Litigation

Chesapeake Energy | Energy Companies | Harrison County | Industrywide Issues | Litigation | Ohio | Utica Shale

Chesapeake’s Best Utica Well (Buell 8H) in Legal Trouble
July 5, 2012July 5, 2012

From time to time MDN will tackle a complicated issue and try to, as briefly as possible, break it down for our readers to understand the essence of it. This is one of those issues. It involves property rights, contracts, deeds, a sympathetic landowner, and Chesapeake Energy’s single largest-producing Utica Shale well in Ohio—the Buell Well.

The Buell Well, designated Buell 8H by the Ohio Department of Natural Resources, is named after the landowner Kenneth Buell, a 73 year-old farmer. It’s located in Archer Township in Harrison County, OH. It was one of the first Utica Shale wells to be drilled in Ohio and previously yielded 1.5 billion cubic feet of natural gas in 198 days—2% of the total gas production for the entire state. It’s 300 times more productive than the average vertical well in Ohio, and it has also has produced in excess of 13,000 barrels of oil. By any measure it’s a star performer—the star performer in Ohio. And it’s now in danger of being shut down because of legal disputes over who owns the rights to drill it. That’s where the situation gets messy and complicated.

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Industrywide Issues | Litigation | Regulation

DC Court Clears Way for EPA to Regulate Methane
June 27, 2012June 27, 2012

Welcome to the USSA – the United Socialist States of America. Just think USSR updated, because that’s what we’ve now become.

The reason for this latest MDN tirade? Yesterday the U.S. Court of Appeals in Washington, D.C. ruled in favor of the rogue, power-hungry so-called Environmental Protection Agency (EPA) in a case that will allow unelected bureaucrats inside the EPA to regulate everything—all human activity—under the guise that said activity produces greenhouse gas emissions (a copy of the ruling is embedded below).

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Rules Industry Can’t Join Act 13 Lawsuit
June 26, 2012June 26, 2012

Last Friday the Pennsylvania Supreme Court denied a request by the Marcellus Shale drilling industry to participate in the lawsuit brought by seven towns, a few individuals and “a non-profit organization” against the new Act 13 drilling law in Pennsylvania. The lawsuit seeks to overturn a portion of Act 13, the part that substitutes statewide zoning regulations for local zoning regulations when it comes to the oil and gas drilling industry.

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Accidents | Bradford County | Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania

Chesapeake Pays 3 PA Families $1.6M for Methane Contamination
June 25, 2012June 25, 2012

Chesapeake Energy settled a case with several landowners in the small community of Wyalusing (Bradford County), PA who say their well water was contaminated by Chesapeake’s nearby drilling activity. Three families will receive $1.6 million from Chesapeake which includes buying out their homes so they can move. Some 30 other area families are in various stages of litigation with Chesapeake over the same issue.

For MDN, the fascinating aspect of this story is how the news has been covered by mainstream media. First, the news itself, then “the real news”:

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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Statewide NY

Victory for NY Landowners in Chesapeake Force Majeure Case
June 15, 2012June 15, 2012

In a major victory for New York landowners, Attorney General Eric Schniederman’s office reached a settlement with Chesapeake Energy to allow 4,400+ landowners with a collective 264,000 acres to renegotiate old gas drilling leases that Chesapeake was attempting to extend using the “force majeure” clause. MDN has followed this story for more than a year (see this MDN story from May 2011 for history and background).

As a brief background, a number of New York landowners—many of them in the Southern Tier area of New York—signed gas drilling leases in 2000 with small drilling companies. The leases had a 10-year term. Most of the landowners got $3 per acre as a signing bonus. Those leases, along with leases signed prior to 2000, were bought by Chesapeake in the mid-2000s. In 2009, Chesapeake sent letters to New York landowners invoking the force majeure clause, which is legalese for “we’re extending the contract term due to extenuating circumstances, which we believe is our right to do.” The extenuating circumstance? The moratorium on high volume hydraulic fracturing that was implemented by then-Gov. David Paterson in 2008.

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Energy Companies | Industrywide Issues | Litigation | New York | Norse Energy | Statewide NY

Norse Says NY Force Majeure Settlement Doesn’t Apply to Them
June 15, 2012June 15, 2012

MDN reported today that New York Attorney General Eric Schneiderman’s office struck a deal with Chesapeake Energy over the issue of extending landowner leases in New York using the “force majeure” clause in the contract (see this MDN story). Norse Energy issued a press release saying essentially that the deal does not apply to them, and their force majeure claims are still in place until overturned by a court.

Here’s the Norse press release:

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Bradford County | Energy Services | Industrywide Issues | Inergy | Litigation | Lycoming County | Pennsylvania | Pipelines | Sullivan County

Court Clears Way to Build MARC 1 Marcellus Pipeline in PA
June 13, 2012June 13, 2012

A federal appeals court has cleared the way for the construction of the MARC 1 Marcellus Shale pipeline to be built in northeastern Pennsylvania. The court released a decision yesterday rejecting claims by “environmental” groups to stop the pipeline. Part of their argument revolved around “the broader impacts” caused by natural gas drilling—that is, pipelines make more drilling likely and that’s not a good thing (according to them). The court rejected that argument.

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Brooke County | Chesapeake Energy | Energy Companies | Equinor/Statoil | Industrywide Issues | Lease & Royalty Payments | Litigation | Range Resources Corp | West Virginia

WV Couple Challenges Chesapeake Lease Renewal
June 13, 2012June 13, 2012

A husband and wife in Brooke County, West Virginia are suing to have their 5 year-old lease, which is now expired and up for renewal, nullified so Chesapeake (now the owner of the lease) cannot automatically renew it as they are attempting to do.

Increasingly landowners who signed leases that are now expiring after a customary 5 year period face the same issue—and drillers are trying to lock them in under the terms of lease for a new period of time.

Here’s the story of Ramon and Lois Bowen:

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Columbiana County | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Utica Shale

Columbiana County, OH Landowners Seek Minimum Royalty Law
June 8, 2012June 8, 2012

A few weeks ago MDN highlighted a story about a couple living in Columbiana County, Ohio who were due to get more than $375,000 in lease payments from Chesapeake Energy for their 65 acres of property, but the deal fell through when Chesapeake discovered the land under the property was already locked into a decades-old lease by Columbia Gas Transmission. The couple is suing to be released from that contract (see this MDN story).

We have word today that other landowners from the same area also affected by the Columbia lease are trying a different tact: Pass a state law imposing minimum royalties.

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Commonwealth Court Hears Arguments in Act 13 Lawsuit
June 7, 2012June 7, 2012

Arguments in the lawsuit brought by seven Pennsylvania townships and a handful of individuals against the state over newly passed drilling legislation known as Act 13 were heard in PA Commonwealth Court yesterday in Harrisburg. The towns are suing to overturn a portion of the Act 13 law which eliminates most of zoning rights of PA towns when it comes to zoning oil and gas drilling (see this MDN story for background).

So how did it go? Depends on who you ask.

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

City of Binghamton Gets Sued Over Fracking Ban
May 31, 2012May 31, 2012

Binghamton Mayor Matt Ryan’s folly, a symbolic ban on hydraulic fracturing within the city, has now come back to bite him in the rear end. His folly will cost Binghamton City taxpayers a lot of money as the city has now been sued over their illegal ban, passed at the eleventh hour last December before Ryan was about to lose a majority of support from the Binghamton City Council in January (voters tossing out some of the all-Democrat council members in the last election).

The Binghamton law firm Hinman, Howard & Kattell filed a lawsuit on Wednesday in state Supreme Court on behalf of five plaintiffs to overturn the Binghamton ban.

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Bradford County | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA

PA Court Overturns Lower Court on Zoning Compressor Plants
May 29, 2012May 29, 2012

A new ruling in Pennsylvania’s Commonwealth Court will have far-reaching implications for municipalities that try to apply zoning regulations to a select part of the drilling process, like compressor stations. Compressor stations are necessary to move gas along pipelines—from the well to a point where the gas can be processed and eventually sold. A three judge panel has just overturned a lower court’s decision on whether or not townships can regulate compressors separately from other drilling activities.

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Beaver County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania

O&G Countersues Landowners Claiming Lease Slander
May 14, 2012May 14, 2012

In late March, seven Beaver County, PA families (18 people) filed a lawsuit in Common Pleas Court accusing O&G Investments of Wooster, Ohio of not drilling on their land—and not paying them—for the past seven years. The leases were sold to Chesapeake Energy and at the eleventh hour, just before the leases were set to expire, Chesapeake attempted to initiate drilling to retain the leases, which prompted the lawsuit (see this MDN story for background). Late last week O&G countersued the families:

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Energy Services | Enterprise Products Partners | Industrywide Issues | Jefferson County (OH) | Litigation | Ohio | Pipelines

OH Judge Rules in Case on Ethane Pipeline Survey
May 14, 2012May 14, 2012

MDN highlighted a story last week in which Enterprise Products Partners, the company building a new ethane pipeline across Ohio, sued a farmer to gain access to his land in order to survey it to chart a route for the pipeline (see this MDN story). The farmer offered alternative routes to avoid prime hay fields but Enterprise turned him down. A common pleas court judge, on Friday, sided with…

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Act 13 Zoning Lawsuit Goes to Trial in June
May 10, 2012May 10, 2012

An update on the Act 13 lawsuit filed by seven Pennsylvania municipalities and the Delaware Riverkeeper Network at the end of March (see this MDN story). Act 13 is a set of new drilling rules and regulations adopted by the PA legislature and signed by Gov. Tom Corbett in February of this year. Part of the new regs included a statute that says state rules on zoning for oil and gas drilling supersede or override local zoning laws. The seven towns and Riverkeeper sued to stop that portion of the new law and Commonwealth Court Judge Keith Quigley granted a temporary, 120 day injunction (see this MDN story).

The case will now be heard by the full nine-member Commonwealth Court between June 4-8. That’s big news. But there’s even bigger news:

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

Pittsburgh Newspapers Sue to Unseal Drilling Court Case
May 9, 2012May 9, 2012

The Pittsburgh Post-Gazette and the Observer-Reporter of Washington, PA have sued to open sealed court documents in a case involving a Pennsylvania couple who previously were outspoken critics of the natural gas drilling industry and who made claims that drilling had contaminated their water supply. Last week, anti-drillers joined their cause and filed a brief in state Superior Court.

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