image description

Landowners May File New York Fracking Lawsuits

December 24th, 2014

Oil companies and landowners affected by Governor Andrew Cuomo’s recent ban on fracking may file New York fracking lawsuits to recover economic damages. Landowners who have leased their mineral rights to oil companies stand to lose millions after the ban, so many of them are considering New York fracking lawsuits against the state. Legal experts are currently debating whether the landowners and oil companies could possibly win such cases.

New York Fracking Lawsuits And Compensation Disputes

Any potential New York fracking lawsuits would arise from the recent ban on fracking operations in the Marcellus Shale, a region rich in natural gas deposits. The Marcellus Shale extends from southwest New York State through Pennsylvania, West Virginia and Ohio. Gov. Cuomo enacted the ban after receiving several reports of water pollution, noxious odors and loud noises emanating from fracking sites. The New York fracking lawsuits would contend that the ban would deprive the leaseholders of millions of dollars in mineral rights fees from energy exploration operators.

New York Fracking Lawsuits Not Unprecedented

Leaseholders who may participate in New York fracking lawsuits could have legal precedents on their side. After the Deepwater Horizon oil spill in the Gulf of Mexico in 2010, President Barack Obama enacted a moratorium on drilling activities throughout the Gulf. Energy exploration companies successfully sued the federal government and had the ban overturned. The judge also ruled that the Obama Administration was in contempt of court. However, leaseholders in the New York fracking lawsuits may have a tougher case, since the state is not depriving them of their property.

New York Fracking Lawsuits And Property Rights

The most contentious issue in any possible New York fracking lawsuits from leaseholders is that the state ban does not deprive them of their property without compensation. Instead, the ban prohibits them from leasing their property to fracking operators. The ban also does not prevent landowners from leasing their property for other types of energy exploration that may be available in the future. A Houston-based attorney who represents drilling companies told a reporter that cases such as potential New York fracking lawsuits are “more difficult cases to pursue.”

New York Fracking Lawsuits Could Seek Millions

An Albany-based attorney also commented on the possibility of New York fracking lawsuits from landowners. Thomas West also represents landowners and drilling companies in the area. He told a reporter that drilling companies “might have a case,” especially for those companies that have “invested ten to twenty million or a hundred million for leases that (they) can no longer use.” Mr. West also said that landowners who “were counting on (fracking leases) for their retirement” and came out as “big losers” from the ban may consider New York fracking lawsuits against the state.

Source: Forbes

Know Your Rights in a Fracking Lawsuit

To find out how we can help you with a fracking lawsuit, contact us today at 1-855-877-7455. Our friendly staff will ask a few questions about your case and connect you to a fracking lawsuit attorney. You can also fill out the “Free Case Evaluation” form at the top of this page.

Comments are closed.