Ely v. Cabot Oil & Gas Corp.

38 F. Supp. 3d 518, 2014 WL 4071640, 2014 U.S. Dist. LEXIS 115390
CourtDistrict Court, M.D. Pennsylvania
DecidedApril 23, 2014
DocketNo. 3:09-cv-2284
StatusPublished
Cited by8 cases

This text of 38 F. Supp. 3d 518 (Ely v. Cabot Oil & Gas Corp.) 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
Ely v. Cabot Oil & Gas Corp., 38 F. Supp. 3d 518, 2014 WL 4071640, 2014 U.S. Dist. LEXIS 115390 (M.D. Pa. 2014).

Opinion

ORDER

JOHN E. JONES III, District Judge.

AND NOW, upon consideration of the Report and Recommendation of Chief [519]*519United States Magistrate Judge Martin C. Carlson (Doc. 489), recommending that the Defendants’ Motion for Summary Judgment on the Plaintiffs’ claims for strict liability (Doc. 386) be granted, and, after an independent review of the record, and noting that Plaintiffs filed objections1 (Docs. 490 and 491) to the report on January 23, 2014 to which the Defendants responded (Doc. 492), and the Court finding Judge Carlson’s analysis to be extremely thorough, well-reasoned, and fully supported by the record, and the Court further finding Plaintiffs’ objections to be without merit and squarely addressed by the Magistrate Judge within his report,2 IT IS HEREBY ORDERED THAT:

1. The Report and Recommendation of Magistrate Judge Carlson (Doc. 489) is ADOPTED in its entirety.
2. Defendants’ Motion for Summary Judgment on Plaintiffs’ strict liability claims (Doc. 386) is GRANTED and judgment is granted in favor of the Defendants on those claims as asserted by Plaintiffs.

REPORT AND RECOMMENDATION

MARTIN C. CARLSON, United States Magistrate Judge.

I. INTRODUCTION

In this ease we are invited to take a step which no court in the United States has chosen to take, and declare hydraulic fracturing to be an ultra-hazardous activity that gives rise to strict tort liability. This lawsuit was initiated on November 19, 2009, by a group of 44 plaintiffs who collectively filed suit to recover damages for injuries and property damage allegedly suffered as the result of the defendants’ natural gas drilling operations in Dimock Township, Susquehanna County, Pennsylvania. Subsequent to this case being filed, a number of the plaintiffs reached settlement agreements with the defendants, and at this juncture only 12 plaintiffs remain in the case. Among those plaintiffs are No-len Scott Ely and Monica L. Marty-Ely, individually, and as parents and natural guardians of their three minor children (the “Elys”); Nolen Scott Ely, as Executor for the Estate of Kenneth R. Ely (“Estate”); and Ray and Victoria Hubert, individually, and as the parents and natural guardians of one minor child, and a child who has since reached the age of majority, Angel Hubert (“Huberts”) (collectively, “Plaintiffs”).

The claims of the Plaintiffs are now subject to multiple pending dispositive motions filed by defendants Cabot Oil & Gas Corporation (“Cabot”) and GasSearch Drilling Services Corporation (“GDS”) [520]*520(collectively, “Defendants”). In the motion currently before the Court, the Defendants have moved for summary judgment on the Plaintiffs’ claims that natural gas drilling operations and hydraulic fracturing, commonly referred to as “fracking”, constitute abnormally dangerous activities under Pennsylvania law, and therefore should be subject to strict liability. (Doc. 386.) The motion has been fully briefed and is ripe for disposition.

Although questions regarding fracking’s safety appear with some regularity in the public arena, and while debate on this area of natural resource development may continue to roil in the public forum for some time, the Plaintiffs have failed to substantiate their contention that the natural gas drilling activities, including hydraulic fracturing at issue in this case, are so inherently dangerous that they should be' deemed ultrahazardous activities subject to strict liability. Moreover, review of the law in this field shows that for decades, courts have uniformly refused to find that oil and natural gas drilling and related activities are ultra hazardous or abnormally dangerous, and thus have found that such activities are not subject to strict liability under tort law. Instead, courts consistently have found that claims for property damage and personal injury allegedly resulting from natural gas drilling operations are governed by the more traditional negligence principles.

Accordingly, for the reasons that follow, it is recommended that the Court decline the Plaintiffs’ invitation to become the first court in this or any other jurisdiction to conclude that such natural gas drilling operations constitute abnormally dangerous activities, should find as a matter of law that natural gas drilling operations and hydraulic fracturing are not abnormally hazardous activities on the basis of the record developed in this case, ■ and grant summary judgment in the defendants’ favor on this specific claim. Plaintiffs’ claims regarding the alleged damage to their property and injuries that they claim to have experienced as a result of the Defendants’ natural gas activities should continue to be limited to, and considered against, the standards governing negligence under Pennsylvania law, principles which historically do not extend strict liability to these activities.1

II. BACKGROUND

On September 12, 2006, Kenneth R. Ely granted an Oil and Gas Lease to Cabot, as lessee (“Estate Lease”), “for the purpose of exploring by geophysical and other methods, drilling, and operating for and producing oil, gas,” and other minerals on his property, as more fully defined in paragraph 1 of the Estate Lease. (Doc. 387, Def. Statement of Undisputed Facts, ¶ 9 (hereafter “Def. SMF ¶—”); Deck of Jeffrey Keim, Doc 389, Appendix (“App.”) A & Ex. A thereto, at ¶ 1.) On May 20, 2009, Kenneth Ely died and his son, Nolen Scott Ely, was appointed as executor of the Estate, as provided for in Kenneth Ely’s will. (Second Am. Comph, ¶ 13.) Nolen Scott Ely does not reside on the property, and instead the only resident on the Estate Property is Kenneth Ely’s widow, Emmagene Samoy-Ely, who has reached her own settlement with the Defendants. (Doc. 387, Def. SMF ¶¶ 11-12.)

The Estate has brought a claim against Defendants for alleged “ground contamination” caused by the Defendants operations at well sites located on the Estate Property, which are unrelated to hydraulic frac[521]*521taring. (Id. ¶ 13.) The Estate has not made any claim for water contamination on the Estate Property caused by hydraulic fracturing or other drilling operations. (Id. ¶ 14; Deposition of Nolen Scott Ely as Executor of the Estate of Kenneth Ely (“Estate Depo.”), App. Ex. F at 7:11-14, 85:18-19,136:14-21.)

Similar to his father, on June 4, 2007, Nolen Scott Ely entered into an Oil and Gas Lease (“Ely Lease”) with Cabot, as lessee, “for the purpose of exploring by geophysical and other methods, drilling, and operating for and producing oil, gas,” and other minerals on his property, as defined in paragraph 1 of the lease (“Ely Property”). (Def. SMF ¶ 18; Keim Decl., App. Ex. A, Ex. B thereto at ¶ 1.) The record reveals that the Defendants have not conducted drilling operations on or under the Ely Property, but the Elys allege that their water supply is within 1000 feet of natural gas wells owned and operated by Cabot, namely the Gesford 3 and Gesford 9 gas wells. (Doc. 387, App. Ex. C, Depo. of Nolen Scott Ely (“Ely Dep”), at 111:5-14; Declaration of John Papso (“Papso Decl.”), App. Ex.

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Bluebook (online)
38 F. Supp. 3d 518, 2014 WL 4071640, 2014 U.S. Dist. LEXIS 115390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ely-v-cabot-oil-gas-corp-pamd-2014.