Litigation

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

Chesapeake Threatens NY with Lawsuit on State Land Leases
August 8, 2011August 8, 2011

The New York Department of Environmental Conservation (DEC) leased 19,000 acres of state forestland to Chesapeake Energy and Fortuna Energy (now Talisman Energy) in 2006 to allow gas drilling. The deal provided state coffers with $9 million and the promise of 12.5 percent royalties on any gas produced. Those leases are due to expire Nov. 15 of this year, but Chesapeake has let the DEC know it believes the leases for its share (15,472 acres) should be extended, a legal phrase called force majeure, because of the moratorium that has been in place since 2008 on hydraulically fractured gas drilling. In a letter to the DEC, Chesapeake implied they will sue the state to extend the lease agreements if the state does not willingly agree to an extension.

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Industrywide Issues | Litigation | New York | Statewide NY

New Lawsuit Filed in NY Federal Court Attempts to Delay/Prevent Gas Drilling in the Delaware River Basin
August 5, 2011August 5, 2011

Those opposed to Marcellus drilling in New York and Pennsylvania continue to use the court system in an attempt to either delay or outright ban drilling. The latest instance came just yesterday with a lawsuit filed in federal court in New York:

Read More “New Lawsuit Filed in NY Federal Court Attempts to Delay/Prevent Gas Drilling in the Delaware River Basin”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Statewide NY

Federal Government Asks Judge to Dismiss NY Attorney General’s Fracking Lawsuit
August 3, 2011August 3, 2011

On May 31 of this year, NY Attorney General Eric T. Schneiderman filed a lawsuit in federal court seeking to force the federal government “to commit to a full environmental review of proposed regulations that would allow natural gas drilling – including the potentially harmful "fracking" technique – in the Delaware River Basin” (see MDN’s initial coverage here). That is, AG Schneiderman is attempting to use the court system to delay, and if possible prevent, Marcellus Shale drilling in New York by forcing the federal government to launch a multi-year review of hydraulic fracturing in the Delaware River Basin. He bases his lawsuit on the foundation that the Delaware River Basin Commission, a quasi-governmental body, is about to allow drilling in the areas it oversees, including sensitive New York City watershed areas.

According to the federal government, AG Schneiderman does not have a legal foot to stand on with his lawsuit:

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Chief Oil & Gas | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Sullivan County

Some Drillers Using Questionable Tactics to Hold Land Under Lease Beyond Original Term
July 25, 2011July 25, 2011

A number of landowners in Pennsylvania signed gas leases with energy companies more than five years ago for very low amounts—$2 per acre in some cases—as a signing bonus. Landowners, realizing that a contract is a contract, waited patiently for the expiration of the lease—typically five years. But then, at the last possible moment, sometimes just hours before the lease is due to expire, the energy company would clear a few trees or park a bulldozer on the land in order to comply with the terms of lease, thereby extending the lease indefinitely because they had “made an effort” to start drilling.

Case in point: Dave and Karen Beinlich. They signed a lease for $2 an acre, for a grand total of $234 signing bonus on their 117 acre farm.

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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Potter County | Tioga County (PA) | Ultra Petroleum

Anti-Drilling Group PennFuture Sues Ultra Resources Claiming Air Pollution from Gas Wells, Compressor Stations and Pipelines
July 22, 2011July 21, 2011

Anti-drilling group PennFuture is suing driller Ultra Resources claiming they are causing air pollution from almost all of their operations. A copy of the lawsuit filed in U.S. District Court for the Middle District of Pennsylvania is embedded below.

Read More “Anti-Drilling Group PennFuture Sues Ultra Resources Claiming Air Pollution from Gas Wells, Compressor Stations and Pipelines”
Allegheny County | Industrywide Issues | Litigation | Pennsylvania | Wastewater

PA Environmentalist Groups Try to Make a Federal Case Against McKeesport Sewage Treatment Plant over Marcellus Wastewater
July 20, 2011July 20, 2011

Two activist environmental organizations, Clean Water Action and Three Rivers Waterkeeper, are attempting to make a federal case against the McKeesport (Allegheny County) municipal sewage treatment plant that in the past has accepted hydraulic fracturing wastewater because the plant won’t categorically commit to never accepting fracking wastewater again. Here’s the very confusing setup from the Pittsburgh Post-Gazette:

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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Rex Energy | Westmoreland County

Landowners in Westmoreland County, PA Reach Settlement with Rex Energy for Contract Breach & Non-Payment
July 19, 2011July 19, 2011

A group of 230 landowners in Westmoreland County, PA have settled a longstanding dispute with Marcellus drilling company Rex Energy. Landowners say they were approached by Rex representatives in 2007 and 2008 to sign leases, and they did sign, but then never received the promised payments. Lawyers charged that Rex was signing as many people as possible in a bid to make it look as though they controlled a significant amount of land in the area to impress investors. Rex claims they never countersigned some leases and therefore did not owe money for those leases.

After two years of litigation, an out-of-court settlement has finally been reached.

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Monongalia County | Northeast Natural Energy | Regulation | West Virginia

Drilling Company Sues Morgantown, WV for $42 Million in Lost Investment & Lost Future Revenue
July 8, 2011July 8, 2011

Another chapter in the ongoing saga of Morgantown, WV. For those who have not followed the story, Morgantown city council members took it upon themselves to ban hydraulic fracturing outside of the city limits—up to one mile—which they say is allowable under a West Virginia law that grants cities the right to exceed their boundaries in certain circumstances. The council members are concerned that two Marcellus gas wells that will be hydraulically fractured are too close to the city’s water supply and the risks are too great.

The drilling company, Northeast Energy, says the state DEP issued permits for those two wells and that Northeast has worked with the city every step of the way to ensure there will be no problems, and that the city at the last minute changed their tune. Northeast has sued to overturn Morgantown’s ban, and if that doesn’t work, they want compensation not only for their lost investment, but also for potential lost revenue.

Read More “Drilling Company Sues Morgantown, WV for $42 Million in Lost Investment & Lost Future Revenue”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA DEP Settles Lawsuit by Chesapeake Bay Foundation – Slows Down Drilling Permit Process in Some Areas
July 8, 2011July 8, 2011

The permitting process for some (many?) Marcellus Shale gas wells in Pennsylvania will take longer than it previously did because of a lawsuit brought by the Chesapeake Bay Foundation against the PA Department of Environmental Protection (DEP). The DEP has just settled the lawsuit agreeing to more stringent guidelines for granting drilling permits near “pristine” mountain streams.

Read More “PA DEP Settles Lawsuit by Chesapeake Bay Foundation – Slows Down Drilling Permit Process in Some Areas”
Hydraulic Fracturing | Industrywide Issues | Litigation | Marion County | Statewide WV | West Virginia

WV Marcellus Legal Battle over Well Pads: Surface Rights Owners v. Mineral Rights Owners
July 5, 2011July 5, 2011

In West Virginia, mineral rights are more complex than in other states because those rights in many (perhaps most) cases were separated from the land above it long ago due to coal mining. It is a situation that sometimes pits the rights of the surface owners of the land against the rights of those who own the mineral rights below the land. Mineral rights owners have a right to access the surface in order to extract the coal, oil or gas beneath.

But in the case of horizontal hydraulic fracturing, do mineral rights owners have the right to to set up a multi-acre well pad on the surface to extract natural gas from neighboring properties? An interesting legal question that is being played out in Marion County, WV now.

Read More “WV Marcellus Legal Battle over Well Pads: Surface Rights Owners v. Mineral Rights Owners”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Monongalia County | Northeast Natural Energy | Regulation | West Virginia

Driller Sues Morgantown, WV Over Fracking Ban, Monongalia County Considers Suing the City Too
June 30, 2011June 30, 2011

As MDN previously observed and predicted, the city of Morgantown, WV is now in court over the vote by city council members to ban Marcellus drilling both inside and outside of its borders—up to one mile outside.

Read More “Driller Sues Morgantown, WV Over Fracking Ban, Monongalia County Considers Suing the City Too”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Attorney General Sues the Federal Government Over Fracking
June 1, 2011June 1, 2011

In an attempt to stop Marcellus Shale drilling in New York by using the court system, NY Attorney General Eric T. Schneiderman announced on Tuesday that he is suing the federal government “to commit to a full environmental review of proposed regulations that would allow natural gas drilling – including the potentially harmful "fracking" technique – in the Delaware River Basin.” AG Schneiderman made his initial threat last month (see MDN’s coverage here). The AG’s announcement seems timed to coincide with a hearing set for today by the Delaware River Basin Commission to consider an application to withdraw water for drilling purposes.

The press statement from the AG’s office (full text below) contains unsubstantiated allegations that fracking poses risks and threats to the environment—the same recitation of inaccurate claims we’ve heard time and again from those who seek an outright ban on gas drilling. It also presumes it is the federal government’s role to regulate drilling—which under current law, it is not. Those who oppose drilling seek to regulate it using the “back door” of the Safe Drinking Water Act (SDWA), the National Environmental Policy Act (NEPA) and other federal laws. This lawsuit seeks to push a federal takeover of drilling by regulating and controlling it at the federal level.

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Dominion Energy | Energy Services | Industrywide Issues | Litigation | Preston County | West Virginia

Dominion Transmission Sued in WV Over 56 Year-Old Lease – Landowners Want Marcellus Drilling to Begin
May 27, 2011May 27, 2011

Dominion Transmission, the pipeline transport subsidiary of energy giant Dominion, is being sued over a lease deal in Preston County, West Virginia signed in 1955. Dominion drilled a single well in 1959 which let it retain rights to develop more wells in the future in perpetuity. According to the lawsuit, Dominion assigned the lease rights to its subsidiary Dominion Transmission with plans to someday use the geological formations of the land as a natural gas storage field. Such activity would yield no royalties for the landowners who want to nullify the lease and find someone who will actually drill gas wells on the property, specifically tapping the Marcellus Shale.

Read More “Dominion Transmission Sued in WV Over 56 Year-Old Lease – Landowners Want Marcellus Drilling to Begin”
Broome County | Chesapeake Energy | Energy Companies | Equinor/Statoil | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Tioga County (NY)

NY Landowners Sue Chesapeake & Statoilhydro Over Force Majeure Lease Extension
May 4, 2011May 4, 2011

A number of landowners in New York’s Southern Tier region (Broome and Tioga Counties) signed leases with gas companies in 2000 for peanuts, $3 per acre, long before shale gas drilling was discovered and used. The technologies of hydraulic fracturing and horizontal drilling have been around for decades, but it wasn’t until 2006 that the two were combined to tap shale gas.

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Industrywide Issues | Litigation

Personal Injury Lawyers Have Arrived at Your Local Marcellus Gas Well
April 7, 2011April 7, 2011

You knew it was only a matter of time. Whenever a new industry like Marcellus Shale gas drilling seeks to get established, along come the personal injury and class action lawyers to ensure everyone pays more money defending frivolous lawsuits. Personal injury lawyers in Pennsylvania and other Marcellus states are already salivating.

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