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Chesapeake joins suit against landowners
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Chesapeake Energy has joined a lawsuit against Columbiana County landowners who are refusing to permit seismic testing on their land.
Chesapeake Energy owns mineral rights for the properties and contracted with TGS NOPEC Geophysical Co. of Houston to conduct the testing. When TGS attempted to get several landowners to agree to the testing, they refused. TSG then filed a lawsuit against them in Columbiana County Common Pleas Court.
Gary and Eleanor Carter of Beloit is the only party remaining in the suit, according to court records. All other parties have settled.
Bruce Smith, an Alliance attorney representing TGS, argued during the first hearing that the leases allowed the testing and that asking for permission was only a courtesy. Smith was not available to comment.
Columbiana County Common Pleas Judge C. Ashley Pike ruled April 20 in favor of the landowners, stating Chesapeake was the affected party and would have to be involved in the suit for it to continue.
Oil and gas lessees have not only a right but an obligation to explore underground formations to determine potential for production, said John K. Keller, a Columbus-based attorney representing Chesapeake.
“Scientific testing is an important part of the process,” he said.
TGS again is providing a deadline that seeks to hold the defendants responsible for what the company claims it would lose if it were unable to conduct seismic testing by Friday. At every step of this case, TGS has placed a deadline indicating immediate action was necessary into the filing, said Scott Zurakowski, a Canton attorney who represents the Carters.
“This appears to be just another attempt to intimidate the defendants,” Zurakowski said.
TGS and Chesapeake continually have stated that the project needed to move forward quickly or it could not happen, but the date they provide keeps changing, he said.
According to the case filing, TGS and Chesapeake are arguing that the Carters, by refusing to grant access to their property, have wrongfully interfered with the rights under the leases.
Zurakowski countered during the initial hearing that the lease for the Carters’ land is decades old and does not refer to seismic testing. Therefore, the company has no right to conduct the testing, he said.
TGS and Chesapeake are seeking a temporary injunction that would allow them to move forward with seismic testing.
The filing states that if the testing is not concluded by Friday, it will be a total loss, which will result in significant damages for Chesapeake and TGS.
“I disagree with that point. TGS’ own vice president said on the stand that it would not be a total loss. He stated not having certain properties would devalue the seismic testing,” Zurakowski said.
Judge Pike has transferred the case to a visiting judge, Richard Reinbold, a former Stark County judge.
No court date has been set at this time.