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Bankrupt fracking firm suing New York governor to end moratorium

Bankrupt fracking firm suing New York governor to end moratorium

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Lev Radin

New York Gov. Andrew Cuomo. Maybe he’s to blame for all of your failures too.

Norse Energy is a failure when it comes to its core business — drilling for gas and oil. Despite America’s huge drilling boom, the company is bankrupt. Unable to turn a profit as a driller, the company has taken to suing governments and officials that limit fracking, blaming them for its undoing.

Attorneys for the company’s trustees filed a lawsuit Tuesday against New York Gov. Andrew Cuomo (D) and two state commissioners, claiming that the state’s fracking moratorium had brought about the company’s undoing. The Press & Sun-Bulletin reports:

The suit asks the court to force the Cuomo administration to finalize a study that will determine whether large-scale fracking — a controversial technique to help extract gas from shale formations — can proceed in New York, arguing that repeated delays in the state’s decision-making process are grounds for a judge to intervene.

And here are more details from Rigzone:

This lawsuit comes on the heels of the [New York] Department of Environmental Conservation (DEC) launching its review of large-scale fracking about 5.5 years ago, and nearly 15 months after Dr. Nirav Shah, the state Health Commissioner, was asked by Gov. Cuomo to perform his own analysis.

Norse Energy sought reorganization protection of the United States Bankruptcy Court during the state’s 5-year review process of fracking, but was then forced into liquidation proceedings when the company failed to round up bidders during an auction of some of its New York assets.

“Norse Energy and its investors have lost more than $100 million by reason of this delay,” [an attorney for the company said]. “Since this litigation was announced, landowners have contacted me to thank me for bringing this action, complaining that they have lost their farms and their lives have been ruined as a result of the inability to participate in the shale revolution.”

Lives have been ruined by not fracking? Seriously?

Anyway, the good news is that the failed company has enjoyed no more success as a litigator than it has as a driller.

Norse Energy is also suing the New York towns of Dryden and Middlefield because they are among the more than 100 local governments in the state that have imposed fracking bans or moratoriums as precautions in case the state’s moratorium gets lifted. The towns have so far prevailed against the lawsuits in multiple courtrooms — although in August the state’s Court of Appeals agreed to hear another appeal.


Source
Norse Energy Trustee Sues New York State to End Fracking Delays, Rigzone
Norse Energy trustee sues Cuomo over fracking report, Press & Sun-Bulletin

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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Bankrupt fracking firm suing New York governor to end moratorium

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Court says N.Y. town can outlaw fracking

Court says N.Y. town can outlaw fracking

Russ Nelson

A bridge leading out of Dryden, N.Y. Frackers are welcome to use it.

A small New York town prevailed Thursday in a court battle against the energy industry, which wants to frack the ground beneath the townsfolk’s feet despite a local law that forbids the practice.

A moratorium is in place on fracking in New York, but Dryden and dozens of other municipalities around the state have passed local ordinances banning the practice in case the state prohibition is lifted. Drillers argued in court that the town’s fracking ban violated state law (a law unrelated to the moratorium), and that they should be allowed to drill for gas there despite the locals’ wishes.

A state trial court judge ruled last year in favor of Dryden. That ruling was appealed, and, on Thursday, Dryden, with the support of public-interest law firm Earthjustice, prevailed again in a state appeals court. Attorneys for Norwegian company Norse Energy Corp. vowed to appeal the latest ruling to a higher state court. That means the dozens of local fracking bans in New York aren’t safe just yet — but the two legal victories so far are a  promising sign.

From the AP:

More than 50 New York municipalities have banned gas drilling in the past few years, and more than 100 have enacted moratoriums on drilling activities.

The court decision involved interpretation of state law that says regulation of the oil and gas industry rests solely with the state Department of Environmental Conservation.

Norse lawyer Thomas West had argued that the law is intended to prevent waste of oil and gas and protect the mineral rights of multiple landowners.

“When a municipality says you can’t drill here, you have the ultimate waste of the resource and destruction of the correlative rights of the landowners,” he said during oral arguments in March.

But the court ruled the law doesn’t pre-empt a municipality’s power to enact zoning laws that would ban gas drilling.

Fancy that, the fracking industry arguing against “waste.”

John Upton is a science aficionado and green news junkie who

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Court says N.Y. town can outlaw fracking

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