Litigation

  • | | | |

    OH Supreme Court Rules Independent Landmen Need Real Estate License

    Sometimes the law, and justice, is mysterious to us. Last November we told you about an Ohio Supreme Court case with profound implications for both landmen and for the drillers who employ and use them (see OH Supreme Crt Considers Whether Landmen Need Real Estate License). The case, Dundics v. Eric Petroleum Corp., was appealed to the Ohio Supreme Court by Dundics who was not happy with the outcome in lower courts that ruled landmen must have a real estate license in order to get paid for their valuable services. Even more to the point, if you don’t have a real estate licence, the company hiring you (like Eric Petroleum) can decide to not pay you–and it’s OK! The Supremes ruled at the end of August to uphold that principle. That is, if a landman is compensated via a commission and/or royalties for the deals he or she brokers, that person needs to have a real estate license. And if they don’t have such a license, they are considered (under the law) to be committing fraud. (It is our understanding that if the landman is paid a “day rate,” that is, paid a flat rate by the day, or if the landman is an employee of the drilling company, someone whose compensation is not directly tied to the number and value of deals, that landman does not need a real estate license. Please verify that!) The Ohio Supremes decided, in essence, that when you accept a commission or are paid a percentage of each deal, you must have a real estate license. In the case of Dundics v. Eric Petroleum, Mr. Dundics was repeatedly assured (according to the court documents we read) by Eric Petroleum that he (Dundics) would be compensated according to an agreed-on formula. But Dundics didn’t have a real estate license, so Eric Petroleum abrogated the agreement–with the court’s blessing…
    Read More “OH Supreme Court Rules Independent Landmen Need Real Estate License”

  • | | | | |

    4th Circuit Again Blocks NPS Permit for Atlantic Coast Pipeline

    Last week we told you that the forces of good had overcome the forces of evil–evil being the Sierra Club and the Southern Environmental Law Center (SELC) and their mission to stop the Atlantic Coast Pipeline (ACP) from getting built (see Victory! FERC Lifts Stop Work Order for Atlantic Coast Pipeline). The Federal Energy Regulatory Commission stop-work order for ACP in early August came after the Fourth Circuit Court of Appeals pulled permits for approximately 100 miles of ACP, in response to a lawsuit filed by the Clubbers and SELC (see Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe). The Fourth Circuit overturned permits granted by the U.S. Fish and Wildlife Service (FWS) and the U.S. National Park Service (NPS), granted to ACP to cross the Blue Ridge Parkway. FWS and NPS reworked and reissued their permits, which is why FERC lifted the stop-work order. Predictably, SELC, on behalf of the Clubbers and a few other far-out leftist groups, filed an appeal with the Fourth Circuit to overturn the newly-reworked permits. The Fourth Circuit has just issued an order temporarily blocking the NPS permit (not the FWS permit), while they consider the new lawsuit. The NPS permit stops 21 miles of pipeline work. The radicals are demanding a new stop-work order from FERC for the entire project (we despise these loathsome people). Dominion isn’t budging–they will keep working everywhere else on the 600+ mile project. Hopefully FERC will not issue a new stop-work order for the entire project…
    Read More “4th Circuit Again Blocks NPS Permit for Atlantic Coast Pipeline”

  • | | | |

    Mountain Valley Pipeline Cost Goes Up $1.1B, Online by Late 2019

    The price tag to build the 303-mile Mountain Valley Pipeline is going up. When first announced, the project, which will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA, was originally estimated to cost $3.5 billion. That number was tweaked this summer to $3.7 billion. Now MVP (i.e. EQT Midstream) says it will cost a whopping $4.6 billion–more than a billion dollars higher than the original estimate. Why the big hike? Two things, says MVP: (1) A work stoppage imposed by the courts and by FERC (thank you Sierra Club), and (2) heavy rain. The rise in cost is due more the former rather than the later. It was only yesterday we ran a story about how much it costs, per mile, to build a major pipeline in the northeast (see How Much Does it Cost to Build a Pipeline in the Northeast?). The costs to build all northeast pipelines continue to rise because of frivolous lawsuits by groups like the Sierra Club (nasty organization). We told you yesterday that it’s costing MVP’s chief competitor, Dominion’s Atlantic Coast Pipeline, $8.5 million per mile to build. Doing the math with the new/higher cost, the 303-mile MVP project will cost $15.2 million per mile to build! Ouch. The one bit of good news coming from MVP is that they say the project is still on track to be built and flowing gas by the end of 2019…
    Read More “Mountain Valley Pipeline Cost Goes Up $1.1B, Online by Late 2019”

  • |

    Lawyers Make Out Like Bandits in PA O&G Overtime Case

    We have a lot of lawyer friends, and lot of loyal MDN readers are lawyers. With all due respect to our lawyer friends and readers, we are outraged at the amount of money awarded to the attorneys in a recent oil and gas case in PA. Let’s back up. This post is primarily a warning to drillers and their contractors to play it straight when it comes to classifying who is exempt from overtime and who is not. You know who’s really “hourly” and who isn’t, and if you screw that up, it will come back to bite you–in a major way. A group of oilfield service workers in western PA were, according to the workers, misclassified as exempt from overtime when working over 40 hours per week. They sued. The details are below, but the short version is that the eight employees who stuck it out until the bitter end won their case. Collectively they got just over $1 million in back wages and “damages.” However (and here’s our outrage), the lawyers got a “reasonable fee” of $2.3 million! Really? It’s “reasonable” that the lawyers got more than twice what the employees got?…
    Read More “Lawyers Make Out Like Bandits in PA O&G Overtime Case”

  • | | | | |

    3 PA Senators Seek to Join Lawsuit Against DRBC Frack Ban

    A bit of encouraging news to share with respect to a lawsuit against the Delaware River Basin Commission (DRBC) and their attempt to ban fracking and shale drilling in the basin. In May 2016, a landowner in Wayne County, PA filed a lawsuit against the DRBC asking a judge to declare that the DRBC does not have jurisdiction to prevent construction of a natural gas well (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). The Wayne landowner argued in U.S. District Court that oil and gas wells, under the DRBC’s charter, do not constitute a “project” that is regulated by the DRBC and therefore are exempt from oversight from the DRBC. The way the DRBC so broadly reinterprets the word “project” in the original charter, it allows them to regulate anything and everything. The case was eventually appealed to the U.S. District Court of Appeals for the Third Circuit. In July that court sent the case back down to U.S. District Court with orders to more fully consider what is, and what is not, meant by the word “project” in the original DRBC charter (see Major Federal Court Decision Opens Door to Stop DRBC Frack Ban). It was a MAJOR victory for the landowner, and a MAJOR defeat of the DRBC. No, the case isn’t over yet, but now the full case will get heard. The legal arguments in the case clearly support the landowner. The new news is that three prominent Pennsylvania State Senators, Lisa Baker, Gene Yaw and Senate President Pro Tempore Joe Scarnati, have all filed to join the lawsuit as “intervenors” on behalf of the Wayne landowner. They want to add their two cents, on behalf of the Commonwealth of PA, to influence the court to rule in favor of the landowner (overruling the DRBC). What’s noteworthy about this development is that long-time senators typically don’t make risky political moves. The senators are either confident that the landowner will win the case, or if he loses, that public sentiment is with the landowner (a political win). The senators’ participation has the DRBC even more nervous, as evidenced by statements from their mouthpiece THE Delaware Riverkeeper’s Maya van Rossum…
    Read More “3 PA Senators Seek to Join Lawsuit Against DRBC Frack Ban”

  • | | |

    XNG Virtual Pipe Facility in NH Hits Roadblock re Town Zoning

    NG Advantage, a pioneer in “virtual pipeline” trucked CNG service, tried to build a compressor station/trucking hub in a Binghamton, NY suburb, but that effort failed earlier this year due to local opposition (see NG Advantage Virtual Pipeline Project Near Binghamton is Dead). Let’s be honest. Nobody wants an endless stream of trucks driving through their neighborhood, especially a populated neighborhood. That was the issue in Fenton (and neighboring Hillcrest) where NG planned to build their facility. A similar situation has sprouted up in New Hampshire. Different company, XNG (Xpress Natural Gas), but similar in that a local town, Chesterfield, NH, is opposing a plan by XNG to locate a truck terminal in the town. The town zoning board refused to grant a special exemption for the “short-term-parking” terminal. XNG sued in county court and the judge ordered the zoning board to rehear the matter. The board issued a second rejection and the matter is back in court, which you can read about below. The point of our post is to tackle the “not-in-my-back-yard” (NIMBY) issue. These types of CNG/trucking facilities are still relatively new. They are needed and no doubt more will get built. And, these types of facilities face increasing NIMBYism. It’s a real concern. The philosophy of no pipelines, and now a philosophy of no natural gas deliveries via truck, is a societal issue we must deal with. Eliminating natural gas in a geography spells loss of companies and loss of jobs. It also spells super-high prices for electricity. Somehow, for the good of society, we must negotiate through these issues. Can reasonable people reach a reasonable compromise? Are there any reasonable people left?…
    Read More “XNG Virtual Pipe Facility in NH Hits Roadblock re Town Zoning”

  • | | | |

    Murray Energy Continues to Block Gas-Fired Plants in WV

    In July MDN said it’s time to reveal who is blocking new gas-fired electric plants in West Virginia (see OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants). WV has a long, proud history as a coal producer. According to West Virginia Coal Association, some 95% of the electricity produced and used in the Mountain State comes from coal-fired plants. However, natural gas burns cleaner than coal, and frankly, natgas is now cheaper than coal. Yet WV still has not permitted or allowed a single new gas-fired plant to be constructed. Last year then-WV Sec. of Commerce Woody Thrasher observed that Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, while WV has built NONE. Why not? Because of Robert Murray, CEO and founder of Murray Energy, one of the largest independent coal mine operators in the U.S. Bob Murray is using a front organization called Ohio Valley Jobs Alliance (OVJA) to file a blizzard of frivolous lawsuits that have kept all new gas-fired plant projects from being built in WV. Three such plants have been on the books, planned, for years. The first plant may begin construction this year (see WV Close to Starting Construction on First Natgas-Fired Plant). That is, it will start construction if the project sponsors can beat back yet another challenge by the Murray-backed OVJA to the issuance of an air permit. The thing that frosts us is that Murray Energy continues to deny that it is the one funding/behind OVJA…
    Read More “Murray Energy Continues to Block Gas-Fired Plants in WV”

  • | | | | |

    Antis File Lawsuit Against Reworked Atlantic Coast Pipe Permits

    Earlier this week we brought you the good news that the forces of good have overcome the forces of evil–evil being the Sierra Club and the Southern Environmental Law Center (SELC) and their mission to stop the Atlantic Coast Pipeline (ACP) from getting built (see Victory! FERC Lifts Stop Work Order for Atlantic Coast Pipeline). The FERC stop-work order came in early August after a federal court pulled permits for approximately 100 miles of ACP in response to a lawsuit filed by the anti-American Sierra Club and a few other groups, including the radical SELC (see Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe). The Clubbers and their cohorts convinced the Fourth Circuit Court of Appeals to overturn permits granted by the U.S. Fish and Wildlife Service (FWS) and the U.S. National Park Service (NPS), granted to ACP to cross the Blue Ridge Parkway. FWS and NPS have reworked and have now reissued their permits, which is why FERC lifted the stop-work order. Predictably, the SELC, on behalf of the Clubbers and a few other far-out leftist groups, has already filed an appeal with the Fourth Circuit to overturn the newly-reworked permits…
    Read More “Antis File Lawsuit Against Reworked Atlantic Coast Pipe Permits”

  • | | | | | |

    WV County Court Judge Orders MVP to Stop Work at River Crossing

    On again, off again, on again, off again. Mountain Valley Pipeline (MVP), EQT Midstream’s 303-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, has had its share of ups and downs. A myriad of lawsuits have been filed against the project. Wacky radicals took to sitting in trees and poles to try and stop it. Most of the illegal protests and lawsuits only served to slow down the project, not stop it. But then a lawsuit filed by the Sierra Club (and a few other colluding Big Green groups) yielded fruit in July when a federal court pulled permits for 3.5 miles of the pipeline where it runs through Jefferson National Forest (see Court Cancels Permits for Mountain Valley Pipe on Fed Land). Based on that court action, in early August the Federal Energy Regulatory Commission told MVP to stop work everywhere, on all 303 miles (see FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA). FERC’s stop-work order resulted in thousands of layoffs (thank you, jobs-destroying Sierra Club). A few weeks later, FERC reversed itself and allowed work to restart everywhere, except for the 3.5 miles in JNF (see FERC Lifts Mountain Valley Pipe Stop-Work Order, Rehiring). And now, here we go again. This time a county judge ordered MVP to stop work at the Greenbrier River. Yes, it’s just one isolated location and the stoppage is “temporary”–at least until the next hearing on Oct. 23. But given the way antis have leveraged such minor incidents in the past into larger work stoppages, we’re always weary when it happens. Here’s the latest in the MVP soap opera…
    Read More “WV County Court Judge Orders MVP to Stop Work at River Crossing”

  • | | | | |

    Lawsuits Begin re Columbia Gas Boston-area Pipe Explosions

    Last Thursday a major accident occurred 25 miles northwest of Boston when natgas delivery pipelines owned by Columbia Gas (NiSource) in three communities exploded and caught fire at more than 80 locations (see Local NatGas Pipes Explode Near Boston Killing 1, Injuring 25). The explosions and resulting fires tragically killed one teenager and injured some 25 others. Local officials ordered some 8,600 residents and businesses in the three communities to evacuate–until Sunday. A major incident. The ramifications of this situation will go on for years. Columbia Gas immediately pledged to replace all of the pipelines feeding homes and businesses in the three communities in the coming weeks and months. We expect it will be months before gas service is back online. In what is a worthy response (as well as good PR), Columbia yesterday pledged to donate $10 million to the the Greater Lawrence Disaster Relief Fund to assist families affected by the blast. Our immediate thought was, “While this is a welcomed first step, don’t for a minute think Columbia is getting off cheap. The lawsuits haven’t even begun. In the end, this episode will cost Columbia, at a minimum, hundreds of millions. Maybe over $1 billion. $10M is chump change.” And by golly, a few minutes later we spotted a story that the first class action lawsuit has just been filed. It’s the first of what likely will be many…
    Read More “Lawsuits Begin re Columbia Gas Boston-area Pipe Explosions”

  • | | | | |

    OH Supreme Court Rules Columbus Anti-Utica Ballot Measure Illegal

    The Ohio Supreme Court has ruled that yet another ballot measure backed by the Community Environmental Legal Defense Fund (CELDF) in Columbus, OH, a measure meant to ban fracking to send a “you’re not welcome” message to Utica drillers, is in fact illegal and will not appear on the November ballot. In July we told you about a group of anti-fossil fuel nutters, backed by CELDF, making a run at implementing an illegal frack ban in Columbus, OH (see CELDF Finds New Group of Suckers in Columbus for Utica Frack Ban). Columbus, with a population of 2,078,725 people, found 12,134 suckers (1/2 of 1% of the population) to sign a petition to get a so-called Community Bill of Rights measure on the ballot in November. As we previously pointed out, this initiative is illegal. State law specifically reserves the right to regulate oil and gas activity at the state level–local towns, cities, etc. don’t have the staff or expertise to regulate such activities. The Franklin County Board of Elections wisely refused to put the measure on the November ballot, prompting a lawsuit that went all the way to the state Supreme Court. Last week the Ohio Supremes concurred with the Board of Elections, saying they were right to block the anti-Utica measure from the ballot…
    Read More “OH Supreme Court Rules Columbus Anti-Utica Ballot Measure Illegal”

  • | | | | |

    EdgeMarc Energy Sued for Failing to Pay Overtime – Class Action

    Last Wednesday a single person employed by EdgeMarc Energy in Ohio filed a lawsuit against the company in federal court claiming he was “misclassified” as an independent contractor when in reality he was functioning as a full-blown employee. Why does it make a difference? Because independent contractors (1099s) are paid a straight, per-hour rate no matter how many hours they work, whereas employees must, under federal (and state) law, be paid overtime for any hours worked over 40. The worker alleges the company intentionally uses independent contractor status to wiggle out of paying overtime, and that he’s not the only one. Normally one disgruntled employee suing an employer is not newsworthy–but in this case the law firm is attempting to get the lawsuit certified as a class action, potentially covering hundreds of workers. And that IS a big deal…
    Read More “EdgeMarc Energy Sued for Failing to Pay Overtime – Class Action”

  • | | | | |

    Antis Convince Libertarian Group to Oppose Mountain Valley Pipe

    We have to confess we have a lot in common, philosophically, with Libertarians. We like the philosophy of live and let live–as long as what you do (or what I do) doesn’t hurt the other person, nobody has a right to stop you (or me) from doing it. But the Libertarian philosophy does have its quirks–things we don’t agree with. Sometimes wacky. Like support for legalizing pot smoking. Can you imagine a bunch of potheads driving down our roads? We don’t care if they want to stone themselves into oblivion in the privacy of their own homes–but we do have public safety concerns. A fine line/balance between the public good and private freedom. Here’s another case of public good vs. private freedom: pipelines. We’ve always had a tough time with the use of eminent domain for pipelines. But in the end, the greater public good is served by running pipelines, and if there’s one or two landowners here and there who refuse to deal, eminent domain is regrettably, sometimes necessary. As a last resort. The Niskanen Center, a “right-leaning” Libertarian think tank, has just entered the pipeline debate by filing a “friend of the court” brief with U.S. Court of Appeals for the District of Columbia Circuit, siding with radical anti-fossil fuelers against the Mountain Valley Pipeline. The Niskanen Center is understandably concerned about landowners’ property rights being infringed. Unfortunately, they’ve allowed themselves to be used by antis, people whose political philosophy is closer to Mao Tse Tung (Communist) than it is to freedom for everyone. How could the Niskanen Center be so easily duped? We think we know. They believe in the fairy tale of man-made global warming, which appears to color their view of freedom. If they can fall for that one, they’ll fall for anything…
    Read More “Antis Convince Libertarian Group to Oppose Mountain Valley Pipe”

  • | |

    Court Dismisses Claim New England Utilities Manipulated Gas Mkt

    The U.S. District Court for the District of Massachusetts has, finally, dismissed a sham lawsuit against Eversource Energy and Avangrid Inc. Last October the radical Environmental Defense Fund (EDF) published a “report” that makes the preposterous claim that New England customers have overpaid utility bills by $3.6 billion due to collusion between the natural gas and electricity industries (see EDF Accuses New England Gas Utilities of $3.6B Market Manipulation). The report said New England utility companies Eversource and Avangrid intentionally manipulated the flow of gas along the Algonquin natural gas pipeline by placing and later withdrawing orders, in order to spike the cost of gas which then spiked the cost of electricity generated by the resulting higher cost of gas. It is a totally made-up, false report. A group of ambulance-chasing lawyers found enough people to sign up to launch a class action lawsuit against Eversource and Avangrid for market manipulation (see New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline). In February, the Federal Energy Regulatory Commission weighed in and told EDF its so-called study is “flawed” and there is “no evidence” of capacity withholding by Eversource and Avangrid (see FERC Dismisses EDF Claim New England Utilities Manipulated Gas Mkt). And now the courts have done the same, dismissing the lawsuit, saying the litigants had “not stated a cognizable antitrust claim”…
    Read More “Court Dismisses Claim New England Utilities Manipulated Gas Mkt”

  • | | | | | | |

    PA Court Upholds $1.1M Fine on EQT re Wastewater Impoundment

    Yesterday Pennsylvania’s Commonwealth Court upheld a PA Dept. of Environmental Protection (DEP) fine levied on EQT for $1.1 million related to a leaky wastewater impoundment in 2012. The case dates back to 2014 when the PA Dept. of Environmental Protection (DEP) slapped EQT with a $4.53 million fine for a leaky wastewater impoundment in Tioga County, something that happened two years earlier (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). EQT never said there wasn’t a problem with leaks at the site, but they did say the way the DEP calculated the fine was unreasonable and arbitrary. EQT appealed the fine and the case all the way to the PA Supreme Court, and in April of this year, the Supremes ruled in favor of EQT, saying that the DEP’s levied fine was excessive and that the DEP misinterpreted language in the 1937 Clean Streams Law (see PA Supreme Court Axes DEP $4.5M Fine in EQT Tioga Wastewater Leak). We thought that was the end of the case. But it wasn’t. The Supremes ruled on “water to water” contamination in the case, but not on “ground to water” contamination. PA law allows for companies to be on the hook for each day a contaminant enters the water table. In May the court heard oral arguments over how to prove whether contaminants in the soil have moved into groundwater (see EQT Continues to Fight PA DEP Fine re Wastewater Impoundment). What lawyers argued was whether or not, and how, the DEP can prove contaminants in the ground, there because of EQT’s leak, can be proven to have leached into the water on any given day. DEP claimed to have a formula and calculated a revised $1.1 million fine based on assumptions about how many days the contaminants leaked out of the ground. Yesterday, Commonwealth Court agreed with DEP and upheld the fine…
    Read More “PA Court Upholds $1.1M Fine on EQT re Wastewater Impoundment”

  • | | | | | | |

    Lancaster Nuns Appeal Atlantic Sunrise Pipe Case to US Supreme Court

    The Sisters of the Corn (our name for the a group of nuns in Lancaster County, PA) are not giving up their wildly hypocritical lawsuit against Williams for building the Atlantic Sunrise Pipeline across their property. The good sisters are asking the U.S. Supreme Court to hear the case, claiming infringement of religious freedom. The nuns use natural gas to heat an old folks home they operate, yet are trying to block the Atlantic Sunrise Pipeline from traversing that very same property. We don’t know how they justify using natural gas yet actively try to block a pipeline that delivers it. The nuns, with the help of local anti group Lancaster Against Pipelines, stuck a garden trellis and a few wooden park benches in the middle of a corn field owned by the nuns (leased to a local farmer) directly in the path of the pipeline, declaring the site a “chapel.” Hence our attempt at humor, calling them “Sisters of the Corn.” The sisters then sued to block the pipeline based on religious grounds (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). It was a flimflam lawsuit from the beginning and the courts saw through it. The case was thrown out by a lower court, and appealed to the U.S. Court of Appeals for the Third District. In July, the Third District tossed the case too (see Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe). The only legal option left to the sisters is to pray for a miracle–that the U.S. Supreme Court will hear the case, and find in their favor…
    Read More “Lancaster Nuns Appeal Atlantic Sunrise Pipe Case to US Supreme Court”