Litigation

Industrywide Issues | Litigation | Research

New Report Details Top Legal Issues for Shale Drillers
July 2, 2013July 2, 2013

What are the biggest legal challenges faced by drillers that operate in shale plays? Energy law firm Steptoe & Johnson knows–and they know because they commissioned a survey of 96 legal services buyers at 56 companies. The result is a new report titled, “Below The Surface: The Legal Challenges of Shale Gas Production” (full copy embedded below).

Those who responded to the survey primarily have operations in four U.S. shale plays. Guess which two shale plays are at the top? Yep–the Marcellus (81% of respondents operate there) and the Utica (76% operate there). The next closest is the Eagle Ford Shale in Texas (33% operate there). The top legal issue faced by drillers? Real estate…
Read More “New Report Details Top Legal Issues for Shale Drillers”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

OH Wastewater Dumper D&L Energy Gets Business Death Sentence
June 26, 2013June 26, 2013

The sad story of D&L Energy, a Youngstown, OH operator of several wastewater injection wells, has come to an ignominious end. It’s owner was (is?) Ben Lupo, who also owns sister company Hardrock Excavating, operating both companies under the D&L Energy Group umbrella. Starting last September, Lupo instructed a Hardrock employee to dump untreated fracking wastewater down a sewer drain that emptied into the Mahoning River. Lupo and the driver were found out earlier this year (see Youngstown Business Dumped >200K Gal of Untreated Wastewater).

The Ohio Dept. of Natural Resources (ODNR) promptly shut down both D&L Energy and Hardrock in February (see OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down). The shut-down led to a filing for bankruptcy in a desperate attempt to re-open and keep D&L afloat. Lupo appealed the ODNR ruling claiming D&L Energy is separate from Hardrock and just because he behaved badly at Hardrock does not mean D&L should be punished too. The Ohio Oil & Gas Commission (OOGC) has now ruled on that appeal…
Read More “OH Wastewater Dumper D&L Energy Gets Business Death Sentence”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Youngstown Democrat Gets “Return to Sender” Over D&L Letters
June 26, 2013June 26, 2013

An interesting story related to the business death sentence handed down to D&L Energy by the Ohio Oil & Gas Commission (see today’s related story). State Rep. Robert Hagan (Democrat from Youngstown) tried to improperly influence the OOGC, technically a court body, by sending letters directly to members ruling on the D&L appeal. He requested that they reject the appeal. The OOGC didn’t fall for it and instead sent the letters on to the OOGC attorney and the attorney for D&L. That is, Hagan got a “return to sender” from the OOGC, along with a rap on the knuckles. He was (eventually) cleared of wrongdoing by the Ohio Ethics Commission.

Oh, this is the same Rep. Robert Hagan who wants to more than double the oil and gas drilling tax in Ohio (see Youngstown Democrat State Rep Wants to Hike Severance Tax to 7.5%). Here’s the D&L/Hagan kerfuffle:
Read More “Youngstown Democrat Gets “Return to Sender” Over D&L Letters”
Hydraulic Fracturing | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Summit County

Home Rule Case Heads to Ohio Supreme Court
June 21, 2013June 21, 2013

In February, Beck Energy won an appeal against Munroe Falls in Ohio’s Court of Appeals (Ninth District) which had the effect of striking down so-called “home rule” of oil and gas drilling (see OH Appeals Court Strikes Down Home Rule for Drilling). Ohio state law takes precedence over local laws when it comes to drilling, which was affirmed by the Ninth District judges. However, that mid-level court decision was appealed to the Ohio Supreme Court and the Supremes have just announced they’ve decided to take the case…
Read More “Home Rule Case Heads to Ohio Supreme Court”
Hydraulic Fracturing | Industrywide Issues | Litigation

Case Western Law Review Summer 2013: All About Fracking
June 21, 2013June 21, 2013

Almost all of the Summer 2013 issue of the Case Western Reserve Law Review (507 pages) is dedicated to the legal and policy issues surrounding hydraulic fracturing and shale drilling. The articles range from policy to litigation to climate change. We’ve not reviewed the articles. We offer the full issue (embedded below) as a resource for legal issues surrounding the issue of fracking.
Read More “Case Western Law Review Summer 2013: All About Fracking”
Industrywide Issues | Litigation | Ohio | Statewide OH

OH Court: Landowner Can’t Reclaim Rights for ‘Not Enough’ Drilling
June 18, 2013June 18, 2013

In yet another case of “know what’s in your lease,” an Ohio court (Fifth District Court of Appeals) has upheld the rights of a driller to not develop all portions (or layers) of leased acreage. The case is Bilbaran Farm, Inc. v. Bakerwell, Inc. The plaintiffs, Bilbaran Farm, claimed that the 275 acres they own was not “fully developed” because the driller drilled three wells targeting the Clinton sandstone and then stopped. The landowner alleges after a certain period of time the portions not developed (and obviously won’t be developed by the current driller) should revert back to them so they can re-lease with someone else and have it developed, and that by not doing so they are economically harmed.

The judges of the Fifth District did not agree…
Read More “OH Court: Landowner Can’t Reclaim Rights for ‘Not Enough’ Drilling”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Ohio | Statewide OH

OH Anti-Drilling Group Sues Muskingum Watershed for Mailing List
June 18, 2013June 18, 2013

An insignificant handful of anti-fossil fuel agitators in Ohio have formed a group called Southeast Ohio Alliance to Save Our Water (SOASOW) and have sued the Muskingum Watershed Conservancy District (MWCD) because the MWCD won’t fork over their mailing list of customers so the SOASOW can send scare-tactic propaganda fliers. Poor babies. So now the SOASOW will tie up the court system with their temper tantrum to try and force MWCD to comply. Shows what people with time on their hands do…
Read More “OH Anti-Drilling Group Sues Muskingum Watershed for Mailing List”
Delaware County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation

Exclusive: Sidney, NY Sued by Landowners over Fracking Moratorium
June 14, 2013June 14, 2013

Three town board members in the Town of Sidney (Delaware County), NY should be concerned–very concerned. They voted February 13th to enact a one-year moratorium against shale drilling and fracking. Two other board members voted against the moratorium, so it passed. Now, all residents of the Town of Sidney will have to shuck out more money in taxes to defend that vote–on Wednesday they were sued by a group of local landowners whose property rights have been violated by the ban.

The worrisome part for Sidney is who is doing the suing on behalf of the landowers–Hinman, Howard & Kattell (HHK)–the same law firm that successfully sued Binghamton over their moratorium. Binghamton’s moratorium was found illegal and tossed last year (see NY Judge Throws Out Binghamton Fracking Moratorium). Below is a summary of the lawsuit against Sidney, as provided to MDN by HHK:

Read More “Exclusive: Sidney, NY Sued by Landowners over Fracking Moratorium”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY | Tompkins County

Dryden Files Request with NY Highest Court to Not Consider Appeal
June 14, 2013June 14, 2013

Although New York Gov. Andrew Cuomo has dithered for more than a year on whether or not to allow fracking–and continues his equivocation–there is a much more important drama unfolding that will ultimately, in our opinion, determine whether or not New York will ever see meaningful shale drilling. The more important issue is now in the courts. Specifically, it revolves around whether or not New York’s highest court, the Court of Appeals, will hear a pair of cases from towns that have banned drilling.

A few weeks ago we told you about the appeals from a landowner near Cooperstown (Middlefield) and from Norse Energy (Dryden) asking the Court of Appeals to hear the case and overturn the town bans. The Town of Dryden has now sent their own request to the Court of Appeals–asking them to not consider the case…
Read More “Dryden Files Request with NY Highest Court to Not Consider Appeal”
Hydraulic Fracturing | Litigation

The Thorny Issue of Proving Water Contamination from Fracking
June 12, 2013June 12, 2013

Does fracking cause water contamination? Anti-drillers have repeated the claim so often, and the claim has been picked up and repeated and amplified by the mainstream media so often, that it’s now almost an article of faith. Axiomatic. Self-evident. At a minimum, a wide swath of Americans who don’t know much about oil and gas drilling have their suspicions that fracking may indeed contaminate water–primarily because of the negative media coverage they’ve heard.

Keith Hall, director of the Louisiana Mineral Law Institute and an assistant professor of law at Louisiana State University has written an excellent article appearing in the online Ohio State Law Journal Furthermore. The article is titled, “Hydraulic Fracturing Contamination Claims: Problems of Proof” (full copy embedded below). In the article, Hall addresses the problems of landowners in attempting to prove that fracking (or oil and gas drilling) has contaminated their water. He concludes it this way:
Read More “The Thorny Issue of Proving Water Contamination from Fracking”
Chesapeake Energy | Energy Companies | Equinor/Statoil | Industrywide Issues | Litigation | Marshall County | West Virginia

WV Landowners Settle with Chesapeake Out of Court
June 12, 2013June 12, 2013

A lawsuit in Marshall County, WV that previously escaped our notice has just been settled. Landowners David and Sharon Hall, owners of 116 acres, sued Chesapeake Energy and Statoil alleging damage to their surface property. The lawsuit also says Chesapeake did sloppy work on the drill pad, destroyed crops and destroyed timber on seven acres of the Hall’s land.

Last Friday the judge dismissed the case because it was settled out of court…
Read More “WV Landowners Settle with Chesapeake Out of Court”
Antero Resources | Chevron | Energy Companies | Energy Services | Fayette County | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Williams

6 Western PA Families Sue Chevron, Williams over Drilling Activity
June 11, 2013June 11, 2013

Six families in Fayette County, PA have filed a “nuisance” lawsuit against Chevron, Williams and WPX Energy claiming nearby gas drilling activities have “diminished their ability to make use of their property” and have ruined the “quite use and enjoyment” of their homes. The families claim they’ve suffered from the effects of “toxic chemicals” due to the drilling activities in the area.

The AP story with details (slightly edited to remove some of the anti-drilling commentary AP adds to such stories):
Read More “6 Western PA Families Sue Chevron, Williams over Drilling Activity”
Air Quality | Hydraulic Fracturing | Industrywide Issues | Litigation | Regulation

13 States Send Letter to EPA, Draws a Fracking Line in the Sand
June 11, 2013June 11, 2013

We’re not quite sure how this one slipped by our radar, but a month ago the attorneys general from 13 brave states–1/4 of all states–sent a letter (copy embedded below) to the federal Environmental Protection Agency (EPA) drawing a line in the sand and saying, “Don’t step over that line” when it comes to regulating fracking. To which we say, “Horray!” Finally, someone with backbone to push back against a rogue, out-of-control EPA desirous of regulating anything and everything–in violation of the U.S. Constitution.

New York, of course, was not one of the 13 signatories. However, West Virginia (with a Democrat governor), was. Ohio signed it too. Sadly, even though Pennsylvania Gov. Tom Corbett is pro-drilling, the new Democrat attorney general in PA, Kathleen Kane, is anti-drilling and she refused to participate in signing the letter–even though her state is reaping huge rewards from shale drilling and stands to lose big-time under an activist EPA.

Here’s what prompted the letter…
Read More “13 States Send Letter to EPA, Draws a Fracking Line in the Sand”
Centre County | Columbia Pipeline Group | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines

Columbia Gas Sues State College, PA for Blocking NatGas Pipeline
June 11, 2013June 11, 2013

Unbelievable. The main campus of Penn State University, located in State College, PA, wants to convert an electrical-generating steam plant from burning coal to burn clean natural gas–and the Borough of State College refuses to let Columbia Gas run a pipeline underneath an uppity neighborhood (appropriately named “the Highlands”) to provide said clean-burning natural gas to Penn State. So Columbia has filed a lawsuit against State College, calling their action just what it is: “arbitrary, capricious, unreasonable and against applicable law …”

The lawsuit, however, is on temporary hold for a month while Columbia and Penn State attempt to see if they can concoct a new pretzel-like route to reach the university, avoiding any uppity neighborhoods…
Read More “Columbia Gas Sues State College, PA for Blocking NatGas Pipeline”
Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

PA Landowner Says Chesapeake Trespassed, Court Decides for Chessy
June 7, 2013June 7, 2013

In yet another case of “be careful how you word your lease,” the Valley Rod & Gun Club (in Pennsylvania) leased land to Chesapeake Energy for drilling. The two disagreed over where the drill pad should be located and Chesapeake moved forward with a site they wanted against the wishes of the landowner. The landowner sued saying Chesapeake trespassed in building the pad. Earlier this week U.S. District Court in PA ruled…
Read More “PA Landowner Says Chesapeake Trespassed, Court Decides for Chessy”
Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

PA Judge Rules on When Drilling “Begins” & Extends a Lease
June 5, 2013June 5, 2013

An important question for PA landowners whose leases are set to expire soon: When, exactly, does the law consider a driller has begun drilling? Sometimes drillers will do the bare miniumum to prepare a site without doing any actual drilling and declare they’ve met their lease obligation, and those very basic actions reset the clock, giving the driller more time (sometimes years) to actually drill the well. Such was the case with Range Resources and Good Will Hunting Club in southwestern PA. Last week a district court judge ruled and said the drill bit doesn’t have to touch the ground for drilling to have “commenced”…
Read More “PA Judge Rules on When Drilling “Begins” & Extends a Lease”