Oklahoma court rules earthquake victim can sue oil companies# Stock
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.WASHINGTON, June 30 (Reuters) - An Oklahoma woman who was injured when an
earthquake rocked her home in 2011 can sue oil companies for damages, the
state's highest court ruled on Tuesday, opening the door to other potential
lawsuits against the state's energy companies.
Oklahoma has experienced a dramatic spike in earthquakes in the last five
years, and researchers have blamed the oil and gas industry's practice of
injecting massive volumes of saltwater left over from oil and gas drilling.
The state saw nearly 600 quakes of magnitude 3.0 or greater in 2014,
compared to just one or two per year prior to 2009, according to the
Oklahoma Geological Survey.
Oil production in Oklahoma has doubled in the last seven years, in part
because drillers can dispose of vast amounts of saltwater found in oil and
gas formations relatively cheaply by injecting it back into the ground.
That practice is separate from hydraulic fracturing or "fracking," which has
been linked to some smaller quakes but is not believed to be causing
Oklahoma's tremors.
Oklahoma, home to major energy companies including Chesapeake Energy Corp.,
Devon Energy Corp., and Sandridge Energy Inc., has already tightened
regulations on injection wells. The state is considering tougher rules , and
lawsuits would further boost costs for energy companies.
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Devon Energy Corp
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SandRidge Energy Inc
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As of 5:46p ET 6/30/2015. Quotes are delayed by at least 15 minutes.
.Falling rocks injured Sandra Ladra's legs when a 5.0-magnitude quake
toppled her chimney in 2011. She has sued two Oklahoma oil companies, New
Dominion LLC and Spess Oil Company, which operate injection wells near her
home in Prague, Oklahoma.
A lower court ruled that the case had to go before the Oklahoma Corporation
Commission, the regulator overseeing oil and gas, and dismissed Ladra's case
in 2014.
On Tuesday, the Oklahoma Supreme Court reversed that decision, ruling that
the commission's authority does not extend to the power to "afford a remedy"
to those harmed by the violation of its regulations. The case will return
to district court to decide whether Ladra should be granted any damages.
Ladra's lawyer, Arkansas-based Scott Poynter, told Reuters he can now move
forward on several other potential suits from Oklahoma residents seeking
compensation from energy companies for damages resulting from earthquakes.
Attorneys for New Dominion and Spess did not immediately respond to requests
for comment.
Industry advocates on Tuesday downplayed the significance of the court's
ruling, and cast doubt on whether Ladra and her attorneys could prove
specific wells were responsible for the earthquake that caused her injuries.
Researchers say more work needs to be done to determine the exact mechanism
of the link between underground injection and earthquakes, and whether
location, volume, pressure, or other factors are the most significant.
(Reporting by Yeganeh Torbati; Editing by David Gregorio) REUTERS
Companies mentioned
CHK
$11.17 USD+$0.14(1.27%)
Add to watchlist | Set alert | Trade
You currently hold Chesapeake Energy Corp
.WASHINGTON, June 30 (Reuters) - An Oklahoma woman who was injured when an
earthquake rocked her home in 2011 can sue oil companies for damages, the
state's highest court ruled on Tuesday, opening the door to other potential
lawsuits against the state's energy companies.
Oklahoma has experienced a dramatic spike in earthquakes in the last five
years, and researchers have blamed the oil and gas industry's practice of
injecting massive volumes of saltwater left over from oil and gas drilling.
The state saw nearly 600 quakes of magnitude 3.0 or greater in 2014,
compared to just one or two per year prior to 2009, according to the
Oklahoma Geological Survey.
Oil production in Oklahoma has doubled in the last seven years, in part
because drillers can dispose of vast amounts of saltwater found in oil and
gas formations relatively cheaply by injecting it back into the ground.
That practice is separate from hydraulic fracturing or "fracking," which has
been linked to some smaller quakes but is not believed to be causing
Oklahoma's tremors.
Oklahoma, home to major energy companies including Chesapeake Energy Corp.,
Devon Energy Corp., and Sandridge Energy Inc., has already tightened
regulations on injection wells. The state is considering tougher rules , and
lawsuits would further boost costs for energy companies.
Companies in the news
CHK
Chesapeake Energy Corp
$11.17
0.14%
.
DVN
Devon Energy Corp
$59.49
0.67%
.
SD
SandRidge Energy Inc
$0.88
0.05%
.
As of 5:46p ET 6/30/2015. Quotes are delayed by at least 15 minutes.
.Falling rocks injured Sandra Ladra's legs when a 5.0-magnitude quake
toppled her chimney in 2011. She has sued two Oklahoma oil companies, New
Dominion LLC and Spess Oil Company, which operate injection wells near her
home in Prague, Oklahoma.
A lower court ruled that the case had to go before the Oklahoma Corporation
Commission, the regulator overseeing oil and gas, and dismissed Ladra's case
in 2014.
On Tuesday, the Oklahoma Supreme Court reversed that decision, ruling that
the commission's authority does not extend to the power to "afford a remedy"
to those harmed by the violation of its regulations. The case will return
to district court to decide whether Ladra should be granted any damages.
Ladra's lawyer, Arkansas-based Scott Poynter, told Reuters he can now move
forward on several other potential suits from Oklahoma residents seeking
compensation from energy companies for damages resulting from earthquakes.
Attorneys for New Dominion and Spess did not immediately respond to requests
for comment.
Industry advocates on Tuesday downplayed the significance of the court's
ruling, and cast doubt on whether Ladra and her attorneys could prove
specific wells were responsible for the earthquake that caused her injuries.
Researchers say more work needs to be done to determine the exact mechanism
of the link between underground injection and earthquakes, and whether
location, volume, pressure, or other factors are the most significant.
(Reporting by Yeganeh Torbati; Editing by David Gregorio) REUTERS
