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April 10th, 2015
While a significant amount of oil and gas lease negotiations have been completed over the last several years, many individuals are only now learning the true extent of the oil and gas operations which will be conducted on or near their properties. Significantly, many people who do not own their mineral rights and could not sign oil and gas leases are now faced with the day to day burdens of oil and gas production, but receive none of the monetary benefits of bonuses and/or royalties.
Faced with non-stop traffic, noise, and light pollution, many individuals are attempting to fight back against oil and gas companies through lawsuits seeking to recover damages for private nuisance and the loss of the quiet enjoyment of their properties. Many gas companies, however, are attempting to cut off their liability for such claims by placing enticing offers in front of those individuals likely be affected by the constant noise and activity associated with well pads. It has been reported that EQT Corporation recently made $50,000.00 offers to residents in Finleyville, PA to compensate those individuals for damages associated with the oil and gas drilling and production process. While that might sound like a great deal, there are strings attached. In exchange for the payment the gas company asked residents to sign “release” documents, which would forever release the gas company for future claims. Amazingly, the list of precluded future claims includes everything from property damage to nuisance to even personal injury and/wrongful death. While $50,000.00 is a significant amount of money, it pales in comparison to the potential claims that one might be giving up by signing a release. If someone were to accept the $50,000.00 and sign a release, then be killed in an oil and gas well site explosion on neighboring property, that individuals family may very well be precluded from bringing a lawsuit against the oil and gas operator. The release would essentially be a license for the gas company to do anything it wanted in the future and not to face liability. Later reports have suggested that some landowners in Finleyville were able to negotiate more equitable terms.
This is not only happening in Pennsylvania. Bordas & Bordas, PLLC currently represents West Virginia landowners who complained to an oil and gas operator about the extent of its operations only to be offered $40,000.00 by the large oil and gas company to settle those claims. In exchange for that money, however, the oil and gas operator asked the landowners to sign a release providing that the landowner would be giving up any claims for future damages or injury. The proposed release would have also precluded the landowner from contacting the news media to complain about any of the operations or any disputes between the landowner and the company. Thankfully, the landowners sensed something was wrong and contacted our firm. We now represent those individuals in ongoing litigation against the oil and gas company.
Whether it is through arbitration provisions or overly broad release agreements, many oil and gas operators have taken substantial steps in order to avoid being dragged into court to answer for their improper operations. While oil and gas production has been a major financial boom for our area, operations need to be conducted safely and gas companies should be honest and up front about the scope of their operations. Marcellus and Utica natural gas well sites are often large industrial endeavors. The sites are busy and loud. Overnight operations keep many neighbors awake all night and smells and traffic disrupt neighbor’s daily lives. Landowners, however, may have recourse. Most states permit some variation of a legal claim to assert that you and/or your family’s quiet enjoyment of your home has been violated. If an oil and gas well site is causing pollution, property damage, noise or other aggravation to your daily life, contact a mineral rights attorney at Bordas & Bordas, PLLC to discuss the matter to determine if there is anything we can do to help.
