Years-long litigation involving coalbed methane production in Southwest Virginia is moving forward after recent decisions in federal court.
Landowners who claim they haven’t received sufficient royalties for coalbed methane gas taken from their properties filed federal suits against EQT Production Co. and CNX Gas Company in 2010.
Since then, lawyers representing the landowners have battled in federal court for the right to challenge the gas companies in five class-action lawsuits intended to draw in an untold number of plaintiffs from across the region.
In 2013, U.S. District Judge James P. Jones certified a series of five lawsuits being fought in Abingdon as class actions. In doing so, he accepted a magistrate judge’s recommendation to hand the cases over for juries to decide.
But the companies appealed the certification and the 4th Circuit Court of Appeals sent the cases back to Abingdon.
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Attorney Jack White, one of the attorneys representing the landowners, said documentation was resubmitted for certification under the rules set by the appeals court. In 2015, Jones heard arguments and took the case under consideration. It wasn’t until March 29, 2017, that Jones certified the class-action suits again.
The companies once again appealed the judge’s decision, but the 4th Circuit denied the appeal. On Thursday, Jones lifted a stay in the case, allowing the parties to continue their work on the litigation.
“It is hard to describe the importance of what has happened,” said Don Barrett, a Mississippi-based attorney representing the landowners. “Class certification is crucial.”
Barrett said the appeals court laid out a roadmap for certification.
“CNX and EQT are in trouble,” Barrett said. “The people of Southwest Virginia are finally going to get their day in court.”
Barrett says the gas companies have cheated the landowners.
“They’re not going to be able to defend themselves,” Barrett added. “We are still strong and we are ready for our day in court.”
White said, “This has been a long time coming and the people whose gas has been produced and sold by the defendants are due proper payment. In fact, those payments are long past due.”
Requests for comment from the gas companies were referred to corporate communications.
“As this is pending litigation, we are unable to provide additional details at this time,” EQT said in a statement Friday.
Gas disputes have been ongoing in Southwest Virginia for decades. Money has been sitting in escrow since the 1990s and was placed there when the ownership of the gas pumped out of the ground came into dispute. Several landowners have long held that they’re owed the money — since they owned the gas rights to the land — but since the coal owners could also claim the gas — as it comes from the coal bed — the money has been legally tied up in the escrow fund.
The plight of the landowners was detailed in a series of stories by the Bristol Herald Courier that won a Pulitzer Prize for Public Service in 2010.
Landowners have said they want an accounting of what their families are due for the gas produced on their land.
Moving forward, Barrett said the judge has set dates for motions, responses and any replies.
