Litigation

Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Regulation | Williams

Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline
March 24, 2014March 24, 2014

The Bluegrass natural gas liquids (NGL) pipeline is a $1.5 billion project that will stretch from the Utica/Marcellus all the way to Gulf Coast. It’s being built by Williams and Boardwalk Pipeline Partners and as of last October the joint venture partners held an open season and said everything is on track for a 2015 launch (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). But a lot has happened in the past six months, including Boardwalk’s stock tanking (see Serious Concerns about Boardwalk Pipeline Partners Continue). Not only that, but there’s been a lot of anti-pipeline sentiment in Kentucky–one of the states the new pipeline must cross on its way to the Gulf Coast. So much anti-pipeline sentiment that Boardwalk and Williams have threatened using eminent domain in order to get the property they need for a crossing (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court).

The eminent domain issue is coming to a head in Kentucky with respect to the Bluegrass Pipeline. Last Friday the KY House voted to approve House Bill (HB) 31 which will strip NGL pipelines of their right to use eminent domain in the state. The measure now heads to the Senate. What are its chances? No one is saying, although Boardwalk and Williams have hired no less than nine lobbyists to make their case with KY lawmakers…
Read More “Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?
March 20, 2014March 20, 2014

Last year the owner of Youngstown area Hardrock Excavating and its sister company D&L Energy, Ben Lupo, allegedly instructed one of his employees who hauled frack wastewater (through the Hardrock company) to dump the wastewater down a drain–at night so no one would notice. And it wasn’t just one or two times (see Youngstown, OH Illegal Wastewater Dumping Happened “At Least” 24X). The employee and Lupo were eventually caught. After both businesses were effectively closed down by the Ohio Dept. of Natural Resources, the assets were eventually auctioned off (see Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M).

The employee plead guilty and will be sentenced tomorrow. Until now Lupo has maintained innocence. However, the judge in the case has scheduled a “change of plea” hearing for Lupo next Monday in Cleveland. That almost always means the defendant is changing his plea to guilty. To which we say, it’s about time…
Read More “Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?”
Albany County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Attorney General Files to Dismiss Norse Lawsuit, More Delays
March 7, 2014March 7, 2014

The government of the State of New York–or rather certain government officials–continue to deny justice to residents in the state. The state’s supposed chief defender of the law, Attorney General Eric Schneiderman, unbelievably has filed a motion to dismiss the Article 78 case filed by Norse Energy that would compel Gov. Andrew Cuomo, DEC Commissioner Joe Martens and State Health Commissioner Nirav Shah to stop their intentional obstruction and finalize shale drilling rules. Norse, and the residents of New York, have been denied justice for 5 1/2 long years, and now Schneiderman doesn’t even want to allow those people their day in court. The attempt, if successful, would be an unimaginable miscarriage of justice by the highest officials in the state. It is, in fact, government tyranny of its residents.

Norse’s legal beagle, Tom West, has filed a counter motion to the AG’s motion that points out the arrogance and huge legal holes in the AG’s arguments. In addition to delaying a hearing that was first set in January, then moved by the court to March, and now moved again to “sometime in April,” the court that will hear the case (Albany County Supreme Court) has decided to join a similar case brought by the 70,000-member Joint Landowners Coalition of New York to the Norse Energy case. West believes the AG will try to dismiss the JLCNY case as well (Schneiderman has no shame and actively works against his own constituents). Below is an update from The West Firm along with an announcement from the JLCNY about the further delay in their case…
Read More “NY Attorney General Files to Dismiss Norse Lawsuit, More Delays”
Chesapeake Energy | Encana Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Michigan | Statewide MI

Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana
March 6, 2014March 6, 2014

In June 2012 MDN brought you the story that of possible collusion between Chesapeake Energy and Encana over lease offers in the state of Michigan. At the time we pointed out that the Reuters news service had “obtained” confidential emails that supposedly show such collusion, and we asked the question, how did Reuters come by those emails (see Did Reuters Break the Law with Latest Chesapeake Story?). It was obvious Retuers was trying to take down Aubrey McClendon and by extension Chesapeake Energy. Aubrey is now gone from Chesapeake and Reuters’ favorite corporate raider, Carl Icahn, now pulls the strings of the new CEO, Doug Lawler.

Not long after the whole story burst onto the scene, Encana did their own internal investigation and cleared themselves (see Encana Says Investigation Shows No Collusion with Chesapeake). That was Sept. 2012. Reuters is now back and announcing that the attorney general in Michigan will now file, two years later, criminal charges against both Chesapeake and Encana on March 19 in Michigan state court. We’re sure Reuters is smiling…
Read More “Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Taxation

Drillers Petition PA Court (Again) to Participate in Act 13 Case
March 6, 2014March 6, 2014

Try this on for size. Pennsylvania lawmakers passed sweeping new regulations, called Act 13, that control how and where drillers can drill, and stipulate how much money drillers will pay as part of a new “fee” (really a tax, but called an impact fee). A portion of the Act 13 law–statewide uniform zoning regulations–was challenged by seven townships that eventually won in the PA Supreme Court (see Happy Story Ends Badly Because of 7 PA Towns). Early on the drilling industry wanted to join the case to argue in favor of the Act 13 law but the wizards on the bench said nyet. The judges said the industry had no “standing” to be party to the suit, while an anti-drilling environmental organization was allowed to participate. “Standing for me but not for thee” was the attitude. It was and is the height of hypocrisy because the Act 13 law directly affects those very industry groups and their members. Anyone can see there’s “standing” for the industry to participate in a lawsuit that directly affects them.

The PA Supreme Court made a poor decision on Act 13, based on poor theories of law, and then took the easy way out and sent the non-zoning portions of the case back to a lower court to decide if the entire law should be scrapped. There’s a very possibility that will now happen (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). The three top drilling industry groups in PA yesterday petitioned the court, once again, to join the lawsuit as it’s now considered in the lower court, arguing they are DIRECTLY affected by the outcome and indeed it is evident to ALL that they do have standing. The groups are trying to salvage something out of the miscarriage of justice that has occurred at the Supreme Court. Question is: Will anti-drilling judges once again deny their petition to join the case?…
Read More “Drillers Petition PA Court (Again) to Participate in Act 13 Case”
Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

Mt. Pleasant, PA Continues to Ride Range Over Water Ponds
March 5, 2014March 5, 2014

As we told you last week, when PA towns make up their own zoning laws for oil and gas drilling, chaos and confusion reigns, as is the case in Mt. Pleasant (Washington County), PA (see Mt Pleasant Twp Shenanigans re Range Request for Water Ponds). Mt. Pleasant, one of seven townships that successfully sued the state to overturn Act 13 effectively screwing every municipality in the state out of millions of dollars of impact fee money, continues their snit fit over Range using a few water ponds to drill new shale wells in non-Mt. Pleasant locations.

The board voted to uphold their zoning violations of four such ponds so Range has filed yet another lawsuit hoping they can find an impartial judge to set the matter straight. Here’s the latest…
Read More “Mt. Pleasant, PA Continues to Ride Range Over Water Ponds”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Statewide MD

Maryland Court Rules in Favor of Cove Point LNG Export Terminal
March 5, 2014March 5, 2014

The litigating Sierra Club has lost yet another lawsuit to block Dominion from revamping an LNG import terminal in Cove Point, Maryland to become an export terminal instead–exporting Marcellus Shale gas to India and Japan. Last Friday Maryland’s second highest court, the Court of Special Appeals, gave Dominion the green light to continue with their project to covert the Cove Point facility into an export terminal. Will the Sierra Club appeal (yet again)? With the deep pockets of the eco-left in this country, it’s a pretty safe bet they will appeal…

Here’s the story of the court returning a pro-Dominion verdict:
Read More “Maryland Court Rules in Favor of Cove Point LNG Export Terminal”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Attorney General Actively Works Against 70K NY Landowners
February 27, 2014February 27, 2014

As hard as it is to believe, New York’s Attorney General continues to work against his own constituents. We’ve known since his election that Democrat Eric Schneiderman is anti-drilling–what we didn’t know was was how much of an activist he would be, using his office to further his own distorted views on oil and gas drilling. He’s misused the power of the subpoena to go after drillers (see NY Attorney General Schneiderman Subpoenas Shale Drillers). He’s abused the power of his office to investigate town board members in towns that voted to “wait and see” (i.e. not ban) shale drilling (see NY Attorney General Investigates Towns Who Won’t Ban Fracking).

Now, unbelievably, he has asked the court (and succeeded) in delaying a lawsuit brought by 70,000 New York residents–the people he’s sworn to protect–against Gov. Andrew Cuomo. It seems that Cuomo is the only person in the state Schneiderman wants to protect. He’s Andy’s personal junk yard guard dog–on a not-so-short leash. The Joint Landowners Coalition of New York (JLCNY) recently sued Cuomo with an Article 78 lawsuit, in essence asking the court to force Cuomo to do the job he won’t do and release new oil and gas drilling regulations (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah). Schneiderman has gotten the court to delay any action on the lawsuit from March 7 to April 4, to give Schneiderman and his lieutenants, what, more time after 5 1/2 years?…
Read More “NY Attorney General Actively Works Against 70K NY Landowners”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Taxation

Happy Story Ends Badly Because of 7 PA Towns
February 27, 2014February 27, 2014

Who doesn’t like a county (or state) park, or a newer trend–converting old railroad beds into “rail trails”–resurfacing them for walkers, joggers, bikers and roller skaters? We sure love and use them. This story begins happily, with York County spending $100,000 to improve the Old Northern Central Railroad tracks and a portion of the York County Heritage Rail Trail that runs alongside them. Where did the money come from–taxpayers? Nope. It came from the Marcellus Shale industry, from the impact fee levied as part of the Act 13 law. In fact York County has received, so far, nearly 3/4 of a million dollars from that fund–even though there’s no active shale drilling in the county–thanks to Act 13.

But the story ends badly, because quite likely starting next year, all of that impact fee money will disappear (see PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt). There will be no more impact fee money because seven townships in PA got their knickers in a twist, insisting their own layman zoning regulations were better than a set of statewide, uniform regulations designed by geologists and experts. So the seven petulant towns sued to toss out large portions of the Act 13 law, and it now looks like the impact fee will be tossed out too….
Read More “Happy Story Ends Badly Because of 7 PA Towns”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt
February 24, 2014February 24, 2014

The Pennsylvania Supreme Court continues their lunacy. On Friday they obstinately said they would not revisit their decision on the Act 13 Marcellus drilling law passed in early 2012 (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). PA Gov. Tom Corbett asked them to reconsider but the haughty response is a big “no way.” And so the very real possibility that the Supreme Court has just shut off the spigot to $200 million+ per year in impact fees. The Supremes vacated large sections of the Act 13 law that involve the collection and distribution of the Act 13 impact fee, a fee that has benefited countless communities around the state–particularly those where drilling’s impact is felt the most (hence the name). Now? Screw you seems to be the attitude of the justices.

And so we hope the seven “brave” townships that sued and kept suing are happy that they’ve just hosed the entire state with their actions–spoiling it for everyone. Congratulations…
Read More “PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt”
Chesapeake Energy | Elexco Land Services | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Do PA Drillers have Law on Their Side in Royalty Debate?
February 18, 2014February 18, 2014

A sharp MDN reader, John S., emailed MDN to remind us of how PA landowners ended up in the quagmire they are now in with regard to royalties with drillers (like Chesapeake) deducting post-production expenses from what they pay to landowners. We had forgotten about the Kilmer v ElexCo Land Services case from March 2010 in which the PA Supreme Court ruled that drillers could indeed deduct certain post-production expenses without violating the law that says landowners must be paid a 12.5% minimum royalty (see Breaking News: PA Supreme Court Rules Against Landowner Seeking to Invalidate Lease).

PA Gov. Tom Corbett wrote a letter to Doug “the ax” Lawler at Chesapeake telling him the company’s royalty calculations were unfair at best, and perhaps illegal. Doug just has to point to the 2010 PA Supreme Court case. Here’s more information about the 2010 case and what the decision means, and doesn’t mean:
Read More “Do PA Drillers have Law on Their Side in Royalty Debate?”
Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania

Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans
February 17, 2014February 17, 2014

Landowners in Bradford County, PA feel like they’re getting screwed by Chesapeake Energy on royalty payments, a complaint they’ve been making for some time now (see Bradford County, PA Landowners Sue Chesapeake over Royalties). PA state law guarantees a minimum 12.5% royalty to landowners, but because Chesapeake keeps deducting post-production expenses (like pipeline costs, processing costs, perhaps marketing costs), landowners end up getting squat–in some cases a 1.5% royalty. The landowners have some righteous anger over the issue. More than 100 landowners and officials gathered at the Bradford County Courthouse in Towanda on Friday in a rally to raise awareness of the issue and to support passage of PA House Bill 1648, which would protect landowners from large deductions from their royalty checks for post-production costs.

We applaud these landowners and their elected representatives for seeking justice in this situation. The problem is, they’ve invited a fox into the hen house to help them out. State Senator Gene Yaw, whose district includes Bradford County, along with PA Gov. Tom Corbett, has asked PA’s anti-drilling Attorney General, Kathleen Kane, to investigate Chesapeake and this matter of landowners getting shorted on royalty payments. She’s only too glad to “help out.” Normally that would be a good thing, except Kane is just as likely to turn around and bite the people she’s supposed to be helping. She hasn’t met a driller yet she wouldn’t rather see behind bars (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). If it were up to Kathleen Kane, there would be no Marcellus drilling at all and consequently no royalties for landowners to argue about. We think it’s an ill-advised move to involve Kane, but that’s just our humble opinion…
Read More “Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans”
Anti-Drilling/Fossil Fuel | Broome County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Shame & IgnomiNY: Cuomo Sued by 70K NY Residents over Frack Delay
February 17, 2014February 17, 2014

The shame and ignominy of being sued by residents of your own state to do you job. That’s what happened to Gov. Andrew “Can’t Make a Decision” Cuomo on Friday when the 70,000-member Joint Landowners Coalition of New York filed an Article 78 lawsuit last Friday (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah). You might think 70,000 residents suing a governor would be important news–even the whiff of something like that should rate at least a mention in the news, right? If you live in Binghamton (where the JLCNY is headquartered), and your newspaper is a local liberal Gannett newspaper–that answer would be: “wrong.” In the lead-up to the lawsuit being filed, the Binghamton Press & Sun-Bulletin obstinately (and angrily) refused to cover the story. They censored it. It was only after MDN friend and intrepid blogger Andy Leahy, writer of NY Shale Gas Now! prodded and poked and agitated the great dragon did they finally deign to post an article about the lawsuit.

The article finally appeared in the Saturday, Feb 15 edition (the day no one reads the paper). To their credit, it was a front-page story–“above the fold.” But it was tucked along the right side (see the front page of that issue below). What, you may ask, was the all-important lead news item dominating the front page, taking up more than half of the editorial space? An open house at Binghamton University. Talk about journalistic integrity and keen insight–people with a real bead on what’s important for readers. Those editors at the PSB, there’re a sharp bunch…
Read More “Shame & IgnomiNY: Cuomo Sued by 70K NY Residents over Frack Delay”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah
February 14, 2014February 14, 2014

Today the 70,000 members of the Joint Landowners Coalition of New York (JLCNY) will finally launched their legal offensive against a recalcitrant governor, commissioner of the DEC, and the state health commissioner. D-Day will, of course, forever be associated with the first day of the World War II Allied Forces landing on the beaches of Normandy, France–June 6, 1944. We are in no way comparing the current action by the JLCNY with that momentous day which included incredible sacrifices by brave American (and other country’s) troops. However, D-Day is also a generic military term that means the day on which a combat attack or operation is to be initiated. It is in that sense we say that today is legal D-Day for the JLCNY and pro-drilling landowners. This IS a battle, it IS important with incredibly high stakes, and it does seem as though the odds are stacked against us. However, we have our own allied legal forces and we, as pro-drilling landowners in New York, are determined to win. And win we will!

The lawsuit will be filed in Supreme Court in Albany County, NY. (Oddly enough, Supreme Court is a lower court in New York–one step up from county court.) What a badge of shame for Cuomo, Martens and Shah to be sued by residents of their own state, pleading with the courts to force them to do the job they were elected (or appointed) to do. Below is the overview statement from JLCNY’s lead attorney Scott Kurkoski, a partner at Binghamton law firm Levene Gouldin & Thompson. It outlines the legal arguments the JLCNY will use in their Article 78 lawsuit to force compliance with established law and force the release of the SGEIS shale drilling regulations. Below the overview are copies of the lawsuit paperwork being filed today (three documents in all). We wish Scott and the JLCNY Godspeed and good luck–we’re cheering the whole way, and you should be too…
Read More “D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

JLCNY Prepares to File Lawsuit Against Gov. Cuomo Tomorrow
February 13, 2014February 13, 2014

The Joint Landowners Coalition of New York, a 70,000-member strong confederation of landowners who want to move forward with shale drilling, is slated to file an Article 78 lawsuit tomorrow against Gov. Andrew Cuomo, Dept. of Environmental Conservation Commissioner Joe Martens, and State Health Commissioner Nirav Shah. As MDN previously explained, an Article 78 essentially forces recalcitrant (and perhaps inept) elected officials to perform their sworn duties (see JLCNY Lawsuit Imminent – But Not the One You Thought).

The JLCNY is being given an assist with their lawsuit by the Mountain States Legal Foundation. Just two weeks ago the JLCNY put out the call to raise another $18,000 for legal expenses, and by golly, they got it…
Read More “JLCNY Prepares to File Lawsuit Against Gov. Cuomo Tomorrow”
Hydraulic Fracturing | Industrywide Issues | Litigation | Regulation

3 Cheers for Groups Standing Up to Obama “Climate Change” Agenda
February 7, 2014February 7, 2014

When Barack Obama can’t convince his political opponents (or the American people) that his skewed views on an issue are the correct views for the country, he does what any good fascist does–he simply starts writing executive orders, bypassing the U.S. Constitution that grants lawmaking powers solely to Congress. He simply seizes power for himself. Dictators the world over have done the same thing for millennia. It’s still relatively new here in the U.S. where citizens used to have (gasp) individual freedom from oppression by their government. It seems that’s something in our past.

MDN is not the only lone outpost to recognize the dangerous road we’re now on, and not the only lone outpost to recognize that for all of his platitudes about natural gas and “all of the above,” Obama’s talk is just that–cheap talk. He doesn’t mean it because his actions (via the EPA and other agencies that frequently overstep their bounds) contradict his words. Actions always speak louder than words. A small glimmer of hope has appeared. A number of business organizations–76 in all, including the U.S. Chamber of Commerce, the National Association of Manufacturers (NAM) and the American Gas Association–have banded together to oppose Obama’s planned power grab on the faux issue of “climate change.” They recognize they and their members are in the crosshairs of this administration and they’re not going down without a fight…
Read More “3 Cheers for Groups Standing Up to Obama “Climate Change” Agenda”