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Ohio Utica Shale

Judge reduces charges, defendants in W. Va. leasing suit

By Bob Downing Published: December 3, 2013

From the Associated Press:

More than half of the counts and more than a dozen defendants in a West Virginia oil and gas lease lawsuit have been dismissed.

The lawsuit combines 68 cases filed by 121 mineral owners in Preston County who allege that Traverse City, Mich.-based Magnum Land Services and Belmont Resources LLC fraudulently persuaded them to sign gas leases below their true value.

Defendants also include Canada-based Enerplus Resources and 19 employees of Magnum and Belmont. The lawsuit said the leases were transferred in 2010 to Enerplus. The company was excluded from two counts associated with notarizing the leases.

The companies have denied the allegations.

U.S. District Judge Irene Keeley dismissed the 19 employees from the lawsuit, saying in two separate orders that they weren’t served papers in a timely manner, The Dominion Post in Morgantown reported Monday.

 Judge Keeley also dismissed five of the lawsuit’s nine counts, including slander of title, one fraud count, leases void because of disqualifying interest, misconduct of notary public against Magnum and Belmont, and tort of outrage, which means inducing the plaintiffs to sign lowball leases was unconscionable.

Part of a conspiracy count relating to the employees also was dismissed. A portion of the count alleging conspiracy between Magnum and Belmont was retained.

The other remaining counts include fraud in the inducement of the leases, unconscionability relative to plaintiffs’ inadequacy in bargaining power, and declaratory relief to nullify and renegotiate the leases.

The case originally was filed in Preston County Circuit Court in November 2012 and was transferred to federal court in February. The residents are demanding unspecified compensatory and punitive damages.

A trial is set for Oct. 27, 2014.

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Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

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Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

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Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

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People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.