Litigation

Chenango County | Industrywide Issues | Landowner Coalition News | Litigation | New York

CNY Landowners Establish Legal Fund to Sue Towns with Bans
December 11, 2012December 11, 2012

Landowners in the central New York area are tired of having their property rights trampled by a few of their discontented (and misguided) neighbors. When two of three town board members vote to institute a ban or moratorium, it strips away the rights of all landowners in the town and devalues their property, making it all but impossible for them to sign leases for potential future natural gas drilling.

The CNY Landowner’s Coalition (Central New York) has established a fund to help with attorneys fees to defend their property rights against what they consider to be an illegal seizure of their property rights by some towns. First up is to defend their rights against a misguided moratorium in Oxford (Chenango County, NY). Note to Oxford town board members and residents: prepare to spend big bucks to defend a permanent moratorium if you pass one. It’s not a threat—it’s a promise.

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Lenape Resources | Litigation | Livingston County | New York | Regulation | Statewide NY

Lenape Sues Avon, NY & DEC over Fracking Ban – Seeks $50M
November 30, 2012November 30, 2012

The residents of Avon, NY will have to come up with $50 million if a local driller wins a lawsuit filed earlier this month. Lenape Resources, a small, independent conventional (vertical) natural gas driller in western New York sued Avon, NY and the state Dept. of Environmental Conservation (DEC) because of a broad-based ban on fracking and natural gas activities in the township passed in June.

Avon, in a misguided attempt to ban fracking, drafted and passed a new zoning law so broad it affected not only unconventional shale drilling but also conventionally drilled (vertical) gas wells. At the time, Lanape’s president John Holko threatened to sue both the town and the DEC if the ban was not rescinded (see this MDN story for background on the ban and Holko’s threat of a lawsuit). The ban stayed, the DEC has refused to enforce a 1981 state law that says only the DEC has the power to regulate drilling, so Holko has sued. He’s asking for compensation to reimburse him for the millions the company has invested in wells and other infrastructure in the township, and for lost revenue because he’s had to shut it all down.

Way to go Avon! Three town board members have just bankrupted your township.

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Industrywide Issues | Litigation | Statewide WV | West Virginia

Major WV Court Case Goes Against Surface Landowners
November 27, 2012November 27, 2012

A major court case before the West Virginia Supreme Court was decided last week, and the decision is not favorable to surface rights landowners. MDN previously alerted you to the case as it went to court back in September (see this MDN story). In brief, in WV the sub-surface mineral rights in many cases were severed and sold separately from the surface landowner rights—years ago. Surface rights landowners understand that mineral rights owners (and drillers) need access, but they want the right to have a say in where a drilling pad will be located on their property—and just compensation for taking the property for that purpose.

The WV Supreme Court decided last week (a copy of the decision is embedded below) that surface rights landowners cannot challenge WV DEP permits for drill pads, and where the pads are located, on their property:

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Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Inflection Energy | Litigation | New York | Statewide NY | Tioga County (NY)

More on the NY Force Majeure Ruling Against Chesapeake
November 20, 2012November 20, 2012

MDN headlined a story yesterday about last week’s decision by a federal judge that went in favor of landowners and against Chesapeake Energy and Inflection Energy. The case found that Chesapeake and Inflection could not use the legal clause in their signed leases called “force majeure” to extend previously signed leases beyond the original 10-year term (see this MDN story for background).

One of the lead attorneys who brought the case on behalf of New York landowners is Scott Kurkoski, from the Vestal, NY law firm Levene, Gouldin & Thompson, LLP. Scott sent along a statement (below) along with a copy of the judge’s decision (also below).

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Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Inflection Energy | Lease & Royalty Payments | Litigation | New York | Statewide NY | Tioga County (NY)

Judge Rules Against Chesapeake, Inflection in NY Lease Case
November 19, 2012November 19, 2012

An important court case has ruled in favor of landowners against energy companies in New York State. Last Thursday, U.S. District Court Judge David Hurd ruled against Chesapeake Energy and Inflection Energy (and in favor of landowners) in a case where the companies had tried to extend leases beyond the original term by invoking “force majeure,” a legal phrase that means the terms of the lease could not be carried out due to extenuating circumstances.

Chesapeake and Inflection had argued that New York State’s moratorium on hydraulic fracturing of shale meant they could not drill on New York land for which they hold leases. But as with many things legal, the story is not so simple…

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CNX Resources | Dominion Exploration | Energy Companies | Industrywide Issues | Litigation | Ohio | Stark County

Landowners at 2nd OH Gas Storage Field Sue for Right to Drill
November 14, 2012November 14, 2012

MDN previously told you about a lawsuit from landowners who sit atop the Brinker Gas Storage Field in Columbiana County, OH (see this MDN story). Columbia Gas Transmission owns the rights to the hollowed out cavern in the Berea Sandstone known as the Brinker field—a place where they store natural gas for later use. The question or issue is whether or not the landowners have the right to drill under the Brinker, in the Utica Shale, or whether that right belongs to Columbia.

Landowners atop another gas storage field, the North Canton Gas Storage Field in Stark County, OH, have now filed a lawsuit for the same reason. In North Canton the storage field is leased by Dominion East Ohio (a division of Dominion) and CNX Gas (a division of CONSOL Energy). Dominion and CNX claim it’s their right to drill under the storage field—the landowners believe they forfeited the right to drill years ago.

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Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Washington County

PA DEP Sec. Krancer Calls Rep. White a Liar re Water Testing
November 7, 2012November 7, 2012

Last week MDN brought you the news that western PA House Rep. Jesse White and an attorney in a lawsuit against Range Resources accused the PA Dept. of Environmental Protection (DEP) of intentionally withholding well water test results that would show a link between shale gas drilling and contamination of well water (see this MDN story). The allegation was made after two DEP officials were deposed in the lawsuit. Their comments seemed to confirm that the DEP does not, in some cases, test or report certain results available to them. Such a request to “suppress” or not test uses a special code (SAC 942).

Yesterday, DEP Sec. Michael Krancer minced no words in responding to Rep. White (see his letter below). Sec. Krancer essentially said White is ignorant of the facts and a liar. Krancer couched his words it in politically correct language—but the sentiment is definitely there.

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Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Statewide NY

53 NY Towns Ask to Join Fracking Ban Court Case
October 31, 2012October 31, 2012

While New York Gov. Andrew Cuomo dithers about whether or not to allow fracking in the state, two court cases that will have a profound effect on where fracking can happen (should he finally make up his mind) continue to work their way through the court system. Those cases address of the issue of whether or not local municipalities should have the right to completely ban fracking within their borders—sometimes referred to as “home rule.”

Not long ago MDN updated you on the status of those cases with word that oral arguments are likely to take place in February with a decision by late spring (see this MDN story). A new development in those cases: 53 municipalities have filed a request with the court to join the cases on the side of pro-ban/anti-fracking:

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Judge to PUC: Cease & Desist Act 13 Zoning Reviews
October 29, 2012October 29, 2012

On Friday, Pennsylvania Commonwealth Court Judge Keith Quigley issued a “cease and desist” order to the Pennsylvania Public Utility Commission (PUC) telling them they can no longer review PA towns’ zoning ordinances for compliance with the new Act 13 drilling law (a copy of his order is embedded below). MDN has chronicled the ongoing fight between seven PA towns and the state over the state’s new standardized “one size fits all” zoning ordinance for oil and gas drilling (see this MDN story for background).

The lawsuit brought by the seven towns is now before the state Supreme Court waiting for a decision. In advance of that, the PUC said there are some zoning provisions not challenged in the lawsuit and they are evaluating those kinds of cases. The PUC has ruled that some of the seven towns in the lawsuit are not in compliance and the PUC is withholding their impact fee checks pending a decision from the Supreme Court—it’s a lot of money. Judge Quigley has said “no more” and now the attorney for those towns is demanding the PUC cut the checks for the impact fees owed to the towns.

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Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Washington County

Cecil, PA Public Hearing to Revise Zoning for Act 13
October 29, 2012October 29, 2012

Even though the Town of Cecil (Washington County, PA) is one of the seven towns suing the state of PA over the zoning provisions of Act 13, the town is going to consider changing their zoning law to be compliant with Act 13 all the same. The situation is now murky and “fluid”…

On Friday, Cecil’s town manager said this:

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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

South Fayette, PA Thumbs Nose at PUC over Zoning Review
October 19, 2012October 19, 2012

Although parts of the zoning provisions in Pennsylvania’s new Act 13 Marcellus drilling law have been challenged in court and oral arguments were heard in PA Supreme Court earlier this week, there are other parts of the Act 13 law—zoning parts—that were not overturned and are not up for discussion. According to the PA Public Utility Commission (PUC), the agency charged with interpreting whether or not a town is in violation of those remaining sections, the town of South Fayette in Allegheny County is in violation and unless they revise their zoning laws, they won’t get impact fee revenue this year.

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Anschutz Exploration | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Otsego County | Regulation | Statewide NY | Tompkins County

Important Developments in NY Fracking Ban Court Cases
October 18, 2012October 18, 2012

There’s been an important development in two cases on appeal in New York State courts that challenge municipal bans of fracking. The two cases challenge municipal fracking bans in the Town of Dryden, NY (see this MDN story for background) and the Town of Middlefield, NY (see this MDN story for background).

According to lead attorney Tom West, all the necessary paperwork for both cases has been filed (called “perfecting” the case). West believes both cases will make it onto the Appellate Division of the Supreme Court docket for an early February hearing of oral arguments. The Appellate Division typically issues an opinion 6-8 weeks following oral arguments, so we should have a decision by late spring. In addition and of keen interest, the plaintiff in one of the cases has changed.

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Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Hears Testimony on Act 13 Zoning
October 18, 2012October 18, 2012

Yesterday MDN told you about what we consider the most important oil and gas drilling case to go before the Pennsylvania Supreme Court in many years (see this MDN story). The PA Supremes heard arguments (yesterday) in what MDN considers the second most important O&G case to be heard in years—whether or not the zoning provisions in the Act 13 law are constitutional. Were there any indications from the questioning which way the judges might rule?

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Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Susquehanna County

PA Supreme Court Hears Arguments in Critical O&G Case
October 17, 2012October 17, 2012

Yesterday the Pennsylvania Supreme Court heard arguments in what MDN considers the most important oil and gas case to come before the court in many years. We’ve chronicled the case called Butler v Powers in past articles, including this article from Sept. 2011. It’s a complex case, and at the risk of oversimplifying it, here’s how we would summarize it:

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Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Sullivan County

Town of Highland, NY Gets Sued Over Gas Drilling Ban
October 11, 2012October 11, 2012

MDN is not used to breaking the news, but that’s what we’ll do today. The Town of Highland, located in Sullivan County, NY, is about to be sued by the Highland Field & Stream Club over the town’s vote to ban gas drilling.

MDN received the following email notification from the attorney for the Highland Field & Stream Club:

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Beaver County | Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation | Pennsylvania

Landowners Settle with Chesapeake, O&G in Western PA Case
October 11, 2012October 11, 2012

A lawsuit initiated by seven families in Beaver County, PA in March against Chesapeake Energy and O&G Investments of Wooster, Ohio has been settled. The landowners originally signed leases with O&G seven years ago, weren’t paid anything during those seven years, weren’t drilled on, and then O&G sold the leases to Chesapeake who tried to drill in order to hold the leases before they were set to expire. The families were rightly outraged by the treatment they received and sued to dissolve the leases (see this MDN story for background).

Yesterday, the judge in the case issued a closure order after being notified of a settlement:

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