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Oil and Gas Update

Litigation

California Plaintiffs Seek to Address Climate Change Via State Tort Suits

On July 17, 2017, the governments of California’s Marin and San Meteo counties, as well as the city of Imperial Beach, filed three separate complaints in California Superior Court in their respective counties against 37 oil, gas, and coal companies. We have previously written about similar suits filed by citizen groups, states, and cities in federal court here.

Although most of these suits…

Pennsylvania Court Rules that DEP Applied Wrong Standard in Requiring Compressor Station and Natural Gas Well Pad to Aggregate Air Emissions for Permitting Purposes

In a decision issued on June 2, 2017, a Pennsylvania court disagreed with the conclusions of the Department of Environmental Protection (DEP) and the Environmental Hearing Board (EHB) that a compressor station and natural gas well pad owned and operated by two separate business entities should be considered a single source of air emissions regulated by a single air permit simply because they…

South Carolina Federal Court Upholds Distinction Between Point Source and Non-Point Source Pollution

On April 20, 2017, a South Carolina federal district court dismissed an environmental group’s Clean Water Act (“CWA”) citizen suit against Plantation Pipe Line Company, Inc. (“PPL”) and its parent company, Kinder Morgan Energy Partner, L.P., which own a 3,100 mile petroleum pipeline.  The pipeline leaked 369,000 gallons in December 2014.  The leak was repaired within a few…

Ohio Supreme Court to Hear Appeal on Expansion of Implied Covenants

Ohio Supreme Court to hear case seeking to expand the implied covenant to reasonably develop to include the obligation to explore deeper formations in Alford v. Collins-McGregor Operating Company, Washington App. No. 16CA9, 2016-Ohio-5082.

In this case, the plaintiff landowners sought a declaration of partial forfeiture of their leases, as to all depths below the Gordon Sand Formation, on the…

Federal court in Pennsylvania Invalidates Township Ordinance Prohibiting Oil and Gas Waste Disposal

By opinion of March 31, 2017, the U.S. District Court for the Western District of Pennsylvania invalidated an ordinance adopted by Pennsylvania’s Grant Township.  The Township’s “Community Bill of Rights Ordinance” prohibited corporations from “engaging in the depositing of waste from oil and gas extraction” and invalidated any “permit, license, privilege, charter or other authority issued…

New Jersey Town Claims it Was HooDooed by Pipeline Company

Chesterfield Township, New Jersey has sued Transcontinental Gas Pipeline Company (Transco) for fraud. The Township claims that it sold a parcel of property to Transco for the construction of a compressor station, believing it would simply be used to service an existing transmission line running along the New Jersey Turnpike.  After selling the property, however, the Township learned that…

Little Known Agency Assumes New Enforcement Powers

A little known federal agency in charge of pipeline safety has just issued a new regulation that represents a major change in its enforcement authority over regulated pipelines. The Pipeline and Hazardous Materials Safety Administration (PHMSA), an independent agency within the U.S. Department of Transportation, has announced an “Interim Final Rule” (IFR) on its website which will authorize it to…

The Supreme Court of Ohio Issues Ohio Dormant Mineral Act Opinions

On September 15, 2016 the Supreme Court of Ohio issued a decision resolving key issues involving the application of Ohio’s Dormant Mineral Act, R.C. § 5301.56. The Dormant Mineral Act was first enacted in 1989 to facilitate the termination of dormant mineral interests, but was amended in 2006 to require notice to the holder of a severed mineral interest and the recording of certain instruments…

Sierra Club Expands War on Gas in Challenge to Air Permit for Gas Plant: Claims Emissions from Gas Supply Pipeline and Associated Compression Should be Included in Analyses

The Sierra Club and its acolytes have openly derided those who advocate using gas as a “bridge fuel.” Now, the group seeks to slow the construction of both a new gas-fired power plant in Virginia and the Atlantic Coast Pipeline slated to provide fuel to the Plant.  The Appalachian Mountain Advocates (“Appalmad”), who serve frequently as counsel to the Sierra Club, have bragged…

There is an Implied Right to Pool an Oil and Gas Lease

In a case of first impression in West Virginia, on April 15, 2016, Judge David W. Hummel, Chief Judge of the 2nd Judicial Circuit (Marshall, Wetzel and Tyler Counties, West Virginia), entered an order ruling that there is an implied right to pool an oil and gas lease. The case, American Energy – Marcellus, LLC v. Poling, et al., Civil Action No. 15-C-34 H, involved an 1894 lease held by…

Sierra Club Sues Gas Industry Claiming Waste Injection is Causing Earthquakes in Oklahoma and Kansas

The Sierra Club has sued Chesapeake Energy, Devon Energy and New Dominion in federal court in Oklahoma. The complaint alleges that waste injection by all three companies has contributed to an increase in the number and severity of earthquakes throughout Oklahoma and southern Kansas.  Specifically, it claims that the number of earthquakes in Oklahoma has increased more than 300 fold, from a…

Fayette County, WV Ordinance Banning Oil & Gas Waste Disposal Met with Preemptive Challenge By Gas Industry

Fayette County, West Virginia is home to the New River Gorge. It is also home to the newest local ordinance affecting the oil and gas industry. On January 12, 2016, the County adopted an “Ordinance Banning the Storage, Disposal or Use of Oil and Natural Gas Waste in Fayette County, West Virginia.” Just days later, EQT Production Company sued the County Commissioners in federal court…

 

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