West Virginia: Non-profit groups file federal lawsuit against Chesapeake for allegedly taking gas without lease
Wednesday, May 13, 2015
Several West Virginia non-profit groups filed a lawsuit against Chesapeake Energy May 1, claiming that the oil and gas company took natural gas without a lease. According to The Intelligencer / Wheeling News-Register, the groups believe that Chesapeake Appalachia, the local operating unit, committed fraud and trespassing.
The newspaper reports that The Parks System Trust Fund of Wheeling, Ohio Valley Medical Center, Elmhurst House of Friendship, Vance Memorial Presbyterian Church, the Children’s Home of Wheeling and the YWCA filed the lawsuit. These organizations hold ownership interest in 224 acres in Ohio County.
West Virginia Department of Environmental Protection documents show that Chesapeake pooled 27 leases together for one drilling pad. The plaintiffs in the lawsuit believe that Chesapeake drew from under their acreage into other drilling units without leasing the property. In 2014, Chesapeake sold its operations in West Virginia to Southwestern Energy Co. for $5 billion. According to a Southwestern spokeswoman, Chesapeake is liable for actions before the transaction was complete.
Via: The Intelligencer / Wheeling News-Register > Non-Profit Groups Claim Chesapeake Energy Took Gas Without Leases
Other recent Chesapeake news:
- American Energy settles with Chesapeake April 15, 2015
- Chesapeake backs off, 2015 drilling numbers lowest since 2004 Feb. 26, 2015
- Chesapeake Energy to scale back drilling in Utica Shale Feb. 26, 2015
- Pennsylvania landowners sue Chesapeake and related companies Feb. 24, 2015
- Chesapeake Energy sues former CEO Feb. 19, 2015
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.