Baker v. Anschutz Exploration Corp.

68 F. Supp. 3d 368, 2014 U.S. Dist. LEXIS 174442, 2014 WL 7215153
CourtDistrict Court, W.D. New York
DecidedDecember 17, 2014
DocketNo. 11-CV-6119-CJS
StatusPublished
Cited by6 cases

This text of 68 F. Supp. 3d 368 (Baker v. Anschutz Exploration Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Baker v. Anschutz Exploration Corp., 68 F. Supp. 3d 368, 2014 U.S. Dist. LEXIS 174442, 2014 WL 7215153 (W.D.N.Y. 2014).

Opinion

INTRODUCTION

SIRAGUSA, District Judge.

This action alleging negligence and other related causes of action involves a gas drilling company that Plaintiffs allege has contaminated their residential water wells through its gas exploration in Chemung County, New York. The case was removed by Defendant Anschutz Exploration Corporation (“Anschutz”) and is now before the Court on Anschutz’s motions seeking an order granting summary judgment, ECF No. 132, and striking Plaintiffs’ expert testimony, ECF No. 133. For the reasons stated below, both applications are granted.1

[370]*370FACTUAL BACKGROUND

Plaintiffs are residents of Chemung County, New York State, who rely on individual residential wells for all their water. Anschutz operates two natural gas wells, Dow # 1 and Dow # 2, drilled in 2010. Anschutz did not use hydraulic fracturing to construct either well. Plaintiffs claim that Anschutz’s Dow # 1 well is causing natural gas contamination of their well water. Dow # 1 was drilled vertically to a depth of 9,023 feet, and at that point, makes a roughly ninety-degree turn and continues to a depth of 9,718 feet with a total measured length of 12,840 feet. At the surface, the well is approximately 2,800 feet (about half a mile) from Plaintiffs’ homes.

Drilling of Dow # 1 commenced on April 26, 2010, and was completed on June 18, 2010. During the design and permitting phase, the New York State Department of Environmental Conservation (“DEC”) and Anschutz were aware that local residents obtained their water supply from wells. They were also aware that shallow sources of naturally occurring methane gas might be encountered during the construction of Dow # 1. Consequently, the DEC permitted and Anschutz designed the well with numerous redundant mechanical features to ensure that shallow methane could not travel up the vertical portion of the well— either inside or outside the steel casing.

During construction, DEC’s Joseph Yar-osz (“Yarosz”) was responsible for regulatory supervision of the well’s construction. He inspected both the Dow # 1 and Down # 2 wells in person more than fifty times during construction. Yarosz testified at his deposition that Anschutz satisfied all permit conditions and complied with all applicable laws and regulations during the construction of both wells. Yarosz also testified that Anschutz encountered no material problems in the wells’ construction. Further, Plaintiffs’ hydrology expert, Paul Rubin (“Rubin”), agreed during his own deposition that the vertical portion of Dow # 1 is not the source of any gas leaks or contamination, Rubin Dep. 248:7-13, and that Anschutz acted reasonably in construction of Dow # 1, the only well Plaintiffs cite as a source of their water contamination. Further, Plaintiffs’ well construction expert, Gary Gartenberg, also agreed that Anschutz did nothing wrong in construction of the Dow # 1 well. •

More than two months after Dow # 1 was completed, Plaintiffs Joseph Todd and Tom Whipple made complaints about turbidity and methane problems in their water wells. They reported those conditions to the Chemung County Health Department in September 2010. On September 13, 2010, the Chemung County Health Department referred their complaints to the New York DEC. Yarosz investigated the complaints. During his investigation, Yar-osz had dozens of interactions with residents about their complaints, including personal visits, phone calls and email correspondence. He sampled the water, interviewed those complaining of contamination, and spoke with -area neighbors, and well drillers. In November 2010, DEC issued a fact sheet indicating that gas in area water wells had been common for years prior to Anschutz’s exploration activities. Yarosz concluded that since methane was not toxic, residents should install vented well caps on their wells. DEC found that the Dow wells were constructed in such a manner as to make it highly unlikely that gas from deeper formations could migrate up the wellbore and into any water aquifers. DEC stated that:

The cause of the problems are likely associated with seasonal low water levels in a densely populated area which may have produced an intense draw down of the aquifer in the area known to have shallow, naturally occurring gas. The hydrostatic pressure of the column of [371]*371water in the well would decrease as water levels lowered allowing gas to more freely enter the water well.

Memorandum from Linsa Collart, New York State Department of Environmental Conversation, to Bradley Field and Jack Dahl, at Horseheads-001955, Jan. 31, 2011, ECF No. 133-12 (attached to Mulvania aff. as Ex. 10).

Plaintiffs’ expert, Rubin, also investigated the water in Plaintiffs’ wells, measuring its pH, and sending a sample to a laboratory to be analyzed. He also researched the seasonal fluctuation in groundwater levels in 2010. Rubin disputes that there were unusual groundwater level fluctuations in 2010 that would reflect unusually, high temperatures or explain the decline in Plaintiffs’ water quality.

DEC noted that as the aquifer recharged with water later in the fall, conditions in the water wells improved. At a December 2010 meeting with some of the ■plaintiffs, Chemung County commissioned isotopic analysis of the- natural gas from Dow # 2 (a gas well located at the same site as Dow # 1), as well as the natural gas in the water wells of Plaintiffs Todd and McDermott. • Similar to Dow # 1, Dow # 2 was drilled into the same Black River formation at a depth of approximately 10,000 feet. At the time of the testing, Dow # 1 had become inaccessible due to the presence of completion operations equipment. See Isotech Letter at Horseheads-001947, ECF No. 132-15 (attached to Guzman Decl. as Ex. 12); Dow 1 Chronology at 14-15, ECF No. 132-7 (attached to Guzman Decl. as Ex. 4). Isotech Laboratories, Inc. (“Isotech”), performed the tests.

Anschutz’s experts, independent consultant2 Edward Hinchey, P.G. (“Hinchley”), and hydrology professor Donald Siegel, Ph.D. (“Siegel”), analyzed the isotopic test results obtained by the county health department. In their report, they wrote that:

The DOW wells are completed in the Black River formation. Natural gas from the wells completed in the Black River formation cannot rise from 9,900 feet (nearly two miles) deep to the surface water aquifer. The lowest pressure in the Black River formation occurs near the well bore of the DOW wells — any water or gas movement would have to be from the formation (under high pressure) to the wellbore that is connected to the atmosphere. Hydraulics aside, we can independently test whether the natural gas at Plaintiffs’ wells consists of Black River formation gas by conducting isotopic analysis of the carbon and hydrogen in the methane.
By measuring the amounts of carbon and hydrogen isotopes in methane, their isotopic differences can be used to fingerprint methane origins. This fingerprinting method is widely accepted and has been used for over 50 years in the environmental/natural, medical and pharmaceutical sciences after first being used by Schoell in 1980, and followed by many others (e.g. Chung, 1988; and Breen, 2007).

Big Flats Groundwater Investigation 6-5-6-6. Isotech’s test results showed that Plaintiffs’ samples contained different proportions of methane, ethane, and propane than the Dow # 2 well. Isotech concluded that the gas in Plaintiffs’ wells could not have come from Dow # 2.

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68 F. Supp. 3d 368, 2014 U.S. Dist. LEXIS 174442, 2014 WL 7215153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-anschutz-exploration-corp-nywd-2014.