Post on 22-Feb-2023
n gr
WEST VIRGINIA ENVIRONMENTAIJ QUALITYCHARLESTON, WEST VIRGINIA
DANNY WEBS CONSTRUCTION, lNC.,Appellant,
V.
DIRECTOR. DIVISION OFOIL AND GAS]DEPARTMENT OFENVIRONMENTAL PROTECTION
Appellee.
r|
iOB AUG 3 1 2017
i____A!.RLS!!A!REISaSna___.--gr-I
lS_Appeal No. _l7-@- EaLB
NOTICE OF APPEARANCE
Notice is hereby given ofthe entry ofthe undersigned as counsel for the Appellant, Danny Webbconstruction, Inc. in the above-entitled action. Pursuant to the requirements ofthe West Virginia Rules ofcivil procedure, all further notice and copies ofpleadings, papers and other material relevant to thisaction should be directed to and served upon:
John F, Leaberry (WV Bar 2168)The Leaberry Law Firm PLLCI 67 Patrick StreetLewisburg' WV 2490 iT: 304.645.2025F: 888.469.663 IemaiI: Ieabenylaw@leabeny-law.com
John F. LeabenyCounsel forAppellant
APPROVED:
08/30/20I 7
F|,_`r-:I ,r=iJOfl1|,`,i OI L,; lli1,.-I C=`s
AUG312017
\r I ,,\\=` -.1-.'\.Tr.-,.. ,-iEn\J,I: C.- I-rI,_ u_.u I I-..J.._ _I,i,i
A r|\hmST VIRGINIA ENVIRONMENTAL QUALITY BO
CIIARLESTON, lhEST \mGINIA
DANNY WEBB CONSTRUCTION INC.
APPELLANTIS NAME,
Appellant,V.
DIRECTOR, DIVISION OF
OILAND GAS
DEPARTMENT OFENVIRONMENTAL PROTECTION,
Appellee.
i.i; AuG 31 2017
&'dvT«b-Nffi'±RTr"AuThoifei_____AJ.aL.gu;A._LJREgAm_,,__,.__3..It_..!
Appeal No.
NOTICE OF APPEAL
Action Cormlained Of The appellant(s) named above respectfully represent(s) that it is aggrieved by (identify theorder, failure or refusal, or permit, and give date ofthe order ordelivered to A ellant b electronic mail dated Au ust 1, 2017.
ORDER NO. 2017-UIC-4 dated Juy 26, 2017 and
See Exhibit 1 and Exhibit 2 attached
ReliefReauested: The appellant therefore prays that this matter be reviewed and that the Board grant the following
i:l':ebfe(ydaenscceripbeenglnegrfi:iiaelfds£eu,gmltn):ellant re uests that the action of the Chiefofthe Office of Oil and Gas be sta ed and held
antls appeal to the Supreme Court o
SDeCifiC Obiectious: The specific objections to the action, includingquestions offact and law to be determined by theBoard, are setfo-rillindetail inseparate numberedparagraphs and attached hereto. The objections maybe factual or legal.
Amendment ofthis Notice ofAppeal may be had only by leave ofthe Board, and only for good cause shorn.
Dated this qu day of August
PF?T--!' ,'rTr|Oflic3 CJl- ,`Jl; :,.I c: G=.s
AUG 31 2e'17
V.n.J i-\ --,.` -.-l' I,- -Envi(c"1 I,J.-.`, -.rl
)2017
(Address)167 Patrick Street Lewisburg \^IV 24901
3O4-645-2O25
(Telephone)
WEST VIRGINIA ENVIRONMENTAL QUALITY BOARD
CHARLESTON, WEST VIRGINIA ,
DANNY WEBB CONSTRUCTION, lNC.,
V.
DIRECTOR, DIVISION OF
OILAND GAS,
DEPARTMENT OF
ENVIRONMENTAL PROTECTION,
Appellant,
Appellee.
Appeal No.
F3,ECE`.,/IDOffice of Oil anc! Gas
AUG 8EL 2Ci7
EnvYl"o/nPnecTl?f[T.fonie?ftion
SPECIFIC OBJECTIONS
Appellant appends the following specific objections to its Notice of Appeal of ORDER
NO. 2017-UIC-4 issued bythe Chiefofthe Division of Oil and Gas, WV Department OfEnvironmental Protection.
1. The Action of the Chief of the Division of Oil and Gas, WV Department Of Environmentalprotection is premature. on July 10, 2O17 Appellant herein submitted a Petition forRehearingto the West Virginia Supreme Court of Appeals. Such Petition is presently
pending before the Court.
2. The Appellant will be irreparably harmed if SuCh Order revok'lng Appellant's Perm'lt ulC
2DO190508 is allowed to take affect and Appellant ultimately preVa'llS in its argument
before the west virginia supreme Court of Appeals.
3. The potential harm to Appellant resultI.ng from the revocation OfAppellant,s permitbefore all judicial remedies have been exhausted is great; while there is little chance ofharm to any partytothis action by delayingthe revocation, since all activity at UIC2DO190508 has been stayed bythe aCtl.On Of the Fayette County WV Circuit Court.
4. WestVirginia Rule 47CSR13 relied upon byChiefofthe Division of Oil and Gas is
discretl.onary. The revocation of the permit iS not required by Such rule.
5..In fact the decision of the Chiefofthe Division of Oil and Gas to revoke UIC 2DO190508is an abuse of the discretion provided by west v'lrginia Rule 47CSR13 since it directly
impacts a property right asserted by Appellant that is currently Pending before and may
yet still be upheld by the west virginia Supreme Court of Appeals.
For the forgoing reasons Appellant, Danny Webb ConstructI'on, lnc respectfully requests
that ORDER NO. 2017-UIC-4 issued bythe Chiefofthe Division of Oil and Gas, WV Department
A r|of Environmental Protection held to be Stayed and held in abeyance Pend.lng final Outcome OfAppellant,s appeal before the West Virginia Supreme Court.
Appe"ant further requests that.ln the event it Prevails.ln its appeal before West Virginia
supreme court, that ORDER NO. 2017-UIC-4.Issued by the Ch.lef of the Divis.Ion of Oil and Gas,
be held to have been issued without cause or reason, thus leaving Permit UIC 2DO190508 in
good standing unaffected by the action of the chiefofthe Division of Oil and Gas.
Respectfully Submitted:
Danny Webb Construction, lnc.
Appellant
BY COUNSEL
iiiE_167 Patrick Street
Lewisburg, WV 24901
Tel: 304.645.2O25
email: leaberrylaw@Ieaberry-law.com
r=r`T')I 'r=i)c)trI\-;,i O\ ,J,ru"C! C=s
flu,3 3 1 2.84,7
"' r,_-,-,i.i.i-.I nf
Er\|,I:, `, ,-.,t.`,.,-t,'u3n
A
CERTIFICATE OF SERVICE
r|
I, John F. Leaberry' Counsel for the Appellant, Danny Webb Construction, lnC., hereby Certify
that a copy of the foregoing Appeal has been Served upon the follow.lng.Individuals On this 30th
day of August 2017 in the following manner:
vlA FIRST CLASS MAIL, POSTAGE PREPAID
Jackie Shultz, Clerk
Environmental Quality Board
601 57th Street, SECharleston, WV 25304
WVDEP - OFFICE OF LEGAL SERVICES
601 57th Street, SECharleston, WV 25304
DIRECTOR, DIVISION OF WATER AND WASTE MANAGEMENT
601 57th Street, SECharleston, WV 253O4
Counsel for Appellant
I-I-- ,\r|\ 'r_.i)
a::I_,i :/I-I,,- ,-_,:._ C=-J
A`lJ:i 3 1 2.8.?I?I
\`.`,I/I-- - -),`.I ,`c
Er...'l .---, I rC, ,-Ll.,ill
ash
C_.a
i
``-
i'E
:,;::.: -
EXHIBIT 1
;i_#- _ . rfe - --i-- ,- =-`,i
F\ECT=l'r/EDoffice c)i Oil art,a Gas
AUG 31 2Ci7
Env\?-"a/nEleern?aTE?5tteocftron
=#S ,, _,,+ /t®`. ey=--is,-
iiii!
"iiii!i
`
I
.:i..-.
`
ty,; T
.
`
:+:1.i
ii!o
l!;'
:,-
¥-1
uO!?c)a.lc).I i Ira:.u.aL. Buou!Aua
I.a +uCLuL!t?LJ='.CI A/V\
1IOZ Eg9nV
sE)9 PL!t3 !!O !O 6C)!jJO
C]J/'|l=3EEJ
* *=
*p- + ,%vSy`
"quSinuen!Au© feaptIE!@Li © ffuflffiuuOJd
S~L¨
"`¥/I
I8SSO6[OflZ
lqu9d DinJaPrm PalthOO Sa!1tapOng ap 9Z!IOqu#tor §8ap ,O"I 'drmD SIIEL RE"FTroapttflsuoc) qapAEL q AtRECIneaJ"aq P[ap aSB9[ ap " 8ngpr s£gmco lanOI ap neHdr
(ody90-9[ ,Or¢ 1apOC[) gTBeddVJO apOC) auerdng ear;8IIA tSaJIA ap '£1OZ t6 eunf uO '#"s[tladdyJO quO3 eun©rdmS
Spr!gj!A ISTh apt qu fro#rm quOO lprtO aql pepeedde Oul uaprmlSuOO qapth ff Aun=a '¬
"80SO6IOC[Z tgt]LE:lad am laprm apifeAOti S8#IAapti 9t# 9ZHOtFTne
lou ggOP ,onl tchap "[H tgrONt#!Jh aS#SI a.Outxp-SHOO qapJh a rfuREBC[ REpequ (6-a-9[.ONunpeV m;a) rfuunOC) at}rfedJO lmO3 quapD 3" t910Z £ 8unf uO 'Z
"onl uOi]dnqu5IroJ qapJIA a £tRECI ap gOSOO*6I0-£tr # IdV
[pJnJO an ap qgnOxp TesOds!P axpq ng 80SO6[OCIZC)m prod tom) lOqude uO#OSfngpunorfuapunJO prenat apPrmSS[pe PaAedde Cp9mapel goo {S[OZ ¬9Z tenSmvro 'I
:sumoITOJ ap SPng rfaplapJa[ro_9q1 ¬xpIO Srm5O grOdinS tq
"oul uO!lQrmSHO3 qapJIA a rfurmCI O}.aa£ fa I-Z1-gZ pr a.aa"a I-Il-ZZ i,Gag fa
ltzz..frog# rg# §§ apo3 ngprpeI[A.!SaAIJO rf}F[qultt# a# O1 1IREnd SJaFTO S# tpenou# Pus4.(.6OOO'' Ia3peu!grang) Sg9 prRE IraJO COEHO ap rfq PfflSSg S! (,JaprO,. H9grpeIStS Iapro SThL
RI5i©iRI
dy-om-1IOZ :'ONtffimro
£IOZ ¬9Z filnf :HLVH
49ZO-g98£Z Am ¬kITeSqooI49Z X®fl.Old
qapth £unBCl I.ngVour tIOapnngSHOO qqSJ& a Xurmc[ :orJ
zz arHrf,dVIm HtiOD VIRIIf)ELA LSE[AAuffun fiHflLSSI
uHflRIO
^oS.-,dip,AI-ds)ano§ ]ou!qup 'uquade9 u,eesnVjounAO9 toOtysttf ur[f'
uo#oelCIJd lE)1u®ujuO8l^ue JO
zsmapz6 (m¬) :red I.OSt'Or.9Z¢ frog) :auOudro¬sz AIA £uOysalJqu3*g's twS qidS tog
stIO Pun I!OJO S®gJO
1uequdeP DIuIBIIA t§©M
EEihb EEEIi iEE± ThLk hi3T± TL
_i ,... ..-,-.jen SIf ,,#::r*Sf\/;b B!l!ur:;..f{iRERE:j`:*£I,<. ,,gtifap±-« `is
I_:-;
ng -~if -
uO!?P,S'Ju ; ;g\U..;.I I!'JCl!!AuEJ'3 1,ij¬;uj+t=l:3t! /'W\
4!CZ Eg9nV
SB9 PUB I.IC) ±C) CCl!#OaJ/'\!=3Ed
givap +n_.,.:ng:.k¥ l\e\\\L-,. ,.~apr_se,I **. `
v us-6",i- i .r\:gr,::a A
"qdI@Oex uOdin aA[1OgH9 aunO39q [TgqS I©prO SmL
"JePro SFTIJO Sd[soen lags SAxp (o§) Angap uffiqu EEapfu!A tS9JIAJO ap9@ 3qlJO tZ
uopeg iII S[apny.zz J@1droJO Sue;S!AndaptPqu,99uspeO9e u! £Pxpg apus AqpaqapsardrmoJ aHl ue rIVEREV dO gOILougug[Hrfq peOg ¢!prt) lapunrmouF^t!EI atP OI PSAapaSca aenot apapMJquO S[xpJO SHOREprco PtRE SurISlear t#adde ap#prmofJO mA!B rfuenap s! quoN
EO LELBRI
"peqon9I £quap S[ S gOZ ¬9Z ISn8nv p©uss! 80SO6TOae lFTI9d Qm
:lapJ9qua ang rfq CIfftEEffl:C)'ftyraq S! 1! ¬9rmt#I¢J PquadrmS nO PapAerSq rfeun 1!urredSIflS xp §gmS apFTtt gltrsO£P a" aApe[S!BaqBngfroIJl+SaJIA pe I.bag,a I.Zl-ZZ ¬,ag#
;a I-I I-zz i.hag ;a I-9-ZZ a.has ;a ti-ZZ i§ apO@ EFTFHA t8®JEL HIEJIA ®@tneprOacE ng 'aI®5ar@EL
tiHtlRIO
I . ,+ .-.. _,ng x../Q ^ ,. rfa,:i# --
|I !
Bri
A;::::;:;i
_
dy}£- t# ee.&¢?es ' - m w.an --:
i-jI.}. Th A/_
¥.^ I- -.
\- `.`
:i!I!.
::g£¬^
i:
I:;;;;ir
.:
``¥.`
I..)¢.il r! ,q}"''i ,j=
\\
4,Zx¬ _
ENL-E
x.#_y .
i.=` ,a+i`iffig`
3iii
``
'i
";. -
- iusS./NIanck "'#; Mr' jgras
8/29/2017
An"'e SmithDanny Webb Construction Ca.:'. 304465-9448
` `
`fu. `
+\-i/.
`~ 3'`j
c.A. i¢
``
Attached Message
a,I,,; ' _>,,sftpfty1'fftrf#,.,I,iSas, I
Ptint
i;`(( ¢ )A i3tmed;.F_-»^3# i - m oifca
Nottingham Justin E <JusttmE.Nottingham@wv'gOV=Danny W®bb Construction <dannynebbCOnStmCtiOn@aOl.COm>: urban, TBny W <rferry.W.Urban@W.gOV>Maftinl James A <Jamg§.-am©AV.gOV>; Smitflt Seng a <Geng,a.Sfnm@WV.gOV>; Ha"ns, Melanie aa.Mg;aniS.S.iianteinS@Urv.gov>; Lock\AroOd' Andrew i <AndreurI,Lookwood@\^ngov>
u!c2DmgOgO8 "C Permit Revocation (Order# 2017-UfC4)The, i hug ZO17 19:57:10 +0000
nanny:
wel] 47-O19-OO508 is no longer authorized by -PEP COG for the injection Class " fluids. I have attached a Pdf COPYof the u!c permit Revocation (Order# ZO17-ulC-4) for UIC Permit number UIC2DO19O5a8.
please note that you have the right to appeal the terms and conditions of the order to the Environmental QualityBoard. The Notice of Appeal must be Submitted On the form Prescribed by the EQB Board. "5 Process iS inaccordance with the provisions of - tode chapter 22, Arficle ll, Section Z1. The Notice of App£al rnuSt besubmitted within thirty (30l claws after rece'lPt Of the Order.
[fysu have any questions therl PIease feel free to comtact me.
Thanks,Justin
Jusin E Nothaghur3westvirginia Depainlent of Endronmental ProtectionOffice of®it atldGas .Environmental Resources Analyst6O± 57¢h S*reat| a.a.charlesaonI WV 25304_&ir;i:-(-3-d4i--ir2f;in99 IEx¬. i65OI
Fax: (304]-926-8452iustin'E.t¢ottingham@WV.goo
"3F"
#» , about..blank
Aifei\l _» `-h-_- --`NI:»-.iTSq ¥=ey+rfu*st¬\. YEL , u-= ,. us,_i -.i-- ,-ch`.* ` :y -n¢,L`.*+,`
F3ECF1\/EDOffice of CJii ailC! Gas
AUG 31 2Cfl,7
w\/ Der,artm3.nt OfEnvironm6!=.la! F.I-ofeGiiOn
»ii
:-::;;
=»:,
uo!1C)8}.JJ la"I-?LlluOJ!Auaap lugluLlt3d8G M\
i,LCZ Eg 9nV
st39 Put3 !I.a iO 63l.3iOaJ/'\laC;3tl
ctg
"':
"':
iij]]
.
=~"I,,ce¬,S g%,.\``.,--? - ,- i-,-,ry=J.v ;--
i..i y::,S:r:=f i I,:`,I `-A,th
a |IflI
__ ,xEgq~:, - - Sq!| a
"i;;rwi ' i 'JAV-i §g
:.,.;
.
uo!fu'.iu9!k:qu',3,!ff:udl-)9u.J\{Aua
4lCZ E$ 9nV
st3E) Pug !!O iO SO!#OC1±/\i53aE]
- 7/, ,N,city-i,` i.---un `J . i i - ¢- -,I- ts nFTD= `:rf aeY`
uroo.aSuse[AfuOq®uOse#erdi%
8 1I I:¬dya f#¢S) :SIingSeeHstTZ+FS (FOG)
szgsz reprEfuEA queAl !"sepeq3gggI.Xag acHEO ysOd
¢ee,Tag laE,rmttb 009drIT ErO" SfflJELOa
slZraOfng?ad SotlaSunap(I£8g.Oil I#ti: Aali),ill ¢mOS±lS#t!d tV Sgrfut)@E)
sz E"EN ufftThm aNnIVHEImIHOE AIOIEILffd ¢SELHRIftIHELffdi
"Sflapuodis&H 'mnZaH ifeu¢#g3ad
I'Bh[I !mOtE3JSrlrIIm HHRIORE
'd
'6-#-9t 'flNtropeV #AEO
ug AlrmOS enedeEJO quOS quorm-©apJO Iapro peuH ti unng T13addV
vlbRE"IAI,S"Ljln SrlwhdflVtlO I;uflOa ffrilmENnS fflIEL'NI
".,f`* R hwhve_ I ---firs ___ -
I
'j/r;i fr;=rf£:,Snd::-:;=-.` `j&`,,;EN:rtyA,; -vn A,irW[y , -
:.I,:::,
i-iiii
I;I
;::.
;i`l_i
rtyf
\+
i-;¥1
a 1'O i ';: 'T!,,I,sf,,&J±}ryL` ,
=_4PEJm Oq _g_gNTE_ngS
Thb1¢ ofAuthoritias....",.:,...""..""1.""".,..."..-HU."U......"...""...-..".,.."..........."............. ii
lnfrodnetion..,,...".""."."".",..".""""...«.",....,...".."-,..".,.".",.."""."".-..."."........1
drguneut....-....."..".....,...".,...-.,..;.""..--".-",.-"..-.,,.."-.-...,,."...,.,..",...,.,.....,.....1¥
I, I- The C5un.t]s inemorandumDecision characterizes the C)ii and Gas -Lease in a mannerinconsistent withthe reCOrd},inconsistent withthis thurt+s priorfroldings, andincousisteutwith the intent ofthepaties,."",.-.,-.,."."",.,"-."-.",.".."..,,....-,.,....,,...,.."",.,.,",..."""..........-....... 1
H. #ir3gCin:aT:;#wiethmorres¥c#=c:s#efldEg:I::oprptreodpt6origofifPolrych:n6::".".,"........-.,.4
Ill. The Court.s Menerandum Decisionisnot consistentwithPfrordecisions regarding lease ccmsth]cfron or practices in the eel andgas industr]r, "-"-,.."."-,.".,.--."-"..",...""-,."..""....-".-.,,..-.".,...-"-..7
4. Cdndusi,on ."+",,w"","uw,"I.I".-.,..--,,-",.,-."..-,...,."-,,.".".",,,"-,......-.........14
5, Cedificate ofServioe ",...."....."..,..-,......_,..."..,,.-,,,,.""."-"".,..-".-".",.....,........,....,.i6
F?.ECEl'/EDOffice of C)ii al|d Gas
AUG 31 2Ci7
VW Depart-i:i,i ofEnvironm3rlla! iTOIC-t;!Jon
*.trfu,\ ==a -._rs-. . I - J`:i.iv,A.lthk, L~,, i-,- `...`'`' ..,. I `-i ,-l`^`
_I
sock
::,,:..';
I::,;_
...
I
I I..
c_i
~rtyrf
.
v:;:)
I.
.I.
=L --^ ')J^,.st§g
uO!].a-3apJ-i I¥'JeLi!uOJ.!^L!±1O +u¬,lijP'ESd6C] /v+A
1[OZ I8 9nV
iJf+. i:,i " - x _ +rk~
SEE) Put3 !!C) 1O 6C)!JroaI/i.iECEt]
zr....".,....."-""..,...---.-,...,..."",..."..... (fyz¬[) o6.Erg [Z[ f40g ,gA.jh g6 ¬rf!JagrPT.A rm.!#ts
zF.-.,...,...-,."..."......"..,..".....-......(606T) £Sa.a.S ly9 {9£9.SA.th 9tr t,OJ ,gJrareya## 'A rfe¢rfOJ
z[-..",:"""..",...,....".",..,".". (668T) S9£.a.S £g ¬SZ9.BA.JEL 9fr ¬.aD rfuaf#O3_ rmfrfap ,A gra2r3ur
s-fy..,."...",.",.-.(;66[) g6fy PZ.E[.a OOty +88Z I.gA.th P8I ,qJ.!er#JF.A rf!fulO#peprSar.!fiaaH rf#g#f¢Cr
a,................"..............,....,c.............,..-,"-",-"" (z96t) 9Z9 SZ.ff,S 8gTJtr8fr '#A 'JA £ty[a.oi-SJ5 ;[JriE firun.th.OD prandelaneCI rI8tfop
I I-o[ "",....,.....,....-..,..",... (¬o6[) gg[.E[.S gP g9£Z.ngA.Jfi Zg i,ap ar#g;OngadpryJOJr A4ar 'A arap
ly..."..,....(z46[) fyfy§ PZ.a.a £6t iSg.¢A.Ah 9S[ ,,OJ at!f af##iJ£ tt.O£ apI #ff#8di#O%fflO3
9..-.".A-.....................,..........."..".-,",..,,.,.,".""...,..(4£6t) 6[9.,HIS %[ '6ti7 'ttA 'Jth 6TT"qu3tl rfuunOP agP±xpPaCI.^ -.CD ]SrlJJ: 3P gmqumH pegOrauntOS
g.......I....-..,....-.,,..............I..............4.".,..-"""-.,"" (un.##.? d£CD (¬ooz) 9t8LPZ,E,S £8£"cog ngA.ML gIT}qinOZsojOiM.it POapI Prd Xa Squaun]mtry aprofD
gr,..,.".,.........., (o86t.gA.life) c[Z4 PZ.g.a 4gZ tot.qu.Jth §gI ¬ar#rf#pr.A ,ap gerftt!ur Of#J#¢ff
ty"".",.....",.,...."...,.".."""",..-....",...-....(g£6[) S8 SZ.a.S Z[Z '[ gg.gA ,AfL gS[ trf#jW 'A S¥4fAafgr
£....,.,""..".."...,.,".."..,.""..,..,:..,..........................(896I) 68[ PZ,a,a Z9t 'ZSZ ,raA ,AAZStcvalJ@ulVfo ,chOD +:;1A.it tapulfStC[ aOfthaS Otlqud deuneD faleyd&g
a..,...".....,..."."..,......,.,...,............,...,..,. ('I86I) £T9 PZ.a.a 4£Z ¬Z±± ,¢A ,th 99t ¬a^OCr ,A #aararaff
9"..".,."..."".-,.",..........,.............................+.............(4C6T) S¬C 'ErS O6t '68Z 'raA'Jh 8TTI.oD POO4lr)FT Pt)C"SuEN Put) uue]un8rdapFT lit lpeaFT
z[.""."".,...,...,...,.,.".......tog6T) gag PZ.a.S [9 ¢6T4.ngA ,th Pg[ ¬'OJ #Pg jareffP¢"J2 '^ ffi¢.apPpr
REii_5 t3!uI8¥_ATiffi
9,..,.""....".,.,.,.,...-....,-",",..."..."..",.,.1...t....".....,...."......,.." (P8g[) 1.g'nqII £qqa:d4 'A ##rfaeFT
g..,......"".",.-.,",.......,..""-.,.-:.."",...,..,.......-................(£66t) ¬1Z.a.n GIS £a+C[jf ,A #ajrfa#ir
Pa1[ttfk
==5i-ii.,)-
Se1S]SS9seO 3mO3
.\ _ ~i#:('rfu __ `_- idriSf- .,y« -RTPtl- ''.`~grf
`` :*`'
y::
I-
I.
r/r+?gr'` .t8
i_.1;;
::-:`.
I
-?-:``'
uorJOCIC\JI ,I,-,i,I,.`I-1luO-n.Au3lo quclupe.ciaa /'u\\
i,le" ¢c gnVs¥9 Palii/!i±Oj!.d¬,3I#O
¬[
_<,I ~=;,.- I +,i-- y+'':I:/*rv-. .`
."........,...".."."..,..-r"""."",................-......"......-.."..,..(6ty6T) Z¬ 'A9u tT I?A 'th ZS"tiqug±th isaAh ug Saaalquprd-iir6 s3qBFT Bapt±EN iW£ tifeREOCi 'X±
tt-z\ ,...-..,.--.-..,"...,......,.."..--......".,-...-...........-................",....sxpA®VIIFF qu# SMtRT ''S'f'D
z|"."".."-"...--.-.-.,"""."""-.,"...--,.......-.,...,.".-....."......speABerun Pun S@quRI 'PE'FT 'uXV
9..-"...-...........-....."..-...-,..........".....--...",....,........... gall a ¢¢SS ¬SuOHOiOdrOP uO uOSthOus
fiHi5iaptt_tFi5iffi
g,.....-"-....-,...,..-"-,..-.",....-......,..,.......".,..................................... (e)z5 ,odd ,AID ,u ,tiA ,th
¬[....".-........,...,....,.".,".".-".,.(§EOZ.CI.J¢.co gO6 P£.drfug.a Z[ I ¬.#arJ '#gr rfJreqasCr 'A rdasoFT
IgffiO
¬[.."I."+.I.-I....'..I-"..'...."".....I.....+.:..I..... (z46I.XSJJ) 80g PZ.Al.S g8P iofap#!I44 'd.OO #O ###.
g[...,.,..,...-..,..(goog.£z.mpng.ddv.#aJJ) h a# t44889L Th 900Z '.a#f '." rf#farar ,rfu S#a#da#
gt.".."...,."...,...,.,.,......,..(9g6[.drty ,ro.rat) gS6 Pg.OS 66P i..?err ,#rdaaar.!g#ff ow#afO#ap ,ch dagaT
¬[.".........",..,.".-...,...........(z66[) 8gg PZ ,ddV.1:XPE 4[ ,.OJ.chaGr rfeZFrfgrJ ff #¥J_¥ ,A #Jftgfap
g[.."........,.,.-,.,.".",.."",".,...",.......(T%[.XEL) £gg PZ.Jh.S dyP£ ¬fyg ,reL Zg[ 'rfap##T.A #th¢rfgr
oT".....".."..,.lLQ61.ng^.th.Crto 8L6¬OL6.PaE ¢S+ u1?uns.A.OD SOD E, #O rfeunOO aEplappoa
S@SB3
p...".............",......-.....,...."...""""--",.""","",,(L96I) EZ£ PZ'ff'S ZST f6gfr 'BA'JEL TStI.oD uO#Om]SueD aucaS 'tr :OD it@qunH ap?_S ¥xpOS
[[-o[.........,...-....,.....,.,.............,...,",,-",,,""",..(800Z) 6¬9 PZ,ff+S £99 ¬S8t 'CA 'th ZZZ¢.oc ]uaunde[aA.aq DAID.A bPmvyD ixpap@FT P&fquf1*,&quT 'iS
i >=,' irk_,. .i_ #, ,O / t+_ r-iar -a t'
":
"l¢ap-
...,
",` _
-.Jfi-,.- Y- V' -`-V:I.:.:S , ;1JfoyJJ`". gr:?,.,I,,- '.x,1 lth ,`tyS=r ,
IHT-Bg-D-U-eTEgngr=
pursuREtto W, Va, EL App. P, Z5, P¢titioners Dauny Webb and Damny Webb
construction, Ino' respeafflly submit this Pdiition for Rcheedmg in response tO the
Mermrandun Decision ty thas Crmttalelivered on June 9, 2017. Under Rule 25, p©titious for
rdsaring 8i.a apProPriaife Where, inthe Opinion Ofds Petitioner, the Court has overlooked or
rmisappneheeded Qritieal POiutS oflaw and fact. As explaified in this Petifron, the majority
ndsappehaded1the following crfeical peiuts oflaw and fact:
I, The Court,s ifemorandum Decision mischaracteriZeS ire nature Ofthe Oil and
Gas Lease and infers an irfexpretatiOn inCenSisteut with the rfueut Ofthe PgutieS'
H, The Cout,g Menorandun Dectsicm £alls to properly apply West Virginia law
with respectto k:nowledge imputed to cerporatioas.
Ill+ The Court,s Memorandem DeGiSion iS fiat COn8isteut WithPriOr deCiSiOas.
regrding lease ¢onstI.uCtiOnOr Practices in the Oil and gas indutry_
A]li;a(=1EmffiRT_roR RIEEREARING
The thur#g Memoramflurm Dedsiom characterizes the Oil and Gas Lease in a
marmer inconsistentwith the record) inconsistentwith this ¬ourtls prior
hoREgngs} and inesmsistemt With the im-t¢mt OrfE]¢ p#l'ties_
The Court,s analysis ofire Oil and Gag Lease [§ ;nconsisteut withthe record in
this oasSl inconsistout with ire prior holdings ogthis Court imconSistentwiththe Oil and Gas
Lease) and froondstent Wthds understanding OftheParties. Inthe Courfs Memorandum
DeGistOn, ire Couife fimds that i,theprxpOSe Offro a-timg Olause is explicitly for fthe puxposS Of
:.,.-
F3ECEl`./EDOffice of Oil anc! Gas
AUG31 2Ci7
v,n,/ Denf_!imT3n! ofEnvifcrlmgri:jC"I.rC/ie.CtiOn ,, l<.A,j
"-;;;;:;:;;
:;!!;:.:
ciS-*x . ,- i`lXL*if+_--I-
O±S~
proapecting, exploring tip geopfuysi¢al and other mefrodS, drfuiing both VeriOally (sis) and
horiaeatally, mining' tiperating fo1.J prOdwhng and Storing Oil and/or natural gas and/Or coifeed
nefrog querdsfter along withnatwl3ral gas COlieCtivety Oau:a and induding in the ward ffgas"),
or all tliee ,....- quenorndun Deedsion, p. 9.) The Courtcoutfued ty saying that 6(Iw]ha
ire gralng clause references the ¢rigELto inject air, gas, watBF, Salt Water, brine, and Other fluids
from any souae,, it is not inaoxporftfing and exputing the iHjeCtiOn righi COutained in Paragrapfr
14' Rffither, ire granting olause is stdeftylindtedto fro plxpose ofexplorfro ¢Perating for,
prodrchg9 and storingall and gas.i, (Menerandrm Decision, p. 9.) Surprisingly, the 'Cout
ackflowledges that ¢clit] is the grfest and best mode OfeOnStrmCtiOn to give wards, frge from
anbigufty thirplain nd ordhary meaning." sy1. Pt. 3, Ee#ffe# v. I)avG, 166 W Va. 772, 277
s,E2d 617 (1981), qurmorandunDe¢ision,p. 9.) Howeverg the Memorandum Deoisiongoes
on to Saythat"[w]g ¢onsiderire grantingchase withacknowhdgment ofthe oil and gas
exploration and production industry practices using geoptrysical and frorizoutal drilling
techniques, inlufling fraoturingl whichuse inje¢tion ofwhous fluids to explore and, ideally,
prodrct oil and gas.., (Menorarfum Dgofsion, p, g.) Ths resort bythe Court to frotors beyond
the text orthe c)il arld Gas Leas to arive at the iutexpretatiOnOfire Eease edvan#ed in tis
Mermrmdumnecisiom iS inconsistent with ire Prior inOIdimgs ofthis Court and practices in the
industryI
Here, the Court ifeund that the grandng Clause on fro first page ofthe Oil and Gas
Leasg mBanS SOENthing Offer than what it Says, yakthe Court offered no basis for its
iuterprctgrtiomt vlite the oral argument held in this case did givoive some discussion about tfro
contemporay practices used inthe oil and gas irfustry to drill and complete oil and natnd gas
waligJ nO guch tegtixpOny Was Offend before the tower COuft, ed nO eddenCe On which this
F]ECEi`./EDOffice of Oil anc! Gas
AUG31 2Ci7
VIV De-r)aliment' QfEnvircnmenlal I_tot,act.i_iC)n
''ii
-i.h:
:;;/
_ ``-+-`
I.;
. .
li;:^^t;;+;A
.,
'
cout could rely to reach such an interpretafron was part ofthe reoord before the Cout, Such
rdianeg oft extl.insic evitience was improper. :fthe cout actually believed th© 1#nguage of'the Oil
and Gas IJgasg to be Clear and unanhiguds,I Hovever} ifthe Court found the langrrage Ofthe
granting olause onire fir.st Page Offroail and Gas Lease to be less than aystal Clear, then the
court should have rerfuned from inxposing an iutexp1.etatiOm bas6d on iusuffioientfacts amd
remanded fro case back to the Gil.Cult Cowl ofFayette County for additional rmdingS Offact'
ifeg cJ¢rfy4porfErae#fE ¢# ref. jFood v, FpraZerRTZy#, 213 W. V&, 369, 582 S,E.2d 816 (2003) tear
oriam), The Cout,s reference to industrial practices in the O51 and nat+n.al gas industry as a basis
for fomutndpn ofthg cout.g interpetation ofth® oil and Gas Lease was impropel. under this
court.a preeeden{g, the west vi1.gi#ia Rules ofCivil Prooedrlre, general oil and gas leasing
p1.C)toCO1, and gene1.al practices IIt the Oil. and gas industry.
w, va. R, ¬iv. Pro. 52(a) provides, in part, that (l[i]n all actionsfried uponthe
facts without ajny or with an ndviso1.yjury, fro Court Shall find the facts specially at State
separately its GonOlusions oflaw thereon, andjndgneut Sball be entered pusuantt6 Rule 58., and
in grating or refusing preliminary injunctions the court sndl simrigrly set forth the fmdifigS Of
fact and gondusioEN Oflaw which ¢Gnstitute ire grOlndS OfitS action," In the Court's
MemormdunDecisiolt, the Cort Had to resostto additional facts Outside the record, and Outside
ire order gutered bythe cirowit court ofFayette Corlfty tO upholdthelower cout's order. "S
is incottgisfeutwith ireprior froldingsofthis couct, whichrequhe that a case be remanded for
ftddiiond findings offret ifl oases where additional factual fmdings are neoessary. In Sy1. Pt. I,
l ha ftyl. EL I, Berkeley C:ourty Public Seryice Distr!ci _v` V#ro Fore_. oif_A.i:=_i=: :_Sl y:X=:a£#\>_____. __ _ _.-__43_~ ^J?t^
i h] Syl' Pt. It Bgr#g/ey C;otf#ty r3fDfJC D`GJrylGG JJfarrJC'J y' W"a LLUj^ lJJ /WO9HVt+I.|V~ H I I " -- --_
g.E.2g 189 (1968), tirds Court hand that t.Itlhe question as to Whether E COutract i8 ambiguous lS ft question Of law tObe det-ked ty the EOnd.,. SImilariy, in SyI. Pt. 1, ¬ctI'gr I)¢v¢Zoj,ne¢#f ¬o. v. U###dF#edS Gff Cb'. 147 W. Va.484 128 S.E.2s 626 (1962), ttliS Courf said 'lla] valid written inStruneni whieh expresses the intent offro Parties inplal" RTd unatrfeiguou§ language ig nat Subject to judiClat COnStruCtiOn or interpretation but Will be applied and;T]forged according to S"ch i"teut'W
162
Fi.ECEl\./=DOffice of Oil ai..ld Gas
AUG 3E 2Ci7
\1,ry Denarimerlt ofEnvircmrict,iai ['-rc)tc,ction
;..
a;;`l.
T.
I:-
:;;r
i_
;i.
.
"i;;3:
`` -
FiECEr./EDOffice of Oil and Gas
AUG 3fi q£C17
\'-,,n../ D£.r\a.rlment ofEnv'lromHjn:.ai I.TOteCtiOn
carmw#oJowggr## Tire co, v. ZIW_#r¢fe Tgre Co,, 156 W. Va, S;1, 193 S,E,2d 544 (1972), this
courttiald that ,'[r]ule 5Z® mandatothy requir.eS the trial COut, in all actions tried upon the
facts withoutajuryg to find ire facts specially and state separately its oonelusions ofhaw thereon
boferS ire entry ofjndgment. The faihae to do so oonsffiuteS neglect ofarty on ire pat ofthe
tr.th Sonkt,rend ifit appeus on lapPeal that the rwlg llas not been ¢omPlied Wilde, the Case nquy
ag rgJ###de#OP ¢Oap#¢#ce.., (enPhaSiS added) HSrg, ifthis Coutwas unable to conclude
thatfro findings offact and conclusions oflow made by the CirGult Cout ofFay3tte ¬Ounty
apvided a,Suffident basis on whichto affirm that cothss order, dun ire court should have
I.emendedthis case back to the cktewh court for additionalproceedings to estat]listi a more
Complete frotualre#ord. Brgvf#£ v. A4¢yg 158 W. Va, 53 1, 212 S.Et2s 85 (1975) (''When the
record in an aedon or sut is such that an appelhate oolrfu ¢an matinjustice determine ire
judgmedthatshould be rndly rendered, the case should b¢remandedto thetrial courtfor
furtha. developrneut.., Syl' in. 2, g¢of# SjdeI;;nebgr co. V' gfo#G deffist"O#Ore Ch, 151 W.Va.
439, 152 a.E'2d 721 (1967)).
II. The CourI's Memu"ridum De¢isiom fails tO Properly aPPlyWest
virginia law with Feapeet tO knowledge imputed to COrPOm±iOnS.
under this court.a cstoppeljurispndence, North mug Group should have been
Sstopped from asserting that ire oil and Gas Lane was t¢rminatea, A8 the Cout observed* sines
i)wffbcay jfogrsjngJ4ayffegrty vrrvgJi##rfe, 184 W. Va, 288, 400 S,E.2d 296 (1990) was decided over
twerty years ago} this coutha held th;iwSgtvirginia mows the general ru18 that ale88Or
wgiveShis orher right to ferfeit a leR§e for abeach Ofa covenant Or Condition when.
subgeqneftyhe or she accepts rSutat Pay-utS (¢withknowledge Orfull notiee ofsuchbeach.9
J#, at 2g1, 40O S,E,2d at 2g9, The Menqrarfum DedSion froonectry charaeteriEeS the record in
4
` `.~ck,}
"^xl., _-:-
..\`
+I_
' I
i)¢n I:
r .
REii
u5ee
_- ~» uou_aBE.CEl\.;ED
offic3 I)i C)il anc! Gas
AUG3i2Ci7 ,
b+a./ Dera.riment ofEnvirQnmerI:al I.,,rOtectien
this cage, hawever} wfron it says that ¢¢the record is also abundanfty Clear thatNorth Hius Group
had ne haow]edge that anything ofrorifian salt water or brfue was bBing rtyeCted hid ire 508/1A
well util ieaming information at a Fayette County Cormlig§iOn meeting inNoverfeer, 2O14,
which prenpted aninquiry into the ngfur8 OfWebb ¬onStREtionOP¢ratiOnS On the pemiseS.'t
(Memorandum Decisiofi at p, 1 1,)
The only witmess calledto testify on behalfofNorthHms GTOuP Was Patrieia
Harilten, Mg' ffirmthton festifrod ireifefifetbecame aware Of'Webb Consti.uedon's operations
ou the lSasefi preniges at thSNovSmber ZOI4, FayStt® Courty Commission meeting. (I.A. at
271-75.) Howeverl it iS a signifiCat dapautue from this Court,a prior holdings tO now OOnehade
that beGREgg nds, RTalrdlton was previoudy unaware OfWet)b Construction9a ongoing operations
on ffig leasedpremises, then the coapo[ate entity ofNorfu f#1is ffioupI In¢' was also u"wiare.
such a oonelusio# is not Duly usupporfedt)y de re£Ord in this ¢aSS, but also at tiddS with this
cotist*s prlerholdings with.respeGt te krmwhdge imputed to a OapOratiOn. unat Patrieia
HREiiton haow and When gke hew it iS inelevant ifi any analysis Ofthe apPli¢ife#ity ofestOPPel
to the aENfty ofNorfu Hfl[s Group to terminate the Oil and Gis Lease.
Fur pxpQSeg ¢gduterrfuing ire apPliSabilfty QfestOPPed to this OaSS, What
matters, and all that-tterg) is what the officers anddirectors ofNorth Hills Group, hac. haew
whenthe oil ed G#s Legrge wag enteredinto and thaughautthe term Ofds Oil and GasLease.
The eecord iS clearthat Ms. ELanitton did not negotiate the Oil end Gas L8ase. TheNorthHills
Group offiSers and dhecterS who did negO#at3ike Oil and Gas Leftse were nat called as
witnesses, Howevera the rapreseutative§ OfNorthffius Groapj lnc, who negotiated the C)il and
Gas Lease kflew that ire Purposes Ofthe lease induded injection ofWater from Other SoueeS
ii::,,.-:
#f
:i[
.
iiini]ri
:.
I.I
-I
L`-. ` _.
offic,.PEt£.g.ii/aEnDd aas
AUG 3fl 2CA,7
vrv Deftartrneut ofEnvircrlmen,:al r.,rctect'lOn
besides vellg drilled on the leased penises and accepted I.eutal Payments whilS these injections
oocured'
±ncenmercitil Banking &Trust Co, v. Doddridge C:ourty Band, ±±9 W.V&. 449,
1g4 S.a. 61.g (1g37)i this coulf reoogulzed that ¢<[t]he law Will also imPrfe to a OOapOratian
knowhdge offiats which its directors ougfro to fuow, in the exercise ofordinary dffigenee in the
discharge ofthedr official duties, when the imprfution ofSuch inOwledg¢ to the COTPOratiOn iS
neoessayto prctect the rights ofthird persons, The dirgGtors are presumed to know that which it
is ifeir artyto keow and whichthey havethe means ofknowing." 3 ZlfooJ#PryOre Ojl carPOrer#Ous,
354, § 1783. fit CbmxperaJofBfl;#feJng & rrgr# Cb" "g C¢urfewent on to Say that {'[t]he manner
in,whch a ooaporalonlg bugfrosS is oendrcted may be guch as tO inprte ta the board ofdi,eOtorS
ed ire coxporatonknowledge ofbesinegs trmgaed'ous entered into by a representative ofthe
coaporndon." Jd (citing Bggr# Th ri4org##towre #grdK!#g"/oo#Rerg,frond Co,, 1I8 -a, Z89, 190
s,E. 333 (l937),) The prindple is nut unique tO West Virginia. indeed) the tJndted States
supeme court has noted that corporate officers and directors haave EL duty tO renftin informed
ifeout ire ooxporatiens they gQVerfl and may not SinPly hide ifeir hePdS in the Sand in Order tO
preelnde Sstopped. Inar#pr## v. prega, the United States SuprBmg Court noted that ''[knewledge]
whifethey oughi} by pxp®r diligence, to have keo\m as tO the general Course OfbuSkeSS in the
[gQxpOrgfron]' they may be peSuned tO riave known in any Contest bctWegn the COxpOratiOfl and
frose wh aejustified by the ctroumstanoes in dealing with its office1.a upon thebasis Ofthat
cause ofSuginess." 1 10 uS' 7 (18g4) (overmled on otha grounds,J4ffe#rr¢# v' F"C, 519 U.S.
213 (1gg7)), NorthREls Group, inc, accepted in excess OfEighiy Thousand Dollars
($80,000,00) from Wchb Construedon dring the term Ofthe Oil and Gas IJeaSe. The
coxpondon,s offioers and directors knew that none ofthe money they received was derived from
"6
`
:,
I:_
J^J
"`
"':
:dy=
_a ----.-;K± Et* bf:~/{x+1.
offic,.TEfcoEllYaFIDd Gas
AuG gEL 2Ce,7
vlni/ Depg.rtme:1t ofEnvironm.lin`l.rJ Prot6Ct'lOn
royalty paymerfes from aprodrcing oil ornrfural gas uell. North Hius Groxp] inG. twiG8
received copies ofwets donstruetion,+s injection permits, once in SeptemberZOOS, (JA' at 797-
9g,) antl ngrfu in DScunber 2O14, and ire re¢ord EOrfung nO evidence Ofany Objectionty North
RIi[1s Group, On the very fret Page ofwifro Construetiou's permits, ire Permit States that Webb
Cousthctien is
"anthndzBd ty this PSrmltfo inject Class II ffids that arG brought
to tiro gurfrog in gormedrion with ocaveHtiOnal Oil Or natural gasproduction and may be Com:mingledwithwaste waters from grSplants whch are anintegral pat of.produotion operations, ulessth¢se waters are classifrod as afaasardeus w#ste at tha time ofinj¢SSion. ,. ," -(JA at800.)
The officers and dhectors ofNGrth Hms GroupJ Inc. riave Changed Sines the Oil
and Gas Lease was exSouted, and While Ms. EIanilton_may nothave.known that froidS frau
other welig won.e rieing injected, de OOrPOratiOn} Noth Hills Groups ino. did know long before
Ms, HamihabScanle ch Officer, (I,A. at7g7-9g.) More-over, the officers and direCto#S OfNorth
ELlls Groups mg. ¢ouid itave at anytimg made thctr Our independent inquiries into thenature Of
wedb construckori,s operations on theleasedprenises. They did not'
HI. The Court'g Memorantlum D.ecisiou is not consiS¬®nt With Prior deCiS±OmS
regardfng lease comstruetiom or paractices in the oEl amd gas industry.
The Court,s Memorandum Decision rkotes that #[!]h!S ease iS reSulVed uased upon
the p]aiH fuguage Sfthe Lease, and ireevideuegthat Substan¢eS Other than Salt Water O# arine
was injeded imo the 50g/IA vellt which wag notproventO be tREProduCtiVe," (Memoranrfum
DeciSiou, p, 11.) First, the gtatengut that Well 5Og/1A hadnot provento be unprdrCtive iS
totally ineonsisteut wThfro reGOrdS inctnding the MSmorandrm Decision.
I,i.ff?ae _ _ ''y¢y _ /_- -
p :
f>
~#)
a * __Ei.ECEl\./ED
offic_a of Oil ancI Gas
HUG 31 20l,7
VIV I)erartment ofEnvircnr.I !L.r!lall F,rofection
=l}
`4¢:'
-:. :.:;.--
;Iffi,I;,i
ds the Memorandum Decision indiCatsSSNorth Hills Group sold Webb Coast-tion a
tract ofland on which a plugged, butunproducfro uell was located, (J.A, at231.) In ¬ontrast to
the wall on the heeded propedyp the well on the leased praptry was so unproductive that it had
been phagged with oermeut red abandoned, (I.A. at 182.) The Cout's statement that
t4[m]oreoverj thefluids were injeoted imtO aWell that Was notproven tO be unPrOdrqtive9 is
ineondstint withds facts. well 508 wag, as notedinthe REmorandunDecision, drilled and
complefelybypeedke petroleum Company in 1982, prorfuced for several years, became non-
productheS and wagplugged as a nan-produetive wsllby the year I986 tJ.A,a #t 83.)S which is 25
years priortods timethe lease in issue here wias executed, The well irnd beenproven so
unproduetive it was plugged and the prior lSas¢ guneedgFed, The paties knew the totally
unprodrctivephaggedusu was onthe lease premises, and that isWtry Paragraph 14 ofife Lease
provides thatire lessee is grarifed ire righi to inject in any whl ¬',,.drilled or loBa¢ed upr ire
leaseprendses whichmayprve unproduotive ofofl and or gas,.,," [expkasis added]. will
50g was i¢¢grtgd on the ieaSSd PremiSSS, PrOduOed, but beCane SO unprOduCtive that it had been
plugged by pumping ceneut inthe well (J'A, at g3.). When Webb Construction drilled out the
cement plugs, its irfeutionwas fo oouverf well 508 into an injectionwall aS COntexplated by ire
Lease, butthere was a Sligtit chance the Wall ndgrthavebeenproductive because Webb
cousrfuction had inje¢ted into the deeded well. webb comstruGtion did give Well 508 the chance
to be productive; it did not produeSJ and Was rgCOmPlgted as an injection Well. There is flo
then evidence inire record onthatpoint. TheMe-randum Decision refersto the fostimOny Of
webb construction,s representative on that poirlt, tut ignores it.
The ifemo¥andem Dgcigiom relies on fro Operation ¢fthe haabendrm Clause in the
granting language ofthe opedng pa£agrapfaS ofthe Oil nd Gag Leaseto conclude the lease
8
a+_;.i.*< ±?,JS:,i= S. ifelthie.3.iwl
- .ftx.
;a,.i::::i
1< _ JHA _
ly\, Aff\
+st :+
¬ (
- 6alfi - - - j3?x+J~ -2B= A`,Cf \¥*ty lfz±th}+ay, -,gpo .__ I_a
"'-. F3ECF_l\.,TEDoffice 0f u|i anC! a;as
AUf] 31 ZCi7
\itIV Per,firtmeri ofEnvircnm±r.Lal r,rC;t6ct'!On
tifermiREted en its own accord at the COnCluSionOfthe Secondary term. No party needed to take
any aofien withreapgSgto termination." quemOrandun De¢i;ion, P. 10.) ELowever, ire,Couct
also plalrdy states that +t[w]e acceptthe Contention ofthe webb Pethioners that the IJeaSe iS not a
standard lease, de;Fife#g title,but, rther, itis a ldual prPOgelease."I (Memorand- Decision,
p. g.) Asthe Coutagreed, the Lease was neverneatte operas aS a run.Of.the.millprodetion
lease, Pck, rd itwas eror to OOndudethat fro Lease ¢otild be termimated like such a lease. The
court,a Memorandum Deci§iou implies an obifegaton onire,lesSSe Ofthe lease to prodrce oil
and gasS who it is edear that the Lease i§ huld by the injeCtirm al storage Ofgas Or brine, which
ooGured'
rfuS hat)endrm deusg ofparagraph 14 ofthe Lease provides that Wedb
gon§fro¢tiomcouid malutainife Lease ¬¬..,inire event such Saltbriife injeedOn.., OontinueS
Seyond the primary er secondary term ogthis leasel then the ieaSe Shall COnd-e in full force and
effect so long a§ [Wchb gonstruetion] rfeali OOrfuue Paying lessor a-ally thereafer the sum Of
Three Tfrousand Six ELndied Tuerty-Thus ($3;624,OO) for such privilege so long as such
aedvftycorfurmeS,,.) (JA. at 52.) There is no dispute that Wgbb Constructionhas made an
payments gnguhed nder the Lgasg, nd there iS rm dispute ffiat Webb Construction has injected
salt water rmd I)rfue into fro leasedpremises. salt brine imjeofron has eonthued, and with the salt
brine, inje¢tion of¢¢,..otheff fluids.,." from oil and gas produtiou has also COntinued aS
aufroriaed inTighig g-tingParagraph ofthe lease. h edditlonto Paragraph 14, Paragraph2 of
the lease provides that de lease cond"es '¬[so long as o# or gasE is prodea... OF aS long aS
gas or brinS is stored therein.,, Brine is bchg stand inthe leasepenises. and aS authorized
by ire grant ofire ridr]tto inject other fluids, offer ENds are being injected as Well. -e oife
fluids ado condn hiEle. The next question ig what compensation the lessor,skould receive
S
"./ i,,±esJ:try.
- ;.I.
i:;
-#
:i#!;
l`.
( - - - - J¥hff^ofJl-REke-a ~if -._ - BECF_l`/ED
office of Gil ailCJ Gas
AUC1 3fl 2St,7
w,/ TILjerarment OiEnviror(i:lt;ntal i.I.,r6teCtion
beoause the lease ¢outinued? That questionis answered byPar.agrapha 14, whch provides the
amount Qfrent, Which Was Paid'
Fen pngos®g of.maintainingthe Oil and Gas Lease under Paragraph i4, Webb
constructionhad to nestonly tw rgquirenents: (1) paymed oFife required armualfee Of
$3,6Z¢,00, al (a) condnuous imjeedOn OrSalt rmter or brine. It is undisputed Webb
cofistructiorlmssboth rgqukenents, wgbb cousfrotion's injection ofotherfluids was net a
brewh orthe Lease because other fluids where SPeGiffiCally authorized, Brine and odor fluids
withinflowbackfrom oil and grs fi.arfuring operations, kave been injected sin¢¢ Wall 508 was
®onverted to an injection well in 2008 as asifeorizedby the Lease. The Lease lunainS effeetha
uter paragraptl a and pRTELgraph l4 So long a§ the #entat paymeutg a1.e -d¢, which ndndttedly
they have Seen, Thg Couat alleges that Wrfeb Coastrmctionveuld 6¢comflate" the IJeaSeg but this
Courthas ignored the grmtingwards OfParagraph 2, nd the plain language ofife Oil and Gas
Lease. The Courtwould reed Paragrapin 14 as ifthe lease oontalned m other language, when the
copy ofthe leftso intha JointAppendix is 13 pages long.
Termhatien ofthe Lease wcks a forfeiture, and iS ahiashremedy' IELSr, £!fke '#
uulted Mwhodist C:hachv_ Cue Develapmehi Co,S%22W. Va. L85, 663 S.B`2.a de9 (ZflOE)'
this court explored the applicabilfty ofapuitable and legal remedies in the COnteXt Ofdisputes
a1.iging Out OfOfl and-gas lea§e #greements. ThefS, this Couitnoted that an alleged failure ty a
lessee fohonor a oovenant in an o# and gag lease agregmeatis ordinarily redressed in en aedOn
for thagrs, nottaninatiom og re§ctgsiQn Ofthg undeftying iease agreement, See I)odir!edg¢
cp#ngfty a)# ### Gun Co, v, £ne#fe, 154 F, 970 qu.D'-a. 1907) (recognizing that a lessee,a
faiha to honor chligattong to iesSor.eiS ordunrily tredr8SSed] by action at law for damages, and
ndi by way offerfeiture ofthe teg§ee¢s [Qtharigtit§ uter the leaseL''); ¢c¢ord Syl. Pt. 3, Coye v,
10
¥ys,.±&#x+
in`
L`..
I",
»1 'i-
~` ?
:I_;:I;I:,
H),_
_%&*\ul a r '-.)E; i+..`'r *. aEEC:El\./ED
officrJ) Or' O'Il anC! Gas
AUG 31 28i,7
wi/ Depa.rtmrJrl.I OfEnvirGmlSr..lai r'J.rCltC;ctiOn
jvgw yorgpgfrodeam cb., 52 W. Va. 276I 43 S,E12g (lgO3) (({, , , the remedy for a breach ofan
implied covenar±is ordinarily net byvey`offorfeithre ofthe lease imwhole o# in part, but by ap
actionfurdannges caused by suchbreaoh."), Ifire Northffitls GroupS fro,, waned
cenrfuifento driii aflowwdi1, day chouid haire' in GOmPliance with Sf, I,tide '£ V77#ed
ri#erfeofrtrf c#grro#, mede a demnd to driu, thus giving ifee lessee the oppormnity tO drill or
sulfenderde ail and gag drilliflg and Operating pan.tS Ofifee le#Seg instSad OfSeeking terminatton
ou forfeiture'
NQrth EIiug Groupp inG, CarmutS nd hag ndi, denied that Wsth Construction has
fbThfufty mede allpaymsutg requiredunderth Lease to keep the frgreement in full force and
REect, hikewlsg, Nurthal]ilts a-p} InG, Carol deny thatWgth Consfroction has cOutrfuOuSly
utilized the leased preniseg for injection ofSalt Water ndbrine. These are tho outy two factors
nece§ggrry for wchb const"ction to maiutain fro IJcaSe Agreemat under the habendun ClauS¢
ofparagraph 14'
Menorandrm Deoision states that the Purpose ofthe granting diauSe Ofthe lease is
{f. I.explicitry fur lthe puap¢sg ofprospegifeg, exploring dy geopftygioal and other matriods,
drdifegbchverically (sic) andhorizoutalty, mining, OPerating for, producing and Storing Oil
andfof "tural gas and/or ¢¢albgd methane (herei"fter along With"tural gas COue¢tiVely cdi1¢d
ndinctrfed inthe -a.¢gag..)J Or all three,... CgTtalnly, those Purposes Were granted, btit those
were nut the Sfily prposgs granted. rig grantingciRESe Oftri8 lcaS8 Cnd"8S, ,¬.,.nd the
further excinsi;a r:gEN to fiutect airS gftS, Water, Salt Water, bl.!me and Offier fluids from any
sotlrcg into the srfesurELce strata and ay and atl other rights and Privileges necessary, ineidSni
to, or conveni8ut futhe S¢QnendCal Operation Ofgaid land, edona orjOindy With neighboring
lREtd[ forthe ProdeutiOn, Saving, stol+ing nd taking Can OfOil and gas and the iute¢tiOn Of airl
ll
i .`Jf,` -- _ ,:_ - ,` '~.:;1 - -,'.,
iii,i
..
"-,\ RE.=Z= - -l q.,=,)^, . -ZC.,*r*¥ ll, apfro\',- a.k
-.
"'::`.`
-hf#-jS#{#'Tp ^.yZ - I #+ 3 +a "'- ,RECEIVED
omce ot' Oil ancl Gas
AUG 31 2C1'7
\w Depa!iment ofEr'vircrlm¬rhal i')rof6CtiOn
gas] water} brine and other fluids into the substlrface Strata...", The Lease gl.ated the
right to inject Other #uidS ape®iffiCally two times, and it also granted srfu otheI.righiS aS vere
neoesgary for that purpose. Th Mono-dun Decision states: ¬¬.-,.the granting OlauSe iS Sthctly
linitedto ire prrpese ofexploring, OPeratiOn forS prOdueing, and Storing Oil and gas". That
statement is chgolutgly} totally, Clearly w1-g, Surelyjustice requires at least COnSiaeration Of
thelagresueatofife'paties'
Thg C¢urt ssens to believe that the Lease language regardin# 'tOife1` fluids"
contemplated fracturing ¢perafrons in cormection withprotection. Nothing could be firfeer
fren thepredcgg ofanirfustry that is crfeioally impor-tto our state, Very few oil and grs
lefls®g coutain REV injeetiOn ]angungS whatSQSVer.- Fracturing is absolutely necessary to produs8
eel and gris fromthe valuable Marcelhas andunca ghalesS andhas been used in almost every well
drilisd in westvlgini& s;mQe the lg5Ss, WatSr, other fluids, and Sand are injected, a practise
even pre§ideut obana.s Eavironmeutal Prctectiofl Ageney re¢endy found Sife.2
Ag fracfurfug ig necessary tO Oil and gas peduC[[¢n, the right to fracture iS
ixpligd in every lease, ha West Virgifiiaj it is well,established that won an estate iS granted' thl
the neanS to de{atn the esta;e and ire frets ofit are also granted. sg#!rea v. £o#erty, 95 W.Va.
307, 121 SIE. 90 (1924); Porfgr v+ tledflc& A4/a+ Col, 65 W.Va. 636, 64 S'E' 853 (l909)S SFacfro#,
#apr¢, tl#ife# v. ctoz#.## #¢J#gny Co., 46 -a, 625, 33 S,E 765 Gg99). Ths right extends to
all add reasonably necessary for the minerals exPloratiom, prodetiOn, removal and marketing.
Bttffilo REwhng Co, xp, Martini 165 ngV. xpifu lO. ZS] gEi.2a, " (W. VEL. 198Orty. Adkins v. Untied
2 see.E:E>A: a Stmdy offtydroulie` ft1:qrt_rri_n_a_for Pit
w7crfer JZes¢#r¢#, Ff+mgIJrf£ueus#e#g _20f6, released i2/12#Ol 6]2017)'
12
end cias and ltd poieutial Impact orl Drinding(last acoessed "y 10l
zt- y a of--i.(vi f
-I,
"H]
ll-±g-I- , W:,a ,ngveJ%3ir .sir ±:- :+`S-tO`
`'_.
.``
F3ECtl,./'ED ,c)ffice of C'Ii and Gas
AIJG 31 284,7
vA/ Der\artm.-+I,,I. ofEnviromTlj"tal I.,rctectiOrl
Fergf G#g gg., 134 W'Va. 719, gl g'El.2d 633, (195O), 54 AmJur.2d A4froe£ ##¢ ul4;#er#J£ §2iO,
sg a.I.a. REneS end rmneralg §\S9, PL. T}otREky' Coal Mining RigivS ed Privileges in West
prlngjrefo, 52 W,Va. hRev. 32 (1g4g). Therg was ne need for the Lease to separately state the
righi to inject as part of ire oil and gas production Purposes Of the Lease. ire injection and
storage righiS were saparatchy stated in the granting ckRESe because this iS a multiple prxpose
Lease. The right to injSct fresh and Salt Water. iS even implied in every produotiOEL lease,3 As the
i.ighi ig implied in ¢ormctiom wh oil and gas prorfuction, the Only reason to SPeCiflcally gran
the right is beaRESe the injection rigiv Was SePaete, and Substances Offer than ifeSh Or Salt Water
would be injected.
FFachwing O¢¢urg eventhough Oil and gas leases do net Contain injection rights beOauSe it
is ngceSsay fen prodrction) and beneritg the rmnyfrougands ofrayalty owners, producer
employseg} ed and gas gSFViCe companies, layers nd their enxpiOyeeS, title abStractOrS, COut
hougB uekerS, SngineerS, rig hndS, offlCg enPloyBes, inVBgtol.a, bankers, hotel OPeratorS, truck
Sales peQPle± Squlpeent manufacturers and xpairmen, adetiiSas, and Others involved in the Oil
g S## a# de. v' pr%de"} 4$3 S'W'Zd 808, 81i (Ten, l97i) (('The ixplled grant ofre&sondl8 use
extondg to and inCfudeg the rigife tO inject froth Water from the leased promises in Such anOut as may b8 reasontotyneoesgap to cSny out the less8elS apentioug under the le8§e."): ifeffer V. I)e#baery Re#" Jtto.+ I 12 F. Sure. 3d 9061913 (D,N,D. 2015) (I"ing tug subsurfro¢ for disposal Of Salt Water WOuld bS an inPlied right under the 1eft§egiven it ig a necessfflry ¬¢nsequencG Of Oil nd grS PrOdrchon and the nBed to di8POSi Of it.")i Co/b'lr# v, Packer &pert,'try Dgy. cop 17 Kan. App, 2d 638, 646 (l992) (Jha oil rmd gas leaSC includes an lmPIiGd COVenatfo diapO3B Ofthe salt water pedraed durfuB apeetionS by utiliZife8 a SndtWater dl8POSal Weu drilled on fro tossed PremiS88without edditioRE1 S®xpgnsattoH to the keSOr and Such a righat !S requked in order for the Prochction of Oil and gasto be acoony!ichedr); £gg¬r " pGfrofeacm Engdreerfr Jirc.. 499 So. 2d 953., 956 (L&. C!. Ape, 1986) (DiSpas@l ofSaltwater rfualned dring produtEou ®f oil was imal!edfy granted under mm®ral lease where Salt Water diapoufti Was:'_-_=.i_'-_??.--f'-i'i--'=i\'=? ii.i' : __ :.::-'-i_i-:'- =i:i='.i.i -:-i,-+i ---.-i.i.i:, -\¬.--i.-i_--:-ii?iii_i--.i:_ =-i:. _-- _-_--__i:: -.-__:i --_----:_..-._,.: - -==..=i-\i_-.,T-i_if_-ii__-_:i= i_._?:-.,:-i
srfesarfac8.* gtePbg"g Th Ffrty Res., J#¢., 20% WL 768877l at *1 grew. App. Mar. 27. 2006) (A less8B hfl8 anixplied rigiv to digPO§e OfREIt w@er grnduced in OOnj"ctton With Perfuming its COfltrftCtual chlfgedens and tnaydo go try frojecting it into an oil and gas Welt on The ieased premises.); Braw# v. lee"de". 162 "*. 84. 344 S.W,2d863, 869 (Hex,1961) (A le§8ee has the rigiv to usSe SO much Ofthe land aS iS refl8rmifely neCes8ny in the ProdutiOflop oil, nd §incg the prodndou of6il ne¢eggndfy involves its Saparatiou from the Salh Water, the 1®93ce itas the fightunder the implledte- ofthe lease tOuse the land forthatPurpose.)
13
Hi!RE u
- ,
I.
".:
I;;;iii!{;;.
"- _- - ct*-)is¥~,_ -*itt:# I i r-
and gas indstry Fraofurfug brings high-Value Wells which are taxed a8 Property, and a
officepT:,foF!YaFIDd GasI:
Aura o® 1 2O¢,7
v,n.../ Per.armgnt ofEnvirCnrtlCr,..al LrdiGCliOn :
`
ie^'&
I subs"ial por¬ion oftkat prapgrty fax 1.evenug goes to O"t SrfuQls, F1.acfuring things mimOflS Of
diallas ofseve-oe taxrevenue - for. example, $186,800?214 in 2014, $156,8dO,000 in 2015,
and $72,SOS,goo in 2016 _ and more inthe frore. Afterfractwhga the fin¢ fluid, whch £Outalus
twine but is mostry watSr, mug¢havS some piace to go. west virginfa's solution to the question
ofwhae fo put fran fluid is to injectit deep into the g-nd, way belowthe surface Water,-and
way below §ubgrfecg aquifers whCqCOntainfresh Watel., back into the deeper brine Producing
subENFFasg formations thatforfflerlypedrGed all and gas and already COmtain brfue and
frachndngffutd] using injeation whls like ire one inissue has.
IELjection i§ Sq imPchant to fro O# and gas irfutry andde Stets ofWest Vinghiathat
senatdigM3lifehin and Capito haveiaingd tOggtHer to Spousorfederat 1¢glslationto a-te an
injection nd storap hrfe fu oil and gas liquids in West VirginiEL REd RTrounding States.4
Injgctien rigfafg n"Stbe-upheld for the oil and gas industry to brfug West Virginia the enunouS
benefits it offers, webb constr.uetioH firs nO deuPt that the etnerfe generation OfO`rmers Of
North ffiug G"pa fro. does net life ffactrdng, nd does mct Wan Oil and gas produeti¢n. But
that ig not grrmds to ganc81 an injeedon lease the Prior OWner§ OfNorth Hills Grong, Inc.
anfrorized nd proHted from, Ignoring rights diearly grantedi®OPardiZeS ire indrStry White
digife proviso employment and revenue to keepwegt virginiafihicedly star)le.
GflNffiUSION
The Cou#s Menorandun Decision alffirming the Order by the Circuit Court of
ftyctfe county dgofaring ire oil ed Gas Lease bgiv®en Wchb Congtrmcfron andNorthHills
4 seesSKrrfeB" +onSSttAppala¢hian EEhaneStorage Hub StudyAct;7
14
u-`*(,p}-' , u ~ - befro` +L~-
introduced May 9+ 2017.
":;
-(i;
iiiiiiji*
. =1,5 =-.e -
EiE£El\/EDc)ffice of oil allc! Gas
AuG 31 28I'7
wv D¬--.c]rtment ofEnviium=1.+;,-a! [tQtQCtiOn
Groupa ho+ to be terminated iS a Signifroant dePrfu:e frommanyPriorPrecedents OfthiS Co+ut'
SasSd onirefrets redted andth; law appliedinthe ManqredunDecision, itis apparentthat
the Court laded ft sut#cierfu frothat record on which to base a complete decision in ffiS matter.
rmreover, this factual defroienay apparedly caused the Court to migtak6ndyb8li8V6 that the
<cirndcourtwag peper when itenter.ed apermanent injunction against Wsbb Construetion.
Additional factual derdOPmerfein this Case WOrddPrOVS thatthe Oil and Gas Leas8 ftgreenent
never terminated by its a- 1erus, and that any injuntinn ®nte1.®d in this Case Should have been.
at most] atenpornyinjunedon to permftproperdis¢overy and factual developrffitunder the
west virginia Rules ofCivil Procedure.
WRE Cthstruction resPeCtfifty asks that this Court either (1) grant a rehearing Of
ffig mgifer, or (2) enter an Order remanding ttriS Caseback to the Circui,i Cout ofFayedt8 County
for moss complete frofual aevelapmed throughthe Process OfCivil litigation.
REspeedirfty subeifed+his loth d#y ¢fREyg 2O17'
DANNY WEBS CCENSTHUCTIOEN, ENC,, andDANNY REBB
EOWLES RICELip600 QuarierStreetpost office Box 1386cfaarleston3 WestVirginia 25325(3q4) 347-ll 18Facsinike: (334) 343-2g67gREifeREfl_
15
?:I.wl§, - ,+*«
jftyl
ace
i.,.I