Chesapeake Energy Throws in the Towel on NY Shale Drilling
A good news/bad news story. The good news is that Chesapeake Energy is giving up the legal fight with landowners in New York to extend their leases beyond the original lease term. MDN has long chronicled the fight on the part of landowners to stop Chesapeake from claiming force majeure to extend leases signed for (in some cases) just a few dollars per acre–leases signed long before horizontal drilling and fracking were contemplated (see More on the NY Force Majeure Ruling Against Chesapeake). After two years of legal wrangling, Chesapeake is throwing in the towel. Landowners will now be able to sign with another company, if drilling ever comes to NY.
The bad news is, Chesapeake is throwing in the towel–as in they are giving up on NY–tired of the ongoing five-year moratorium in shale drilling. Wake up Cuomo! Your actions have caused this! You are causing direct economic harm to your residents every day the moratorium stays in place…
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Potential trouble is brewing for Marcellus drillers in Pennsylvania. As MDN has chronicled since early last year, seven towns (and a few individuals) sued PA over a provision in “Act 13” passed in early 2012 which creates uniform statewide standards for oil and gas zoning regulations–regs that supercede and replace local zoning laws related to oil and gas drilling (see