Hydraulic Fracturing Case — First Known Order In The Industry Dismissing A Plaintiff’s Case For Failure To Comply With A "Lone Pine" Order

In a toxic tort case arising from drilling, completion, and hydraulic fracturing activities in a residential area, Antero Resources Corporation obtained a dismissal with prejudice of all of the plaintiffs’ claims for failure to make a prima facie showing of exposure, injury, and causation in accordance with "Lore v. Lone Pine Corp.", 1986 WL 637507 (N.J. Sup. Ct., Nov. 18, 1986).
United States Energy and Natural Resources
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In a toxic tort case arising from drilling, completion, and hydraulic fracturing activities in a residential area, Antero Resources Corporation obtained a dismissal with prejudice of all of the plaintiffs' claims for failure to make a prima facie showing of exposure, injury, and causation in accordance with Lore v. Lone Pine Corp., 1986 WL 637507 (N.J. Sup. Ct., Nov. 18, 1986).

In this complex toxic tort action, the plaintiffs asserted claims for negligence, negligence per se, nuisance, strict liability, trespass, and medical monitoring, premised on allegations that the defendants committed tortious acts while drilling and completing three natural gas wells in Silt, Colorado. The plaintiffs made vague allegations of "health injuries" from exposure to air and water allegedly contaminated by defendants with "hazardous gases, chemicals and industrial wastes." The plaintiffs also alleged loss of use and enjoyment of their property, diminution in value of property, loss of quality of life, and other damages.

Cognizant of the significant discovery and cost burdens presented by a case of this nature, Colorado District Court Judge Ann Frick endeavored to invoke a more efficient procedure than that set out in the standard case management order, and ordered plaintiffs — before full discovery and other procedures were allowed — to make a prima facie showing of exposure, injury, and causation in a Modified Case Management Order (a/k/a a Lone Pine order). In part, the court relied on the fact that the Colorado Oil and Gas Conservation Commission had conducted an investigation of the plaintiffs' well water and had concluded that the water supply was not affected by oil and gas operations in the vicinity.

Plaintiffs failed to make the required prima facie showing. Judge Frick concluded that "there is neither sufficient data nor expert analysis stating with any level of probability that a causal connection does in fact exist between Plaintiffs' injuries and Plaintiffs' exposure to Defendants' drilling activities." Accordingly, the court dismissed the plaintiffs' claims with prejudice. This dismissal is the first known instance in the context of hydraulic fracturing activity.

Vinson & Elkins LLP and Hogan Lovells represent Antero Resources Corporation and Antero Resources Piceance Corporation in this matter.

Read a copy of the court's Order re Defendants' Motion to Dismiss, or in the Alternative, for Summary Judgment, issued on May 9, 2012, in Strudley et al. v. Antero Resources Corporation, et al., No. 2011CV2218, in the 2nd Judicial District Court of Denver County, Colorado.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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