Company May Seek Millions

For permanent damage of its investments

Morgantown Dominion Post
8 July 2011
By Alex Lang

The gas company suing the city of Morgantown over its fracking ban has requested a hearing on a preliminary injunction to be scheduled for August and is threatening the city that it will seek tens of millions of dollars in compensation if the ban is upheld.

Northeast Natural Energy made several filings in Monongalia County Circuit Court late Thursday.

“Northeast intends to prosecute its claim against the City of Morgantown aggressively and to the fullest extent. We remain confident that the drilling ordinance passed by the Morgantown City Council is deficient from both procedural and legal standpoints and that it will be ultimately struck down,” Mike Garrison, an attorney representing Northeast Natural Energy, said in a statement.

“In the unlikely event, however, that the ordinance is upheld, Northeast will seek tens of millions of dollars from the city for compensation for the unlawful taking of the property rights and the permanent damage to its investment in this project.”

Northeast Natural Energy is drilling two Marcellus shale horizontal fracking wells in the Morgantown Industrial Park (MIP), off River Road along the Monongahela River. The company notes in court filings that the wells are outside city limits.

The state’s Department of Environmental Protection approved the drilling permits.

Last month, City Council approved a fracking ban in the city and within one mile of the city, which includes the industrial park.

Northeast filed a civil lawsuit to stop the city from enforcing the new law.

In a motion, the gas company asked the city to explain how the city will pay more than $40 million in compensation for taking its property rights. Northeast also asked the city to identify the services that would be reduced if it is forced to pay compensation.

The company asked the city to produce documents it reviewed that showed drilling would constitute a public nuisance.

Supporters of the ban expressed concern about water and air pollution risks that drilling and fracking could pose.

The industrial park wells are near Morgantown Utility Board’s drinking water intake.

In an affidavit, Northeast President Michael John outlined some of the safeguards in place for the drilling operation.

He wrote that the process will use a closedloop system, a berm will surround the well pad, the full length of the production casing will be encased, and the company will dispose of all drilling residue and fracking fluids at an offsite landfill and/or injection well.

Northeast has spent more than $7 million on the project and spends between $50,000 and $85,000 daily on the operation, according to the filings. The current plan is to frack the wells in mid-to-late August.

“If Northeast is prohibited from fracking the MIP wells, all of the money it has spent on the MIP project will be wasted, and Northeast will never be able to develop Marcellus shale natural gas from the MIP project,” the company wrote.

The company alleges that if the city’s law is enforced, it will result in “immediate and irreparable harm.” Northeast asked for a motion hearing on the preliminary injunction request to be scheduled between Aug. 1 and 12.