In November 2009, a group of 44 plaintiffs, including the Ely family, filed suit against Cabot Oil & Gas Corp. for personal injuries and property damages that allegedly resulted from Cabot’s hydraulic fracturing operations in Dimock Township, Susquehanna County, Pennsylvania. The case is pending in the Middle District of Pennslyvania, captioned as Ely et al. v. Cabot Oil & Gas Corp., et al., Dkt. No. 3:09-cv-2284 (M.D. Pa.) (J. Carlson). After a number of parties settled out of the lawsuit, Cabot filed a motion for summary judgment on the Elys’ claims for breach of contract and lost royalties on an oil and gas lease, fraudulent inducement, negligence and negligence per se, medical monitoring, and violations of the Pennsylvania Hazardous Sites Cleanup Act (“HSCA”).   On Monday, nearly all of the Elys’ claims were dismissed. Read More »

Share | Email| Comments|  Topics: Breach of Contract, Contamination, Cost Recovery, Dimock, Drilling, Exploration, Leases, Medical Monitoring, Natural Gas, Negligence, Nuisance, Oil and Gas, Pennsylvania, Real Estate, Residential, Toxic Torts, Trespass

Landowners who find themselves in the path of an oil or gas pipeline quickly learn that their rights are limited, and that a pipeline company granted a Federal Energy Regulatory Commission (FERC) Certificate of Public Convenience and Necessity hold most of the cards.  Thus, the recent decision in Alliance Pipeline, L.P. v. 4,360 Acres of Land, No. 13-1003 (8^th Cir. Mar. 24, 2014), which in a mere 10 pages washed aside the landowners challenges Alliance Pipeline’s condemnation action, comes as no surprise.    Read More »

Share | Email| Comments|  Topics: Condemnation, Drilling, Eighth Circuit, Federal Energy Regulatory Commission, Federal Procedure, Natural Gas Act, Oil and Gas, Preemption, Real Estate, Takings

In a precedential decision issued by the Third Circuit Court of Appeals in the case of Vodenichar v. Halcon Energy Properties, Inc., No. 13-2812 (Aug. 16, 2013), the Court addressed the two exceptions to the Class Action Fairness Act that permits remand to state courts of class action complaints over which the federal courts would otherwise have jurisdiction.  First, the Court provided guidance as to the interpretation of the term “primary defendants” for the purposes of 28 U.S.C. § 1332(d)(4)(B) and, second, held that the “other class action” language of 28 U.S.C. § 1332(d)(4)(A) was not intended to encompass prior actions between the same parties where the procedural history indicates that the second suit was merely a continuation of the prior suit. Read More »

Share | Email| Comments|  Topics: Breach of Contract, CAFA, Class Actions, Drilling, Exploration, Federal Procedure, Leases, Oil and Gas, Pennsylvania, Real Estate, Royalties, Subject Matter Jurisdiction, Third Circuit

In May, we reported on the case of Strudley v. Antero Resources Corp., No. 2011 CV 2218 (Denver Co. Dist. Court  May 9, 2012), in which a state trial court issued a Lone Pine order requiring the plaintiffs to show, prior to the initiation of discovery, that there was a prima facie basis for associating their personal injury claims with the defendants’ hydraulic fracturing activities.  The court subsequently dismissed the case when the plaintiffs failed, in the court's view, to meet this initial burden.  The dismissal was appealed and in Strudley v. Antero Resources Corp., Court of Appeals No. 12CA1251 (Co. Ct. Appeals, 1st Div., July 3, 2013), reversed.   Read More »

Share | Email| Comments|  Topics: Case Update, Causation, Contamination, Discovery, Drilling, Due Process, Marcellus Shale, Natural Gas, Oil and Gas, Procedure, Real Estate, Toxic Torts

In September of 2011, we first posted about the case of Butler v. Estate of Powers in which the Pennsylvania Supreme Court reversed a Pennsylvania trial court decision holding that, under long-standing precedent, any grant of mineral rights that did not expressly include natural gas similarly did not include shale gas.  The Superior Court disagreed, relying on United States Steel Corp. v. Hoge, 468 A.2d 1380 (Pa. 1983)(Hoge II) which held that the party with the rights to coal also had rights to the coalbed gas contained in the coal.  Instead, the Superior Court remanded the case to the trial court for an evidentiary hearing on, in essence, whether shale gas is similar to coalbed gas and should be treated that way.  At the time we first discussed theButler case, we concluded: Read More »

Share | Email| Comments|  Topics: Case Update, Decisions of Note, Deeds, Drilling, Marcellus Shale, Mineral Rights, Oil and Gas, Pennsylvania, Real Estate, Uncategorized

As a result of increasing development of natural gas drilling, pipelines are popping up everywhere.  And with them has come a mound of litigation.  In a February 5, 2013 decision, the United States District Court for the Middle District of Pennsylvania has ruled, as a matter of first impression, that permits issued by a state agency (in this case, the Pennsylvania Department of Environmental Protection (“PADEP”)) under the federal Clean Water Act (the “CWA”) may be challenged only in federal court, and not in a state adjudicatory proceeding. Read More »

Share | Email| Comments|  Topics: Cases to Watch, Clean Water Act, Drilling, Due Process, Federal Energy Regulatory Commission, Federal Procedure, Marcellus Shale, Natural Gas Act, Oil and Gas, Pennsylvania, Pennsylvania Department of Environmental Protection, Permits, Procedure

Although they’ve been around forever, oil and gas leases continue to provide fodder for the courts, as we’ve discussed before, especially in light of the boom (or temporary bust, as some might argue) of shale gas drilling.  And it is exactly that boom (or bust) that brings us the decision in Beardslee v. Inflection Energy, LLC, No. 3:12-CV-00252 (N.D.N.Y. Nov. 15, 2012). Read More »

Share | Email| Comments|  Topics: Drilling, Leases, Marcellus Shale, Mineral Rights, Oil and Gas, Real Estate, Royalties

Some may be surprised to learn that the storage and production of natural gas do not always complement one another.  A conflict can occur when one gas company stores its gas by injecting it back into the ground, typically into a depleted gas field.  So long as gas pressure can be maintained underground, the depleted field provides a natural reservoir for storing gas.  If areas of low pressure are created near the storage area, the stored gas tends to migrate toward these areas. The drilling for and extraction of natural gas can create such low pressure zones.  Effectively, production activities near an underground storage area suck the gas away from where it is being stored. Read More »

Share | Email| Comments|  Topics: Drilling, Exploration, Marcellus Shale, Natural Gas, Nuisance, Oil and Gas, Storage

On Tuesday, in Citizens for Pennsylvania’s Future v. Ultra Resources, Inc., No. 4:11-CV-1360 (M.D.PA. Sept. 24, 2012) — a case watched closely by natural gas stakeholders in Pennsylvania — Judge Mariani of the U.S. District Court for the Middle District of Pennsylvania refused to dismiss a citizen suit brought by an environmental group challenging the validity of state air permits issued to the operator of a series of natural gas compressor stations, potentially opening the door for similar Federal court challenges to air permits previously issued by state regulators in Pennsylvania and elsewhere.  Approximately three years ago, the Pennsylvania Department of Environmental Protection (“PADEP”) issued separate authorizations for Ultra Resources, Inc. (“Ultra”) to construct seven compressor stations pursuant to a state general permit generally known as “GP-5.”  In issuing these authorizations, PADEP considered each of the compressor stations as a separate “facility.” If PADEP had considered the compressor stations to be a single “major” facility, then Ultra would have been required to obtain a more stringent non-attainment new source review (“NNSR”) permit before commencing construction. Read More »

Share | Email| Comments|  Topics: Air, Cases to Watch, Clean Air Act, Drilling, Emissions, Federal Procedure, Marcellus Shale, Oil and Gas, Pennsylvania, Permits

The Delaware River Basin Commission (“DRBC”) was created with the approval of Congress in 1961 through the Delaware River Basin Compact, an agreement between the New York, Pennsylvania, New Jersey, Delaware, and the federal government for planning, conservation, utilization, development, management and control of the water resources of the Delaware River Basin (the “Basin”).  In June, 2010, the DRBC placed  a moratorium on natural gas development in the Basin, which includes areas within the Marcellus Shale formation, pending the adoption of regulations governing such development.  Draft regulations were published for comment in 2010, and revised draft regulations were published in November, 2011.  However, they have not yet been adopted by the DRBC, leaving the moratorium in place. Read More »

Share | Email| Comments|  Topics: Cases to Watch, Decisions of Note, Drilling, Exploration, Marcellus Shale, NEPA, Oil and Gas, Standing