Bankrupt fracking firm suing New York governor to end moratorium
Norse Energy is a failure when it comes to its core business — drilling for gas and oil. Despite America’s huge drilling boom, the company is bankrupt. Unable to turn a profit as a driller, the company has taken to suing governments and officials that limit fracking, blaming them for its undoing.
Attorneys for the company’s trustees filed a lawsuit Tuesday against New York Gov. Andrew Cuomo (D) and two state commissioners, claiming that the state’s fracking moratorium had brought about the company’s undoing. The Press & Sun-Bulletin reports:
The suit asks the court to force the Cuomo administration to finalize a study that will determine whether large-scale fracking — a controversial technique to help extract gas from shale formations — can proceed in New York, arguing that repeated delays in the state’s decision-making process are grounds for a judge to intervene.
And here are more details from Rigzone:
This lawsuit comes on the heels of the [New York] Department of Environmental Conservation (DEC) launching its review of large-scale fracking about 5.5 years ago, and nearly 15 months after Dr. Nirav Shah, the state Health Commissioner, was asked by Gov. Cuomo to perform his own analysis.
Norse Energy sought reorganization protection of the United States Bankruptcy Court during the state’s 5-year review process of fracking, but was then forced into liquidation proceedings when the company failed to round up bidders during an auction of some of its New York assets.
“Norse Energy and its investors have lost more than $100 million by reason of this delay,” [an attorney for the company said]. “Since this litigation was announced, landowners have contacted me to thank me for bringing this action, complaining that they have lost their farms and their lives have been ruined as a result of the inability to participate in the shale revolution.”
Lives have been ruined by not fracking? Seriously?
Anyway, the good news is that the failed company has enjoyed no more success as a litigator than it has as a driller.
Norse Energy is also suing the New York towns of Dryden and Middlefield because they are among the more than 100 local governments in the state that have imposed fracking bans or moratoriums as precautions in case the state’s moratorium gets lifted. The towns have so far prevailed against the lawsuits in multiple courtrooms — although in August the state’s Court of Appeals agreed to hear another appeal.
Norse Energy Trustee Sues New York State to End Fracking Delays, Rigzone.
Norse Energy trustee sues Cuomo over fracking report, Press & Sun-Bulletin.
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