A&B Campbell Family LLC, et al. v. Williams Partners, L.P., et al.

CourtDistrict Court, M.D. Pennsylvania
DecidedDecember 22, 2025
Docket3:15-cv-00340
StatusUnknown

This text of A&B Campbell Family LLC, et al. v. Williams Partners, L.P., et al. (A&B Campbell Family LLC, et al. v. Williams Partners, L.P., et al.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A&B Campbell Family LLC, et al. v. Williams Partners, L.P., et al., (M.D. Pa. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF PENNSYLVANIA

A&B CAMPBELL FAMILY LLC, et al.,

Plaintiffs, CIVIL ACTION NO. 3:15-CV-00340

v. (MEHALCHICK, J.)

WILLIAMS PARTNERS, L.P., et al.,

Defendants.

MEMORANDUM Before the Court are three motions to dismiss filed by Defendants Anadarko E&P Onshore LLC, as successor by conversion to and f/k/a Anadarko E&P Company LP (“Anadarko”), Mitsui E&P USA LLC (“MEPUSA”), Williams MLP Operating, L.L.C., Appalachia Midstream Services, L.L.C., and Williams Partners, L.P. (“Access”). (Doc. 235; Doc. 237; Doc. 239). This action was originally filed by Plaintiffs (“A&B”), who consist of a group of oil and gas lessors, on February 17, 2015.1 (Doc. 1). The operative second amended

1 The named Plaintiffs in this case are as follows: David J. Bride, John M. Barrett, Richard D. Marshall, Rexford Schoonover, F & M Robinson, LLC, Robert H. Stoudt, Jr., SL Allen LLC, MS & JC Doss, LLC, F. Robert Hauss, Ronald L. Campbell, James E. Canfield, John R. Snell, Jerry L. Price, DP Investments, LLC, David W. Moon, DJH and WGH, LLC, Charles L. Emerson, Little Fall R & R Inc., Barbara E. Mosier, Erven W. Crawford, Paul DeNault, Barbara P. Grimes, Kendra P. Solowiej, E. Larry Franklin, Clark H. Beebe, Freda L. Canfield, Sandra L. Marshall, Theodore B. Gatto, Wesley G. Mosier, Darlene R. Newton, Valarie DeNault, Michael R. Bride, James E. Grimes, June Crawford, Carol Franklin, Cheryl A. Henry, Tor Tamarack, LLC, Peter P. Solowiej, Mosier Real Estate Co., LLC, Shirley Bride, Candy S. Card, Robert L. Dibble, Jr., David L. Sandt, Doris J. Newton, James P. Snell, Neta Repsher, Carol Hauss, H. Timothy Newton, Foster Family LLC, Cindy E. Barrett, A & B Campbell Family, Thomas R. Frederick, Barto Family LLC, Patti L. Stoudt, Jacqueline T. Place, Sue A. Sites, Shawn Patrick Newton, Richard A. Card, Jr., Deborah S. Frederick, Russell E. Bulick, Richard W. Jackson, Milton Repsher, Cathy Ann Brady, complaint (“SAC”) was filed on October 17, 2024. (Doc. 216). For the following reasons, the motions to dismiss will be GRANTED. (Doc. 235, Doc. 237; Doc. 239). I. PROCEDURAL AND FACTUAL BACKGROUND This case arises from fracking activity in the Marcellus Shale area in Pennsylvania.2 (Doc. 216). A&B is a group of individuals who hold royalty interests under oil and gas leases

Dolores B. Jackson, M. Patricia Nelson, Renee S. Newton, Epler Family LLC, Claudia C. Price, Outdoor Investment, LLC, Mary J. Moon, Shawn Newton(trading as Newton Family Limited Partnership), James T. Barrett, Walter E. Newton, III, Lynn Dibble, Paul A. Sites, DJH & PAH, LLC, Theodore A. Johnson, Kent L. Morgan, Nicole D. Newton, Lori R. Barrett, Morchar LLC, Michelle S. Snell, Walter E. Newton, III(trading as Newton Family Limited Partnership), Diane V. Bride, Walter G. Henry, Jr, Pamela L. Emerson, Eugene J. Barrett, Jr. 2 The following relevant background about fracking in Pennsylvania is taken from this case’s counterpart Suessenbach Fam. Ltd. P'ship v. Access Midstream Partners, L.P.: Fracking enables the production of natural gas and oil from rock formations below the earth's surface, generally 5,000 to 20,000 feet. At such depth, there may not be sufficient permeability or reservoir pressure to allow natural gas and oil to flow from the rock into the wellbore at economic rates. Given the extremely low natural permeability of shale, creating fractures in the rock is critical to extract gas from shale reservoirs. Large deposits of natural gas have been discovered in various shale deposits throughout the United States, including in Pennsylvania, and several oil and gas exploration and development companies have been actively accessing these deposits due to the development of fracking technology that allows the deposits to be exploited. The Marcellus Shale formation located in and beyond Pennsylvania is one of the largest natural gas reserves in the world. Plaintiffs' lands are located in the Marcellus Shale. Gaining access to the deposits in the shale regions, including the Marcellus Shale, typically involves purchasing or leasing land or mineral rights in the vicinity of suspected deposits and attempting to develop profitable wells. Once a natural gas deposit is reached, a wellhead is placed on the deposit. After a wellhead is in place, natural gas can be moved from the well through gathering pipes and ultimately transported through an intrastate transmission pipeline. Intrastate transmission pipelines connect to major interstate transmission pipelines which transport natural gas throughout the United States. The transport and processing steps which follow removal of natural gas from the in properties generally located above the Marcellus Shale. (Doc. 216, ¶ 1). In the aggregate, A&B holds royalty interests in the natural gas produced from over 12,000 acres of leasehold land. (Doc. 216, ¶ 1 n.1). Two named Defendants in this case, Anadarko and MEPUSA (together, “Lessee Defendants”), and non-parties, Chesapeake Appalachia, L.L.C. (“CALLC”) and Statoil USA Onshore Properties, Inc. (“Statoil USA”), also hold rights in

A&B’s leases, either as the original lessee party or as assignees of all or part of the right, title, and interest of the original lessee party.3 (Doc. 216, ¶ 2). A&B alleges that Defendants engaged in “separate but related unlawful schemes” to deprive A&B of royalties and royalty interests for gas produced on their leaseholds. (Doc. 216, ¶ 6). Further, A&B alleges that through an agreement among Defendants to jointly develop natural gas wells and gathering systems in and around the Marcellus Shale, Defendants have engaged in an unlawful, anti-competitive scheme. (Doc. 216, at 8). This scheme is allegedly intended to “allocate geographic markets for the acquisition of gas mineral

wellhead, but precede entry of the gas into an interstate transmission pipeline, are sometimes referred to as “gathering.” Access Midstream operates between the lessors at the wellhead and the interstate pipeline system. Processing can also include certain services to make gas suitable for entry into the interstate pipeline system, such as dehydration when the natural gas has a high water content. Access Midstream as indicated, however, “[i]n general, the natural gas in the northern Marcellus Shale is lean and typically requires little to no treatment to remove contaminants.” While federal rules limit fees that can be charged on the interstate pipelines to prevent gouging, drilling companies levy fees on local pipelines, known as gathering lines. However, even where such fees are deducted, they must be reasonable and actual. No. CIV.A. 3:14-1197, 2015 WL 1470863, at *2-3 (M.D. Pa. Mar. 31, 2015). 3 On September 17, 2015 and September 15, 2023, Statoil USA and CALLC were dismissed from this action, respectively. (Doc. 110; Doc. 182). rights and operating working interests in oil and gas leases through the establishment and abuse of restrictive areas of mutual interest.” (Doc. 216, at 8). The scheme also allegedly permits Defendants, particularly CALLC and Anadarko, to charge “supra competitive” fees for gathering services at the wells on property leased by A&B. (Doc. 216, ¶ 7). In effect, the scheme allegedly allows Defendants to defraud A&B of its royalties “by the misrepresentation

of unauthorized or artificially inflated deductions.” (Doc. 216, at 13). On February 17, 2015, A&B commenced this action. (Doc. 1). On February 23, 2024, the matter was reassigned to the undersigned. On March 14, 2024, after a conference call with the parties, this Court lifted a stay on this litigation and scheduled oral argument on the pending motions to dismiss. (Doc. 191). The Court also directed the parties to submit supplemental briefing addressing developments in the law since they initially filed their briefs in 2015.

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A&B Campbell Family LLC, et al. v. Williams Partners, L.P., et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ab-campbell-family-llc-et-al-v-williams-partners-lp-et-al-pamd-2025.