A Pennsylvania appeals court ruled this week that three siblings can proceed with a lawsuit alleging that Southwestern Energy Production Co. trespassed on their property by extracting natural gas from under their land by way of a hydraulic fracturing well on the adjacent property. The ruling matters "because it negates a legal principle in oil and gas law that allows companies to siphon natural resources from beneath land they do not own without compensating the landowner," Terrie Morgan-Besecker reports for the Scranton Times-Tribune.
Adam Briggs filed the lawsuit in 2015 over an 11-acre property in Harford Township he and his two siblings, Joshua and Sarah, own. Southwestern has operated two fracking wells since 2011 on the property adjacent to his, and Briggs says his family was never compensated for the gas.
A judge originally dismissed the lawsuit because of a legal principle called the 'rule of capture,' which "allows companies to drain a natural resource, including oil, gas or water, from beneath property they do not own as long as they do not trespass on the land," Morgan-Besecker reports. The principle behind the rule of capture is that it's impossible to determine who owns underground pools of gas or oil since it migrates between property lines. Based on the rule of capture, many appellate courts have ruled that companies can extract oil and gas from underground without having to compensate nearby property owners.
But the Briggs' attorney argued the rule of capture shouldn't apply to natural gas extracted through fracking because the gas in the Marcellus Shale doesn't freely migrate, and is only freed through fracking. The appeals court agreed, saying "Unlike oil and gas originating in a common reservoir, natural gas, when trapped in a shale formation, is nonmigratory in nature."
The case returns to Susquehanna County Court, but it's not known if Southwestern will appeal the decision. If it doesn't, the ruling would set a precedent that would impact similar disputes, Morgan-Besecker reports.
Adam Briggs filed the lawsuit in 2015 over an 11-acre property in Harford Township he and his two siblings, Joshua and Sarah, own. Southwestern has operated two fracking wells since 2011 on the property adjacent to his, and Briggs says his family was never compensated for the gas.
A judge originally dismissed the lawsuit because of a legal principle called the 'rule of capture,' which "allows companies to drain a natural resource, including oil, gas or water, from beneath property they do not own as long as they do not trespass on the land," Morgan-Besecker reports. The principle behind the rule of capture is that it's impossible to determine who owns underground pools of gas or oil since it migrates between property lines. Based on the rule of capture, many appellate courts have ruled that companies can extract oil and gas from underground without having to compensate nearby property owners.
But the Briggs' attorney argued the rule of capture shouldn't apply to natural gas extracted through fracking because the gas in the Marcellus Shale doesn't freely migrate, and is only freed through fracking. The appeals court agreed, saying "Unlike oil and gas originating in a common reservoir, natural gas, when trapped in a shale formation, is nonmigratory in nature."
The case returns to Susquehanna County Court, but it's not known if Southwestern will appeal the decision. If it doesn't, the ruling would set a precedent that would impact similar disputes, Morgan-Besecker reports.
from The Rural Blog https://ift.tt/2Jjv21I In landmark fracking ruling, Pennsylvania appeals court clears way for trespassing claims against gas companies - Entrepreneur Generations
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