Litigation

Delaware County (PA) | Energy Services | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | PVR Midstream

Happy Ending? ULS Awarded $24.3M from PVR for Unpaid Invoices
May 14, 2014May 14, 2014

In March MDN brought you the story that Utility Line Services Inc. (ULS), a construction company that works for utility companies–like digging trenches and laying pipeline–sued PVR Marcellus Gas Gathering in a Delaware County, PA court (see ULS Says PVR Marcellus Bankrupted Their Company by Not Paying). ULS says PVR owes them more than $17.7 million in unpaid invoices and another $7.8 million in lost profits–and that the unpaid invoices caused the company to declare bankruptcy, closing their doors. A sad story.

Good news (?) for ULS. In what is believed to be the biggest jury award of its kind in PA, the court ruled in favor of ULS and awarded them $24.3 million to be paid by PVR. The problem remains that ULS had to go out of business and 600 jobs were lost and they had to liquidate their equipment. So although this is good news, it’s small consolation after the company had to declare bankruptcy…
Read More “Happy Ending? ULS Awarded $24.3M from PVR for Unpaid Invoices”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Range Resources Finally Wins Case to Drill 2 Wells in Robinson Twp
May 13, 2014May 13, 2014

A surprising victory for Range Resources in a court case against Robinson Township (Washington County), PA. Robinson is one of the seven selfish towns that sued the state and eventually got large portions of the Act 13 law overturned–potentially screwing all townships out of impact fee money throughout the state. The court case between Range and Robinson is over Robinson’s decision to block permits and drilling at two proposed wells Range wanted to begin drilling back in 2012. Range won the right to proceed, in a decision by Judge John DiSalle.

The surprise is because Judge DiSalle is married to a very active and vocal anti-driller and the judge is known for a string of anti-drilling decisions in the past (see Washington County, PA Judge Continues Anti-Drilling Decisions). Based on yesterday’s decison by DiSalle, Range is free to begin drilling as early as today, if they want to. We predict Judge DiSalle will get the cold shoulder from the misses at home for a while…
Read More “Range Resources Finally Wins Case to Drill 2 Wells in Robinson Twp”
Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Builds Stronger Case for Mariner East as Public Utility
May 12, 2014May 12, 2014

Brilliant move or manipulating the system? Your view will depend on your drilling proclivity. Late last week Sunoco Logistics, in a bid to strengthen its case before the PA Public Utility Commission (PUC) that the Mariner East pipeline should be considered a public utility, filed an application to deliver propane from western PA to its Twin Oaks terminal in Delaware County (eastern PA) using the Mariner East. By delivering propane from one end of the state to the other and redistributing it to customers in that area, Sunoco is attempting to prove that it is a public utility under PA’s definition.

MDN has chronicled Sunoco’s fight to use eminent domain against some recalcitrant landowners who refuse to allow the pipeline to cross their property in western PA, and homeowners in eastern PA who don’t want new compressor stations built along the pipeline’s existing route (see Sunoco Logistics Faces Hostile Crowd Over NGL Pipeline Station). Sunoco claims they are a public utility corporation with the right of eminent domain. Anti-drillers (and possibly some pro-drillers) fighting them claim they are not a public utility. The case is before the PA PUC and Sunoco has just hired attorney Michael Krancer and the legal beagles from the Blank Rome law firm to help out (see Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline). Looks like the legal assist is already paying off with this new strategy…
Read More “Sunoco Builds Stronger Case for Mariner East as Public Utility”
Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Lawyer for NEPA Anti-Driller Vera Scroggins Tries Legal Maneuver
May 9, 2014May 9, 2014

A lawyer for little-known (outside of northeast Pennsylvania) anti-driller Vera Scroggins was in court in Susquehanna County earlier this week trying out the latest legal maneuver. Anti-drilling lawyer Gerald Kinchy–from Sayre, PA–was trying to sucker Judge Kenneth Seamans into “joining” landowners leased with Cabot Oil & Gas to the lawsuit. That is, the lawyer wants the court to treat landowners the same way it’s treating Vera–consider them as trespassing on their own land. Sound like convoluted legal fleecing? Well, that’s exactly what it is. And the judge wasn’t having any of it.

The whole thing got started when Vera started trespassing at Cabot Oil & Gas drilling sites, taking busloads of fellow anti-drillers around to point and gawk and claim Cabot was polluting Mother Earth. Cabot finally had enough and got the court to place a restraining order on her–for her own and others’ safety (see NE PA Anti-Driller Slapped with Trespassing Injunction). Since the restraining order disallowed Vera from stepping foot on any property leased by Cabot, it prevented her from visiting her favorite grocery store, among other things. So at Cabot’s request, the judge eased the restrictions just a bit (see Judge Lets PA Anti-Driller Sip More Lattes, Attorney Claims “Big Win”). She’s still banned from active drill sites, and that apparently irritates Vera. So she got the ACLU to take up her cause and defend her. Now, her lawyer from Sayre is trying to pollute the case before it goes to trial in June (maybe having second thoughts?)…
Read More “Lawyer for NEPA Anti-Driller Vera Scroggins Tries Legal Maneuver”
Energy Services | Industrywide Issues | Litigation | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logsitics CEO Says Legal Issues Won’t Delay Mainer East
May 8, 2014May 8, 2014

Sunoco Logistics held an analyst call yesterday to discuss first quarter 2014 earnings and operations. On the call, Sunoco Logistics’ CEO Michael Hennigan had quite a bit to say about both the Mariner East 1 pipeline, due online starting later this year, and the proposed Mariner East 2 pipeline that would run along side Mariner East 1. MDN has been monitoring the latest legal situation with Mariner East and with Sunoco’s request to be made a public utility corporation (for the latest, see Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline).

MDN found Hennigan’s comments interesting. When asked by an analyst about the NIMBY pushback their getting in building the 50-mile pipeline in western PA, and the pushback on building new compressor stations in eastern PA and whether that would delay or cost the company more money–Hennigan said “no” and that Sunoco is “very confident that we can work through those issues.” Bluster? Brave face for investors? Calm assurance? Who knows. MDN has extracted all of the comments and Q&A’s from yesterday’s call that touch on either the Mariner East 1 or 2, or Mariner West pipeline. We’ve also embedded (below) a copy of the PowerPoint slides used during the call. Pay attention, in particular, to the slides on pages 9, 10 and 11…
Read More “Sunoco Logsitics CEO Says Legal Issues Won’t Delay Mainer East”
Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline
May 5, 2014May 5, 2014

An update on Sunoco Logistics’ legal battles to build a 50-mile pipeline in western PA to connect to an older 8-inch pipeline that’s being re-purposed to flow ethane and propane from western PA all the way to the Marcus Hook refinery near Philadelphia along the Delaware River. The problem is push-back from residents along the pipeline’s route–for the new 50 miles of pipeline and for the compressor stations that need to be built along the entire route (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Sunoco feels it has no choice but to be granted state recognition as a public utility corporation (not the same thing as a public utility).

They have a lot riding on their request to be recognized as a public utility corporation, so Sunoco has just hired a couple of big gun energy law firms to give them a hand with their multiple legal battles. One of those firms is Blank Rome, handling Sunoco’s application to be classified as a public utility corporation. The Sunoco case at Blank Rome is being headed by Michael Krancer–former Secretary of the PA Dept. of Environmental Protection, super sharp lawyer and all-around nice guy (MDN has spoken to, and heard Mike speak, a number of times). The other law firm lending a hand is Obermayer, Rebmann, Maxwell & Hippel, who will help out with Sunoco’s problems with new pipeline construction in western PA…
Read More “Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline”
Chesapeake Energy | Crime | Encana Energy | Energy Companies | Industrywide Issues | Litigation

Feds Clear Chesapeake & Encana in Collusion Case, Michigan Next?
May 2, 2014May 2, 2014

An update on the Chesapeake/Encana “collusion” story in Michigan. Two years ago Reuters accused Chessy and Encana of colluding to keep prices low for Michigan state oil and gas leases coming up for auction (see Did Reuters Break the Law with Latest Chesapeake Story?). Either a low-life snitch gave Reuters private emails from the companies or Reuters engaged in breaking and entering, a la Watergate style, to get access to those emails. Either way, the emails didn’t really show anything damning. However, both the feds and the state of Michigan launched years-long, anal exam-type investigations. In March of this year the Michigan Attorney General decided to press charges (see Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana).

However, the feds have just sent a letter to Chessy and Encana exonerating them from any wrongdoing. Since “more often than not” the feds and the state attorneys reach the same conclusion, it’s quite possible that Michigan will drop its criminal case as early as next week…
Read More “Feds Clear Chesapeake & Encana in Collusion Case, Michigan Next?”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

PA Reporter Gets Law Firm to Withdraw from Sunoco Pipeline Case
May 1, 2014May 1, 2014

Since we’re tracking the progress of Sunoco Logistics’ Mariner East pipeline, and since this (minor) story has a potential impact on it, we’ll bring it to your attention. On Monday the anti-drilling PBS “reporter” Marie Cusick, who never misses a chance to trash-talk the Marcellus Shale industry, published an article on the reliably anti-drilling StateImpact Pennsylvania website highlighting what theoretically could be considered a conflict of interest for the law firm representing Sunoco Logistics. The law firm of McNees, Wallace and Nurick representing Sunoco Logistics is an associate member of the (hated) Marcellus Shale Coalition and they regularly represent (evil) gas industry companies. However, over the past two years McNees has also been used as outside (not inside, but outside) counsel for the state Public Utility Commission (PUC).

The potential conflict is that the Mariner East case requesting Sunoco Logistics be classified as a public utility corporation with right of eminent domain is right now before the PUC and it is the PUC that will make a decision. Although different attorneys work for Sunoco case than for the PUC, the surface appearance of a conflict still exists (it’s the same law firm)–that we have to admit. A day after the story ran McNees filed paperwork removing themselves from the case. Now Marie can do a happy dance and put a feather in her cap. Atta girl, Marie! Not that it will make one fig of a difference in the end…
Read More “PA Reporter Gets Law Firm to Withdraw from Sunoco Pipeline Case”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?
April 28, 2014April 28, 2014

On Friday two major stories developed involving Norse Energy. You may recall Norwegian-based Norse Energy rolled the dice and placed all their bets on shale drilling in New York State, leasing some 180,000 acres, of which 130,000 acres are in the Marcellus and/or Utica Shale region. Never in their wildest dreams did Norse believe it would take six years or more for the state to allow high-volume hydraulic fracturing. Things started to go downhill for Norse when landowners sued to say Norse did not have the right to continue the leases indefinitely (beyond five years) because of New York’s tardiness in approving fracking (see New Rough Patch for Norse Energy: Force Majeure Lawsuit). Eventually the state’s ongoing moratorium on fracking led to Norse’s bankruptcy (see Lights Turned Off, Door Closed – Good Night, Norse Energy). Norse sued the state to force it to release fracking regulations so their remaining asset, the leases, could be sold for at least some value to compensate investors (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs).

Here’s where it gets complicated. On Friday in U.S. bankruptcy court, three bids for the leases and other company assets were unsealed. The highest was for $2.65 million–which is pennies on the dollar compared to the value of the company just a year ago before NY’s action forced it into bankruptcy. The New York Post reported the company behind the winning bid was hedge fund Mason Capital. From what MDN is able to determine, that may not be correct. The highest bid was from Any Acquisition, LLC–which may or may not be backed by Mason Capital. More important, there has been no official word that the judge awarded the sale to anyone on Friday. Below we tackle a complex deal-in-the-making and sort it out with help from our friends at NGI’s Shale Daily, who did some proper, old-fashioned reporting and got the real goods…
Read More “Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah
April 28, 2014April 28, 2014

On Friday a lower court judge heard testimony in the “Article 78” case brought by Norse Energy and the Joint Landowners Coalition of New York (JLCNY) against Gov. Cuomo, Dept. of Environmental Conservation Commissioner Joe Martens, and State Health Commissioner Nirav Shah–to force the release of new fracking regulations. Sadly, the man who is supposed to work for the residents of New York, Attorney General Eric Schneiderman, decided instead he works for the man-child who can’t make a decision, Andy Cuomo, so he filed a motion to dismiss the Article 78 lawsuit brought by Norse and the JLCNY (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo). The judge on Friday held a hearing to consider that motion. Fortunately, the motion to dismiss was not granted. Not yet anyway.

The heart of Friday’s hearing centered on the issue of, “How long is long enough?” for the state to conduct a review and release new drilling regulations. We have quotes from various sources who were there. It was obvious the judge grilled the pro-drilling side harder than the rep from the AG’s office. However, near the end (as you’ll see below), the AG rep shot herself right in the foot and perhaps tilted the chances for the lawsuit to go forward in favor of Norse/JLCNY…
Read More “NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah”
Energy Companies | EQT Corp | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Was PA Court Decision Really an OK for Forced Pooling?
April 24, 2014April 24, 2014

Sometimes language is a funny thing. Terms come into use and and thrown around–but in different contexts they mean different things. MDN recently noticed that earlier this month EQT won a lawsuit against landowners in Allengheny County, PA. The landowners had leased their land with EQT, but we’re guessing they were old leases, done some number of years ago, because the landowners said EQT could not drill under their properties collectively–in a drilling unit. Apparently the landowners wanted EQT to drill on each individual property–or perhaps (more likely) renegotiate the old leases for better money to allow horizontal shale drilling. Bear in mind EQT and the landowners–all of them–already have contractual leases.

EQT sued (EQT Production Co. v. Opatkiewicz et al.) to “force” the landowners to allow them to do their job–drill horizontally under several properties as part of a drilling unit. The court ruled in favor of EQT (copy of the decision is embedded below) saying the landowners can’t stipulate how EQT gets the gas from leased contiguous properties. That is our essential understanding of the case. However, it’s widely being reported that the court “supported forced pooling”…
Read More “Was PA Court Decision Really an OK for Forced Pooling?”
Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

More Pushback from PA Residents on Proposed Mariner East Pipeline
April 22, 2014April 22, 2014

As part of the good news story about the “makeover” of the Marcus Hook refinery near Philadelphia, MDN came across more details about Sunoco Logistics’ plans to potentially use eminent domain in order to lay pipeline that will bring natural gas liquids, like ethane, to Marcus Hook. You may recall a few weeks ago we told you Sunoco Logistics had made a request with the Pennsylvania Public Utility Commission (PUC) to exempt the Mariner East pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline (see Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline). A court case in Washington County, PA challenged that right in light of the decision from the PA Supreme Court that grants zoning rights, even for oil and gas development, to local municipalities.

Sunoco Logistics is now being challenged in court in Chester County, questioning their right to become a “public utility corporation” with the right of eminent domain. Just to confuse the issue further, a public utility corporation is not the same thing as being a public utility in PA. However, if Sunoco Logistics is granted public utility corporation status, it means they have the right of eminent domain but are overseen by the Federal Energy Regulatory Commission and not by the PA PUC. In other words, they get the benefits of being a public utility, without the “burdens” of PA state oversight. That has some residents up in arms…
Read More “More Pushback from PA Residents on Proposed Mariner East Pipeline”
Accidents | Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Wastewater | XTO

Judge in XTO Criminal Spill Case Says Figure Out Your Own Charges
April 22, 2014April 22, 2014

A small development in the shameful case brought by Pennsylvania’s anti-drilling Attorney General, Kathleen Kane, against XTO Energy over a four year-old accidental spill that she’s trying to prosecute as a crime (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). XTO filed paperwork with the court to ask for more information about the charges that have been made against them. Apparently environmental cases are quite complex and you don’t always know what, exactly, you’ve been charged with!

The judge in the case has denied XTO’s request to be told what, exactly, they’re being charged with. Last Thursday Lycoming County Judge Marc Lovecchio essentially told XTO, “You figure it out”…
Read More “Judge in XTO Criminal Spill Case Says Figure Out Your Own Charges”
Endeavour Intl | Energy Companies | Industrywide Issues | Litigation | McKean County | Pennsylvania | Potter County | SM Energy

Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties
April 17, 2014April 17, 2014

In July 2011 MDN told you that independent energy company Endeavour International entered into a deal with SM Energy for 50,000 Marcellus Shale acres, three producing gas wells and a pipeline located in McKean and Potter counties in Pennsylvania. The deal was worth $110 million (see Endeavour International Buys Lease for Additional 50K Marcellus Acres & Local Pipeline in PA from SM Energy). Five months later Endeavour pulled out of the deal and SM Energy threatened to sue (see Endeavour Leaves SM Energy at the Altar, SM Ready to Sue).

SM Energy made good on its threat and for the past 2 1/2 years the deal has been tied up in court with both sides suing each other. Endeavour said there were problems with clear title to the property and that the pipeline was not up to scratch. SM said they didn’t misrepresent anything and Endeavour simply got cold feet. Lots of lawyers and legal fees ensued. Today Endeavour issued an announcement that all of the suing and counter-suing is over and both sides have now settled…
Read More “Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties”
Antero Resources | Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Ohio | Statewide OH | Utica Shale

Anti-Drillers Win Minor Victory Against Muskingum Watershed Dist
April 14, 2014April 14, 2014

Last October MDN told you about a lawsuit filed by a Guernsey County, OH couple seeking to stop drilling and fracking under Seneca Lake (Ohio). The Muskingum Watershed Conservancy District (MWCD) approved a $40.3 million lease with Antero Resources to allow drilling around and under 6,400 acres, including the Seneca Lake. It’s not surprising that the odious Food & Water Watch is behind the lawsuit (see Muskingum Watershed Taken to Court by Anti-Frackers (Yawn)). Last week a Franklin County judge ruled that the lawsuit brought by Leatra Harper and her husband Steven Janstro (strong anti-drillers) can move forward.

Below is the story of their minor victory, a decision that simply means the lawsuit continues, for now. However, it brings up an important issue. Later this week the MWCD is due to sign another lease with Antero–this one for drilling around and under 6,700 at Piedmont Lake (see MWCD Close to Signing Utica Lease for Piedmont Lake, OH Property). Will this small victory at Seneca Lake embolden the odious Food & Water Watch to find sympathetic, fossil fuel-hating landowners around Piedmont to stir up yet another new lawsuit?…
Read More “Anti-Drillers Win Minor Victory Against Muskingum Watershed Dist”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

JLCNY Says Nirav Shah Departure Won’t Slow Down Fracking Lawsuit
April 11, 2014April 11, 2014

Ya just can’t keep good help if you only pay ’em $130,000 a year. So says the man-child who is governor of New York–Andy Cuomo. In a vainglorious attempt to spin the very bad news (for him) that his top health official has had enough of his dithering ways, Gov. Cuomo yesterday told reporters the ongoing so-called health review of new fracking rules has nothing to do with Shah’s departure. Shah is heading as far from New York as he can get, to California. Cuomo’s convinced we’re all idiots and don’t see the truth (see our article from yesterday, State Health Com. Nirav Shah has Enough of Andy Cuomo, Leaving NY).

In comments yesterday Cuomo said Shah makes $130,000 per year, when it’s actually $136,000. Like most politicians, Cuomo plays fast and loose with numbers. The health department first said Shah is leaving in June, but then Shah said no, I’m outta here on May 4th, and so the health department backpedaled, sputtered, and said well yeah, we guess it is May 4th after all. What a dysfunctional joke (that’s not very funny for the residents of NY). The Joint Landowners Coalition of New York (JLCNY) is certainly not amused. They issued a statement yesterday that their lawsuit against Shah (and/or his replacement), and Gov. Cuomo and DEC Commissioner Joe Martens will proceed full speed ahead, regardless of Shah’s departure. We hope the JLCNY continues their lawsuit against Shah all the way to California for his collusion with Cuomo and Martens to prevent drilling for the past year and a half…
Read More “JLCNY Says Nirav Shah Departure Won’t Slow Down Fracking Lawsuit”