 version of the DMA a few days after our post…
Read More “OH 7th Circuit Court of Appeals Decision on Dormant Minerals Act”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County | Wastewater

Did DEP Mishandle Range Wastewater Impoundment Investigation?
September 29, 2014September 29, 2014

Range Resources has had a long-running dispute with some of the neighbors near some of it’s wastewater impoundments in Washington, PA. Without recounting the details (see MDN’s previous stories here), the entire thing came to a head recently when the PA Dept. of Environmental Protection (DEP) completed their investigation and fined Range the highest amount any driller has paid so far in the modern shale drilling era (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). Part of the deal is that Range is closing those impoundments. There are, of course, legal actions involved, as you might expect. One of the neighbors near the Yeager impoundment sued Range with claims of well water contamination from chemicals leaking from the impoundment. The DEP determined the landowner’s well was not contaminated by the Range impoundment and the landowner challenged that finding in DEP’s version of court, the Environmental Hearing Board. Testimony at the hearing last week from a DEP official about the investigation indicates the DEP “might have used incomplete and inaccurate test information to decide whether chemicals leaking…contaminated a water well and springs”…
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Energy Companies | Industrywide Issues | Litigation | PDC Energy

PDC Energy Settles Lawsuit with Previous Investors for $35M
September 22, 2014September 22, 2014

There’s a fair amount of high finance when it comes to how drilling companies are structured on paper. There are, in some cases, corporations, partnerships, and then there’s the Master Limited Partnership (MLP), a special form of company allowed under United States law to encourage the mineral and extractive industries. At the end of the day, they’re businesses, no matter that form of legal structure they take. However, the legal structure of partnerships is used to encourage investors to invest large sums of money. And when those partnerships are bought out, the investors want their due proceeds. Sometimes there’s a dispute, as happened to PDC Energy (formerly known as Petroleum Development Corporation). PDC had several layers of partnerships that they rolled up into one company back in 2010/2011. The partners in the sub-units purchased felt that they didn’t get their fair share, so they sued. On Friday PDC announced they had settled and over the next 13 years they’ll pay out money to the tune of $35 million…
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